Apprentices: Minimum Wage

(asked on 29th June 2023) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the impact of the National Minimum Wage apprenticeship rate on the take up of apprenticeships.


Answered by
Robert Halfon Portrait
Robert Halfon
This question was answered on 5th July 2023

The government is committed to ensuring that apprentice pay supports the attraction and retention of talented individuals into apprenticeships.

The department recognises that apprentices may be experiencing financial pressures because of rises in the cost of living. In November 2022, the government accepted, in full, the Low Pay Commission’s recommendation to increase the Apprentice National Minimum Wage by 9.7% to £5.28 from April 2023. This increase will help to counter the impact of rises in the cost of living, and the department continues to provide financial support to encourage more apprenticeship opportunities for all people.

Many employers choose to pay their apprentices more than the national minimum wage rates, 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 independent Low Pay Commission is responsible for advising 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. Its latest consultation began on 23 March 2023 and closed on 9 June 2023. Its outcomes will be published in due course.

The Commission has committed to keeping the Apprentice Rate under close review and will continue to assess whether a separate rate for apprentices is still justified. The full report can be found at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1129930/Low_Pay_Commission_Report_2022.pdf.

The department makes £1,000 payments to employers and providers when they take on apprentices aged 16 to 18, and apprentices aged 19 to 24 that have an Education, Health and Care plan, which can be used to support costs such as wages, uniforms or travel. In addition, we are increasing our care leavers’ bursary from £1,000 to £3,000 in August 2023.

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