New research shows more than one in five of employers of apprentices in North East are unsure of the minimum wage rules.
The findings from Learning and Work Institute come after a government survey showed one in five apprentices across England reported being paid less than the minimum wage they are legally entitled to.
The government is expanding apprenticeships, aiming for three million by 2020 and introducing an Apprenticeship Levy requiring large firms to invest. But the research raises concerns over whether the government will hit its target and the quality of some apprenticeships. Worryingly, 31% of North East employers said they had not recently employed apprentices and would not consider doing so in the future.
Learning & Work Institute surveyed 2,000 employers across England, finding high awareness of the National Minimum Wage, but low awareness of the rules for apprentices. Among North East employers who were past and current employers of apprentices:
• 35% were unaware apprenticeships required 20% off-the-job training
• 27% did not know this off the job training needed to be paid
• 24% did not know minimum wage rates rose after the first year of an apprenticeship
The research also involved focus groups with apprentices, organised by the National Society of Apprentices. They said they felt ensuring compliance with the rules was primarily the responsibility of the employer and training provider, and that they would not feel confident raising a concern over pay if they had one.
Action is recommended in three areas:
• Employer awareness. More needs to be done to ensure all employers are aware of the rules
• Rights and responsibilities. Minimum wage entitlements and likely changes should be set out at the start of the apprenticeship, with training providers taking a lead
• Enforcement. Apprentices should be clear about what to do if they think there’s a problem
Stephen Evans, Chief Executive of Learning and Work Institute, said, “The expansion of apprenticeships is a good thing, it can help us meet our post-Brexit skills needs and give people the chance to earn and learn.
However, it’s clear we need to do more to ensure everyone’s aware of the rules, for example we think training providers could play a bigger role in making sure employers know the minimum wage rules.”