Apprenticeship Subsidy

New-Subsidy-for-Apprenticeships

The new apprenticeship subsidy and your recruitment strategy

In his Summer Statement, the Chancellor announced a wave of incentives to kick start the economy and to protect jobs. One of these measures is the introduction of an additional wage subsidy for employers who wish to recruit apprentices.

Employers who recruit an apprentice between 1 August 2020 and 31 January 2021 will be able to claim a £2,000 wage subsidy for apprentices aged between 16-24 years old and £1,500 for apprentices aged 25 years or older. These subsidies are in addition to the current incentives which allow employers to claim £1,000 for each apprentice they employ who is aged 16-18.

Furthermore, employers can still access free apprenticeship training for these 16-18 year olds, providing the business employs fewer than 50 staff.

Putting your recruitment strategy first

With August and September, followed by January, being the traditional trainee recruitment times for the accounting sector, these incentives (including the new wage subsidy) could not have come at a better time to support firms with their recruitment plans.

However, Simon Deane, co-founder of award-winning Accountancy Learning stresses ‘it’s not just about the money’! His view is, “Accountancy firms and accounts departments should only look to take advantage of these incentives if recruiting an apprentice is part of their recruitment strategy.

This means having a plan in place to recruit, train and develop accounting staff who it is intended will form part of the firm’s future. The ability to tap into the wage subsidy should be something that tips the balance in terms of recruiting someone, rather than being the sole reason for the appointment.”

Talk to us

If you’re considering taking on an apprentice, whether as part of your annual recruitment strategy or as a one-off exercise to strengthen your team, we can talk you through the process including what’s involved and how to access the funding.

In addition to the first-class AAT and Apprenticeship training we provide we can also help with the recruitment process using our no-fee Talent Programme to help you recruit the best trainees. This service, along with our Bookkeeping Aptitude Test, which costs just £15 + VAT per student, takes the risk out of recruiting accounting apprentices.

Our philosophy is to ensure you only take on students who have the right aptitude and attitude to work within your firm, thereby giving you the accounting support you need, whilst helping to develop their careers.

To find out more about these new apprenticeship subsidies, or to discuss the many ways in which we can help you to recruit, train and develop your accounting students, simply email Paul Hollis, our Business Development Manager, at [email protected].

You can also read more about it here.

This link also refers to a new £2 billion Kickstart Scheme being launched to create hundreds of thousands of new, fully subsidised jobs for young people across the country. Those aged 16-24, claiming Universal Credit and at risk of long-term unemployment, will be eligible.

Funding available for each six-month job placement will cover 100% of the National Minimum Wage for 25 hours a week – and employers will be able to top this wage up.

This could be used as a pre-apprenticeship probationary period. Over this period it is more than feasible to complete the AAT Certificate in Bookkeeping in order to create the foundation for progression to an apprenticeship at either Level 2 or 3. As above, our pre-recruitment screening Bookkeeping Aptitude Test can help you recruit the right candidates.

Both the cost and risk of recruiting these staff is therefore considerably reduced.

Further funding is being made available to triple the number of sector-based work academy placements over the coming year and we are liaising with the Devon and Cornwall Training Provider Network on this.

So – lots happening. We will try to keep you posted as it all develops – but do please contact us for advice on how it might impact on you and help you with your staffing and training requirements.