Question to the Department for Education:

To ask the Secretary of State for Education, what estimate his Department has made of the amount that employers will pay into the apprenticeship levy in 2020; how much apprenticeships will cost in 2020; and if he will make a statement.

The apprenticeship levy is collected by HM Revenue and Customs from all UK employers with a pay bill in excess of £3 million. In the 2019/20 financial year, it is forecast that UK employers will pay £2.8 billion into the levy. Forecasts for future levy receipts are published by the independent Office for Budget Responsibility and updated monthly and they can be found here: https://obr.uk/efo/economic-fiscal-outlook-march-2019/.

The amount raised by the levy is distinct from the Department for Education’s ring-fenced apprenticeship budget, which is set to fund apprenticeships in England only. The budget has been set in advance by HM Treasury for the current spending review period which runs until the end of 2019/20.

In 2019/20, over £2.5 billion will be available for investment in apprenticeships in England. Currently, we expect to remain within budget in the 2018/19 and 2019/20 financial years. The level of funding for the programme beyond 2020 will be determined by the forthcoming Spending Review.