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Written Question
Apprentices: Taxation
Monday 8th January 2024

Asked by: Liz Saville Roberts (Plaid Cymru - Dwyfor Meirionnydd)

Question to the Department for Education:

To ask the Secretary of State for Education, whether she has made an assessment of the potential merits of allowing employers in (a) commercial laundries and (b) other sectors to use 25% of their apprenticeship levy funds for non-apprenticeship training.

Answered by Robert Halfon

I refer the right hon. Member to the answer I gave on 10 November 2023 to Question 614.


Written Question
Apprentices: Taxation
Monday 8th January 2024

Asked by: Priti Patel (Conservative - Witham)

Question to the Department for Education:

To ask the Secretary of State for Education, pursuant to the Answer of 13 December 2023 to Question 3789 on Apprentices: Taxation, what the total expired unused Apprenticeship Levy funds were in each month since May 2019.

Answered by Robert Halfon

The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes to boost the skills of their workforces. As the apprenticeship levy is UK-wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.

Employers in England who pay the apprenticeship levy can access funds for apprenticeship training and assessment by registering for an apprenticeship service account. The funds in employers’ accounts reflect the ‘English percentage’ of an employer’s levy contribution and include a 10% top-up from the government. The department does not record industry, sector or organisation type when levy-paying employers register an apprenticeship service account. For this reason, data which shows which sectors were most or least likely to spend their funds cannot be provided. The department does hold information relating to individual employer accounts but it would not be appropriate to disclose this information without consulting with employers.

Employers can use their levy funds for apprenticeships in their own business or transfer up to 25% of their funds to other businesses. Funds that levy payers do not draw on are used to fund apprenticeships in small and medium sized businesses who do not pay the levy. Levy payers are not expected to use all funds available to them, though they are able to do so.

The funds in apprenticeship service accounts are available for levy-paying employers to draw on for 24 months before they expire on a rolling, month-by-month basis. The table attached shows the total funds that expired from levy-paying employers apprenticeship service accounts in each month since May 2019. The decline in levy expiry value for October 2021 was due to a delay transferring levy into employer accounts. As a result, employers were granted an additional month to spend those funds, to ensure that the 24-month window to spend funds was maintained.

The funds available to levy-paying employers through their apprenticeship service accounts are not the same as the apprenticeships budget which funds apprenticeships in England for employers of all sizes. As such, expired funds from employers’ accounts do not represent funding that is lost to the system. Rather, the department directs this funding to supporting apprenticeships in small and medium-sized enterprises (SMEs), to English and mathematics training for apprentices and to additional payments to employers, training providers and apprentices. On average, 98% of the English apprenticeships budget has been spent over the last two financial years.


Written Question
Apprentices: Taxation
Monday 8th January 2024

Asked by: Priti Patel (Conservative - Witham)

Question to the Department for Education:

To ask the Secretary of State for Education, which (a) sectors and (b) employers were (i) most and (ii) least likely to utilise the funds provided through the apprenticeship levy in the latest period for which data is available.

Answered by Robert Halfon

The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes to boost the skills of their workforces. As the apprenticeship levy is UK-wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.

Employers in England who pay the apprenticeship levy can access funds for apprenticeship training and assessment by registering for an apprenticeship service account. The funds in employers’ accounts reflect the ‘English percentage’ of an employer’s levy contribution and include a 10% top-up from the government. The department does not record industry, sector or organisation type when levy-paying employers register an apprenticeship service account. For this reason, data which shows which sectors were most or least likely to spend their funds cannot be provided. The department does hold information relating to individual employer accounts but it would not be appropriate to disclose this information without consulting with employers.

Employers can use their levy funds for apprenticeships in their own business or transfer up to 25% of their funds to other businesses. Funds that levy payers do not draw on are used to fund apprenticeships in small and medium sized businesses who do not pay the levy. Levy payers are not expected to use all funds available to them, though they are able to do so.

The funds in apprenticeship service accounts are available for levy-paying employers to draw on for 24 months before they expire on a rolling, month-by-month basis. The table attached shows the total funds that expired from levy-paying employers apprenticeship service accounts in each month since May 2019. The decline in levy expiry value for October 2021 was due to a delay transferring levy into employer accounts. As a result, employers were granted an additional month to spend those funds, to ensure that the 24-month window to spend funds was maintained.

