Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what safeguards he plans to include in the Growth and Skills Levy to protect funding for small and medium-sized enterprises.

This government recognises the importance of small and medium-sized enterprises who are responsible for around 40% of apprenticeship starts and provide valuable opportunities for young people.

That is why we have said that we will fully fund apprenticeship training for non-levy paying employers (essentially SMEs) for all eligible people aged under 25 from the start of the next academic year. This change will make it easier for those employers to engage with apprenticeships across the country by cutting costs and reducing bureaucracy for both them and their training providers.

At the moment, this only happens for apprentices aged 16 to 21 and apprentices aged 22-24 who have an Education, Health and Care Plan (EHCP) or have been, or are, in local authority care. Small and medium-sized enterprises also benefit from a £1,000 payment when they take on apprentices aged under 19, or 19-to-24-year-old apprentices who have an EHCP or have been, or are, in care.

The government also facilitates and funds the Apprenticeship Ambassador Network (AAN) which comprises 2,500 employers and apprentices who volunteer to promote the benefits of apprenticeships. It operates across all parts of England through nine regional networks. These networks provide buddying and mentoring support to small businesses to help them recruit and retain apprentices.