Question to the Department for Education:

To ask Her Majesty’s Government what assessment they have made of the likely increase or decrease in the numbers of small and medium-sized enterprises taking on apprentices following the introduction of the apprenticeship levy.

We are committed to supporting small and medium-sized employers to take on apprentices. We know that nearly 95% of current employers with apprentices are small or medium-sized and that around 60% of all apprentices are employed by small and medium-sized employers https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/555052/Size_and_Industry_of_Businesses_with_Apprentices_Final_Pdf.pdf).

Under new funding policy from May 2017, smaller employers that don't pay the apprenticeship levy will pay a co-investment rate of only 10% towards the costs of apprenticeship training. We are waiving this co-investment requirement for employers with fewer than 50 employees, when they recruit a 16-18 year old or a 19-24 year old formerly in care or with an Education and Health Care plan

As part of the development of funding policy we have considered the potential impact that requiring co-investment will have on starts at small and medium-sized employers. This may cause a small initial fall in demand until employers adapt to the new system. By making sure smaller employers understand the benefits of apprenticeships; that the process of accessing them is simple and easy; and additional financial support is available for younger apprentices or those with additional needs, we believe that small and medium sized employers can and will continue to play a critical role in growing apprenticeship opportunities.