The funds available to levy-paying employers through their apprenticeship service accounts are not the same as the apprenticeships budget which funds apprenticeships in England for employers of all sizes. As such, expired funds from employers’ accounts do not represent funding that is lost to the system. Rather, the department directs this funding to supporting apprenticeships in small and medium-sized enterprises (SMEs), to English and mathematics training for apprentices and to additional payments to employers, training providers and apprentices. On average, 98% of the English apprenticeships budget has been spent over the last two financial years.


Written Question
Apprentices: Taxation
Thursday 4th January 2024

Asked by: Baroness Wolf of Dulwich (Crossbench - Life peer)

Question to the Department for Education:

To ask His Majesty's Government how many apprenticeship starts at level 6 were for legal, finance and accounting in 2021–22 and 2022–23; how many of these apprentices were employed in levy-paying organisations; and how many there were in each region.

Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)

Level 6 Apprenticeship starts in the legal, finance and accounting route in the 2021/22 and 2022/23 academic years are shown in the tables below, along with breakdowns by region, and where starts were supported by apprenticeship service account levy funds.

Level 6 Apprenticeship starts in the legal, finance and accounting route:

2021/22

2022/23

960

900


Of which supported by Apprenticeship service account levy funds:

2021/22

2022/23

890

850


Of which by region:

Region

2021/22

2022/23

East Midlands

30

50

East of England

140

130

London

270

300

North East

30

10

North West

90

90

South East

130

120

South West

90

50

West Midlands

80

70

Yorkshire and The Humber

70

50

Outside of England and unknown

40

30



Notes for tables:

(1) Volumes are rounded to the nearest 10.

(2) Data source is the individualised Learner Record.

(3) Geography is based upon the home postcode of the learner. Where the postcode is outside of England or not known it is included in the 'Outside of England and unknown' category.

(4) Geographies are taken from the National Statistics Postcode Lookup.

(5) Please see the 'Further education and skills statistics: methodology' document for more information about how 'supported by Apprenticeship service account levy funds' is derived.

(6) Route information is based on the latest information held on the IfATE 'Search the apprenticeships' page at the point of publication.


Written Question
Apprentices: Taxation
Thursday 21st December 2023

Asked by: Baroness Blower (Labour - Life peer)

Question to the Department for Education:

To ask His Majesty's Government (1) how many, and (2) what percentage, of levy-paying employers have spent more than half the funds in their apprenticeship levy account, for each of the past five financial years.

Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)

UK employers with an annual pay bill above £3 million pay the apprenticeship levy, which is collected by HM Revenue & Customs. The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes build their workforces. As the apprenticeships levy is UK wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.

In England, employers can use their levy funds for apprenticeships in their own business or transfer their funds to support apprenticeships in other businesses. Funds that levy payers do not draw on is used to fund apprenticeships in small and medium sized businesses. Levy payers are not expected to use all funds available to them, though they are able to do so.

Employers in England who pay the apprenticeship levy can access funds for apprenticeship training and assessment by registering for an apprenticeship service account. The funds in employers’ accounts reflect the ‘English percentage’ of an employer’s levy contribution and include a 10% top-up from the government.

The funds available to levy-paying employers through their apprenticeship service accounts does not represent the total spend on apprenticeships for levy-paying empoyers and is not the same as the apprenticeships budget which funds apprenticeships for employers of all sizes. On average, 98% of the apprenticeships budget has been spent in the last two financial years.

The table below shows the number of levy-paying employers that have spent more than 50% of the funds declared in their apprenticeship service accounts, including the 10% top-up from the government, in each financial year from 2018/19 to 2022/23.

