Business secretary Vince Cable has over-ruled the Government’s own minimum wage advisers and increased the hourly rate for apprentices.
The Low Pay Commission, which sets the wage every year, has recommended that the apprentice rate was frozen at £2.65 an hour.
However Mr Cable said he was over-ruling this and increasing the payment by 3p to £2.68 because too many employers were ignoring it. He said: “There is worrying evidence that a significant number of employers are not paying apprentices the relevant minimum wage rate.
“Apprenticeships are at the heart of our goal to support a stronger economy, and so it is important to continue to make them attractive to young people.
“Therefore, I am not taking forward the Commission’s recommendation to freeze the apprenticeship rate due to non-compliance, but instead am raising it in line with the youth rates.
“We are working on a series of tough new measures to ensure we tackle non-compliance issues across the board.”
Overall from October 1 this year the adult rate will increase by 12p to £6.31 an hour while rate for 18-20 year olds and 16 and 17 year olds the rate will increase by 5p to £5.03 an hour and by 4p to £3.72 an hour respectively.
Source: The Telegraph