AQW 13390/17-22 Written question to the Minister for the Economy
To ask the Minister for the Economy to detail the number of apprenticeship places supported by (i) the Apprenticeship Return, Retain and Result Scheme; and (ii) the New Apprenticeship Incentive Scheme.
Asked by Stewart Dickson MLA on 26 January 2021
- Answered
- Written
- Tabled
- 26 January 2021
- Answer due by
- 10 February 2021
- Answered
- 5 February 202110 days after tabling
- Department
- Department for the Economy
- Priority question
- No
Answer
(i) The Apprenticeship Return, Retain and Result (RRR) Scheme
The Apprenticeship Return, Retain and Result Scheme opened for applications on 1st December 2020, the earliest date that a successful application could be made. As of 29th January 48 employers have successfully applied to the scheme supporting 111 apprenticeships with a total of £55,220 paid out. There are three separate incentive payments in the scheme:
Return - £500 for the first month completed from 1st November 2020;
Retain – Up to £2,000, £500 per month of retention between 1st December 2020 – 31st March 2021; and
Result - £1,200 upon successful completion of the apprenticeship.
As only the smallest, Return, incentive is currently being claimed the value of expenditure is not expected to increase significantly until April 21 when the majority of applications for the larger, Retain and Result, incentives are expected to be received.
(ii) The Apprenticeship Recruitment Incentive Scheme
The Apprenticeship Recruitment Incentive Scheme opened for applications on 16th September 2020, with eligibility backdated to include all new apprenticeship opportunities created between 1st April 2020 and 31st March 2021. As of 29th January 93 employers have successfully applied to the scheme supporting 140 apprenticeships with £274,000 paid out.
As with the RRR scheme there are separate elements to this scheme with employers becoming eligible to apply for:
Payment 1 - £2,000 90 days after the start of a new apprenticeship; and
Payment 2 - £1,000 200 days after the start of the apprenticeship,
With the vast majority of apprenticeship recruitment occurring between September and October each year a significant number of employers are only now becoming eligible to apply for Payment 1. A large increase in the number of applications and the value of monies paid out is therefore expected over the coming months.
It is important to note that unlike other skills and training interventions, apprenticeships are demand led and directly linked to jobs and skills needs in the real economy. Despite this package of support it is clear the ongoing restrictions, which have seen the prolonged closure of a number of sectors who traditionally utilise apprenticeships including hospitality and hair and beauty, alongside the extension of the UK Government’s Coronavirus Job Retention Scheme are continuing to have a major impact on the recruitment of new apprentices.
A key aspect of the Apprenticeship Recovery Interventions is to promote longer term outcomes and therefore, unlike a number of other COVID-19 financial support interventions, payments are phased - with the majority of applications and payments not expected until later in the current financial year or into the next.
As a result, in the case of both schemes, it is too early to definitively say how many apprenticeship opportunities are being supported however the availability of support has been well received and the apprenticeship system is responding positively. Reports from training providers would indicate that that the majority of apprentices have been returned from furlough and although, as expected, new apprenticeship recruitment is down on previous years the monthly variance has closed significantly since the announcement of the package.
In order to ensure that as many employers as possible are aware of the support available the launch of these schemes has been supported by an advertising campaign across TV, radio and social media, my Department has also been working with training providers to ensure that employers are made aware of the support available and to encourage them to utilise the support available to protect existing and create new apprenticeship opportunities Further information on both schemes can be found at the following address:
https://www.nibusinessinfo.co.uk/content/coronavirus-apprenticeship-recovery-package