College Advising Employers on how to Avoid Paying Increased National Insurance Contributions
15th July 2025
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Business advisers at City of Wolverhampton College are urging employers to avoid paying increased National Insurance (NI) contributions for staff by taking on an apprentice.

Employers are exempt from paying Class 1 NI contributions for apprentices under the age of 25 who earn less than £967 per week - yielding savings of around £3,000 per year for an apprentice on an annual salary of £25,000.

The exemption will enable employers to invest in training and development for staff and save money by avoiding the reduced threshold and increased rate of NI contributions which came into effect on April 6, 2025.

Daniel Degg, Head of Employer Engagement at the college, said: "The changes to NI contributions are having a significant impact on staff costs for employers, however many are not aware that they can claim NI relief for apprentices aged under 25.

"By taking on an apprentice, employers will not only avoid paying increased contributions but will also benefit from staff equipped with the latest industry skills and knowledge, whatever sector they operate in."

During the training, an apprentice will learn on-the-job working towards a set of agreed occupational standards and will be supported by a college assessor who will also liaise with the employer to ensure the skills they are learning is what is required by the company.

The college offers over 30 apprenticeships in automotivebusiness and managementbusiness improvementconstructiondrinks dispensingengineeringhairdressing and barbering, and polymer processing.

For more information visit www.wolvcoll.ac.uk/demographic/apprentices, email employerenquiries@wolvcoll.ac.uk or to speak to an adviser call 01902 317541.

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Ian Henery

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