Asked by: Nic Dakin (Labour - Scunthorpe)
Question to the Department for Education:
To ask the Secretary of State for Education, pursuant to the Answer of 23 April 2019 to Question 243420, what data the Government uses to determine the number of (a) apprenticeships delivered in each sector and (b) apprenticeship levy funded apprenticeships delivered in each sector; and if he will make a statement.
Answered by Anne Milton
The Education and Skills Funding Agency does not require levy-paying employers to document their industry sector when registering an apprenticeship service account, neither does it require employers who do not pay the levy to register an industry sector before training their apprentices.
For the period covering the 2012/13 to 2016/17 academic years, the Department for Education used the Individualised Learner Record (ILR) matched with the Inter-Departmental Business Register to determine the number of apprenticeship starts in each industry sector. This information is published here: https://www.gov.uk/government/statistics/apprenticeships-in-england-by-industry-characteristics. Figures for the 2017/18 academic year are planned to be published in Autumn 2019.
The department also uses data from the apprenticeship service and the ILR to obtain figures on the number of levy and non-levy supported apprenticeship starts broken down by apprenticeship sector subject area. The latest statistics covering sector subject area breakdowns for apprenticeship starts are available here: https://www.gov.uk/government/collections/further-education-and-skills-statistical-first-release-sfr.
Asked by: Nic Dakin (Labour - Scunthorpe)
Question to the Department for Education:
To ask the Secretary of State for Education, what proportion of the apprenticeship levy is being spent on MBA or equivalent qualifications.
Answered by Anne Milton
Successful completion of the level 7 Senior Leader standard may lead to either of the three qualifications: MA, MSc or MBA.
The total percentage spend by both levy and non-levy employers on the level 7 Senior Leader apprenticeship standard for the past 2 financial years is below:
Year | Standard | Percentage |
2017-18 | Senior Leader level 7 Standard | 0.02% |
2018-19* | Senior Leader level 7 Standard | 0.51% |
|
| TOTAL : 0.28% |
*2018-19 is provisional data.
The figures are based on the number of all apprenticeship starts for the level 7 Senior Leader apprenticeship standard by levy and non-levy employers against total apprenticeship spend for both financial years.
Details of the Senior Leader standard can be found on the Institute for Apprenticeships and Technical Education’s website at: https://www.instituteforapprenticeships.org/apprenticeship-standards/senior-leader/.
Asked by: Nic Dakin (Labour - Scunthorpe)
Question to the Department for Education:
To ask the Secretary of State for Education, what the highest amount is of apprenticeship levy funds that an employer can spend for a single apprenticeship.
Answered by Anne Milton
The new 30-band funding structure was introduced on 1 August 2018 for all new apprenticeship starts. Details can be found within ‘Apprenticeship Funding in England’ published on GOV.UK, available here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/788312/Apprenticeship_funding_in_England_from_April_2019.pdf.
These bands range from £1,500 to £27,000 and set the maximum price that the government will contribute towards the training and assessment for an individual apprenticeship.
The funding band upper limit of £27,000 is the maximum amount of government funds that levy-paying employers can draw down from their apprenticeship service accounts to put towards the cost of an individual apprenticeship.
For non-levy-paying employers, at least 95% of the apprenticeship training and assessment costs will be paid for by the government, up to the agreed funding band limit.
We know that some employers will wish to use specific delivery models or provide additional training to their apprentices, which goes beyond what is set out in the standard. Employers are free to agree a price above the funding band upper limit but must pay for any additional costs above this.
Asked by: Nic Dakin (Labour - Scunthorpe)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment his Department has made of the future financial sustainability of the apprenticeship levy; and if he will make a statement.
Answered by Anne Milton
The apprenticeship levy is collected by HM Revenue and Customs from all UK employers with a pay bill above £3 million.
Separately, HM Treasury have set the Department for Education a budget for apprenticeships in England for the current Spending Review period (to 2019-20). This budget is distinct from the levy and is not dependent on receipts from the levy. This budget is used to fund new apprenticeship starts for both levy and non-levy paying employers and must also cover the ongoing costs of apprentices that are already in training.
In 2019-20 funding available for investment in apprenticeships in England is over £2.5 billion, double what was spent in 2010-11.
Currently, we expect to remain within budget in this spending review period to the end of the 2019-20 financial year. A detailed breakdown of spending for 2018-19 will be published in the Education and Skills Funding Agency Annual Report and Accounts.
The level of funding for the apprenticeship programme beyond 2019-20 will be determined by the forthcoming Spending Review.
Asked by: Nic Dakin (Labour - Scunthorpe)
Question to the Department for Education:
To ask the Secretary of State for Education, what estimate his Department has made of the amount of Apprenticeship Levy funding that has been spent on (a) Level 2 apprenticeships, (b) Level 3 apprenticeships, (c) Level 4 apprenticeships, (d) Level 5 apprenticeships and (e) Level 6 apprenticeships since 2017, and if he will make a statement.
Answered by Anne Milton
HM Treasury provides the Department for Education with a fixed annual budget for apprenticeships, separate from employers’ levy funds. This budget covers the costs of existing apprentices and new apprenticeship starts for all employers, as well as the running costs of the programme.
