Employer National Insurance contributions for young apprentices earning £16,000 have been abolished, which will save companies thousands of pounds.
The change came into effect on 6 April 2016, to encourage businesses to hire apprentices under the age of 25, helping young people learn skills on the job and creating better value for employers across the country.
The exemption will apply to both existing employers with apprentices and those taking on a new apprentice.
“Apprenticeships make sense for young people and for business. If you’re an employer not already reaping the benefits, now is the time to act.”
This comes as part of the government’s plans to reform apprenticeships, to ensure that they are high quality and responsive to the needs of employers. As part of the new Trailblazer initiative, employers will have the power to design and deliver new apprenticeships, with more than 1,300 employers currently designing apprenticeships covering a wide range of jobs.
A £10M fund has been introduced, which gives apprentices the opportunity to gain a degree whilst learning on the job.
In addition, the Institute of Apprenticeships has been created. The new independent body will be in place by 2017, and is led by employers who will work to ensure that there is a high level of apprenticeships in England.
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