Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of likely take-up of the apprenticeship hiring payment among businesses employing fewer than 50 people.

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.