How UK law supports employers and their apprentices in 2019
Written on: 2 July 2019
Written by: Freya King
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With uncertainty hanging over the future of the UK economy, it’s reassuring to know that changes to employment law are supporting both employers and their staff in 2019.
Gender pay gap report
Representation in the UK workforce is a hot topic in 2019. To help create a more balanced country, large employers are being held accountable for any wage gaps between their male and female employees. Any organisation with 250 employees or more must publish their gender pay gap; if it highlights an imbalance, they should take steps towards improving this.
The tech industry may be male dominated, but apprenticeships are helping to increase female representation. Find out what Baltic are doing to empower a diverse new generation of tech workers here.
Increase in ANMW
As of April 2019, the Apprentice National Minimum Wage (ANMW) rose from £3.70 to £3.90 per hour. This is the new minimum amount employers can legally pay apprentices that are aged either 16-18, or aged 19 or over and in the first year of their apprenticeship.
The change comes along with increases across the board for minimum wages. The extra 20p per hour is a 5.4% rise, which is the biggest increase in proportion to other groups. It’s clear that the government is placing enormous value on apprentices and are encouraging employers to do the same.
The apprenticeship levy
It’s now been over two years since the apprenticeship levy was introduced. Any organisation with an annual wage bill of over £3m pays into the levy. Any money they pay in (plus a 10% government top up) can then be used to fund apprenticeship training within their organisation.
The levy has changed the way many large businesses recruit, which is good news for young people looking to start their careers. In 2019, the levy is continuing to drive new apprenticeship opportunities within big name companies across the country.
Changes to co-investment funding
To further encourage employers to take on apprentices, the government recently announced they will be increasing the amount of funding available for smaller employers. As of April 2019, the 10% fee that businesses must pay towards apprenticeship training was halved.
This means that the only costs for a small employer taking on an apprentice are: 5% of the training costs and the apprentice’s wage. This type of apprenticeship funding is known as the co-investment model.
Find out more about funding for apprenticeships here.