Question to the Department for Education:

To ask the Secretary of State for Education, what was the total (a) apprenticeship levy revenue received from eligible employers, (b) sum and proportion of levy revenue spent on Level 4, 5, 6 and 7 apprenticeship qualifications and (c) the sum and proportion of unspent levy revenue returned to HM Treasury in each of the last five years.

All UK employers with an annual pay bill above £3 million pay 0.5 per cent of their pay bill to invest in apprenticeship training. HM Revenue and Customs (HMRC) is responsible for collecting the levy on behalf of the government. Annual apprenticeship levy receipts are published at: https://assets.publishing.service.gov.uk/media/67b5fd2c9ae06ef4a71cf2e0/NS_Table_final.ods.

The department is responsible for apprenticeships in England only and receives an annual protected apprenticeships budget, which is agreed at spending reviews. Although closely linked, this is distinct from the total levy income collected and the funds in employer accounts.

In total, this apprenticeship budget covers the spend drawn down by all levy-paying employers, as well as apprenticeships for those who do not pay the levy, the costs of English and mathematics tuition for apprentices, and additional payments to employers, training providers and apprentices. It also covers the administrative costs of running the apprenticeships programme.

The table below provides details of the ring-fenced apprenticeships budget, and the total and proportion of the budget that was unspent in each of the last five years.

*The 2023/24 annual apprenticeship budget was revised in-year from £2,585 million to £2,525 million, as £60 million was surrendered in-year.

Where the department’s apprenticeships budget is underspent by the end of the financial year, funds are returned to HM Treasury in line with standard practice set out in the Consolidated Budgeting Guidance, a copy of which is available at: https://www.gov.uk/government/publications/consolidated-budgeting-guidance-2024-to-2025.

The table below provides a breakdown of spend against the apprenticeship budget by apprenticeship level 4 to level 7, and the proportion of the budget spent at level 4 to level 7 for each of the five past years.