Almost half of Portsmouth firms in the construction industry are set to feel the financial impact of new pay legislation affecting apprentices aged 25 years and over.
The national survey was conducted by the UK’s leading construction payroll provider Hudson Contract, which polled companies in Portsmouth.
The new legislation will see the wages of apprentices aged over 25 increase from £6.70 to the national living wage of £7.20 in April 2016.
Ian Anfield, managing director of Hudson Contract, said: ‘With the construction industry in Portsmouth one of the biggest apprenticeship employers, we wanted to gauge the opinions of our building clients across the UK who will ultimately be impacted by the new legislation.
‘Despite the findings indicating that nearly half of firms will be hit financially by the legislation and around a third may potentially be deterred from employing an apprentice aged 25 and over, it was reassuring that 42 per cent of firms will employ an apprentice based on ability, rather than age.’