In October, in his Budget speech, chancellor Philip Hammond announced a 20p-an-hour increase in the apprentice minimum wage. But what is the apprentice minimum wage, and how did that increase come about?
What is the apprentice rate?
The apprentice rate applies to all apprentices aged between 16 and 18, and to those aged 19 and above for the first year of their apprenticeship. At present, this is £3.70 an hour.
What was the increase announced?
Following the recommendation of the Low Pay Commission, the chancellor announced an increase of 5.4 per cent (or 20p) to £3.90 an hour. This comes into effect in April 2019.
How does that compare with other rates?
From April 2019, the rate for under-18s will be £4.35, while for 18- to 20-year-olds, it will be £6.15.
Do all apprentices get paid this rate?
According to the Low Pay Commission Report 2018 on the National Minimum Wage, one in 12 of England’s youngest first-year apprentices is paid below the apprentice minimum wage. However, the proportion of apprentices paid below the apprentice rate is less than 5 per cent for older apprentices.
Who sets the apprentice rate?
Increases are recommended by the Low Pay Commission and accepted by the government.
What if I’m getting paid less than the minimum wage?
You could try raising the issue with your employer, or calling employment advice body Acas. For more guidance, see the Citizens Advice website.
