*You must not have taken on an Apprentice in the last 3 years*
AGE 16 to 24
Apprenticeship Grant for Employers of 16 to 24 year olds (AGE 16 to 24)
Introduction
The AGE 16 to 24 is aimed at helping eligible employers to offer young people employment through the Apprenticeship programme, by providing wage grants to assist them in recruiting their first apprentice.
The National Apprenticeship Service is committed to working closely with our strategic partners including AoC, AELP, colleges and training providers across the country to deliver our ambition for the AGE 16 to 24.
Background
The National Apprenticeship Service will provide up to 40,000 Apprenticeship Grants to smallmedium size employers recruiting 16 to 24 year olds with a value of £1,500, to encourage new employers to take on new 16 to 24 year old apprentices.
Priority will be given to small-medium size employers with less than 50 employees and we expect to support at least 20,000 of these to recruit an apprentice for the first time.
The National Apprenticeship Service can support a further 20,000 employers with up to 250 employees who may be recruiting their first or additional apprentices; however our focus will remain a priority to support employers NEW to apprenticeship delivery in the first instance.
When will AGE 16 to 24 be available?
The AGE 16 to 24 is available from 1 February 2012 until March 2013 for eligible employers who are able to offer a job opportunity to a 16 to 24 year old recruited as an apprentice. Funding will start from 1 April 2012.
You will claim the £1,500 incentive payment so that the employer is able to receive the grant of £750 on completion of week 8 of their Apprenticeship, with the second £750 when the apprentice has completed 12 months of their Apprenticeship.
Should the apprentice leave or be dismissed, a proportion of the grant will be withheld from the employer at the following levels:
- If the apprentice leaves or is dismissed between weeks 1 and 8 the employer will not receive the first payment of £750
- However if at week 8 stage another eligible 16 to 24 year old is recruited as an apprentice within 4 weeks of the dismissal/leave date, no element of the grant will be withheld
- If the apprentice leaves or is dismissed before completion of their Apprenticeship framework the employer will not receive the second payment of £750.
The £1,500 is in addition to the costs of training which for young people aged 16 to 18 are already fully met by the National Apprenticeship Service, with half the costs met for those aged 19 to 24.
The payment is a grant and is exempt from VAT.
Which employers are eligible to receive this new AGE 16 to 24 payment?
Our aim is to support new employers to offer new jobs in support of young people.
The National Apprenticeship Service particularly want to support small and medium sized employers who are interested in employing an apprentice for the first time. This could also be an opportunity for employers who have previously employed an apprentice more than 3 years ago, where the AGE 16 to 24 grant will provide them with additional support and encouragement to employ a young apprentice again.
What is expected of training providers?
Providers will need to ensure employers are eligible under the terms of the grant and work with them to understand their commitment when applying for it.
Employers will sign an agreement which will include:
- Confirmation of the number of apprentices they will be taking on as a result of this incentive (to a maximum of 3)
- Confirmation that they wouldn’t have taken the apprentice on without this additional incentive
- A commitment to employ the apprentice for at least the time it takes to achieve the Apprenticeship framework. If they fail to do this some or all the grant will be clawed back
- Confirmation that they are aware of and do not breach any state aid rules
- Agreement to pay the minimum Apprenticeship wage of £2.60 per hour – although most apprentices receive more than this
- Confirmation that they have not taken on an apprentice in the previous three years.*
*Not eligible if the employer employs an apprentice with an Individual Learning Record (ILR) start date of April 2009 or after.
As our approved network of training providers you will be responsible for processing payments to employers. Employers should receive two prompt payments - £750 when the young person completes the 8th week of their Apprenticeship Programme and a further £750 on completion of 12 months from ILR start date.
Who will manage and administer the funding?
NAS will manage the AGE 16 to 24 and will work closely with the Skills Funding Agency who will administer the funds on our behalf.
How will training providers be reimbursed for AGE 16 to 24 payments they pay eligible employers?
Payments will be made through the Skills Funding Agency on behalf of NAS on a monthly basis.
Training providers will not be paid a fee to administer the wage incentive. Providers will benefit from additional starts and ‘easier’ employer engagement. We will keep the system as simple as possible to ensure that the additional burden on providers is kept to a minimum.
We have decided not to give each provider an allocation of wage incentive places, as we want the programme to be led by employer choice. Therefore funds will be allocated on a ‘first come first served’ basis, but with providers expected to submit ‘pipeline’ information to Skills Funding Agency/NAS to help manage demand.
Providers can check an employer’s eligibility by:
- Following the criteria laid out in the fact sheet that can be downloaded from the website
- Refer to apprenticeships.org.uk to check the latest guidance and information on recruiting an apprentice
- Checking the weekly Provider Up-date for up-dated Fact Sheets, Q&A and power point
- Contact your usual Skills Funding Agency contact if the documents do not answer your question(s).
For more information or if you are interested contact Mudasir on 01706 631417