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Benefits and incentives for employing apprentices

Apprentice wage growth is a beneficial factor for employers looking to expand their workforce and invest in new talent. With upcoming government adjustments to wage rates and attractive incentives for hiring apprentices, businesses have a unique opportunity to financially benefit while fostering the development of skilled professionals.

The basics you need to know about apprentice wages

Apprentices occupy a unique position in the workforce, starting with a minimum wage that increases with their training progression. Unlike regular employees entitled to the National Minimum Wage (NMW) or the National Living Wage (NLW), apprentices have distinct wage rates. From 1st April 2024, these rates will be updated to reflect the government’s commitment to supporting apprentices and businesses:

23 or over: £10.4221 or over (NLW): £11.44 per hour.
21 to 22: £10.1818 to 20 (NMW): £8.60 per hour
18-20: £7.49Under 18: £6.40 per hour
Under 18: £5.28Apprentices: £6.40 per hour
Apprentices: £5.28

Why should your business consider taking on apprentices?

Beyond the immediate benefit of filling skill gaps with eager learners, there are financial incentives provided by the government designed to make apprenticeships an attractive option. These incentives not only help cover the costs associated with training but also encourage businesses to invest in the workforce of tomorrow.

These incentives cover training costs and encourage investment in tomorrow’s workforce. Notably, employers might qualify for £1,000 payments for each apprentice hired, with funding varying based on the business’s contribution to the Apprenticeship Levy.

What is the Apprenticeship Levy?

The Apprenticeship Levy mandates businesses with an annual payroll exceeding £3 million to contribute, aiming to fund apprenticeship training and assessment costs. Non-levy paying businesses cover 5% of training costs, with the government funding the remaining 95%, up to the funding band limit. This structure ensures all employers can access substantial support for nurturing apprentices.

What impact does the apprentice wage increase have on your business?

The increase in apprentice wages is more than just a regulatory change; it’s an opportunity for businesses to enhance their appeal to potential apprentices. By offering competitive wages, companies can attract more ambitious and talented individuals looking to start their careers. This not only benefits the apprentices but also strengthens the business by fostering a culture of learning and growth.

Seize the opportunity…

Apprentice wage growth, coupled with government incentives, presents a valuable opportunity for businesses to enhance their financial standing while contributing to the development of skilled professionals. By understanding and embracing these changes, your company can build a stronger, more versatile workforce.

Is your business ready to benefit from apprentice wage growth and government incentives? Contact us today to learn how we can help you navigate these opportunities and grow your business.

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