From April 2016 construction employers will only have to pay National Insurance Contributions (NICs) for the highest earning apprentices under the age of 25 whilst all other apprentices under the age of 25 will be exempt from NICs.

 

The Chancellor George Osbourne made the announcement in the Autumn Statement, following on from last year’s reforms in which the Chancellor announced NICs would not apply to apprentices under the age of 21 as of April 2015.

 

In a bid to help young people make more informed decisions about their future careers more funding will also be put into supporting the careers advice sector.

 

Commenting on the proposals, CITB chief executive Adrian Belton said: “Today’s abolition of National Insurance on apprenticeships and £20 million investment for careers advice for young people are a real boost for employers looking to invest in young people.

 

“The priority now for industry and government is to make apprenticeships simpler, ensure providers respond to needs, and create a simpler framework for engaging with schools.”