Other Trainees

3.85 During the preparation of our 2004 Report, we looked carefully at the position of trainees and reviewed the minimum wage exemptions that were in place at that time in relation to the introduction of the minimum wage for 16-17 year olds. We concluded by recommending that the exemption from the minimum wage for apprentices aged 19 and under should be retained following the introduction of the 16-17 year old minimum wage, but said then that we would wish to look at the position of apprentices and participants on pre-apprenticeship programmes in a few years.

3.86 Such a review would also enable us to take account of other developments relating to apprenticeships in recent years. These include the Foundation Modern Apprenticeships and Advanced Modern Apprenticeships being replaced with 'Apprenticeships' (level 2) and 'Advanced Apprenticeships' (level 3) in England and the abolition of the arbitrary 25 year old upper age limit for starting apprenticeships in Scotland and Wales, and the review of the age limit in England and Northern Ireland. In addition, as noted earlier, in August 2005 the LSC introduced a contractual requirement for waged apprentices in England to receive a minimum of £80 per week from their employer. It has also announced that the EMA will be extended from April 2006 to replace the current MTA in England and will be available to young people on pre-apprenticeship programmes.

3.87 Some consultation responses received from trade unions and other organisations for this report raised concerns about the apprenticeship exemptions. They were concerned that the exemptions were being abused by some employers who offered little or low quality training. They asked that we carry out a review of them.

3.88 We believe that it is too soon to carry out a review for our next report which we expect will be due in 2007, but we recommend that the Government invite the Commission to carry out a full review of the apprenticeship exemptions and report in 2008. This timing will also enable us to assess the impact of the abolition of the older workers' Development Rate and the extension of the 12 months apprenticeship exemption in 2006.