The cash boost to the apprenticeship incentive scheme is available for each new apprentice hired between 1 April and 30 September and is designed to help more employers invest in the skilled workforce they need for the future, as part of the government's Plan for Jobs.
Chancellor Rishi Sunak said: "By boosting the cash incentives for our apprenticeship scheme we're improving opportunities for young people to stay in and find work – this could not be more important in our economy's recovery."
Director of Summers Accident Repair Centre, Ian Summers, said: "As our industry starts to return to normality, we still have the same issues we had before Covid, and the skills shortage is up there with the most worrying.
"Bringing youngsters into the trade should be on most bodyshops' radars and this incentive will help towards some of the costs – hopefully encouraging them to do so."
School of Thought founder Dave Reece added: "There's never been a better time to take on an apprentice or trainee. That might seem strange to say when businesses may still have staff on furlough, but there is now a considerable amount of support on offer. School of Thought is currently working with the Department of Education on developing automotive traineeships that will be another route for young people to come into the industry, too.
"Review your business strategy and start to invest in the future, find the talent that is in our schools and colleges and make sure the industry provides opportunities and a career path for them."
The new incentive replaces the previous offering of £1,500 for an apprentice aged 25 or over, or £2,000 for an apprentice aged 16-24, recruited between 1 Aug 2020 and 31 March 2021.
The government is also investing in more traineeships in England, for 16-24-year-olds in 2021-22, which are programmes lasting between 6 weeks and 12 months offering young people training and work placements that boost employability, bridge skills gaps, and bolster the future talent pipeline of businesses.
£1,000 cash is available to help businesses deliver traineeships for up to 10 learners in each of the nine regions of England.