Secondary Class 1 contributions: apprentices under 25

Part of Living Wage (Reporting) – in the House of Commons at 1:45 pm on 3rd February 2015.

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Photo of David Gauke David Gauke The Financial Secretary to the Treasury 1:45 pm, 3rd February 2015

My hon. Friend makes a good point. As I said, the Government invest about £1.5 billion a year in apprenticeships. In its 2012 report, the NAO suggested that for every £1 spent in this area, we got a return of £18, and studies by the Department for Business, Innovation and Skills suggest that the return might be even greater: £28 for every £1 invested. Therefore, this offers good value for money. Our policy on apprenticeships is an additional step, and I am delighted that the tax system can be used in this way. Once again, it demonstrates that the Government are on the side of those who wish to work hard, improve their skills and get on in life

With those remarks, I hope that the House will agree with the Lords amendment.

Lords amendment 1 agreed to, with Commons financial privilege waived.