Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps he is taking to help make apprenticeships more affordable for businesses and specifically a) small businesses and b) businesses in the business service sector.

We are transforming the Apprenticeships Levy into a new Growth and Skills Levy in England, backed by £1 billion of additional investment, which will support 50,000 more young people into apprenticeships, give employers greater flexibility to develop the workforce they need, and support the industrial strategy.

We are providing considerable financial support to employers, particularly smaller employers who play such a vital role in creating apprenticeship opportunities for young people.

We have introduced a new apprenticeship hiring payment of £2,000 for non-levy paying employers (typically SMEs) that take on 16–24-year-old apprentices as new employees. Employers hiring apprentices aged 18-24 who have been on Universal Credit for over six months are also eligible for the new £3,000 Youth Jobs Grant.

Additionally, the government provides £1,000 to employers of all sizes when they take on apprentices aged under 19, or 19-to-24-year-old apprentices who have an Education, Health and Care Plan (EHC) or have been, or are, in care.

These payments can be added together where the employer and/or apprentice are eligible. Employers can choose how they spend these payments and use them to offset the additional costs associated with supporting young apprentices.

The government also fully funds apprenticeship training for all eligible under 25s at employers of all sizes, as we prioritise funding toward young people.

Furthermore, employers are not required to pay anything towards employees’ National Insurance for all apprentices aged up to age 25 (when the employee’s wage is below £50,270 a year).