Apprenticeship Hiring Incentives: How can the Chancellor’s funding benefit the Digital and IT Industries?

By Frances Hardcastle, Baltic Apprenticeships.

“We know apprenticeships work. 91% stay in work or go onto further training. For the next six months we are going to pay employers to create new apprenticeships.”

This was the announcement from Chancellor Rishi Sunak, during the summer statement, when the Plan for Jobs was launched.

From 1st August until 31st January 2021, employers who take on a new apprentice aged under 25 will receive a payment of £2,000. Support is also available to hire apprentices aged 25 and over, through a £1,500 payment.

The great news is that this funding is in addition to the existing £1000 government grant which already applies to new 16-18 year old apprentices. This means that some employers could claim as much as £3000 when they hire an apprentice.


As of 15th July, we now have further details of how and when employers will receive these payments.


To be eligible for this new government funding for apprenticeships, the following conditions will need to be met:

  • The apprentice must be a new employee to your business
  • They must have a contract of employment, with a start date between 1st August 2020 and 31st January 2021.
  • They must not have been employed by you within the six months prior to their start date.

There is no limit on the number of incentive payments you can claim. You can take on as many new apprentices as you need, so long as each candidate meets the above criteria.

Claiming the Incentive

Organisations will need to claim the apprentice employer incentive payment through the government’s apprenticeship digital service.

  • Incentive claims can be made from 1st September 2020
  • The incentive is split into two equal payments, one made when the apprentice reaches 90 days, the other is made at day 365 of their training.

If your apprentice is aged 16-18, the existing £1000 incentive will be paid as usual through your apprenticeship provider.

Full details are available from the official government guidance.

We have created a detailed guide to claiming the incentive payment on our blog.


At Baltic, we’re excited about this renewed commitment to apprenticeship training – as Sunak said: we know apprenticeships work. And with these new financial incentives, we hope that more employers will take the plunge, hire an apprentice, and realise the benefits of this amazing talent development opportunity.

Apprenticeships combine the structure, training and rigorous assessment of a formal qualification with invaluable on-the-job experience. As such, they are an ideal mechanism for a young person to begin a career in digital or tech roles, and for employers to cultivate a cost-effective, loyal and knowledgeable workforce.

At Baltic Apprenticeships, we specialise in Level 3 and Level 4 qualifications in Software Development, Digital Marketing, IT Infrastructure and Cyber Security. The demand for skilled workers in these specialisms is already vast, and will continue to rise.

Related Blog: Why taking on a Software Development Apprentice could be the right move for your tech company – whatever the future holds

For those committed to growing their own tech talent, hiring apprentices can be transformative. Apprenticeship programmes tackle the digital skills gap head-on, with fantastic retention rates for those who complete their qualification.

To find out more about how apprenticeships could benefit your organisation, why not browse our case studies or Apprentice of the Month nominations?

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