Question to the Department for Education:

To ask the Secretary of State for Education, what steps she has taken to increase funding for apprenticeships for non-levy apprenticeship payers.

​In 2019-20, funding available for investment in apprenticeships in England has risen to over £2.5 billion, double what was spent in 2010-11 in cash terms. This is used to fund apprenticeships for all employers, including apprenticeships started before the introduction of the levy as well as those started since by levy-payers and non-levy payers.

Small and medium-sized enterprises, most of whom do not pay the apprenticeship levy, are the lifeblood of our economy and it is essential that our reforms work for these employers. Over the course of the next year, we will be giving employers who do not pay the levy greater control over how they pay for their apprenticeship training and assess and recruit their apprentices. Employers will have access to a larger pool of training providers to deliver the training that meets their needs and supports growth. We are achieving this by giving small and medium-sized employers in England access to the full benefits of our award-winning online apprenticeship service, on the same basis as levy-payers.

To make sure there is a well-managed gradual transition for smaller employers away from the current system and onto the apprenticeship service, we are extending contracts with providers for training apprentices with non-levy payers until April 2020.

The recent settlement will determine budgets for the 2020-21 financial year only. The longer-term financial challenges facing the programme will be considered as part of the full Spending Review in due course.