Asked by: Sarah Olney (Liberal Democrat - Richmond Park)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to prevent employers from taking Apprenticeship Levy contributions from agency workers' pay.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Some agencies may show the fees they receive from end clients for supplying a worker, and the deductions made from these fees, on the workers’ payslips. As this appears alongside a worker’s usual Income Tax and employee NICs deductions, it can incorrectly give the impression that the agency’s costs have been deducted from the worker’s wages as well as their own tax and employee NICs.
In April 2020, the government introduced Key Information Documents for agency workers to set out details about their engagements, including rates of pay. This allows workers to see how deductions and fees are made through the labour supply chain and how this affects their gross pay and net pay, as well as details of holiday pay and other benefits.
Asked by: Lord Godson (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how much money was raised by the apprenticeship levy in each of the financial years (1) 2016–17, (2) 2017–18, (3) 2018–19, (4) 2019–20, (5) 2020–21, and (6) 2021–22.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Apprenticeship Levy was introduced in April 2017 and so there are no receipts for the 2016-2017 financial year. Monthly and Annual receipts data for the Apprenticeship Levy are published by HM Revenue and Customs in their Tax Receipts and National Insurance Contribution publication.[1]
A condensed version of the table of interest has been copied below, which shows how much funding has been raised by the Apprenticeship Levy in each year since it was introduced in financial year 2017-18:
Table: HMRC Receipts for Apprenticeship Levy by Financial Year
Financial Year | Apprenticeship Levy (£ million) |
2017 -18 | 2,271 |
2018 -19 | 2,713 |
2019 -20 | 2,798 |
2020 -21 | 2,910 |
2021 -22 | 3,213 |
[1] HMRC tax receipts and National Insurance contributions for the UK - GOV.UK (www.gov.uk)
Asked by: Emma Hardy (Labour - Kingston upon Hull West and Hessle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the amount allocated as public spending to the devolved nations from the UK Apprenticeship Levy in 2019-20 was £460 million; and what estimate he has made of the figures for 2020-21 to 2023-24 inclusive
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK Government and devolved administrations agreed an Apprenticeship Levy funding deal, based on population share.
Under this agreement, the UK Government uplifted Spending Review 2015 settlements as set out in Block Grant Transparency to ensure the devolved administrations received a full population share of forecast Levy funding from 2017-18 to 2019-20. This population share amounted to £1.3 billion across all three devolved administrations over the three-year period, with £460 million allocated in 2019-20.
Beyond 2019-20, it was agreed that the normal operation of the population-based Barnett formula would deliver a similarly fair outcome rather than a bespoke arrangement being required.
The devolved administrations received record settlements at the 2021 Spending Review and are well funded to deliver devolved responsibilities. Those settlements are still growing in real terms this year, and over the three-year spending review period, despite inflation being higher than expected.
It is for the devolved administrations to decide how to allocate their funding in devolved areas.
Asked by: Baroness Redfern (Conservative - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what assessment they have made of the relationship between the fall in the Apprenticeship Levy fee and the fall in the number of new apprenticeship starts; and whether they plan to reintroduce the £3,000 amount for all age groups.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The government’s apprentice incentive payments of up to £3,000 have helped employers of all sizes to build back from the COVID-19 pandemic more successfully, supporting over 195,000 new apprentices into work between 1 August 2020 and 31 January 2022, 77% of which were apprentices under the age of 25.
The apprenticeship incentive payments were introduced as part of the government’s Plan for Jobs in 2020, in recognition of the impact that the COVID-19 pandemic had on business, and to support employers to recruit the right people and develop the skills they needed to recover and grow. The department has no current plan to reintroduce the incentive scheme, but continues to support employers with the cost of apprenticeship training.
The government is increasing funding for apprenticeships to £2.7 billion by the 2024/25 financial year to support more employers to offer new apprenticeship opportunities. As part of this, the department continues to provide £1,000 payments to both employers and training providers when they take on apprentices aged under 19 or from the ages of 19 to 24, who have an education, health and care plan, or have been in care.
The government contributes 95% of the cost of apprenticeship training for small-to-medium sized enterprises who do not pay the apprenticeship levy for up to 10 apprentices a year, and funds 100% of the training costs for the smallest employers when they take on apprentices aged 16 to 18.
The department continues to monitor the level of apprenticeship starts and completions and publishes this information at: https://explore-education-statistics.service.gov.uk/find-statistics/apprenticeships-and-traineeships. Between August and November 2022, there have been 155,900 apprenticeship starts.
