Employers with apprentices under the age of 25 will no longer need to pay national insurance contributions (NICs) for them.
Businesses employing apprentices that earn up to £16,000 could save £1,000 under the measures.
The measure was first announced at Autumn Statement 2014 and came into effect on 6 April 2016.
Skills minister Nick Boles, said:
“We’re making it even better value for businesses to take on a young apprentice. Apprenticeships make sense for young people and for business. If you’re an employer not already reaping the benefits, now is the time to act.”
However, a March 2016 report by the Social Mobility and Child Poverty Commission highlighted concerns about apprenticeships for young people:
- between 2010/11 and 2014/15 apprenticeships for those under 25 grew by 4%
- the success rate for 16-24 year olds has dropped to 70%
- many apprenticeships for young people are in low pay and low progression prospect sectors.