Government reveals apprentice wage to rise by 3p

The LPC recommended that the rate for apprentices should be frozen at GBP2.65 an hour. However, this was rejected by the government, and the apprentice wage will rise by 3p an hour to GBP2.68. TUC general secretary Frances O’Grady says that this choice sends a “positive signal about the importance of apprentices.”

Business Secretary Vince Cable says: “The independent Low Pay Commission plays a crucial role in advising the government when setting the national minimum wage every year. It balances wages of low paid workers against employment prospects if the rate was set too high.

“We are accepting its recommendations for the adult and youth rate increases, which I am confident strikes this balance. However, there is worrying evidence that a significant number of employers are not paying apprentices the relevant minimum wage rate.

“Apprenticeships are at the heart of our goal to support a stronger economy, and so it is important to continue to make them attractive to young people. Therefore, I am not taking forward the LPC’s recommendation to freeze the apprenticeship rate due to non-compliance, but instead am raising it in line with the youth rates.”