Conclusion: Development Rate and Apprenticeship Exemption

3.82 Our review has shown that the position on the older workers' Development Rate and the 12 months apprenticeship exemption has not changed since we reported our provisional conclusions in our 2005 Report. Take-up of the older workers' Development Rate remains very low and the consultation responses suggest near unanimous support for abolishing it. The suggestion by some stakeholders in previous years that the older workers' Development Rate would be used more intensely as the level of the minimum wage increased does not appear to be borne out. Consultation responses on the apprenticeship exemption were more mixed. But we have received no evidence to alter our view that it would be difficult to justify an age limit on the apprenticeship exemption objectively in terms of the forthcoming age discrimination legislation.

3.83 Taking all these factors into account, we conclude that the evidence is now compellingly in favour of the older workers' Development Rate being abolished in October 2006 and, simultaneously, the 12 months apprenticeship exemption being extended to cover all apprentices aged 19 and over. We submitted our findings to the Government in November 2005. The Government's own assessment concurred with our view and it has advised that it will be proceeding on this basis. We understand that it will be introducing the necessary provisions before Parliament shortly.

3.84 We now turn to consider other trainees and the minimum wage exemptions that apply to them.