The number of university students from disadvantaged backgrounds is at a record high and apprenticeships have doubled.
With this mind, chancellor George Osborne said: “We’ve agreed the biggest increase ever in the apprentice rate.
“It’s the oldest rule of economic policy. It’s the lowest paid who suffer most when the economy fails and it’s the lowest paid who benefit when you turn that economy around.”
The news of a wage increase for Britain’s apprentices will cement training programmes as a serious, credible career path for the next generation of school leavers looking to become contributors to the British economy
Rebekah Wallis, director of people and corporate responsibility at Ricoh UK, said: “Giving trainees a pay boost is a vital incentive to encourage more young people to consider high quality apprenticeship schemes as a serious career option. Across the UK, many large businesses are already investing heavily in developing these schemes to attract ambitious new talent and create a well-rounded workforce with practical experience.
“This announcement will further enhance the reputation of Britain’s apprenticeship programmes as a rewarding, and credible career route for the next generation of young people. In response, businesses must expand placement programmes to meet demand for these exciting new opportunities.”
Read more about the Budget:
- New “Help to Grow” programme and changes to EIS, SEIS and VCTs
- Annual Investment Allowance will not go back to £25,000, says George Osborne
- To see a continued recovery, the UK needs a turnaround in productivity
And “rather than increasing the jobs tax as some propose”, Osborne revealed that the government would continuing cutting instead.
“This April we will abolish National Insurance for employing under 21s,” he explained. “Next April we will abolish it for employing a young apprentice.
Chancellor @George_Osborne: “Next year we’ll abolish NI payments for employing a young apprentice” #ibacksmallbusiness #Budget2015
— FSB GlosWoE (@FSBGlosandWoE) March 18, 2015
“And I can confirm today that one million small businesses have now claimed our new Employment Allowance,” Osborne added.
Kathy McArdle, CEO of Nottingham’s Creative Quarter, said: “I welcome the government’s ongoing commitment to apprenticeship incentive schemes which go a long way to tackling the endemic problems of skills shortages and providing necessary opportunities for young people.
“However, I’d hoped the chancellor would have announced a simplification of these schemes to enable SMEs and small businesses to take on an apprentice without having to navigate their way through a minefield of administration and bureaucracy. It’s imperative that we streamline the process and make it easier to support young people into employment.”
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