On the back of the Chancellors announcement on the package of support available to businesses we have been eagerly awaiting the finer detail of each scheme.
Whilst some details are yet to be issued, we wanted to keep you updated with what we know so far.
The Kickstart Scheme will fund the direct creation of high quality jobs for young people who are at the highest risk of long-term unemployment. It will give young people the chance to build their confidence and skills in the workplace, and to gain experience that will improve their chances of going on to find long-term, sustainable work.
Funding available for each new job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions, and employer minimum automatic enrolment contributions. The funding will be conditional on the firm proving these jobs are ‘new’. The scheme will open for applications in August, with the first jobs expected to start in the autumn.
It has been confirmed that the Kickstart Scheme cannot be used alongside the other announced incentive schemes such as the Apprenticeship Incentive Scheme.
No further information is available, at this point however it is expected that this scheme will sit alongside a guaranteed foundation of support delivered though the DWP, providing a range of targeted support to help young people find lasting work.
We are keeping a keen eye for updates on this scheme and will be providing further information accordingly.
Apprenticeship Incentive Scheme
From 1 August 2020 to 31 January 2021, businesses that hire a young apprentice aged 16 to 24 will receive an incentive of £2,000, with £1,500 being given to organisations that hire an apprentice over the age of 25. These payments will be in addition to the existing £1,000 incentive the Government already provides to SME’s for 16 to 18-year-old apprentices, meaning that an employer could receive up to £3,000 for hiring 16 to 18-year-old apprentices during the six month incentive scheme.
The eligibility criteria has now been released and we have set this out below along with some common questions often asked about apprenticeships.
What is an apprenticeship?
An apprenticeship is a real job, with hands-on experience, a salary, and the chance for an individual to train whilst they work. They will require some time off during working hours to complete their 20% off-the-job training, but BOSS with their partner BPIF, will work with you to plan this out over the duration of the apprenticeship. An apprentice is an employee of the business, treated just like all other employees with a contract of employment and holiday leave.
How long does an apprenticeship last?
The minimum duration of an apprenticeship is 12 months however this does depend on the type of apprenticeship.
What are the salary requirements for an apprenticeship?
The current minimum wage rate for an apprentice is £4.15 per hour. This rate applies to apprentices under 19 and those aged 19 or over who are in their first year. Apprentices must be paid at least the minimum wage rate for their age; if they are an apprentice aged 19 or over and have completed their first year.
Are there any eligibility requirements for an apprentice?
An apprentice must be aged 16 or over and spend at least 50% of their working hours in England for the duration of the apprenticeship.
How do I employ an apprentice?
Information on how to take on an apprentice can be found here: https://www.gov.uk/take-on-an-apprentice but it might be easier for one of our team to explain this. To find out more please contact Cathy Hughes at firstname.lastname@example.org
Are there any specific requirements I need to meet to qualify for the apprenticeship incentive between August and January?
The apprentice must be a new employee to the business, have a contract of employment start date between 1 August 2020 and 31 January 2021 (inclusive) and must not have been employed by the employer within the six months prior to the contract start date.
I am hiring an apprentice in August; how do I claim the incentive payment?
Claims can start to be made by employers in relation to these apprentices from 1 September 2020. Those claims must be made through the apprenticeship service. Where you are not already registered, registering for the digital apprenticeship service is quick and simple and you can do so here.
How long will it take to receive the incentive payments?
There will be two levels of payment based on age. For apprentices aged 16-24 the payment will be £2,000, and for apprentices aged 25 or over the payment will be £1,500. The payment will be made directly to employers in two equal instalments, where the apprentice is still in learning at day 90 and day 365.
Is there a limit on how many apprentices I can hire under this scheme?
There will be no limit on the number of incentive payments that an employer can claim for apprentices eligible to receive funding, provided each apprentice meets the criteria, including being a new employee.
Can I still use the apprenticeship scheme to support current members of staff?
Yes, you scan still use apprenticeships to upskill current members of staff where there is a genuine requirement, and you can still use the apprenticeship scheme to recruit staff who fall outside of the eligibility for the apprenticeship incentive.
Are levy and non-levy payers both eligible for the apprenticeship incentive?
Yes, where the apprentice is eligible, the incentive applies to both non-levy and levy paying employers.
I want to hire an apprentice, but I do not know where to start
BOSS along with their partner BPIF are here to support you through the apprenticeship process. Please get in touch with Cathy Hughes at email@example.com who will be able to help.
Traineeship Incentive Scheme
The Government will provide an additional £111 million this year for traineeships in England, to fund high quality work placements and training for 16-24-year olds. This funding is enough to triple participation in traineeships. For the first time ever, the Government will fund employers who provide trainees with work experience, at a rate of £1,000 per trainee. Whilst we await further details on how this will work we, thought it would be useful to set out what a traineeship is.
What is a traineeship?
A traineeship is a course with work experience that gets a young person ready for work or an apprenticeship. The purpose of traineeships is to prepare young people for employment, so that they are able to progress successfully to apprenticeships and other sustainable jobs. Work experience in traineeships should give the young person experience of a real workplace so they can develop the skills, knowledge, confidence, attitudes and behaviours they need to succeed at work.
How long does a traineeship last?
A traineeship is minimum of 6 weeks up to a maximum of 6 months and should reflect the needs of the student. Trainee work placements must last at least 100 hours. If your trainee gets unemployment benefits the placement cannot last longer than 8 weeks. Trainees may complete a maximum of 240 hours of work experience over six months.
What is the minimum salary for a traineeship?
You do not have to pay trainees or offer expenses but quite often businesses will support trainees with travel and subsistence costs.
What are the eligibility requirements for a traineeship?
A trainee is a young person aged 16 to 24 and up to age 25 for those with an Education, Health and Care plan.
Do I have to hire the trainee once their traineeship is finished?
Trainees should be offered an interview for an apprenticeship or job, if available at the end of the scheme.
To download the PDF on the guidance and FAQs so far, please click HERE.