Warwick IER has been commissioned by the Low Pay Commission (LPC) to undertake research into how employers set pay for their apprentices. LPC research suggests that a significant number of apprentices are paid below the minimum wage.
The main aims of the project are to:
- explore the factors that determine how employers set the pay of apprentices, in absolute terms and in relation to other workers;
- assess any impact of the increases in the Apprentice Rate on pay setting for apprentices;
- investigate why some employers set pay for apprentices to be above the Apprentice Rate but below the appropriate age-related rate, and how these rates are determined; and
- explore whether training hours influence decisions around pay and how employers record training hours.
The study will involve in-depth, qualitative interviews with apprentice employers and analysis of apprenticeship and pay data (Apprenticeship Survey of Employers and the Apprentice Pay Survey).