Apprenticeships are a crucial part of our economy; they offer young people a way to ‘earn while they learn’ and they help employers train workers who can fill their skill gaps. 

The Low Pay Commission (LPC) is the independent body that advises the Government on National Minimum Wage rates, including the rate for apprentices.

In its most recent National Minimum Wage report, published in March 2024, the LPC advised the Government to consider linking the Apprentice Rate (AR) to age group rates, with a reduced rate for their first year.

The LPC did not specify what this reduced rate would be but suggested that a 10-25% reduction would be reasonable.  However, this would not apply to 16- and 17-year-old apprentices who would be paid the same as 16- and 17-year-old workers, with no reduction. 

For apprentices who are 18 and over, this would mean a pay rise, and a substantial one for apprentices over 21, who, even with a 25% reduction in their first year, would see a 34% increase in their AR. 

The LPC also reported that, among stakeholders, there was “widespread support for removing the apprentice rate” altogether, with apprentices being paid the same as other workers in their age bracket. 

My Opposition Colleagues and I believe that the age brackets are discriminatory and should be removed so that every worker over 18 is paid the same. We also believe that the National Minimum Wage should reflect the real cost of living, to ensure that every adult worker across the country receives a genuine living wage.  

We therefore support calls to change the remit of the LPC to make sure that its recommendations reflect not just median wages and economic conditions but also the need for people’s pay to cover the cost of living.  After all, it is only right that workers receive a fair day’s pay for a fair day’s work. 

However, ultimately, the Government could ignore all of this in November when it sets next year’s minimum wage rates.  

I have written to the Minister responsible for the National Minimum Wage and the LPC, Kevin Hollinrake, and asked what plans the Government has to increase wages for apprentices.  I have posted a copy of this letter below for you to see.

I can assure you that I will continue to follow developments in this area closely.