Business bodies call for training reforms to go beyond wages Lib Dem plans to boost the national minimum wage for apprentices by more than £1 an hour have been criticised by employer groups. Katja Hall, deputy director-general of CBI, criticised business secretary Vince Cable’s pledge to create a single national minimum wage rate for 16-17 year olds in work and apprentices in the first year of their programme. “Companies already pay their share into training, so raising the cost of taking these young people on would be unwise and put off many smaller firms from getting involved,” she said. The proposal, announced at the party’s annual conference this week, would give around 31,000 apprentices in the first year of their programme a pay rise of more than £1 an hour, raising it from £2.73 to £3.79 per hour. Cable said it would help make apprenticeships “a financially attractive route for young people deciding whether to go into full time employment or to earn whilst they learn”. However, John Longworth, director general of British Chambers of Commerce (BCC) said reforms would need to go further to encourage young people to consider apprenticeships as a route into employment. “Most businesses value their apprentices highly, and already pay them significantly above the apprenticeship minimum wage rate. For that reason the proposed change will have minimal impact on businesses bottom line, but it must be up to the Low Pay Commission (LPC) to make evidence-based recommendations to ensure that wage rates are right for market conditions,” he said. Although the cost of training was a concern for many businesses, John Allan, national chairman for the Federation of Small Businesses (FSB) said Cable’s support for apprenticeship reform would be “welcomed by businesses, which are facing skills shortages in sectors such as construction and IT”. “We now need to see the government follow through and deliver the high quality apprenticeships employers demand. Cost of training will be an important factor in these reforms and will influence take up by employers,” he said. Susannah Clements, deputy chief executive of the CIPD, said it was important to recognise employers who already pay their apprentices above the minimum rate. “There is a business case for paying all apprentices above this current base minimum, as our research suggests that apprentices who are better paid are more likely to remain with the firm that has invested in their training,” she said. “We also advise employers to increase the pay of apprentices as their training progresses, and thus their capabilities and performance increases.” “We are supportive of the proposal for the Low Pay Commission to recommend increasing the minimum wage for apprentices. They are best placed to make a full recommendation, taking into account any impact on access to the labour market,” Clements added.
Posted on: Tue, 07 Oct 2014 12:51:43 +0000
Trending Topics
Recently Viewed Topics
© 2015