East Midlands one of biggest beneficiaries from minimum wage increase
10th February 2020
The Government’s announcement to increase the minimum wage will benefit the East Midlands more than most other regions. Almost 13% of the working population in our region will see their salaries increase, a level only bettered by the North East and Northern Ireland.
The rates, recommended by the Low Pay Commission (LPC) in its 2019 Summary of Findings (published January 2020), were accepted in full by Government. They included recommendations on the National Living Wage, the National Minimum Wage and the Apprenticeship Wage.
In recommending the new rate, the LPC took into account data from the 2018 Apprentice Pay Survey which indicated strong pay growth for apprentices in comparison to other workers (although it recognised that there are significant disparities according to age, level of study and sector). It also recognised that, setting the increase any higher, could impact employability.
Corrina Hembury, Managing Director of Access Training, welcomes the increase,
“Setting a rate that values the work of an apprentice whilst keeping it affordable for the employer, is a very tough balancing act. We believe that the rate reflects the interests of both the employers and learners with whom we’re engaged.
It does, however, bring into sharp focus the importance of choosing the right apprentice in the first place. We support our employers in plugging their skills gap from the off, offering them free recruitment and putting in place sector-based work academies. This approach I’m sure is why our Learner Achievement rates are consistently higher than the national average.
Apprenticeships remain the most cost-effective way of filling positions, and we see no reason why employers in our region won’t continue to recognise the power of apprenticeships over the coming twelve months.”
As of 1 April, the new rates will be as follows:
The Low Pay Commission’s 2019 Summary of Findings is available at: https://www.gov.uk/government/publications/low-pay-commission-2019-summary-of-findings
Further information on the new rates is available at: https://www.gov.uk/national-minimum-wage-rates
The rates, recommended by the Low Pay Commission (LPC) in its 2019 Summary of Findings (published January 2020), were accepted in full by Government. They included recommendations on the National Living Wage, the National Minimum Wage and the Apprenticeship Wage.
In recommending the new rate, the LPC took into account data from the 2018 Apprentice Pay Survey which indicated strong pay growth for apprentices in comparison to other workers (although it recognised that there are significant disparities according to age, level of study and sector). It also recognised that, setting the increase any higher, could impact employability.
Corrina Hembury, Managing Director of Access Training, welcomes the increase,
“Setting a rate that values the work of an apprentice whilst keeping it affordable for the employer, is a very tough balancing act. We believe that the rate reflects the interests of both the employers and learners with whom we’re engaged.
It does, however, bring into sharp focus the importance of choosing the right apprentice in the first place. We support our employers in plugging their skills gap from the off, offering them free recruitment and putting in place sector-based work academies. This approach I’m sure is why our Learner Achievement rates are consistently higher than the national average.
Apprenticeships remain the most cost-effective way of filling positions, and we see no reason why employers in our region won’t continue to recognise the power of apprenticeships over the coming twelve months.”
As of 1 April, the new rates will be as follows:
- Apprentice Minimum Wage increases from £3.90 to £4.15, and is applicable to any apprentice under the age of 19 or aged 19 or over and in the first year of their apprenticeship. This represents a 6% increase, which stands at four times the rate of inflation.
- Apprentices who are aged 19 and over or who have completed the first year of their apprenticeship will be entitled to the National Minimum Wage. For workers aged 21-24, the rate increases from £7.70 to £8.20.
The Low Pay Commission’s 2019 Summary of Findings is available at: https://www.gov.uk/government/publications/low-pay-commission-2019-summary-of-findings
Further information on the new rates is available at: https://www.gov.uk/national-minimum-wage-rates
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