How Apprenticeships Can Help Schools Offset the Upcoming National Insurance Hike in 2025

With the upcoming National Insurance (NI) contributions increase from 13.8% to 15% for employers, schools in the UK will face significant cost hikes. Adding to the challenge, the threshold for paying NI will drop from £9,100 to £5,000, further increasing payroll expenses. For many schools, this will create a strain on budgets already stretched thin by rising operational costs.

But there’s good news. Schools can take proactive steps to offset these rising costs and develop a stronger, more skilled workforce at the same time.

Why Apprenticeships are the Smart Choice for Schools

One effective solution for managing these costs is through apprenticeships. Hiring apprentices under the age of 25 who are on approved standards can help schools significantly reduce their NI payments. Under current rules, employers are exempt from paying NI contributions for apprentices under 25 who earn less than £967 per week (or £50,270 annually).

By recruiting apprentices, schools can:

• Offset NI contributions: Reduce payroll costs by taking advantage of the NI exemption for young apprentices.
• Invest in new talent: Apprenticeships provide an opportunity to develop and mould the next generation of teaching assistants, administrators, and other critical school roles.
• Maximise apprenticeship funding: The Apprenticeship Levy and co-investment funding allow schools to cover up to 95-100% of apprenticeship training costs, making it a budget-friendly way to build a future-ready team.

A £1,000 Boost for Hiring Young Apprentices

If your school hires an apprentice aged 16 to 18, you’ll also be eligible for a £1,000 grant. This financial incentive, combined with the NI exemption, makes apprenticeships a smart, cost-effective solution for schools looking to reduce rising payroll expenses while investing in their workforce.

Take Action Now

With April 2025 fast approaching, now is the time for schools to start planning for these upcoming changes to National Insurance. By investing in apprenticeships, schools can avoid increased payroll costs and take advantage of the support available to upskill and retain staff.

At Swift Training, we offer tailored apprenticeship programmes that help schools navigate these changes and build a stronger workforce. Our team can guide you through the process of setting up apprenticeships, accessing available funding, and taking full advantage of the NI exemptions.

Take the First Step: Book a Consultation or Download Our Free Funding Guide

Are you ready to explore how apprenticeships can help your school reduce costs and develop talent? Book a free consultation today

Alternatively, if you want to learn more about how the Apprenticeship Levy and NI exemptions can benefit your school. DOWNLOAD A COPY OF OUR FUNDING GUIDE