Apprenticeship Hiring Incentives: How can the 2021 Budget benefit the Digital and IT Industries?

Written on: 4 March 2021

Written by: Frances Hardcastle



This week, Chancellor Rishi Sunak announced a significant expansion of apprenticeship hiring incentives for employers in the 2021 Budget.

The government grants for employers to hire apprentices have been extended until September 2021, with employer incentive payments of up to £4000 being made available. 

The Chancellor has doubled the amount of funding available for hiring apprentices aged over 25, demonstrating the importance of this training method for the UK's economic recovery from Coronavirus, as outlined in the Plan for Jobs.

What are the available apprenticeship hiring incentives for employers?

From the 1st April 2021, employers who take on a new apprentice – of any age – can claim a grant of £3000. 

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 £4000 when they hire an apprentice.

How will this funding be allocated?


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 (this means you can hire an apprentice who has been made redundant elsewhere). 
  • They must have a contract of employment, with a start date between 1st April and 30th September 2021.
  • They must not have been employed by you within the six months prior to their start date.

Related Blog: Kickstart or Apprenticeships - Which Skills Funding is Right for Your Business?

Claiming the Incentive

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

According to government guidance, the incentive is split into two equal payments. One is made when the apprentice reaches 90 days, the other of made after 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. 

Read More: How to Claim your £3000 Apprenticeship Hiring Incentive

How will Digital, Tech and IT businesses benefit?

At Baltic, we’re excited about this renewed commitment to apprenticeship training – as Sunak said back in August 2020, we know apprenticeships work.

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 Data, 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 employers. Last year, 95% of Baltic Apprentices who had successfully completed their programme were still employed or working towards their next level of apprenticeship training.

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

Recommended Blog:

Apprentice of the Month - July 2021

Written on: 30th July 2021

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