FY

Number of employers who spent more than 50% of levy funds

Percentage of total employers who spent more than 50% of levy funds

2018/19

4,210

27%

2019/20

6,000

36%

2020/21

6,080

35%

2021/22

6,580

35%

2022/23

6,970

35%

The department is supporting employers to make greater use of their levy and have improved the transfer system to make it easier to find other employers who wish to take on apprentices with transferred funds. In April 2019, the department increased the transfer allowance from 10% to 25%, so levy-paying employers could transfer more of their annual funds to support any employer. Since September 2021, over 500 employers, including ASDA, HomeServe, and BT Group, have pledged to transfer over £33 million to support apprenticeships in businesses of all sizes. The table below shows the number of levy-paying employers who spent all of their transfer allowance in each financial year from 2018/19 to 2022/23.

FY (of allowance calculation)

Employers who used all their transfer allowance

Percentage of total employers who used all their transfer allowance

2018/19

70

0.4%

2019/20

170

1.0%

2020/21

280

1.6%

2021/22

370

2.0%

2022/23

270

1.4%

With regard to allowing levy-paying employers to use their funds on non-apprenticeship training schemes and courses, I refer the noble lady to the answer of 10 November 2023 to Question 614.


Written Question
Apprentices: Taxation
Thursday 21st December 2023

Asked by: Baroness Blower (Labour - Life peer)

Question to the Department for Education:

To ask His Majesty's Government (1) how many, and (2) what percentage, of levy-paying employers have transferred the maximum 25 per cent of apprenticeship levy funds to other businesses, for each of the past five financial years.

Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)

UK employers with an annual pay bill above £3 million pay the apprenticeship levy, which is collected by HM Revenue & Customs. The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes build their workforces. As the apprenticeships levy is UK wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.

In England, employers can use their levy funds for apprenticeships in their own business or transfer their funds to support apprenticeships in other businesses. Funds that levy payers do not draw on is used to fund apprenticeships in small and medium sized businesses. Levy payers are not expected to use all funds available to them, though they are able to do so.

Employers in England who pay the apprenticeship levy can access funds for apprenticeship training and assessment by registering for an apprenticeship service account. The funds in employers’ accounts reflect the ‘English percentage’ of an employer’s levy contribution and include a 10% top-up from the government.

The funds available to levy-paying employers through their apprenticeship service accounts does not represent the total spend on apprenticeships for levy-paying empoyers and is not the same as the apprenticeships budget which funds apprenticeships for employers of all sizes. On average, 98% of the apprenticeships budget has been spent in the last two financial years.

The table below shows the number of levy-paying employers that have spent more than 50% of the funds declared in their apprenticeship service accounts, including the 10% top-up from the government, in each financial year from 2018/19 to 2022/23.

FY

Number of employers who spent more than 50% of levy funds

Percentage of total employers who spent more than 50% of levy funds

2018/19

4,210

27%

2019/20

6,000

36%

2020/21

6,080

35%

2021/22

6,580

35%

2022/23

6,970

35%

The department is supporting employers to make greater use of their levy and have improved the transfer system to make it easier to find other employers who wish to take on apprentices with transferred funds. In April 2019, the department increased the transfer allowance from 10% to 25%, so levy-paying employers could transfer more of their annual funds to support any employer. Since September 2021, over 500 employers, including ASDA, HomeServe, and BT Group, have pledged to transfer over £33 million to support apprenticeships in businesses of all sizes. The table below shows the number of levy-paying employers who spent all of their transfer allowance in each financial year from 2018/19 to 2022/23.

FY (of allowance calculation)

Employers who used all their transfer allowance

Percentage of total employers who used all their transfer allowance

2018/19

70

0.4%

2019/20

170

1.0%

2020/21

280

1.6%

2021/22

370

2.0%

2022/23

270

1.4%

With regard to allowing levy-paying employers to use their funds on non-apprenticeship training schemes and courses, I refer the noble lady to the answer of 10 November 2023 to Question 614.


Written Question
Apprentices: Taxation
Wednesday 20th December 2023

Asked by: Baroness Blower (Labour - Life peer)

Question to the Department for Education:

To ask His Majesty's Government (1) how many, and (2) what percentage, of levy paying employers have spent all funds in their apprenticeship levy account, for each of the past five financial years.

Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)

UK employers with an annual pay bill above £3 million pay the apprenticeship levy, which is collected by HM Revenue & Customs. Employers in England who pay the apprenticeship levy can access funds for apprenticeship training and assessment by registering for an apprenticeship service account. The funds in employers’ accounts reflect the ‘English percentage’ of an employer’s levy contribution and include a 10% top-up from the government.

While levy-paying employers in England can use all their levy funds the majority do not, which allows these funds from the apprenticeship budget to fund apprenticeship training for small and medium sized businesses, so all companies can benefit from training apprentices.

The table below shows the number of levy-paying employers that have spent all the funds declared in their apprenticeship service accounts, including the 10% top-up from the government, in each financial year from 2018/19 to 2022/23.

Number of employers who spent all levy funds

Percentage of total employers who spent all levy funds

2018/19

1,620

10%

2019/20

2,530

15%

2020/21

2,520

15%

2021/22

2,620

14%

2022/23

2,540

13%

The funds in levy-paying employers’ apprenticeship service accounts do not represent the total spend on apprenticeships for levy paying employers and are not the same as the total annual apprenticeships budget. The ring-fenced apprenticeships budget for England is set by HM Treasury and, although closely linked, is distinct from the total levy income collected. In the last two financial years, on average 98% of the English apprenticeships budget was spent.


Written Question
Apprentices: Taxation
Wednesday 13th December 2023

Asked by: Priti Patel (Conservative - Witham)

Question to the Department for Education:

To ask the Secretary of State for Education, how many apprenticeship levy funded service accounts have (a) utilised all of the funds in their account and (b) not utilised all of the funds available within the two-year time period in each year since its introduction.

Answered by Robert Halfon

The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes build their workforces. As the apprenticeships levy is UK wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.

In England, employers can use their levy contributions to fund apprenticeships in their own business or transfer their funds to other businesses in their supply chain, sector or region. Funds that levy payers do not draw on is used to fund apprenticeships in small and medium sized businesses. Levy payers are not expected to use all funds available to them, though they are able to do so.

The table below shows the number of registered employer apprenticeship service accounts that utilised all their funds available, as well as the number that did not, in each financial year since the introduction of the apprenticeship levy in 2017.

FY

Number of registered employer accounts on the apprenticeship service that utilised all funds available

Number of registered employer accounts on the apprenticeship service that did not utilise all their funds available and therefore had expired funds

2017/18

5650

7570

2018/19

5030

10660

2019/20

4930

11960

2020/21

5210

12230

2021/22

6790

11920

Please note that:

  • Funds remain available for 24 months before they begin to expire on a rolling, month-by-month basis; as employers began to pay the apprenticeship levy in April 2017, unused levy funds began to expire in May 2019.
  • The sum of expiry figures for the 2022/23 and 2023/24 financial years are not specified as funds do not expire for 24 months.
  • Expiry figures for the 2017/2018 financial year will appear lower than future years due to the oldest funds in an employers’ accounts being utilised first.
  • Expiry figures for the 2021/22 financial year only include data to October and therefore does not represent a full year.

The funds available to levy-paying employers through their apprenticeship service accounts are not the same as the apprenticeships budget which funds apprenticeships for employers of all sizes. On average, 98% of the apprenticeships budget has been spent in the last two financial years. Spend for the 2023/24 financial year, and for future years, will be set out in the department’s annual report and accounts which will be published when available. The apprenticeships budget beyond 2024/25 will be determined at the next Spending Review.

With regard to allowing levy-paying employers to spend funds on non-apprenticeship training schemes and courses, I refer my right hon. Friend, the Member for Witham to the answer I gave on 10 November 2023 to Question 614.


Written Question
Apprentices: Taxation
Wednesday 13th December 2023

Asked by: Priti Patel (Conservative - Witham)

Question to the Department for Education:

To ask the Secretary of State for Education, what estimate her Department has made of the amount and proportion of apprenticeship levy funds that will be unspent in financial year 2023-24; and whether she has made an assessment of potential trends in the level and proportion of that underspend in each of the next five financial years.

Answered by Robert Halfon

The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes build their workforces. As the apprenticeships levy is UK wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.

