One of the key changes to National Insurance (NI) is that any employer recruiting apprentices under the age of 25 do not have to pay the employer contributions.
This has a big impact on the incentives for employers to recruit via apprenticeships, as the difference in recruiting an apprentice compared to recruiting a person who is already qualified is now minimal, with the National Minimum Wage (NMW) for both avenues being similar. Therefore, the lack of contribution to NI for these employees gives businesses the confidence that apprenticeships are the way forward - this approach not only saves employers money in the long run but also provides cutting-edge training that benefits the business.
The issue is not around lack of applicants to apprenticeships, we have plenty here at Nottingham College. We can help employers build their future workforce while mitigating the impact of the rising National Minimum Wage by taking advantage of National Insurance relief for 16-25 apprentices, businesses can save money and invest in high-quality training.
Nottingham College can provide support and advice around apprenticeships that will help businesses adapt to labour market challenges.
