Overview

The Training Wage Bill proposes to create a new "training wage," exempt from the national minimum wage, for individuals undergoing employer-provided training. This would allow employers to pay less than the minimum wage to trainees, provided they receive relevant skills training as part of their employment contract.

Description

This bill amends existing minimum wage legislation. It introduces a "training wage" allowing employers to pay less than the national minimum wage to employees enrolled in a training program.

Key Provisions:

• Individuals on a training wage are exempt from the National Minimum Wage Act 1998.
• A written employment contract must specify the training wage and guarantee relevant skills training.
• The bill applies to England, Wales, Scotland, and Northern Ireland.
• It comes into force immediately upon passing.

Government Spending

The bill is not expected to directly increase or decrease government spending. The potential impact on government revenue through reduced National Insurance contributions is unknown without further economic analysis.

Groups Affected

• Trainees: Potentially lower wages for trainees, but with the benefit of receiving relevant job training.
• Employers: Potentially lower labor costs for training positions.
• Minimum wage workers: Possibly a shift in the labor market, with some employers opting to hire trainees on the training wage instead of minimum wage employees.

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