In the Autumn Statement 3 December 2014, George Osborne has announced that employers who hire apprentices will no longer have to pay national insurance. This rule will apply to apprentices up to the age of 25, extended from the current exemption of up to 21 years of age.
“When a business is giving a young person a chance in life we’re going to support them not tax them” says the Chancellor of the Exchequer, in the hope of encouraging more than three million businesses to hire apprentices.
The change, which will apply in April 2016, is estimated to cost the Treasury more than £400 million. A hefty price to pay in order to reach their goal of having the highest employment rate in the G7.
Read George Osborne’s speech in full here.