Budget News – Apprenticeships

Budget News – Apprenticeships

The Chancellor has announced the new rates of National Minimum Wage, National Living Wage and Apprentice Minimum Wage from April 2019 as recommended by the Low Pay commission (LPC).

• The National Living Wage (for workers aged 25 and over) should increase from £7.83 to £8.21;
• The rate for 21-24 year olds should increase from £7.38 to £7.70;
• The rate for 18-20 year olds should increase from £5.90 to £6.15;
• The rate for 16-17 year olds should increase from £4.20 to £4.35; and
• The apprentice rate (for apprentices aged under 19 or in the first year of their apprenticeship) should increase from £3.70 to £3.90.
• The Low Pay Commission has recommended that the accommodation offset increases from the current £7.00 to £7.55.

The Low Pay Commission has estimated that the increase for the Apprentice Minimum Wage of 20 pence (5.4%) will benefit up to 36,000 apprentices.

The 10-per-cent fee that small businesses must pay when they take on apprentices will be halved. The Chancellor has announced that SMEs will only contribute 5 per cent to the training, as part of a “£695 million package to support apprenticeships”.

Up to £5 million is going to the Institute for Apprenticeships and National Apprenticeship Service in 2019-20, to “identify gaps in the training provider market and increase the number of employer-designed apprenticeship standards available to employers”.

The government will also provide £38 million of capital funding to support implementation of the first three T-levels in 2020 across 52 providers, as announced earlier this month.

Original article from National Apprenticeship Service Intermediaries Engagement Team.

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2018-11-01T09:25:24+01:002nd November, 2018|Categories: All News|0 Comments

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