Question to the Department for Education:

To ask the Secretary of State for Education, whether her Department made an assessment of the potential impact of changes made to (a) National Insurance and (b) the National Living Wage at the Autumn Budget 2024 on the number of apprenticeships offered by high street businesses.

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. This means 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.

From April 2025, the National Living Wage will increase by 6.7% from £11.44 to £12.21 and 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 to the Apprentice Minimum Wage 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.

The department also continues to pay employers and training providers £1,000 when they take on apprentices under 19, or 19 to 24-year-olds who have an education, health and care plan, or have been in care.