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Employers of young apprentices will no longer have to pay National Insurance contributions

If you’re an employer who believes in fulfilling potential and are keen to give young people employment opportunities, then there’s never been a better time than now to take on a new apprentice. Following changes which came into effect on 6th April, it is now more cost-effective than ever before to employ a young apprentice and safeguard the future of British industry and Commerce.

So what changes have taken place? Well, the government has abolished employer National Insurance contributions for apprentices under 25 years of age. The upshot of this change is that hiring young apprentices will now be less expensive and will offer better value right across the country. In fact, over the course of the next few years employers who take on young apprentices will potentially save thousands of pounds.

So will this new exemption only apply to new apprenticeships? Well, no, it is won’t: the exemption will apply to both existing employers with apprentices and those taking on a new apprentice. Speaking about the new changes, 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.”

Why is the government pushing so hard for apprenticeships?

The reason is that it believes in apprenticeships and feels that by reforming and refining the apprenticeship arena it can ensure that not only will new apprenticeships be of the highest quality; they will also be more responsive to the needs of the employer now and in the future. To that end, the government has introduced reforms which:

  • Give 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.]
  • Introduce a new £10 million 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, and
  • Create the Institute for Apprenticeships by April 2017 – a new independent body, led by employers that will ensure the quality of apprenticeships in England.

The good news is these reforms seem to be making a real difference. During National Apprenticeship Week 2016 which took place from 14 to 18 March 2016, hundreds of events took place across the country and more than 30,000 new apprenticeship places were pledged by employers.

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