2024 Budget Update
What the new wage increases mean for employers and young people in the sport and physical activity sector
The recent UK budget introduces changes to the National Living Wage and apprenticeship wage, effective from April 2025. With the apprenticeship wage rising by 18% to £7.55 per hour and the National Living Wage to £12.21, employers in sport and physical activity must balance fairer pay with new financial adjustments that extend across the wider business. At a time where we have seen continued rising costs impact organisations across the UK, we wanted to provide some guidance to the sector as to why the recent budget addresses a long-standing issue affecting many apprentices and entry level workers, but also how employers can use apprenticeships to be a solution to support a stronger, more economically viable workforce.
Fairer pay for those starting out in the world of work
Just 5 years ago, the apprenticeship wage was £3.90 per hour and two years later had risen only to £4.15. Unless in a stable environment – like living with parents – we could see that this low salary was a major barrier to young people taking up apprenticeship positions. Whilst it is the right of every employer to pay whatever legal wage they wish, we have always championed the wider positives of a fairer wage for all. These recent 2025 wage increases will now make apprenticeships much more attractive to young people considering careers in coaching and sport development, thus taking positive strides forward for businesses at a time where the recruitment climate is challenging for many organisations. However, for smaller organisations, this also means adjusting budgets to meet those rising costs across the workforce.
Why Apprenticeships remain a cost effective investment for employers
Despite increased salary costs, apprenticeships are still a valuable, cost-effective solution for workforce development:
- Lower wage costs relative to salaried roles: Apprenticeship wages remain below other entry-level salaries, allowing employers to manage budgets effectively.
- NIC relief for apprentices: Employers are exempt from NI contributions for apprentices under 25, resulting in a potential saving of between £1,400 and £12,000 per apprentice, depending on age and salary in certain circumstances.
- Employment Allowance increase: With the Employment Allowance rising to £10,500, smaller organisations will gain greater NI relief, helping to offset some of the increased NI contributions.
- New income streams and opportunities: if deployed and supported effectively, we know that apprentices offer an opportunity to grow your insights, develop new projects, and enhance your potential operating size thus providing new business opportunities for your organisation.
Coach Core is here to support employers across Sport & Physical Activity to continue developing their understanding of apprenticeships and navigating the implications of the budget. We welcome the Governments focus on supporting apprentices and entry level roles with a fairer wage and will continue to champion the tangible benefits to all when employers essentially provide a salary that supports an individual’s everyday needs
As a Sport England System Partner, Coach Core is dedicated to helping sector leaders understand and leverage apprenticeships effectively. With our guidance, the sport sector can continue offering meaningful roles to young people, driving positive community impact across the UK.