Lib Dems Conference: Pledge to boost young apprentices' pay

Speaking at the party’s annual conference in Glasgow, Cable said he wants to increase the rate paid to 16- and 17-year-old apprentices during the first year of their programme from £2.73 to £3.79.

Outlining the proposal, he said: “We want apprenticeships to remain an attractive option for young people deciding whether to earn while they learn or go straight into employment.

“This is why I propose putting apprenticeships on a level playing field with young people entering the labour market.

“Applied to current minimum wage rates, this would be an increase on first year pay of over a third, as well as simplifying a pay structure that all too often catches employers out.”

Currently, the wage apprentices are paid is based on their age and how long they have been in an apprenticeship.

Cable said the proposal, due to be presented to the Low Pay Commission (LPC), would benefit employers by reducing the number of minimum wage rates from four to three.

Stewart Segal, chief executive of the Association of Employment and Learning Providers, said he supported an increase in apprentice wages, but the consequences of such a move would need to be thought through.

He said: “Many apprentice training providers believe that there is some justification for a significant increase in the apprentice rate, but it should not be increased to the point where it adversely affects employer recruitment.

“We will be considering carefully the full implications of today’s announcement before making our LPC submission.”

The LPC is due to make recommendations on the 2015 minimum wage rates in February 2015.

If Cable’s proposal is approved, the wage increase would take effect from October 2015.

Cable also said that he wants to see an expansion of degree-level apprenticeships in a bid to end the “false apartheid” between academic and vocational education.