April 2025 national minimum wage increase and apprenticeships

The UK Government just announced a bump in the national minimum wage set for April 2025, and it’s going to affect employers across the board—including those hiring apprentices. So, if you’ve got apprentices on your team or are planning to bring some on, here’s what the new wage means for your payroll and what you can do to stay ahead.

What’s changing?

The minimum wage for apprentices is climbing along with the rest of the rates. This means that from April 2025, all apprentices will be entitled to a higher baseline pay, affecting both new hires and those already on the books. The exact increase varies by age and apprenticeship level, but it’s a significant enough rise that every employer should pay attention. The hourly rate is increasing from £6.40 to £7.55. That’s a £1.15 or 18% increase

Why this matters for employers

Hiring apprentices has always been a cost-effective way to bring new talent into the business, but these wage hikes can put a bit more pressure on budgets. For many smaller businesses especially, this change means revisiting payroll to see where adjustments are needed. The upside is that a well-paid apprentice is often a more motivated and engaged one, so with the right planning, these changes can actually be good for both your team and your bottom line.

What does it work out to?

Below, we’ve provided some rough figures for typical full-time apprenticeship contracts:

Currently:

• 30 hours/week: £9,984
• 37.5 hours/week: £12,480
• 40 hours/week: £13,312

April 2025:

• 30 hours/week: £11,778
• 37.5 hours/week: £14,722.50
• 40 hours/week: £15,704

How to adapt to the new wage levels

1. Review your budgets
   Start by factoring in the upcoming wage increase for all apprentices. Budgeting ahead of time helps avoid any nasty surprises, so look at where adjustments may be necessary. Can other areas be tightened up, or do you need to bring in more revenue to cover the difference?
2. Consider funding options
   If you’re a small business, remember that the UK Government and various apprenticeship bodies provide funding support. Now’s the time to look into these options, as a little extra support can help ease the impact of increased wages.
3. Evaluate your apprentice roles and needs
   It might also be time to reassess how many apprentices you actually need or the type of roles they’re in. If budget constraints become tight, consider focusing on fewer, well-placed apprentices rather than trying to stretch the budget across too many hires.
4. Plan for the long term
   Rather than just focusing on immediate costs, think about the long-term value apprentices bring. Their development is an investment in the future of your business, and ensuring they’re paid fairly means they’re more likely to grow with you.

Next steps

With some strategic planning, you can handle the new minimum wage levels without a hitch. Keep an eye on your budgets, stay informed about funding, and remember that an investment in apprentices now is an investment in your future workforce. The wage rise may feel like a hurdle, but with the right approach, it can also mean better engagement, stronger loyalty, and higher productivity from your apprentices.

So, take a proactive approach and start preparing for April now. After all, a happy, fairly-paid apprentice is one of the best investments a business can make.