Knowledge Centre
12th June 2009
The Government has asked the Low Pay Commission to look into the feasibility of introducing a statutory minimum wage for apprentices.
Under existing rules, apprentices under the age of 18 are exempt from the National Minimum Wage - currently £5.73 for workers aged 22 and older.
And apprentices aged 19 or older are also exempt in their first year of their apprenticeship.
Announcing the request, business minster Pat McFadden stressed that any recommendations made by the commission would seek to "balance the needs of low paid workers and businesses".
There is already a guaranteed weekly rate of pay for Learning and Skills Council Apprenticeships. This is currently £80, but is set to rise to £95 from August.
In August last year the Government pledged a range of measures to cut red tape in order to make apprenticeships more attractive to employers. These included phasing out the need for multiple inspection visits, monthly reports, and a requirement to keep paperwork for up to two years.
There are 130,000 businesses in England that offer apprenticeships, but the Government hopes this will rise to 400,000 over the next ten years.
TUC general secretary Brendan Barber told More Than Business News that apprentices who receive "decent" pay are far more likely to complete their training.
"Protecting apprentices from low pay and exploitation through the minimum wage would be a small cost to a minority of employers but would go a long way to boosting the quality and reputation of apprenticeships," he said.
IMAGE John Birdsall/John Birdsall/Press Association Images
Low Pay Commission to look at apprentice minimum wage

Under existing rules, apprentices under the age of 18 are exempt from the National Minimum Wage - currently £5.73 for workers aged 22 and older.
And apprentices aged 19 or older are also exempt in their first year of their apprenticeship.
Announcing the request, business minster Pat McFadden stressed that any recommendations made by the commission would seek to "balance the needs of low paid workers and businesses".
There is already a guaranteed weekly rate of pay for Learning and Skills Council Apprenticeships. This is currently £80, but is set to rise to £95 from August.
In August last year the Government pledged a range of measures to cut red tape in order to make apprenticeships more attractive to employers. These included phasing out the need for multiple inspection visits, monthly reports, and a requirement to keep paperwork for up to two years.
There are 130,000 businesses in England that offer apprenticeships, but the Government hopes this will rise to 400,000 over the next ten years.
TUC general secretary Brendan Barber told More Than Business News that apprentices who receive "decent" pay are far more likely to complete their training.
"Protecting apprentices from low pay and exploitation through the minimum wage would be a small cost to a minority of employers but would go a long way to boosting the quality and reputation of apprenticeships," he said.
IMAGE John Birdsall/John Birdsall/Press Association Images
Tags: Education & skills, Employment
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