Haulage Apprentice Incentive Payments Set To Increase

Hauliers have been further incentivised to hire apprentices, as employers are now set to receive a £3000 grant for any new apprentices that join them from the start of April to the end of September.

The move, which was announced during last month’s Budget and came into effect at the start of April, has been largely welcomed by representatives of the freight industry.

The British International Freight Association (BIFA) was complimentary of the move, claiming it incentivised haulage organisations to consider the apprenticeship pathway and help add fresh blood to the industry.

The scheme, which initially started in August 2020, provides a lump sum amount to an organisation as long as they hire an apprentice. This payment, unlike the Apprenticeship Levy, can be used for anything, and so is used for salaries, travel arrangements and uniforms.

Initially, this amount differed depending on the apprentice’s age, with those aged between 16 and 24 years of age being worth £2,000 to an organisation and any apprentice older than this would be worth £1,500.

The move not only extends the amount of time the scheme is set to run to the end of September 2021 but also removes this age discrepancy. An employer will receive a grant of £3,000 for an apprentice of any age.

The move has been supported by employers and trade associations as apprenticeships were among the first costs to be cut to ensure haulage equipment and business continuity could be maintained.

All industries require a generation of new workers to survive and thrive, so any incentive is likely to be welcomed.