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.”

Please contact Robert Bedford if you would like advice about employment law.

Disclaimer: General Information Provided Only.

Please note that the contents of this article are intended solely for general information purposes and should not be considered as legal advice.

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