Beating the Budget Blues:
OVERVIEW
Following Chancellor Rachel Reeves' Autumn Budget, 2025 looks set to be a challenging year for UK-based businesses. From April 2025, two things are going to happen regarding National Insurance (NI) contributions. First, employer NI contributions are set to increase from 13.8%, to 15%. Second, the per-employee threshold at which employers have to start paying NI will reduce from £9,100, to £5,000 per year.
These two elements, combined with National Living Wage increases, mean that businesses in all sectors are going to be under increased pressure where budgets are concerned.
With this in mind, Impact Futures is happy to be the bearer of some good news. As an employer, you could potentially save thousands of pounds by fully utilising the best-kept secret in your money-saving toolkit: apprenticeships.
We don’t just mean hiring entry-level apprentices either. We also mean that by placing existing staff on apprenticeship programmes for their professional development, you stand to save several thousands of pounds in National Insurance contributions.
Real National Insurance Savings Example for Employers
| Annual Salary | Your NI at 15% | With Apprentice | Your Annual Saving |
| £20,000 | £2,400 | £0 | £2,400 |
| £25,000 | £3,000 | £0 | £3,000 |
| £30,000 | £3,600 | £0 | £3,600 |
Busting the Myths to Save Money
Don’t believe us? That’s okay. Decades of myths surrounding apprenticeships have probably kept you in the dark about this. When you think of apprenticeships, the law of stereotypes probably conjures images in your mind of wayward teenagers who struggled with traditional schooling, or entry-level interns fetching coffee.
Those cliched descriptions couldn’t be further from the truth. Apprenticeships look very different in the 21st century. They’re not just an alternative educational route. They’re a contemporary, comprehensive path to progression, structured in a format that is not only personalised to the learner, but also to the needs of the business they’re employed by.
In addition, existing employees can be placed on apprenticeship programmes as well. The difference with apprenticeships is, they are heavily backed by the government, as opposed to other types of training. This is where your opportunity to save money kicks in:
Most apprenticeships are government funded, and where they’re not fully funded, they are at the very least, 95% funded – so, no massive course fees to cover.
Apprentices on staff under the age of 25, be they existing staff or newly-employed apprentices, are exempt from employer National Insurance contributions on annual earnings up to £50,270.
Developing a training strategy that places as many of your staff members on to apprenticeship programmes as possible, will help you offset the upcoming NI and living wage increases and free up additional funds you can invest in other areas of your business.
Employers in the UK are required to pay NI contributions for their employees. However, as mentioned above, when you employ an apprentice under the age of 25 (or put an existing member of staff under the age of 25 on to an apprenticeship programme), you’re exempt from paying Employer NI contributions on that employee’s earnings up to the Upper Earnings Limit. This can lead to substantial savings for businesses like yours – no matter the size of your enterprise.
MINIMISE NATIONAL INSURANCE COSTS TODAY
For your peace of mind, working with Impact Futures to put this strategy in place means that we can help with the whole process. We will:
- Get existing staff on-programme, setting them up on the right apprenticeships for their planned progression.
- Offer free apprentice recruitment services, helping to potentially fill any current vacancies you have with the right people, under the most cost-effective criteria.
- Provide free support and advise on all government funding initiatives, plus, any other opportunities to benefit and save that we can identify for you.
Impact Futures is especially proud of its employer satisfaction rate. You will be no exception to the level of service and support we provide. Whatever you need to get ahead of the upcoming budgetary changes, we will be there every step of the way.
SAVINGS SOLUTIONS TO BEAT BUDGET BURDENS
There is always a way through uncertainty. Rather than panic and ponder the future, you can take action to get out ahead of potential challenges. Apprenticeships offer businesses a through-road that they may not have even realised was an option.
Impact Futures is not just a trusted training provider. We are your partner in success. Change isn’t always easy to navigate; but we help to make transitions smooth, and maximise outcomes for businesses like yours, as well as individual learners. We can’t wait to save you money.
Reach out to the Impact Futures team today to discover more about National Insurance contribution savings, and other ways to save money by utilising apprenticeships.
Got any questions?
We’re all about making an impact, be that individuals making an impact through their day-to-day work, or by organisations making their impact on our economy.
As a national training provider, we make this impact throughout the UK, with expertise in childcare, healthcare, clinical and business skills apprenticeships.
If you have any questions, whether it be about this article or anything else, complete the form below, call us on 01753 596 004, or email us.
Both the Impact Futures and The Childcare Company brands are used interchangeably for both Impact Futures Training Limited and The Child Care Company (Old Windsor) Limited.