Question to the Department for Education:

To ask the Secretary of State for Education, pursuant to the Answer of 21 June 2023 to Question 190594, what steps her Department is taking to prevent the return of apprenticeship levy funding to the Treasury.

The apprenticeship levy is an important part of the government’s reforms to create a high-quality, employer-led apprenticeships system. It supports employers of all sizes to invest in high-quality apprenticeship training. The department is increasing investment in apprenticeships to £2.7 billion by 2024/25, which is more than double what was spent on apprenticeships in 2010/11 in cash terms.

Employers choose which apprenticeships they offer and when, therefore total annual spend on apprenticeships depends on the choices made by employers. While the department has seen some underspends in the apprenticeship budget in previous years, this will not always be the case. In the 2021/22 financial year, 99.6% of the apprenticeship budget in England was spent, supporting employers of all sizes to build the skilled workforces they need.

Employers can now choose from over 670 high-quality apprenticeship standards in a variety of sectors to help meet their skills needs. The department also continues to encourage employers to make greater use of apprenticeships by introducing flexible training models like flexi-job and accelerated apprenticeships, which are making apprenticeships more accessible for all sectors. The department has also improved the transfer system to make it easier for levy paying employers to find other employers who wish to take on new apprentices with transferred funds.

As well as funding new apprenticeships in levy-paying employers, the English apprenticeships budget also supports new apprenticeships in employers that do not pay the levy, existing apprentices that started in previous years, English and mathematics tuition for apprentices and additional payments to employers, providers and apprentices.