Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether he has made an assessment of the potential impact of apprenticeship measures in the Autumn Budget 2025 on small and medium-sized employers in Aldridge-Brownhills constituency and the Black Country; and whether he plans to provide additional support to SMEs for apprenticeship reforms, levy transfers and administrative requirements.
At the Budget, we announced more than £1.5 billion over the Spending Review period for investment in employment and skills support, supporting more opportunities for young people and SMEs across England, including in the West Midlands. This includes an additional £725 million to help support apprenticeships for young people, including a change to fully fund SME apprenticeships for eligible people aged under 25. This investment will also fund an £140 million pilot of new approaches to better connect young people aged 16-24, especially those who are NEET, to local apprenticeship opportunities.
These are important steps in the government’s ambition to support 50,000 more young people into apprenticeships, which will also be supported by expanding foundation apprenticeships into sectors that traditionally recruit young people.
In addition, we provide £1,000 to both employers and training providers when they take on apprentices aged under 19, or 19-to-24-year-old apprentices who have an EHCP or have been, or are, in care. Employers also benefit from not being 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.
The government also facilitates and funds the Apprenticeship Ambassador Network (AAN) which comprises 2,500 employers and apprentices who volunteer to promote the benefits of apprenticeships. It operates across all parts of England, including the West Midlands, through nine regional networks which provide buddying and mentoring support to small businesses to help them recruit and retain apprentices.