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Employers of young apprentices will no longer pay National Insurance contributions

Employers of young apprentices are set to save thousands of pounds after the government abolished employer National Insurance contributions for apprentices under 25 years of age.

The change, which came into effect on 6 April 2016, will make hiring an apprentice even better value for employers across the country.

This exemption will apply to both existing employers with apprentices and those taking on a new apprentice.

The government is committed to reforming apprenticeships to ensure they are high quality and responsive to the needs of employers by:

  • giving employers the power to design and deliver new apprenticeships as part of the new Trailblazer initiative. There are now more than 1,300 employers designing apprenticeships in a broad range of jobs, from TV production to nuclear engineering
  • introducing a new £10m fund to boost the number of degree apprenticeships available, providing more opportunities for young people to get a degree while working at a top company
  • creating the Institute for Apprenticeships by April 2017 – a new independent body, led by employers that will ensure the quality of apprenticeships in England

National Apprenticeship Week 2016 took place from 14 to 18 March 2016 and saw hundreds of events take place across the country and more than 30,000 new apprenticeship places pledged by employers.

Skills Minister Nick Boles said:

“We’re making it even better value for businesses to take on a young apprentice. Businesses will no longer need to pay National Insurance contributions for apprentices under 25.

“Apprenticeships make sense for young people and for business. If you’re an employer not already reaping the benefits, now is the time to act.”

The Author

Donald Macinnes
Media Researcher
BiP Solutions

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The Author

Donald Macinnes
Media Researcher
BiP Solutions

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