Question to the Department for Education:

To ask the Secretary of State for Education, how much and what proportion of apprenticeship levy funds were transferred from levy-payers to non-levy payers in the (a) 2019-20, (b) 2020-21, (c) 2021-22 and (d) 2022-23 academic year.

The Government, via HM Revenue and Customs, collects an apprenticeship levy of 0.5% on total payroll from businesses across the UK with an annual payroll expenditure of more than £3 million. From this, HM Treasury sets an English apprenticeships budget for the department, and the devolved governments receive a share of the funding calculated using the Barnett formula.

The apprenticeships budget in England is used to fund training and assessment for new apprenticeship starts for all employers of all sizes, both those who pay the levy and those who do not, and to cover the ongoing costs of apprentices already in training and any additional payments made to employers, providers, and apprentices.

In the 2019/20 financial year, the apprenticeship budget was £2,469 million and total spend was £1,919 million. £650 million (34%) of this spend was directed to non-levy paying employers, including £3 million which was transferred directly by levy-paying employers via levy transfer. Of the £650 million, £451 million was spent on non-levy employer training and assessment costs and the remainder for additional payments such as English and maths support.

In the 2020/21 financial year, the apprenticeship budget was £2,467 million and total spend was £1,863 million. £557 million (30%) of this spend was directed to non-levy paying employers, including £16 million which was transferred directly by levy-paying employers via levy transfer. Of the £557 million, £403 million was spent on non-levy employer training and assessment costs and the remainder for additional payments..

In the 2021/22 financial year, the apprenticeship budget was £2,466 million and total spend was £2,455 million. £817 million (33%) of this spend was directed to non-levy paying employers, including £23 million which was transferred directly by levy-paying employers via levy transfer. Of the £817 million, £546 million was spent on non-levy employer training and assessment costs and the remainder for additional payments.

In 2022-23 financial year, the apprenticeship budget was £2,554 million and total spend was £2,458 million. £724 million (29%) of this spend was directed to non-levy paying employers, including £32 million which was transferred directly by levy-paying employers via levy transfer. Of the £724 million, £505 million was spent on non-levy employer training and assessment costs and the remainder for additional payments.

To note, the amount of annual funds that levy-paying employers can transfer from their levy account increased from 10% to 25% in April 2019.