Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, with reference to page 87 of the Budget 2016, and page 58 of the Autumn Statement 2016, how the shortfall of £100 million in estimated revenue from the Apprenticeship Levy in 2020-21 will be addressed.

The expected revenue from the Apprenticeship Levy has been revised down since Budget 2016 by around £100m a year. This reflects lower earnings growth as forecast by the Office of Budget Responsibility in their latest economic forecast which the Chancellor of the Exchequer responded to during Autumn Statement 2016.

The Government set out its spending plans for apprenticeships at the 2015 Spending Review. Funding for apprenticeships in England was increased and will reach £2.5 billion by 2019-20. These plans have not changed as a result of the change in forecast revenue from the Apprenticeship Levy set out in the Autumn Statement.