Asked by: Baroness Wolf of Dulwich (Crossbench - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government whether they conducted an impact assessment of the effect on recruitment of 16-21 year old apprentices by non-levy-paying employers of the decision to (1) increase the apprentice wage for 16-17 year olds by 6 per cent, and (2) raise the national minimum wage for 18-20 year olds by 8.5 per cent; if so, what were the results of that assessment; and if not, why.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Department for Business and Trade will publish a comprehensive impact assessment alongside the legislation introducing the revised National Living Wage and National Minimum Wage rates early in the New Year. This assessment will provide detailed analysis for each rate including the apprentice rate, the projected number of workers who will benefit and the estimated costs to businesses, broken down by region, age group, and sector.
In addition, the Low Pay Commission have published their summary of evidence on gov.uk, which sets out the key evidence behind their recommendation. Finally, the Low Pay Commission will publish their full annual report in the new year, which will set out in greater detail the evidence and stakeholder feedback that informed their 2026 NMW recommendations.
Asked by: Baroness Wolf of Dulwich (Crossbench - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the impact of the provisions proposed in the Employment Rights Bill on the proportion of apprenticeships offered by employers to (1) existing employees, (2) new hires, and (3) 16–24 year olds; and what evidence regarding employers' decisions to award apprenticeship contracts they have used in this assessment.
Answered by Baroness Jones of Whitchurch
In October, Government published 24 Impact Assessments representing a comprehensive package of analysis on the impact of the Employment Rights Bill. This analysis shows that the Bill is expected to benefit younger workers, typically disproportionately represented in low paid, low quality, insecure jobs.
Asked by: Baroness Wolf of Dulwich (Crossbench - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the potential impact on apprenticeship numbers of the measures included in the Employment Rights Bill, including the proposed extension of protections against unfair dismissal to day one of employment.
Answered by Baroness Jones of Whitchurch
In October, Government published 24 Impact Assessments representing a comprehensive package of analysis on the impact of the Employment Rights Bill. This analysis shows that the Bill is expected to benefit younger workers, typically disproportionately represented in low paid, low quality, insecure jobs.
The Employment Rights Bill will make basic protection against unfair dismissal a day one right for all employees. The new statutory probation period will provide lighter-touch standards for employers to dismiss an employee who is not suitable. These standards will also apply to apprenticeships and training contracts, requiring adequate evidence to justify dismissal on conduct or capability.