Apprentices: Small Businesses
(asked on 12th October 2022) - View Source
Question to the Department for Education:
To ask His Majesty's Government what was the total expenditure on the 95 per cent co-payments for SME apprenticeships in each of the last five years.
The table below shows the total value of co-investment by the government to support apprenticeships in levy-paying employers in the 2017/18, 2018/19, 2019/20 and 2020/21 financial years.
Financial Year | Total co-investment spend by government for levy paying employers (£million) |
2017/18 | 14 |
2018/19 | 52 |
2019/20 | 76 |
2020/21 | 106 |
The government pays 95% of training costs for employers that don't pay the levy, who are often small and medium sized enterprises, with these employers required to co-invest the remaining 5%. Apprenticeships that started before 1 April 2019, when the co-investment rate was reduced to 5%, continue at the previous co-investment rate of 10%.
The table below shows the total value of co-investment by the government to support apprenticeships in non-levy paying employers in the 2017/18, 2018/19, 2019/20 and 2020/21 financial years.
Financial Year | Total co-investment spend by government for non-levy paying employers (£million) |
2017/18 | 189 |
2018/19 | 528 |
2019/20 | 650 |
2020/21 | 557 |
To note, the expenditure in both tables includes spend on additional payments to employers and providers, such as for English and maths training and for learner support. These costs are met by government, through the wider apprenticeship budget for all employers, and are not deducted from the balance of funds in employers’ apprenticeship service accounts.
The department’s accounts for 2021/22 financial year have not yet been audited and published.