Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment has been made as to the impact on placement students following the changes to the apprenticeship levy.
Answered by Andrew Western - Parliamentary Under-Secretary (Department for Work and Pensions)
This government is transforming the apprenticeships offer into a new growth and skills offer, which will give greater flexibility to employers and learners and support the industrial strategy.
In August, we introduced new foundation apprenticeships for young people in targeted sectors, as well as shorter duration apprenticeships. These flexibilities will help more people learn new high-quality skills at work and fuel innovation in businesses across the country.
From April 2026, we will introduce new short courses as part of the growth and skills offer with the first wave called apprenticeship units. They will be available in critical skills areas such as artificial intelligence, digital and engineering. Further details will be shared in due course.
An apprenticeship is a job with training, rather than a placement which is something that is part of some further or higher education courses.
Asked by: Lord Storey (Liberal Democrat - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what was the total amount of unspent funds from the Apprenticeship Levy returned to the Treasury for each of the past five years.
Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)
The Department for Work and Pensions, and prior to that the Department for Education, has responsibility for apprenticeships in England only. The annual English apprenticeships budget is agreed at key fiscal events and ring-fenced. This budget is distinct from the total levy receipts collected by HM Treasury and the funds in employers’ apprenticeship service accounts.
The English apprenticeship budget covers the spend drawn down by all levy-paying employers, as well as apprenticeships for those who do not pay the levy, the costs of English and maths tuition for apprentices, and additional payments to employers, training providers and apprentices. It also covers the administrative costs of running the apprenticeships programme.
Over the past two financial years the English apprenticeships budget has been almost fully spent. The table below provides details of the English apprenticeships budget. As is usual practice, any underspends in overall departmental budgets by the end of the financial year are returned to HMT as per the Consolidated Budgeting Guidance.
£ (million) | |||||
Financial year | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 |
Ring-fenced apprenticeships budget | 2,467 | 2,466 | 2,554 | 2,525* | 2,769 |
Underspend against the ring-fenced apprenticeships budget | 604 | 11 | 96 | 16* | 0 |
*The 2023-24 annual apprenticeship budget was revised in-year from £2,585 million to £2,525 million, as £60 million was surrendered in-year.
Asked by: Robin Swann (Ulster Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much revenue the Exchequer has collected from the Apprenticeship Levy (a) in total and (b) from companies registered in Northern Ireland in each of the last three years.
Answered by James Murray - Chief Secretary to the Treasury
Receipts data for the Apprenticeship Levy is published by HM Revenue and Customs in their Tax and NIC Receipts publication which can be found online at:
https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk
Receipts data based on company registered addresses do not reflect where liabilities are accrued or where employees are based. For example, the data on receipts from companies with registered addresses in Northern Ireland will not include businesses registered in Wales, Scotland, or England, who have a presence and pay employees in Northern Ireland.
Asked by: Baroness Wolf of Dulwich (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how many employers were liable to pay the apprenticeship levy in (1) 2022–23, and (2) 2023–24.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
In 2022-23, 34,200 employers paid the apprenticeship levy, and in 2023-24, 36,000 employers paid the apprenticeship levy.
In 2024-25, 36,900 employers paid the apprenticeship levy; this figure is based on outturn as the tax year has completed. No estimate has been made for the number of employers projected to pay the apprenticeship levy in 2025-26.
Asked by: Baroness Wolf of Dulwich (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assumptions they use when calculating the budget for future apprenticeship training to estimate the number of employers that will pay the apprenticeship levy, and what estimate they have made of the number employers who will pay that levy in (1) 2024–25, and (2) 2025–26.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
In 2022-23, 34,200 employers paid the apprenticeship levy, and in 2023-24, 36,000 employers paid the apprenticeship levy.
In 2024-25, 36,900 employers paid the apprenticeship levy; this figure is based on outturn as the tax year has completed. No estimate has been made for the number of employers projected to pay the apprenticeship levy in 2025-26.
Asked by: Damian Hinds (Conservative - East Hampshire)
Question to the Department for Education:
To ask the Secretary of State for Education, what estimate she has made of the contribution from the apprenticeship levy to level 7 apprenticeships provided by (a) schools, (b) other bodies in the education sector and (c) bodies in the children’s social care sector to apprentices (i) under 21 (ii) over 21 in (A) 2023/24 (B) 2024/25 (C) 2025/26 and (D) 2026/27.
Answered by Janet Daby
The apprenticeship levy is collected by His Majesty’s Revenue and Customs (HMRC) from all UK employers with a pay bill above £3 million. HMRC publish overall levy receipts at: https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk.
The department is responsible for apprenticeships in England only. The funding for apprenticeship training comes from the annual protected apprenticeship budget agreed at Spending Reviews. Although closely linked, this is distinct from the total levy income collected and the funds in employer accounts.
The department is therefore not able to provide information about how individual levy contributions link to the amount of the budget that is spent supporting level 7 apprenticeships in specific bodies.
The department publishes official statistics on apprenticeships that include information on apprenticeship starts by sector, level, standard and age at: https://explore-education-statistics.service.gov.uk/find-statistics/apprenticeships/2024-25.
Details of apprenticeship standards by route at level 7 can be found at: https://www.instituteforapprenticeships.org/apprenticeships/?levels=7&includeApprovedForDelivery=true.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the Department for Education:
To ask the Secretary of State for Education, if she will protect apprenticeship funding for (a) SMEs and (b) young people when the Growth and Skills Levy is introduced.
Answered by Janet Daby
I refer the hon. Member for Stockton West to the answer of 12 May 2025 to Question 49739.
Asked by: Gareth Snell (Labour (Co-op) - Stoke-on-Trent Central)
Question to the Department for Education:
To ask the Secretary of State for Education, when she plans to provide an Answer to Question 50886 on Apprentices: Taxation, tabled on 8 May 2025.
Answered by Janet Daby
The response to Written Parliamentary Question 50886 was published on 21 May 2025.
Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment her Department has made of the potential impact removing Apprenticeship Levy funding for Level 7 apprenticeships on the public sector.
Answered by Janet Daby
I refer the hon. Member for Chichester to the answer of 9 April 2025 to Question 43275.
Asked by: Gareth Snell (Labour (Co-op) - Stoke-on-Trent Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment he has made of the potential impact of changes to levy funding for level 7 apprenticeships on the educational opportunities available in Stoke-on-Trent.
Answered by Janet Daby
I refer my hon. Friend, the Member for Stoke-on-Trent Central to the answer of 9 April 2025 to Question 43275.