Minimum wage rise April 2027: How apprenticeships help employers 

From 1 April 2027, the National Living Wage rises to £13.21 an hour. For employers across the East Midlands, that’s another jump in payroll costs, on top of the employer National Insurance changes that landed in 2025. 

But there’s one route that takes a big chunk of that cost away. When you put someone under 25 on an apprenticeship, whether they’re a new hire or someone already in your team, you pay no employer National Insurance on their earnings. Here’s what’s changing and how much an apprenticeship could save you. 

What’s changing in April 2027 

On 28 October 2026, the government accepted the Low Pay Commission’s recommendations in full. Every rate goes up by 3.9%: 

For a full-time worker on 37.5 hours a week, the National Living Wage rise alone adds around £975 a year to basic pay, before National Insurance and pension contributions. 

The hidden cost: employer National Insurance 

The wage rise is only part of the bill. Since April 2025, employers have paid 15% National Insurance on earnings above £5,000 a year, up from 13.8% above £9,100. Those rates and thresholds still apply for 2026 to 2027. 

So every pound added to a salary costs you more in National Insurance too. For a full-time employee aged 21 or over on the new National Living Wage, employer NI comes to more than £3,100 a year. 

How an apprenticeship cuts the cost 

Employers pay 0% employer National Insurance for apprentices under 25, on earnings up to £967 a week (£50,270 a year). To qualify, the apprentice must be under 25 and on an approved apprenticeship standard. You can read the full rules in our guide, Employers DO NOT Pay National Insurance for Apprentices Under 25. 

Here’s what that’s worth at the April 2027 rates, for a full-time apprentice on 37.5 hours a week: 

Those savings apply every year until the apprentice turns 25, and many employers choose to pay above the minimum, which makes the saving bigger. Figures assume the 2026 to 2027 thresholds stay in place, so check with your payroll provider. 

You don’t have to hire to benefit 

The NI relief isn’t just for new recruits. If you already employ someone under 25, enrolling them on an apprenticeship means you stop paying employer NI on their salary while they train. You get the saving and a more skilled team member, without adding to headcount. 

It’s one of the simplest ways to offset April’s rise: 

• Upskill existing staff. Put a colleague under 25 on a route like Business Administration, Accounting & Payroll, Marketing or AI & Automation. 

• Reskill at any age. Apprenticeships are open to staff of any age. For non-levy employers, the contribution for staff aged 25 and over is just 5%. 

• Hire new talent. Small and medium-sized employers taking on a 16 to 18 year old can get up to £3,000 in incentive payments, with fully funded training for apprentices aged 16 to 24. Eligibility applies. 

Our guide to apprenticeship support for employers explains the funding in more detail, and Maximising ROI: How Apprentices Can Drive Real Business Growth shows the wider return. 

What you get when you work with EMA 

An apprenticeship isn’t just a cost saving. It’s a practical way to build the team your business needs, and we handle the heavy lifting so you can focus on running your business. Here’s what that looks like: 

• A complimentary recruitment service. We help you design the role, advertise it, shortlist candidates and match you with motivated people ready to learn. 

• Clear guidance on pay and funding. We’ll help you set the right apprenticeship salary and make sure you claim every incentive and saving you’re entitled to. 

• A dedicated mentor for every apprentice. A Learning & Development Mentor supports your apprentice, and you, from the first day to the final assessment. 

• Training that fits around work. Many of our programmes run online or face to face, so your team keeps delivering while they learn. 

• Skills you can use straight away. Apprentices put what they learn into practice in your business from week one, whether that’s tighter month-end reporting, sharper campaigns or smarter, automated processes. 

• A route that keeps growing. Apprenticeships run from Level 2 upwards, and we also offer ACCA and CIMA, so someone who joins in admin can progress into finance, marketing, data or AI. 

• A team that’s local to you. We’re based in Derby and work with employers across the East Midlands, so you’ll always have a real person to call. 

Plan now, save from April 

Apprenticeships take a few weeks to set up, so now is the time to act if you want the savings in place when the new rates arrive. As your local training provider, EMA Training will help you choose the right route, check your funding and, if you’re hiring, recruit the right apprentice through our free recruitment service. 

New to apprenticeships? Start with An Employer’s Guide to Apprenticeships, or browse all our courses.