Apprentice Grant: Government Grants And Apprentices

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 Grants for Apprenticeship Completion (ACG) in the UK

The Apprenticeship Completion Grant (ACG) is a financial incentive for employers to support apprentices through their training and complete their apprenticeship programme. This grant is designed to encourage businesses to invest in long-term skills development and reward them for retaining apprentices until qualification.

Key Benefits for Employers:

• Encourages businesses to retain and develop apprentices until they qualify.
• Helps cover the cost of wages, training, and development.
• Supports small and medium-sized businesses (SMEs) in maintaining skilled workers.

How Much is the Apprenticeship Completion Grant?

• In England, the government typically provides £1,000 per apprentice for successful completion.
• In Scotland, Wales, and Northern Ireland, the grant amount varies, often ranging between £1,500 and £3,500 per apprentice.
• Additional funding may be available for apprentices in priority sectors such as engineering, construction, digital, and healthcare.

Who is Eligible for the ACG?

Employers must meet the following eligibility criteria:

• The apprentice must complete their training programme and receive certification.
• The employer must register the apprenticeship through an approved training provider.
• The business must not have breached employment or apprenticeship funding rules.
• In some cases, employers may need to retain the apprentice for a set period after completion to qualify.

💡 Important Note:

• In Scotland, employers can claim up to £3,500 under the Scottish Government’s Modern Apprenticeship Completion Grant.
• In Wales, the Welsh Government offers up to £2,600 for apprentices in key sectors.

How to Apply for the Apprenticeship Completion Grant (ACG)

• Employers in England can apply through the Apprenticeship Service on GOV.UK.
• Employers in Scotland, Wales, and Northern Ireland must check their respective government portals for eligibility and application details.
• The application process typically requires:
  • Proof of apprenticeship completion.
  • Employer PAYE details.
  • Confirmation from the training provider.

Additional Employer Benefits for Apprenticeship Completion

• National Insurance Relief – Employers don’t pay NI contributions for apprentices under 25.
• Tax Deductions – Apprenticeship wages and training costs are tax-deductible.
• Additional Sector-Specific Grants – Some industries offer extra completion bonuses for skilled trade apprenticeships.

💡 Tip: Since apprenticeship grants change periodically, employers should regularly check government funding updates to maximize financial support.

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 in the UK

Hiring an apprentice can be a cost-effective way for businesses to train new talent while benefiting from financial incentives. The UK government and various local authorities offer grants and funding to support employers in hiring apprentices, helping cover training costs and wages.

#1. Government Apprenticeship Grant (England)

The UK government provides funding for employers through the Apprenticeship Levy and the Apprenticeship Service.

✔ For Non-Levy Paying Employers (businesses with an annual payroll under £3 million):

• The government covers 95% of apprenticeship training costs.
• Small businesses with fewer than 50 employees can get 100% funding for apprentices aged 16-18 or 19-24 (with an Education, Health, and Care Plan).

✔ For Levy-Paying Employers (businesses with an annual payroll over £3 million):

• Employers must pay into the Apprenticeship Levy but can use these funds to cover training costs.
• Levy funds expire after 24 months if unused, but businesses can transfer up to 25% of their levy funds to other businesses to support apprenticeships.

💡 Funding Amount:

• The amount varies by apprenticeship level and sector but typically ranges from £3,000 to £27,000 per apprentice.

#2. Apprenticeship Incentive Grants (Nation-Specific Funding)

✔ Scotland – The Apprenticeship Employer Grant (AEG) offers up to £5,000 for employers taking on new apprentices.
✔ Wales – Employers can access Apprenticeship Employer Incentives, with grants of up to £4,000 per apprentice.
✔ Northern Ireland – The Apprenticeship NI programme offers up to £3,000 per apprentice upon completion of training milestones.

#3. Local Council Grants & Sector-Specific Funding

Some local councils and industry bodies offer additional grants for hiring apprentices.
✔ Businesses in construction, healthcare, digital, and engineering may qualify for extra sector-based funding.
✔ Many councils provide top-up apprenticeship grants ranging from £1,000 to £3,000.

#4. Additional Employer Benefits

✔ National Insurance (NI) Relief – Employers don’t have to pay NI contributions for apprentices under 25 earning below £967 per week.
✔ Tax Deductions – Apprenticeship costs can be included in business expenses, reducing taxable income.

How to Apply for an Apprenticeship Grant

✔ Employers in England can apply via the Apprenticeship Service (Gov.uk).
✔ Businesses in Scotland, Wales, and Northern Ireland should check their respective government portals.

💡 Tip: Since grants change regularly, employers should check the latest funding options before hiring apprentices.

Would you like me to expand on a specific funding scheme? 🚀

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.

Frequently Asked Questions