National Minimum Wage

National Minimum Wage
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apprentices in their third (or higher) year. This might suggest that employers are not aware of
the NMW rules, whereby after twelve months in an apprenticeship those apprentices aged
19 and over must be paid the appropriate age rate of the NMW.
Figure 3.13: Apprentice Pay, by Previous Employment Status, GB, 2011
Proportion of apprentices (per cent)
35
30
25
20
15
10
5
0
under 2.35
2.35-2.49
2.50-2.59
2.60-2.69
2.70-2.79
2.80-2.89
2.90-2.99
3.00-3.29
3.30-3.63
3.64-3.70
Gross hourly pay (£)
Already worked for employer Did not work for employer prior to apprenticeship
Source: LPC estimates based on BIS Apprentice Pay Survey, GB, 2011.
3.69 The survey also found a large proportion of apprentices were not being paid for overtime.
Over half of apprentices surveyed worked overtime. Of these around two-thirds said they
were always paid, 8 per cent said they were sometimes paid, and a quarter said they were
never paid. The proportion of apprentices never paid for undertaking overtime varied greatly
by sector, ranging from 7 per cent in engineering to 59 per cent in hairdressing.
Impact of the Introduction of the Apprentice Rate
3.70 The Apprentice Rate was introduced at a relatively cautious level. It broadly equated to the
existing £95 contractual weekly wage payable to apprentices on government supported
schemes in England, where around 90 per cent of all apprenticeships in the UK take place.
In our 2011 Report we said the available evidence suggested that the Apprentice Rate had
had little negative effect. This section considers the additional evidence now available on the
impact of the Apprentice Rate, in particular from our commissioned research but also from
stakeholder submissions.
3.71-3.99
4.00-4.49
4.50-4.91
4.92-4.99
5.00-5.49
5.50-5.92
5.93-5.99
6.00-6.99
7.00 or higher
35
30
25
20
15
10
5
0