Question to the Department for Education:

To ask the Secretary of State for Education, what steps she is taking to encourage employers to take advantage of the apprenticeship levy to use these funds to develop skills in young people.

Education is a devolved matter, and the response outlines the information for England only.

The government is reforming the current levy-funded apprenticeships offer to deliver greater flexibility for employers. Apprenticeships will remain at the heart of the offer. To support more businesses to participate in apprenticeships, the department is introducing shorter duration apprenticeships and foundation apprenticeships in targeted sectors.

Foundation apprenticeships will be a new work-based training offer that give more young people a foot in the door at the start of their working lives, whilst supporting the pipeline of new talent that employers will need to drive economic growth. The department is working closely with employers and providers to design foundation apprenticeships that offer young people a good route into good, skilled work and meet the needs of the industrial strategy.

To support smaller employers to access apprenticeships, the government pays the full training costs for young apprentices aged 16 to 21, and for apprentices aged 22 to 24 who have an education, health and care (EHC) plan or have been in local authority care.

Employers of all sizes can also benefit from £1000 payments when they take on apprentices aged 16 to 18, or apprentices aged 19 to 24 who have an EHC plan or have been in local authority care. This is in recognition of the additional support that younger apprentices may require when entering employment. Employers can choose how they spend these payments. Employers also benefit from not being required to pay anything towards employees’ National Insurance for all apprentices aged up to age 25 where they earn less than £967 a week (£50,270 a year).