All apprentices should be protected by the national minimum wage (NMW) in order to end exploitation and reduce the number of people who drop out because they cannot afford to complete their training, according a new TUC report.

In its submission to the Low Pay Commission (LPC) minimum wage apprentice exemption review, the TUC says that bringing all apprentices into the NMW regime will improve the quality and reputation of apprenticeships by increasing completion rates for low-paid apprentices and tackling exploitation by unscrupulous bosses. It will also boost equality as the lowest paid apprentices are most likely to be women.

The TUC report argues that those apprentices that are not currently entitled to the NMW should be brought into the regime and paid a special rate at a slight discount from the standard NMW rates. Apprentices under the age of 19 and older workers in the first year of training are currently exempt from the NMW. The TUC estimates that just 30% of apprentices are currently protected by the NMW.


The TUC report shows that the introduction in 2005 of an £80 minimum weekly pay rate for apprentices in England has had a big impact in improving completion rates. Apprenticeship completion rates have more than doubled over the last five years, from 28%in 2002/03 to 63% in 2006/07. The rate of improvement has been greatest in low-paid sectors such as child care, health and social care and hairdressing.

However, the TUC report argues that these rates still need to improve, particularly in low-paid sectors, where around four in ten apprentices do not complete their training. The TUC cites Government-commissioned research by the National Foundation for Educational Research, which found that 27% of apprentices who had dropped out of the training stated 'not getting enough money' as the main reason.

Female apprentices, who dominate the low-paid sectors, bear the brunt of poor apprentice pay and earn on average 21% less than male apprentices. Increasing pay would therefore also help to reduce the gender pay gap in apprenticeships, which is currently higher than the rest of the labour market average of 17%.

The TUC believes that bringing all apprentices under the NMW enforcement regime is the most effective way of addressing low pay and tackling the minority of employers that treat apprentices as cheap labour.

(CD/JM)