Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, which sectors his Department expects the apprenticeship hiring payment will generate the greatest additional demand for apprentices.

Employers who do not pay the levy, typically small and medium-sized enterprises, are important to the economy and to apprenticeships; in particular, they provide valuable opportunities for younger apprentices and apprentices from disadvantaged areas.

To support non-levy paying employers to meet the additional costs associated with employing young people, we have introduced a new hiring payment of £2,000 when they take on 16–24-year-old apprentices as new employees. This applies to apprenticeship starts from 1 October as long as they have joined their employer within the past 90 days.

Apprenticeships are jobs with training, meaning take-up will depend on employers’ workforce needs and hiring decisions.