Employers no longer have to make National Insurance contributions for apprentices under the age of 25.

The change came into effect on 6 April and applies to both new and current apprenticeships. It will produce a saving of about £1,000 a year when employing an apprentice earning £16,000 a year.

The government says it is committed to reforming apprenticeships to ensure they are high quality and responsive to the needs of employers by:

  • giving employers the power to design and deliver new apprenticeships as part of the new Trailblazer initiative. There are now more than 1,300 employers designing apprenticeships in a broad range of jobs, from TV production to nuclear engineering

  • introducing a new £10m fund to boost the number of degree apprenticeships available, providing more opportunities for young people to get a degree while working at a top company

  • creating the Institute for Apprenticeships by April 2017 – a new independent body, led by employers that will ensure the quality of apprenticeships in England.

Skills Minister Nick Boles said: “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.”

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