Asked by: Baroness Redfern (Conservative - Life peer)
Question to the Department for Education:
To ask His Majesty's Government, given that over £600 million of unused Apprenticeship Levy funding has been returned to the Treasury, when they intend to review that levy.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The apprenticeship levy is an important part of the government’s reforms to create a high-quality, employer-led apprenticeships system, and it supports employers of all sizes to invest in high-quality apprenticeship training. The government does not currently have any plans to review the apprenticeship levy.
Whilst the department has seen some underspends in the apprenticeships budget in previous years, this will not always be the case. In the 2021/22 financial year the total spend on apprenticeships was £2,455 million against the budget of £2,466 million, meaning that 99.6% of the apprenticeships budget was spent. It is therefore important that the apprenticeships budget remains ring-fenced to support the demand from employers for high-quality apprenticeships training.
The government is increasing apprenticeship funding to £2.7 billion by the 2024/25 financial year and is continuing to improve the apprenticeships system to support more employers and apprentices to benefit from apprenticeships. The department has created flexible training models, like flexi-job and accelerated apprenticeships, to make apprenticeships accessible for all sectors. We have also improved the transfer system to make it easier for levy paying employers to find other employers who wish to take on new apprentices with transferred funds. Additionally, we are working with training providers to simplify the apprenticeship system through our “You said, we did” programme.
Asked by: Lord Storey (Liberal Democrat - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what assessment they have made of giving businesses greater control of the Apprenticeship Levy, in order to fund a wider range of courses which could be used to fill vacancies in sectors struggling with recruitment, such as hospitality and retail.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The apprenticeship levy is an important part of the government’s reforms to create a high-quality, employer-led apprenticeships system, and it supports employers of all sizes to invest in high-quality apprenticeship training. The government does not currently have any plans to review the apprenticeship levy.
The apprenticeships budget is used to fund training and assessment for new apprenticeship starts in levy and non-levy paying employers, and to cover the ongoing costs of apprentices already in training and any additional payments made to employers and providers. The table below shows the department’s ring-fenced apprenticeships budget against the apprenticeship expenditure for the last three financial years (FY).
(£ million) | FY 19/20 | FY 20/21 | FY 21/22 |
DfE Ring-fence Apprenticeships Budget | 2,469 | 2,467 | 2,466 |
Total Ring-fence Apprenticeships Spend | 1,919 | 1,863 | 2,455 |
Underspend against Ring-fenced Apprenticeships Budget | 550 | 604 | 11 |
In the 2021/22 financial year, 99.6% of the apprenticeships budget was spent. It is therefore important that the apprenticeships budget remains ring-fenced to support the demand by employers for high-quality apprenticeship training.
The government is increasing apprenticeship funding to £2.7 billion by the 2024/25 financial year and is continuing to improve the apprenticeships system to support employers fill their vacancies and train their workforces to address industry skills gaps.
The department has worked with employers to develop over 660 high-quality apprenticeship standards, including in hospitality and retail occupations. We have also created flexible training models, like flexi-job and accelerated apprenticeships, and improved the levy transfer system so it is easier for levy paying employers to make full use of their levy funds.
Asked by: Lord Storey (Liberal Democrat - Life peer)
Question to the Department for Education:
To ask His Majesty's Government how much of the Apprenticeship Levy was returned to the Treasury in each of the last three years.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The apprenticeship levy is an important part of the government’s reforms to create a high-quality, employer-led apprenticeships system, and it supports employers of all sizes to invest in high-quality apprenticeship training. The government does not currently have any plans to review the apprenticeship levy.
The apprenticeships budget is used to fund training and assessment for new apprenticeship starts in levy and non-levy paying employers, and to cover the ongoing costs of apprentices already in training and any additional payments made to employers and providers. The table below shows the department’s ring-fenced apprenticeships budget against the apprenticeship expenditure for the last three financial years (FY).
(£ million) | FY 19/20 | FY 20/21 | FY 21/22 |
DfE Ring-fence Apprenticeships Budget | 2,469 | 2,467 | 2,466 |
Total Ring-fence Apprenticeships Spend | 1,919 | 1,863 | 2,455 |
Underspend against Ring-fenced Apprenticeships Budget | 550 | 604 | 11 |
In the 2021/22 financial year, 99.6% of the apprenticeships budget was spent. It is therefore important that the apprenticeships budget remains ring-fenced to support the demand by employers for high-quality apprenticeship training.
The government is increasing apprenticeship funding to £2.7 billion by the 2024/25 financial year and is continuing to improve the apprenticeships system to support employers fill their vacancies and train their workforces to address industry skills gaps.
The department has worked with employers to develop over 660 high-quality apprenticeship standards, including in hospitality and retail occupations. We have also created flexible training models, like flexi-job and accelerated apprenticeships, and improved the levy transfer system so it is easier for levy paying employers to make full use of their levy funds.
