National Apprenticeship Wage to Increase by 6.4% in April 2020
The National Apprenticeship Wage will increase by 6.4% to £4.15 from April 2020. In recent times, the National Apprenticeship average wage has climbed, with the objective to encourage more young people to take on apprenticeships, and this new rise is expected to be an even bigger incentive for young people to apply for apprenticeships.
While this development means that employers will be required by law to increase their apprentice’s pay, the majority of employers already pay apprentices above the National Minimum Wage, so this is not expected to have too adverse an impact on companies in Merseyside, the North West or indeed across the UK.
Apprentices that are entitled to the new apprenticeship minimum wage are defined under the below criteria:
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Aged under 19
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Aged 19 or over and are in the first year of their apprenticeship
Once an apprentice has completed their first year and if they are 19 or over, then they qualify for the National Minimum Wage (hourly rate for their age). During the current Coronavirus (COVID-19) situation, if your apprentice has been furloughed, it’s important to consider that furloughed apprentices must still receive at least the new Apprenticeship Minimum Wage or National Minimum Wage (whichever is relevant) for the time they spend in training. If their wage drops below the national minimum for apprentices, you must cover the shortfall between the monies you claim from the government and the new minimum for the time your apprentice spends training.
The new rates for the National Minimum Wage by age group can be seen below:
Apprentice - £3.90 to £4.15 (Up 6.4%)
Under 18 employees - £4.35 to £4.55 (Up 4.6%)
18 to 20 employees – £6.15 to £6.45 (Up 4.9%)
21 to 24 employees - £7.70 to £8.20 (Up 6.5%)
25 and over employees - £8.21 to £8.72 (Up 6.72%)
Please see further official guidance here from the government for apprentices, employers, training providers, end-point assessment organisations and external quality assurance providers.
For more information on the National Minimum Wage and National Living Wage rates, see the Gov.uk website. If you would like any support to review your apprenticeship account and ensure your business is making the most of it, we can help, contact us on 0300 123 8088 or email us at info@thelearningfoundry.co.uk.