In England, employers can use their levy contributions to fund apprenticeships in their own business or transfer their funds to other businesses in their supply chain, sector or region. Funds that levy payers do not draw on is used to fund apprenticeships in small and medium sized businesses. Levy payers are not expected to use all funds available to them, though they are able to do so.

The table below shows the number of registered employer apprenticeship service accounts that utilised all their funds available, as well as the number that did not, in each financial year since the introduction of the apprenticeship levy in 2017.

FY

Number of registered employer accounts on the apprenticeship service that utilised all funds available

Number of registered employer accounts on the apprenticeship service that did not utilise all their funds available and therefore had expired funds

2017/18

5650

7570

2018/19

5030

10660

2019/20

4930

11960

2020/21

5210

12230

2021/22

6790

11920

Please note that:

  • Funds remain available for 24 months before they begin to expire on a rolling, month-by-month basis; as employers began to pay the apprenticeship levy in April 2017, unused levy funds began to expire in May 2019.
  • The sum of expiry figures for the 2022/23 and 2023/24 financial years are not specified as funds do not expire for 24 months.
  • Expiry figures for the 2017/2018 financial year will appear lower than future years due to the oldest funds in an employers’ accounts being utilised first.
  • Expiry figures for the 2021/22 financial year only include data to October and therefore does not represent a full year.

The funds available to levy-paying employers through their apprenticeship service accounts are not the same as the apprenticeships budget which funds apprenticeships for employers of all sizes. On average, 98% of the apprenticeships budget has been spent in the last two financial years. Spend for the 2023/24 financial year, and for future years, will be set out in the department’s annual report and accounts which will be published when available. The apprenticeships budget beyond 2024/25 will be determined at the next Spending Review.

With regard to allowing levy-paying employers to spend funds on non-apprenticeship training schemes and courses, I refer my right hon. Friend, the Member for Witham to the answer I gave on 10 November 2023 to Question 614.


Written Question
Apprentices: Taxation
Wednesday 13th December 2023

Asked by: Priti Patel (Conservative - Witham)

Question to the Department for Education:

To ask the Secretary of State for Education, how much and what proportion of funds raised from the apprenticeship levy have remained unspent within the two year threshold in each year since its introduction.

Answered by Robert Halfon

The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes build their workforces. As the apprenticeships levy is UK wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.

In England, employers can use their levy contributions to fund apprenticeships in their own business or transfer their funds to other businesses in their supply chain, sector or region. Funds that levy payers do not draw on is used to fund apprenticeships in small and medium sized businesses. Levy payers are not expected to use all funds available to them, though they are able to do so.

The table below shows the number of registered employer apprenticeship service accounts that utilised all their funds available, as well as the number that did not, in each financial year since the introduction of the apprenticeship levy in 2017.

FY

Number of registered employer accounts on the apprenticeship service that utilised all funds available

Number of registered employer accounts on the apprenticeship service that did not utilise all their funds available and therefore had expired funds

2017/18

5650

7570

2018/19

5030

10660

2019/20

4930

11960

2020/21

5210

12230

2021/22

6790

11920

Please note that:

  • Funds remain available for 24 months before they begin to expire on a rolling, month-by-month basis; as employers began to pay the apprenticeship levy in April 2017, unused levy funds began to expire in May 2019.
  • The sum of expiry figures for the 2022/23 and 2023/24 financial years are not specified as funds do not expire for 24 months.
  • Expiry figures for the 2017/2018 financial year will appear lower than future years due to the oldest funds in an employers’ accounts being utilised first.
  • Expiry figures for the 2021/22 financial year only include data to October and therefore does not represent a full year.

The funds available to levy-paying employers through their apprenticeship service accounts are not the same as the apprenticeships budget which funds apprenticeships for employers of all sizes. On average, 98% of the apprenticeships budget has been spent in the last two financial years. Spend for the 2023/24 financial year, and for future years, will be set out in the department’s annual report and accounts which will be published when available. The apprenticeships budget beyond 2024/25 will be determined at the next Spending Review.

With regard to allowing levy-paying employers to spend funds on non-apprenticeship training schemes and courses, I refer my right hon. Friend, the Member for Witham to the answer I gave on 10 November 2023 to Question 614.