Government announces National Insurance contributions scrapped for apprentice employers

The Department for Business, Innovation & Skills has scrapped all Employer National Insurance contributions for apprentices under the age of 25. This means that as of April 2016, it’s now even better value for you to take on IT apprentices as a way of bringing new skills to your business.

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.”

Government commits to apprenticeship reform

The decision to scrap National Insurance payments forms part of the wider Government commitment to radically develop apprenticeships in England. In addition, the Government has:

Launched the Trailblazer Initiative
The initiative gives industry employers the power to design new apprenticeship standards to ensure they align to the needs of modern businesses.

Released plans to launch the Institute for Apprenticeships (April 2017)
The Institute will regulate the quality of apprenticeships in England. As an independent, employer-led organisation, it will be responsible for approving new Trailblazer standards and assessment plans.

Finalised legislation for an Apprenticeship Levy (April 2017)
From April 2017, all employers who pay more than £3 million in wage bills (less than 2% of businesses) will be subject to a 0.5% payroll levy to fund apprenticeships. Unclaimed funds from contributing employers will be used to support apprenticeships at 5.3 million smaller employers, giving them the financial means to upskill and develop their staff.