George Osborne has announced in his Autumn Statement yesterday that from April 2016 employers who hire apprentices will not have to pay national insurance. The cost of this change is estimated at more than 400 million. A figure not to be sniffed at!
The change will apply to apprentices up to the age of 25. Currently, the exemption applies to apprentices up to the age of 21.
The Chancellor of the Exchequer hopes that this change will encourage employers to hire more apprentices resulting in the highest employment rate. This is a change that employers will welcome.