Shropshire builders fear new legislation over pay
Almost half of Shropshire firms in the construction industry are set to feel the financial impact of new pay legislation affecting apprentices aged 25 years and over.
A survey by the construction payroll provider Hudson Contract polled companies in Shropshire on the new legislation which will see the wages of apprentices aged over 25 increase from £6.70 to the national living wage of £7.20 in April 2016.
It found that 46 per cent of local companies will feel the effect of the changes.
Another 24 per cent didn't know the new rules were coming in.
And 30 per cent said they would not want to employ an old apprentice because of the changes to wages, despite 24 per cent saying they see apprentices aged over 25 as more experienced, and a quarter considering them to be more reliable than younger apprentices.
Ian Anfield, managing director of Hudson Contract, said: "With the construction industry in Shropshire one of the biggest apprenticeship employers, we wanted to gauge the opinions of our building clients across the UK who will ultimately be impacted by the new legislation.
"Despite the findings indicating that nearly half of firms will be hit financially by the legislation and around a third may potentially be deterred from employing an apprentice aged 25 and over, it was reassuring that 42 per cent of firms will employ an apprentice based on ability, rather than age."
The age debate also found that 81 per cent of firms would employ apprentices under the age of 25, with 47 per cent claiming their apprentice stays with the business for up to three years after completing their apprenticeship.
This compared to 34 per cent who stay with the company for up to five years and 14 percent who last up to 10 years – proving that apprentices are still seen as a long-term investment and vital to bolstering a workforce.
