Question to the Department for Education:
To ask the Secretary of State for Education, what steps the Government is taking to respond to the recommendations on Apprenticeship pay rates in Low Pay Commission's annual report for 2022.
The government is committed to ensuring that apprentice pay supports the attraction and retention of talented individuals into apprenticeships.
The independent Low Pay Commission (LPC) is responsible for advising the government on annual changes to minimum pay rates. Its recommendations follow a period of extensive research and consultation with employers, sector representative bodies and government stakeholders. The report for 2022 can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1129930/Low_Pay_Commission_Report_2022.pdf.
In November 2022, the government accepted, in full, the LPC’s recommendation to increase the Apprentice National Minimum Wage by 9.7% to £5.28 from April 2023.
Many employers choose to pay their apprentices more than the National Minimum Wage rate, recognising the value that apprentices bring to their workplace. Our data shows that average hourly pay for apprentices ranges between £8.23 for level 2 and £14.02 for level 6.
The LPC has committed to keeping the Apprentice Rate under close review. The consultation to inform their recommendations on the 2024 minimum wage rates ran from 23 March and closed on 9 June 2023. It is expected that the government will receive the recommendations through the 2023 annual report, this autumn.
The department continues to offer financial support to apprentices and makes £1,000 payments to employers and providers when they take on apprentices aged 16-18. This can be used to support costs such as wages, uniforms or travel, and the department is increasing the care leavers bursary from £1,000 to £3,000.