Written answer
Apprenticeship Programmes
174. Deputy Eoghan Kenny asked the Minister for Further and Higher Education, Research, Innovation and Science if will review and engage with stakeholders in relation to apprentice wages given the current cost of living crisis; and if he will make a statement on the matter. [34345/26]
Comment on this
Apprenticeships are a contract of employment. Wages are set and paid by the apprentice’s employer, subject to any applicable industrial relations agreements. Neither SOLAS nor my Department has any role in determining apprentice wage levels.
The Deputy may be aware that apprentices are exempt from minimum wage legislation. This exemption, which falls under the remit of the Department of Enterprise, Tourism and Employment, reflects the fact that apprentices are engaged in training contracts, during which their skills and competencies develop over time. This is evident in the structure of craft apprenticeship wage rates, which are primarily established through collective bargaining agreements and which increase progressively over the four years of training.
The issue of apprentice wages is complex. I understand that lower wages may present a barrier to entry for some individuals. At the same time, increasing apprentice pay may some discourage some employers from taking on apprentices, given the costs associated with training.
My Department supports apprentices financially through a range of measures, including craft training allowances, travel and accommodation supports, and targeted bursaries for underrepresented groups.
The Government has set a target to grow apprenticeship registrations from 9,400 in 2025 to 12,500 in 2030 with two thirds in craft and construction, supporting national infrastructure delivery. Any change to financial supports for apprentices, including wage rates, would need to be considered in the context of the potential impact that it may have on the national uptake of apprenticeships, a factor of employer demand and apprentice interest, as well as the availability of resources.
Ensuring apprentices and employers remain incentivised will be central to the next Apprenticeship Action Plan which will be published later this year.