National Insurance Changes – Why Now is the Time to Back Apprenticeships
From April 2025, changes to National Insurance thresholds and employer contribution rates will come into effect across the UK.
For many employers, this will mean higher costs per employee. It’s a significant shift – especially for businesses already feeling pressure from wage inflation, recruitment challenges and economic uncertainty.
But there is a smart, strategic way to adapt.
Apprenticeships offer a cost-effective solution for building workforce capability, futureproofing your team, and accessing government-backed funding support.
What’s Changing in April?
The government is adjusting the National Insurance contribution (NIC) thresholds for employers and employees. While exact increases vary by income band, most employers will pay more in contributions unless their payroll is below the new small employer thresholds.
For apprentices under 25, however, employer NICs remain at 0% on earnings below £53,000. This creates a real saving compared to hiring or upskilling other staff on the same wage.
Why Consider Apprenticeships?
Apprenticeships are not just for school leavers. They are available from Level 2 through to higher levels and can be used to:
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Recruit fresh talent
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Fill hard-to-hire roles
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Upskill or retrain existing staff
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Improve retention and reduce recruitment spend
Government data shows that 76% of employers with apprenticeship programmes report improved productivity. 75% see better product or service quality.
At Medipro, we’ve seen similar results first-hand. Our employer partners regularly comment on the enthusiasm, loyalty and long-term growth potential apprentices bring to their teams.
Funding and Incentives Available
If you’re a non-levy employer (annual pay bill under £3m), the government funds 95–100% of training and assessment costs.
If you’re a levy payer, you can use your digital account to fund training. Even if your levy funds expire, new contributions each month can still cover multi-year programmes.
Additional financial benefits include:
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£1,000 incentive for training a 16–18-year-old or certain 19–24-year-olds
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No NICs for under-25 apprentices (on qualifying earnings)
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Reduced recruitment and onboarding costs
Built Around Your Business
Modern apprenticeships are flexible. Off-the-job training doesn’t need to mean a day in college. It can be online, workplace-based or in blocks to suit your operations.
At Medipro, we tailor delivery models – including front-loaded, rolling, and cohort options – to minimise disruption and maximise value.
We support employers with recruitment, eligibility checks, onboarding, and ongoing learner progress through our fully integrated Aptem system.
Ready to Act?
April’s NIC changes are a challenge for many – but also a moment to think differently. Apprenticeships help you build the talent you need, without taking on unnecessary overhead.
Whether you want to hire someone new or upskill existing staff, we can help you make the most of the funding available.
Let’s talk.
Reach out today and find out how apprenticeships can work for your business.