In the recent UK Autumn Budget announcement, various measures were introduced to support both large corporations and small businesses, with a particularly valuable opportunity in the area of apprenticeship hiring.

The government has rolled out a key financial incentive: employers hiring apprentices under 25 are now exempt from paying National Insurance Contributions (NICs) on their wages.

This exemption offers significant cost savings for businesses facing rising expenses and increased tax obligations, particularly the higher National Insurance secondary threshold, which will raise employment costs.

Hiring apprentices under this NIC exemption is a strategic decision for businesses aiming to achieve growth while managing budget constraints. This exemption is especially beneficial for smaller businesses, as it makes hiring more affordable in regions facing skill shortages. It offers a straightforward way to onboard new talent without the extra NIC costs. Additionally, degree apprentices under the age of 25 are also exempt from NIC, providing an added incentive for businesses to integrate degree apprentices into their workforce.

This financial benefit comes at a crucial time, as the recent NIC increase from 13.8% to 15% applies broadly across employees but excludes apprentices under 25. Small and medium-sized enterprises (SMEs) stand to gain the most, as they can redirect savings into other investments or workforce development initiatives without the strain of additional taxes.

Furthermore, the increase in the National Minimum Wage, which includes a rise in the apprentice minimum wage starting in April 2025, means that companies must prepare for higher payroll costs even for entry-level positions. However, National Insurance Contributions (NIC) relief can help alleviate some of the financial burden caused by these wage increases, providing some relief to employers. By taking advantage of apprenticeships, companies can develop a skilled workforce while benefiting from reduced tax obligations and utilising government-supported talent pipelines.

Employers seeking sustainable growth can benefit from budget changes that support apprenticeships. This allows businesses to invest in future talent without the operational costs of other hiring categories. By using National Insurance Contribution (NIC) savings, companies can manage their tax liabilities and enhance their financial resilience, fostering long-term employment growth in the UK.

At Weston College, we offer apprenticeships ranging from Level 2 to Level 6 (degree level) across various sectors, including animal management, business and management, computing and digital technologies, construction, creative arts, education and early years, electrical and plumbing, engineering, hair and barbering, health and social care, hospitality and catering, law, motor vehicle, public services, and sport.

To accommodate our diverse apprenticeship offering, we have a dedicated apprenticeship team who offer our employer partners comprehensive support and guidance, helping them navigate every step of the apprenticeship process. This support can range from helping with the free recruitment process, creating a diverse and inclusive workforce or helping to upskill existing staff via apprenticeships.

To find out more about how to bring an apprentice into your business, click here.

About Weston College

Weston College is an Ofsted rated 'Good' and 'Outstanding for Skills' Further Education college and University Centre in Weston-super-Mare, 25 minutes from Bristol. Providing education and vocational training to around 30,000 learners in the South West.