Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate he has made of the average cost to a non-Levy-paying firm of employing an 18-year old apprentice in the second year of their apprenticeship, paid at the legal minimum hourly rate for a 37.5 hour week, assuming the employer has more than 50 employees and the apprentice does not have an EHCP and was never in care, in terms of (a) wage cost (b) apprenticeship training cost (c) total cost, for an apprenticeship started in (i) September 2023 (ii) April 2024 (iii) September 2026.

Minimum wage rates are reviewed annually and the government considers the independent advice of the Low Pay Commission when setting minimum wage rates.

Past, present and future minimum wage rates are published here, National Minimum Wage and National Living Wage rates - GOV.UK.

Regarding apprenticeship training costs, each apprenticeship standard has a funding band which sets out the maximum amount that the government will contribute to the cost of apprenticeship training and assessment over the full duration of the apprenticeship. Apprenticeship funding bands range from £1,500 to £27,000.

The apprenticeship funding rules for the 2023/24, 2024/25 and 2025/26 academic years, which include information on employer co-investment, are published here Apprenticeship funding rules - GOV.UK.

From August 2026, the government will fully fund apprenticeship training for non-levy paying employers for all eligible people aged 16-24. For all other apprentices, employers that do not pay the levy will be required to co-invest 5% towards apprentice training costs, unless they are in receipt of a levy transfer which covers that cost.

The government pays £1,000 to both employers and providers for apprentices aged 16-18, and for apprentices aged 19-24 who have an EHCP or have been, or are, in local authority care. On top of this, employers will receive additional payments of up to £2,000 for eligible foundation apprenticeships. Additionally, employers are not required to pay anything towards employees’ National Insurance for all apprentices aged up to age 25 (when the employee’s wage is below £50,270 a year).