Question to the Department for Education:

To ask the Secretary of State for Education, what recent assessment she has made of whether the National Minimum Wage rate for apprentices is adequate, in the context of increases in inflation; what recent discussions she has had with the Welsh Government on the adequacy of rates of pay for apprentices; and if she will make an assessment of the potential impact of increasing the National Minimum Wage rate for apprentices to 80 per cent of the National Minimum Wage on (a) take up, (b) completion rates and (c) outcomes of apprenticeships.

Education is a devolved matter, and the response outlines the information for England only.

The government is committed to ensuring that apprentice pay supports the attraction and retention of talented individuals into apprenticeships.

The department recognises that apprentices may be experiencing financial pressures because of rises in the cost of living. In November 2022, the department accepted, in full, the Low Pay Commission’s recommendation to increase the Apprentice National Minimum Wage by 9.7% to £5.28 from April 2023. This increase will help to counter the impact and the department continues to provide financial support to encourage more apprenticeship opportunities for young people.

Many employers choose to pay their apprentices more than the national minimum wage rates, recognising the value that apprentices bring to their workplace. Our data shows that average hourly pay for apprentices’ ranges between £8.23 for Level 2 and £14.02 for level 6.

The independent Low Pay Commission is responsible for advising government on annual changes to minimum pay rates. Its recommendations follow a period of extensive research and consultation with employers, sector representative bodies and government stakeholders. The consultation began on 23 March and closes on 9 June 2023. As with all other relevant stakeholders, the devolved administrations are welcome to contribute evidence.

The Commission has committed to keeping the Apprentice Rate under close review and will continue to assess whether a separate rate for apprentices is still justified. The full report can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1129930/Low_Pay_Commission_Report_2022.pdf.

Furthermore, the department makes £1,000 payments to employers and providers when they take on apprentices aged 16-18, which can be used to support costs such as wages, uniforms or travel, and we are increasing our care leavers’ bursary from £1,000 to £3,000.