Employers had been able to apply for a payment of £3,000 for every apprentice that started before the end of September, but the scheme has now been extended by four months until the end of January 2022.
In his speech at the Conservative Party Conference in Manchester, Sunak said: “At the start of this crisis I made a promise to do whatever it takes, and I’m ready to double down on that promise now as we come out of this crisis.
“The job is not done yet and I want to make sure our economy is fit for the future and that means providing the support and skills people need to get into work and get on in life.”
The incentive payment is in addition to the £1,000 employers already receive for hiring an apprentice aged 16 to 18 years old, under 25 with an education, health, and care plan or who has been in the care of their local authority.
The payment is different to apprenticeship levy funds, so employers can spend it on anything to support costs such as uniform, salary and expenses. To receive the full amount, the apprenticeship must last for at least one year.
The chancellor will confirm specific funding for each measure that’s being extended at the Spending Review on Wednesday 27 October.
Commenting on the announcement, Gregg Scott, Managing Director for Realise, said: “We are delighted with this news today because we firmly believe that apprenticeships can play a key part in the post-Covid economic rebuild.
“Our team of experienced trainers and coaches help people to fulfil their potential and encourage businesses to grow with a skilled workforce every single day so it’s a massive boost for everyone.
“We’re one of the top training providers in the UK and can help any business looking to hire a new apprentice and take advantage of these extended incentives. For more information, please get in touch with our team.”