Cost concerns flagged up for apprentice plans

Date: 7th August 2009

The government was warned by a business group today not to price businesses out of offering young people apprenticeships.

According to the Confederation of British Industry (CBI), plans to change the sector might prove damaging.

The comments follow the announcement of new government measures aimed at attracting more young people to become an apprentice.

These include an increase to the minimum apprentice wage from £80 to £95 - a move which ministers said would benefit around 26,000 people.

However, the extra payroll costs could damage the accounts of some firms otherwise keen to take on an apprentice.

Fiona Murray, senior policy advisor at the CBI, commented: "Apprenticeships really are very highly valued by firms, particularly because they give apprentices sector specific skills that are also very valuable employability skills."

She added: "It is really important that the government doesn't price young people or employers out of apprenticeships. If costs continue to rise for apprenticeships and employers invest very heavily in apprentices, because they are a big training route, it's really important that people are mindful of supporting employers so that they can maintain their apprentice numbers."

The Trades Union Congress welcomed the government apprentice wage increase this week, with general secretary Brendan Barber saying that the extra money would "go a long way" for many trainees.