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National apprenticeship wage set to increase by 6.4% in April 2020
The national apprenticeship wage will rise by 6.4% to £4.15 in 2020. Over the past few years, we’ve seen the apprenticeship wage increase substantially to encourage more young people to see it as an attractive, and viable option for their future.
The rise will mean that all apprentice employers paying minimum wage are required to increase their apprentice’s pay, by law. However, we know that many employers already pay more than the UK national minimum wage, so won’t be hugely impacted by the change.
An apprentice who has completed their first year of their apprenticeship will not be affected this and is entitled to the minimum hourly rate of their age group.
The increase in minimum wage is a huge incentive for more young people to apply for an apprenticeship, as businesses already have incentives including not needing to pay any National Insurance contributions for apprentices under 25 years old.
The government has estimated that almost three million UK workers will receive increases to their pay as a result of the increase, which will come into effect on 1 April 2020, and will result in an annual rise of £930. The new rates were recommended by the Low Pay Commission, an independent body that advises government on the national living wage and national minimum wage.
This increase forms part of government’s plans for the national living wage to reach 60% of median earnings by 2020. The Chancellor of the Exchequer, Sajid Javid, additionally promised to change the national living wage to accommodate workers aged 23 and above from April 2021, and 21 and over within five years. The government aims to set out more details on the future policy framework in the coming months.
The national minimum wage is also set to increase across all age groups; this will see a 6.5% increase for those aged between 21 and 24, 4.9% for 18 to 20 year-olds, a 4.6% increase for under 18s, and 6.4% for apprentices.
Javid said: “We want to end low pay and put more money in the pockets of hardworking families. This latest rise will mean that since we introduced the national living wage in 2016, the lowest paid will have had a wage increase of more than £3,600.
“We want to do more to level up and tackle the cost of living, which is why the [national living wage] will increase further to £10.50 by 2024 on current forecasts.”
From April 2020, the new rates are:
- The National Living Wage for ages 25 and above – up 6.2% to £8.72
- The National Minimum Wage for 21 to 24-year-olds – up 6.5% to £8.20
- For 18 to 20-year-olds – up 4.9% to £6.45
- For under-18s – up 4.6% to £4.55
- For apprentices – up 6.4% to £4.15
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