Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps his Department is taking to support manufacturing employers to establish employer-led apprenticeship academies in partnership with further education colleges; whether Growth and Skills Levy funding may be used for employer-designed training modules that meet the requirements of an approved apprenticeship standard; and what financial support is available for the equipment, facilities and staff required to establish such academies.

This Government is transforming the apprenticeships levy into a new growth and skills levy in England, giving employers greater flexibility, creating more opportunities for young people, and directly supporting Industrial Strategy sectors, including engineering and manufacturing.

Employers can choose the training provider best suited to deliver the apprenticeship training that will meet their skills needs and the government provides a range of financial support for employers and providers to offer apprenticeships. We are now fully funding apprenticeships for eligible young people under 25 and from October we are introducing a £2,000 hiring payment for non-levy paying employers, typically SMEs, that recruit apprentices under 25. We also continue to pay £1,000 to both employers, of all sizes, and providers for eligible young apprentices, including 16-18-year-olds.

To give businesses greater flexibility and help them quickly respond to emerging skills gaps, we have launched new apprenticeship units in priority sectors such as artificial intelligence, digital, and engineering. These are built from the knowledge and skills within existing employer-led occupational apprenticeship standards, ensuring high-quality, targeted training that meets real business needs. Levy payers can use their levy funding for apprenticeship units and they will also be fully funded for non-levy paying employers, typically SMEs.

While capital projects are ineligible for apprenticeship funding, apprenticeship provision will benefit from significant capital funding announced in the Infrastructure, Industrial, and Education Estates strategies, including £200 million via the Skills Mission Funds to expand Technical Excellence Colleges across England to priority sectors.