National Apprenticeship Wage to increase by 9.7% in April
Announced in the last fiscal statement apprentices will see their pay rise inline with inflation from April 2023. This will be the second biggest national apprenticeship wage rise seen in over a decade to attract talent in a tightening labour market. The national minimum wage for apprentices will increase by 9.7% to £5.28 per hour from 6 April.
We find out what the rate rise will mean for you if you’re a learner or employer.
How will the increase affect you
The National Minimum Wage (NMW) was first introduced in July 1998. Apprentices were exempt from an hourly rate until the national apprenticeship rate was first introduced in 2010 for apprentices under the age of 19 or who are in the first year of their apprenticeship. The apprenticeship rate first started paying apprentices a minimum of £2.50 per hour and over a decade the minimum rate is about to reach £5.28 per hour an increase of 47p on the current rate of £4.81.
Apprentices are entitled to the apprentice rate if they’re either:
• aged under 19
• aged 19 or over and in the first year of their apprenticeship
Source: National Minimum Wage and Rates
| NMW Rate | Annual Increase (£) | Annual increase (%) | |
|---|---|---|---|
| National Living Wage (23 and over) | £10.42 | 0.92 | 9.7 |
| 21-22 Year Old Rate | £10.18 | 1.00 | 10.9 |
| 18-20 Year Old Rate | £7.49 | 0.66 | 9.7 |
| 16-17 Year Old Rate | £5.28 | 0.47 | 9.7 |
| Apprentice Rate | £5.28 | 0.47 | 9.7 |
| Accommodation Offset | £9.10 | 9.7 | 9.7 |
Why has the apprentice rate been aligned to the 16-17 year old rate
For the first time we will see the apprentice national minimum wage match the 16–17-year-old rate. The increase in the apprentice national minimum wage matching the 16-17 year old rate will attract more young people to see an apprenticeship as a viable option to enter the workplace and kick start their career.
According to the Low Pay Commission (LPC) the labour market remains very strong and vacancy levels remain at historic highs and employers are struggling to find staff to fill vacancies. Due to the competitive labour market many employers have raised pay above the national minimum wage to attract talent. Last year LPC recommended aligning the apprentice rate with the 16-17 year old rate because of the labour market strength.
Source: Low Pay Commission