As part of the Government’s Plan for Jobs, employers are being offered £2,000 for each new apprentice they hire under the age of 25, and £1,500 for each new apprentice they hire over the age of 25, up to the 31st January 2021. This also includes taking on an apprentice who has been made redundant due to the current pandemic.
The new cash incentives for employers are in addition to the existing £1,000 payment for new 16-18-year-old apprentices, and those aged under 25 with an Education, Health and Care Plan.
To support individuals, particularly young individuals, affected by Covid-19, the Government has also announced a series of support including:
• An increase to the number of traineeships available across England to help more 16-24 year olds improve their skills and experience and build the confidence they will need to enter the world of work • A new ‘Kick-start’ scheme to create hundreds of thousands of new, fully subsidised jobs for young people across the country • Investment to increase participation in sector-based work academies, to upskill job seekers to help fill locally identified vacancies • A Job Retention Bonus – a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021 • Additional support to school and college leavers at risk of becoming unemployed to do a fully funded optional extra year of study • The National Careers Service is also providing high quality impartial advice and guidance to more young people and adults who have been affected by coronavirus
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Guidance on expenses and benefits for apprenticeship bursaries for care leavers 16 September 2020
HMRC has published guidance on the exemption of Income Tax and National Insurance (NI) contributions that can be applied to the apprenticeship bursary payment provided to care leavers and those in local authority care.
Organisations do not need to pay any tax or NI contributions on the bursary payment to apprentices who are care leavers, or those who are in the care of a local authority. There will also be no reporting requirements for businesses in relation to this payment. The exemption is applicable to apprenticeships that began on, or after, 1 August 2018. The Education and Skills Funding Agency (ESFA) can make the £1,000 bursary payment to be given to apprentices who are aged between 16 and 24, and who are starting an English apprenticeship. The bursary is paid to apprenticeship training providers in scenarios where an apprentice remains on an apprenticeship for a minimum of 60 days. The provider then transfers this to the apprentice in one single payment within 30 days of receiving it. This is the case unless the EFSA confirms in writing that a longer period is allowable.
There are certain eligibility conditions for the care leavers’ bursary for apprentices, and it is intended that the payment will help to remove barriers to accessing the apprenticeship. For an apprentice to be eligible, they must be either:
• They must be an eligible child, meaning a young person who is 16 or 17, who has been looked after by a UK local authority or health and social care trust for a minimum of 13 weeks since the age of 14, and who is still looked after • They must be a relevant child. This is a young person who is 16 or 17 and has left care within the UK after their 16 th birthday, and prior to leaving care, was classed as an eligible child • They must be a former relevant child. This is a young person aged between 18 and 21, who, before turning 18, was either an eligible or relevant child. This can be up to their 25 th birthday if they are in education or training And: • They must have commenced their apprenticeship on or after 1 August 2018, and not been in receipt of the care leavers’ bursary before
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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