Cable announces plans to give apprentices 40% pay rise

This story was updated at 2.56pm, 6 October 2014

Vince Cable has announced plans for a pay rise for apprentices, which will come into effect in October, providing it is approved by regulators.

The business secretary said the hourly rate for the apprentices and the rate for 16-17 year olds should be combined, bringing the National Minimum Wage for apprentices to £3.79 per hour.

Apprentices are currently paid £2.73 per hour – less than half the £6.50 per hour adults receive on the minimum wage – so the change would mean a pay rise of £1.06 or 40%.

About 31,000 people will benefit from the rise.

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