Asked by: Sarah Olney (Liberal Democrat - Richmond Park)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC treats the head office and subsidiary branches of all political parties and similar organisations as connected organisations for the purposes of applying the Employment Allowance and Apprenticeship Levy.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC cannot comment on the tax affairs of any of its customers, including political parties, due to taxpayer confidentiality.
The rules governing whether HMRC treats entities as connected for the Employment Allowance and Apprenticeship Levy are set out in HMRC guidance. All entities that meet the criteria provided in the guidance will be treated as connected for Employment Allowance and Apprenticeship Levy purposes.
HMRC work within the law to make sure everyone pays the right amount of tax and that they treat customers fairly, in line with the HMRC Customer Charter.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Education:
To ask the Secretary of State for Education, how much of the funding received through the Apprenticeship Levy has been re-invested in training and apprenticeships in the past five years.
Answered by Robert Halfon
Education is a devolved matter, and the response outlines the information for England only.
The apprenticeship levy is an important part of the department’s reforms to create a high-quality, employer-led apprenticeships system, and it supports employers of all sizes to invest in high-quality apprenticeship training.
There are no current plans to review the apprenticeship levy. My right hon. Friends, the Secretary of State for Education, and the Chancellor of the Exchequer meet regularly to discuss how apprenticeships and skills can contribute to economic growth.
The department continues to improve the apprenticeships system for employers and apprentices. We have made apprenticeships more accessible for all sectors through the development of flexi-job and accelerated apprenticeships, and we are working with providers to simplify the apprenticeship system through our ‘You said, we did’ programme.
The apprenticeships budget is used to fund training and assessment for new apprenticeship starts in levy and non-levy paying employers, and to cover the ongoing costs of apprentices already in training and any additional payments made to employers and providers. The annual apprenticeship budget is set by HM Treasury (HMT) and although closely linked, it is distinct from the total levy income collected. The apprenticeship levy is paid by all eligible UK employers and funding linked to its income is distributed proportionately between England, Wales, Scotland and Northern Ireland. The table below shows the department’s ring-fenced apprenticeships budget against the total apprenticeships spend in England for the last five years. This shows that in the 2021/22 financial year 99.6% of the apprenticeships budget in England was spent, with only £11 million unspent. As is usual practice, any underspends in overall departmental budgets by the end of the financial year are first returned to HMT as per the Consolidated Budgeting Guidance.
Department’s ring-fenced apprenticeships budget and total apprenticeships spend, financial years 2017/18-2021/22
2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | |
Department’s ring-fenced apprenticeships budget (£million) | 2,010 | 2,231 | 2,469 | 2,467 | 2,466 |
Total ring-fenced apprenticeships spend (£million) | 1,586 | 1,738 | 1,919 | 1,863 | 2,455 |
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Education:
To ask the Secretary of State for Education, what recent discussions she has had with the Chancellor of the Exchequer on the review of the Apprenticeship Levy.
Answered by Robert Halfon
Education is a devolved matter, and the response outlines the information for England only.
The apprenticeship levy is an important part of the department’s reforms to create a high-quality, employer-led apprenticeships system, and it supports employers of all sizes to invest in high-quality apprenticeship training.
There are no current plans to review the apprenticeship levy. My right hon. Friends, the Secretary of State for Education, and the Chancellor of the Exchequer meet regularly to discuss how apprenticeships and skills can contribute to economic growth.
The department continues to improve the apprenticeships system for employers and apprentices. We have made apprenticeships more accessible for all sectors through the development of flexi-job and accelerated apprenticeships, and we are working with providers to simplify the apprenticeship system through our ‘You said, we did’ programme.
The apprenticeships budget is used to fund training and assessment for new apprenticeship starts in levy and non-levy paying employers, and to cover the ongoing costs of apprentices already in training and any additional payments made to employers and providers. The annual apprenticeship budget is set by HM Treasury (HMT) and although closely linked, it is distinct from the total levy income collected. The apprenticeship levy is paid by all eligible UK employers and funding linked to its income is distributed proportionately between England, Wales, Scotland and Northern Ireland. The table below shows the department’s ring-fenced apprenticeships budget against the total apprenticeships spend in England for the last five years. This shows that in the 2021/22 financial year 99.6% of the apprenticeships budget in England was spent, with only £11 million unspent. As is usual practice, any underspends in overall departmental budgets by the end of the financial year are first returned to HMT as per the Consolidated Budgeting Guidance.
Department’s ring-fenced apprenticeships budget and total apprenticeships spend, financial years 2017/18-2021/22
2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | |
Department’s ring-fenced apprenticeships budget (£million) | 2,010 | 2,231 | 2,469 | 2,467 | 2,466 |
Total ring-fenced apprenticeships spend (£million) | 1,586 | 1,738 | 1,919 | 1,863 | 2,455 |