Discover everything you need to know below — from key insights to helpful tips that make a difference.
Why Employers Should Pay More Than the Apprentice Minimum Wage
The Apprentice Minimum Wage is set to rise on 1st April 2023, from £4.81 to £5.28 per hour. At Fareport, we believe employers should look beyond this rate if they want to recruit and retain the best apprentices.
The Low Pay Commission and campaigns such as Back the Future have highlighted that low apprenticeship wages are a disincentive. They particularly disadvantage individuals who cannot afford to accept lower wages, even though apprenticeships offer long-term career benefits. This lack of accessibility reduces social mobility — apprenticeships should be open to everyone, not just those who can afford to take a pay cut.
When Can Employers Pay the Apprentice Rate?
Employers can legally pay the apprentice rate if the employee is:
- Under 19 years old, or
- 19 or older and in the first year of their apprenticeship
However, we always encourage the employers we work with to advertise and recruit above the minimum wage. Offering better pay helps attract a broader pool of high-quality candidates and increases the chances that the apprentice will stay and succeed in the programme.
The Job Market Is Still Competitive
In the South of England especially, vacancies offering the Apprentice Minimum Wage receive very few or no applications. Candidates often can’t afford to live on the minimum wage and will choose higher-paid roles, even if those positions don’t include training.
With the rising cost of living, this issue is only becoming more serious. Employers expect a lot from their apprentices, and offering a competitive wage is a great way to show that you value their contribution from day one.
Why Paying More Makes Sense
Paying a fair wage allows apprentices to focus on learning rather than financial worries. It also improves retention — apprentices on low wages are more likely to drop out part-way through the programme, especially if they receive a better job offer elsewhere.
In contrast, employers who invest in their apprentices by offering a decent wage benefit from a more motivated and loyal employee. These apprentices are more likely to complete their training and progress within the business.
Support the Campaign for Fair Wages
You can learn more and pledge your support for fair wages and social mobility in apprenticeships through the Back the Future campaign.
Contact us if you’d like more information on the Apprentice Wage or you’re interested in recruiting an apprentice.