The amount spent on apprenticeships starts with all employers, by level, between the introduction of the levy in May 2017 and February 2019, is set out in the attached table. The amount spent in levy-paying employers is given separately. Both sets of figures include payments for additional support to learners, such as for English and maths training.
Asked by: Nic Dakin (Labour - Scunthorpe)
Question to the Department for Education:
To ask the Secretary of State for Education, what proportion of the funds employers have paid into the apprenticeship levy has been disbursed on apprenticeships since 2017; and if he will make a statement.
Answered by Anne Milton
From the introduction of the apprenticeship levy in May 2017 to the end of January 2019, the most recent month for which data are available, levy-paying employers utilised £601 million of the funds available to them to pay for apprenticeship training in England. This represents 15% of the total funds entering employers’ accounts in the same period (£3,905 million). The total drawdown of £601 million does not include other costs, such as incentives and additional payments for disadvantaged apprentices.
Once levy funds enter employers’ accounts, they can be used to pay for training for 24 months before they begin to expire on a rolling, month-by-month basis. We don’t anticipate that all levy-payers will use all the funds in their accounts, though they are able to. Income from the levy is also used to fund apprenticeship training for non-levy paying employers.
Asked by: Nic Dakin (Labour - Scunthorpe)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment he has made of the effect of the requirement for 20 percent off-the-job training on the number of Level 2 apprenticeship starts; and if he will make a statement.
Answered by Anne Milton
The requirement for a minimum of 20% off-the-job training was introduced to the funding rules in May 2017 alongside other elements of our apprenticeship reforms – including the introduction of the apprenticeship levy. It is not possible to evaluate in isolation the effect of 20% off-the-job training on level 2 apprenticeship starts.
Asked by: Nic Dakin (Labour - Scunthorpe)
Question to the Department for Education:
To ask the Secretary of State for Education, what estimate his Department has made of the amount that the retail sector has (a) paid into the apprenticeship levy and (b) used to fund apprenticeships since 2017, and if he will make a statement.
Answered by Anne Milton
The apprenticeship levy is collected from employers by HM Revenue and Customs.
The Education and Skills Funding Agency does not require levy-paying employers to register an industry sector when registering an apprenticeship service account and is therefore unable to supply the information on apprenticeships spending by the retail sector since 2017.
Asked by: Nic Dakin (Labour - Scunthorpe)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment he has made of the (a) economic and (b) employment benefits of each apprenticeship level; and if he will make a statement.
Answered by Anne Milton
Research published in 2015 demonstrates the high level of return to investment delivered by the apprenticeship programme. Apprenticeships at level 2 and level 3 deliver £26 and £28 of economic benefits respectively for each pound of government investment. This can be found at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/435166/bis_15_323_Measuring_the_Net_Present_Value_of_Further_Education_in_England.pdf.
In October 2018, we published our Further Education: Outcome Based Success publication 2010/11 – 2015/16, which covers the destinations (into employment and learning), earnings and the progression of learners: https://www.gov.uk/government/collections/statistics-outcome-based-success-measures.
The publication reveals the average earnings, by level, of those who achieved an apprenticeship in 2015/16, one year after completion:
Over the past few years we have introduced major reforms to apprenticeships. As the system is still adapting, it is too early to know the full economic and earnings benefits that these changes will bring.
Our Apprenticeships Reform Programme Benefits Realisation Strategy, published in March 2017, sets out a broad range of success measures for the programme. We publish annual progress updates, of which the most recent can be found at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/707896/Progress_report_on_the_Apprenticeships_Reform_Programme_May_2018.pdf.
We will be publishing our 2019 update shortly.
Asked by: Nic Dakin (Labour - Scunthorpe)
Question to the Department for Education:
To ask the Secretary of State for Education, how much and what proportion of the apprenticeship levy funding has been spent on the administrative costs of the (a) Education and Skills Funding Agency and (b) Institute for Apprenticeships since 2017, and if he will make a statement.
Answered by Anne Milton
Employers’ levy funds are available for them to use to cover the cost of the training and assessment of their apprentices. Employers have 24 months to spend their funds from the point they enter their accounts. These funds are not used to support the administrative costs of the system.
Separate to this, HM Treasury provides the Department for Education, including the Education and Skills Funding Agency (ESFA) and the Institute for Apprenticeships and Technical Education (the Institute), with fixed annual administration and programme budgets.
In 2017-18, the ESFA spent £36 million (equating to less than 2 percent) of the £2 billion apprenticeships programme budget on the cost to deliver and run the programme. In addition, the Institute spent £3.8 million programme budget on running the programme.
The Department for Education (including the ESFA and the Institute) are also provided with administration budgets. In 2017-18, the administration spend was approximately £6.4 million in the department, and £33 million in the ESFA. This includes an estimate of the proportion of departmental overhead costs attributable to the apprenticeships programme. In addition, £4.6 million related to administration spend for the Institute.
The department will publish spending on the running costs of the programme for 2018-19 in its annual report and accounts.