The Government has announced that the National Minimum Wage (NMW) rate for apprentices will increase by 57p (20 per cent) from 1 October 2015, from £2.73 to £3.30. The Low Pay Commission (LPC) had recommended an increase of 2.6 per cent to £2.80 per hour.
In addition, changes to the way in which funding for apprenticeships is provided were announced. A new 'digital apprenticeship voucher' will be introduced as part of a scheme that will give employers control over the Government's contribution to apprenticeship funding.
The employer will register their details and details of the apprenticeship on a system being developed by the Skills Funding Agency (SFA). The discounted rate at which employers can purchase training will then be calculated, which could be up to 100 per cent for 16- to 18-year-olds.
The employer will then be able to pass on the voucher code to the provider delivering the training for their apprentice, and the provider will reclaim the value of the voucher from the SFA.
The remaining NMW rates that will apply from 1 October 2015 are as recommended by the LPC:
- The adult rate will increase by 20p (3 per cent) from £6.50 to £6.70 per hour;
- The rate for 18- to 20-year-old workers will increase by 17p (3.3 per cent) from £5.13 to £5.30 per hour; and
- The rate for 16- and 17-year-olds will increase by 8p (2.1 per cent) from £3.79 to £3.87 per hour.
Please contact our Employment team on the number above or fill in our online enquiry form if you need further assistance.
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