Grants of up to $2,000 in taxable cash per person are available through the Apprenticeship Grant (AG). Apprentice grants are non-refundable money, that is given to help small and medium-sized businesses hire an apprentice under a certain age to work with. In this article, we will be looking at apprentice grants that are sourced from the government, employer tools, and grants that employers are taking to get apprentices.
Apprentice Grant
Grants and subsidies aren’t taxed, so they’re not income. A grant is meant to encourage businesses to hire a certain group of people and help them pay their wages, so this will be paid for by apprentice earnings, which means that tax will not be required.
Apprentices can get benefits, but how much they get will depend on their own situation. There are a lot of different ones out there, like universal credit for low-earners.
Employers in London may be able to get a grant of £3000 to help pay for apprenticeships. These grants are meant to help small and medium-sized businesses hire an apprentice who is between the ages of 16 and 24. It doesn’t matter if the employer gets money for training costs for apprentices. The grants are on top of that. They don’t have to be paid back.
Government Grants For Apprentices
There are government grants that you, as an apprentice, can apply for. These grants, however, have some requirements you must meet in order to get it. Let us take a look at them one after the other.
Government Apprenticeship Grants for Women
It’s a tax-deductible cash grant of $3,000 per year/level (or equivalent) up to a maximum of $6,000 for each person who is getting it.
The AIG-W is only for people who:
- be a citizen of Canada, a permanent resident, or a person who is protected.
- not go to high school
- To be a woman, you have to be yourself.
- have the supporting documents for AIG-W
- Register with your province’s or territory’s apprenticeship authority to be an apprentice in a Red Seal trade where there aren’t many women working.
- have made progress in your training in Red Seal trades after April 1, 2018.
- You need to show that you have done well in either the first or second year of your apprenticeship.
The next grant is the apprenticeship incentive grant, which talks about when and how to apply for it.
Government Apprentices Incentive Grants (AIG)
If you work as an apprentice for a year or more, you can get $1,000 in cash each year or level. You can get up to $2,000 in cash for your whole life, but you have to pay taxes on it.
The AIG is only for people who:
- be a citizen of Canada, a permanent resident, or a person who is protected.
- not go to high school
- have the necessary documents from AIG.
- Sign up with your province’s or territory’s apprenticeship authority to be an apprentice in a Red Seal trade.
- If you want to work in a Red Seal trade, show that you have passed either the first or second year or level (or the equivalent).
If you made progress between January 1, 2020, and December 31, 2021, you have until December 31, 2021, to apply. Therefore If you made progress on or after January 1, 2022, your deadline to apply is 12 months after that date.
Government Grants for Apprentices Completion (ACG)
This is called the Apprenticeship Completion Grant (ACG), and it’s for apprentices who finish their apprenticeship training and get their journeyman certification. It’s a one-time taxable cash grant that each person can get once.
Make sure that you do these things:
- be a citizen of Canada, a permanent resident, or a person who is protected
- not go to high school
- have the supporting documents for the ACG.
- make sure that you can show that you have done an apprenticeship program and that you are registered as an apprentice in a Red Seal trade.
- proof of your journeyman certification in a Red Seal trade
In other words, if you finished your program after January 1, 2022, your deadline to apply is 12 months after you finished your coursework.
Apprentice Tool Grant
The Apprentice Tool Grant is a grant that doesn’t have to be paid back. Apprentices can use it to buy tools, safety gear, and clothing for their trade.
To get an apprentice grant for a tool, you must be an apprentice and meet the following rules:
- On or after April 1, 2020, those who have passed or been excused from level one in-class training must do so again
- at least 12 months must pass before you can become an apprentice
- Have a signed Training Agreement.
How do you send your apprentice grant Tool?
Grant the application. Also, you must finish the application in one sitting. It takes about 10 minutes to finish. Also, before you start, you need the following:
Personal information about you
- The first name
- The last name
- Birthdate
- The whole mailing address.
- The email address
- The telephone number (s)
There are a lot of things you need to know about your
- The Client ID*
- The trade sector is the place where people make and sell
- The trade name
Your bank account information (required if you choose direct deposit as your payment option)
- The Institute Number
- The branch number
- The account number
However, the Client ID is the identification number issued to you by the Ministry of Labour, Training and Skills Development (MLTSD) when you registered as an apprentice.
Grants For Employers Taking On Apprentices
An annual €2,000 grant is being offered to employers that are taking apprentices in an effort to close the gap in workforce skills.
Apprenticeships that are not eligible for off-the-job training allowances will receive an annual payment of €2,000 from the new employer grant, which is funded in Budget 2022.
Starting in January 2022, employers who are taking apprentices in one of the 37 new apprenticeships that have been created since 2016 will receive yearly base grants.
During the course of taking their employment with their employers, the grants will be paid to each eligible registered person among the apprentices. During the course of the year, there will be two payment dates: June and December.
Dr. Mary-Liz Trant, the new director of the National Apprenticeship Office, was also announced by Harris.
There has been excellent progress on the Action Plan deliverables and new opportunities were introduced in 2022 including the further development and launch of programs such as advanced cybersecurity practitioner, wind turbine technologist, manufacturing data integration engineer, advanced quantity surveyor, software solutions architect, and transport operations.
Employer Grants For Apprentices
An employer could get grants of up to £3000 if they hired apprentices through the scheme from August 2020 to September 2021. The grants were for an employer that hired apprentices. In October, the Chancellor, Rishi Sunak, told the Conservative Party Conference that he was going to give an extension.
HOW CAN AN EMPLOYER CLAIM GRANTS FOR HIRING APPRENTICES?
Incentives from the government to hire apprentices could have a big impact on both young people and businesses.
If a company hires a new apprentice of any age, they can get a bonus of up to £3,000. People who hire apprentices who are between the ages of 16 and 18 can also get an extra $1000 under a pre-existing plan.
The government’s digital apprenticeship service must be used to get these grants for businesses that hire people. For many businesses, especially small and medium businesses, the apprenticeship service will be a new thing. As of April 2021, all new apprentices will be managed through an online system.
Use the Apprenticeship Service to get your money from your employer.
As an apprenticeship employer, you can get a grant from the government if you set up an account with the digital apprenticeship service first.
JOIN THE APPRENTICESHIP SERVICE.
Anyone who wants to use the service before their apprentice starts their job training can sign up for an account at any time. It can be good to set up your digital account as soon as you make an offer.
There are three things you’ll need to start an account with the apprenticeship service. You’ll need a Government Gateway account for your business, the authority to set up a new PAYE scheme on your behalf, and the ability to accept an employment agreement between your company and the ESFA.
You can add a lot of people to your organization’s apprenticeship service account, so you can add people from other departments if you need to.
Can an apprentice get a grant?
Yes there are grants for apprenticeship
- Apprenticeship Grant for Women
- Apprenticeship Incentive Grant (AIG)
- Grants for Apprenticeship Completion (ACG)
Is there any financial help for apprentices?
To get a grant for tools, you must be an apprentice and meet the following rules:
- On or after April 1, 2020, those who have passed or been excused from level one in-class training must do so again
- at least 12 months must pass before you can become an apprentice
- Have a signed Training Agreement.
Is an apprentice grant taxable?
Apprentices can get benefits, but how much they get will depend on your own situation. Check to see if you qualify for benefits before you apply. There are a lot of different ones out there, like universal credit for low-earners.
