Question to the Department for Education:

To ask the Secretary of State for Education, whether she has made an assessment of the potential impact of changes to (a) employer national insurance contributions and (b) the level of the minimum wage on the number of (i) apprenticeship starts for young people and (ii) apprenticeship providers.

To repair public finances and help raise the revenue required to increase funding for public services, the government has taken the difficult decision to increase employer National Insurance.

The government recognises the need to protect the smallest employers, which is why the Employment Allowance has been more than doubled to £10,500, meaning more than half of businesses with National Insurance Contributions (NICs) liabilities either gain or see no change next year. Employers will continue to be able to claim employer NICs reliefs, including the relief for employing apprentices under 25, where eligible.

In addition, at the Autumn Budget 2024, my right hon. Friend, the Chancellor of the Exchequer announced that from April 2025 the Apprentice Minimum Wage will increase by 18% from £6.40 to £7.55. The government has accepted the findings of the independent Low Pay Commission in full and this increase will boost the hourly wage for thousands of young apprentices across a range of sectors and those in their first year of an apprenticeship.

The government remains committed to ensuring that apprentice wages support the attraction of talented individuals into apprenticeships and remain fair for employers. High quality apprenticeships are key to unlocking a more skilled and productive economy.