Apprentices working within the UK motor trade industry will be more than £1,000 better off every year after an increase in the minimum wage.
As of 1 October, the apprentice rate, which is paid to all apprentices in year one and 16-18 year olds in any year of their apprenticeship, has gone up by 57p to £3.30. It means that trainee mechanics or people starting their careers within car dealerships who work 40 hours a week will now earn £1,185 more each year.
Employers will need to be aware of these changes and amend apprentices' pay accordingly. However, some considerations have not changed, including the decision of whether or not to add apprentices to the company's road risks insurance. While this will allow them to drive the company's or customers' cars, employers will likely find that adding younger, less experienced drivers to their policy will see its cost increase.
For apprentices, the latest improvements to the minimum wage are the largest ever to be introduced. They come as a result of the Low Pay Commission’s (LPC) recommendation, which is trying to make apprenticeships a more attractive prospect for young people.
Business Secretary Sajid Javid said: "As a one nation Government we are making sure that every part of Britain benefits from our growing economy and today more than 1.4 million of Britain’s lowest-paid workers will be getting a well-deserved pay rise.
"The increase for apprentices is the largest in history making sure that apprenticeships remain an attractive option for young people. While the National Minimum Wage will see the largest real-terms increase since 2007."