Question to the Department for Education:

To ask Her Majesty's Government how they have determined the level of funding available to existing training providers from non-levy apprenticeship funds; whether there is a cap on such funding for individual training providers; if so, how that cap is determined; whether (1) the level of funding available, and (2) the cap, have been changed from previously announced plans; and if so, how.

Providers of services to employers who do not pay the apprenticeship levy are funded through existing contract extensions, covering the period from May to December 2017.

The overall level of funding for new apprenticeship starts made available during this period was based on forecasts of demand. The Education and Skills Funding Agency (ESFA) determined individual providers’ allocation on their historical delivery to all employers and an estimate of the proportion of that delivery which related to non-levy paying employers.

The ESFA set a minimum threshold allocation value of £3,000. There is no cap for individual training providers. However, public contracting regulations set a limit on the value of an individual providers’ contract extension relative to the value of their original contract.

In July and October, there were opportunities for providers to bid for additional funding above their non-levy allocations to take account of growth in demand.