Apprentices: Taxation

Department for Education written question – answered at on 8 January 2020.

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Photo of Angela Rayner Angela Rayner Shadow Secretary of State for Education

To ask the Secretary of State for Education, what steps his Department is taking to increase the effectiveness of the Apprenticeship Levy.

Photo of Michelle Donelan Michelle Donelan The Lord Commissioner of HM Treasury, The Parliamentary Under-Secretary of State for Education

We are committed to improving the working of the apprenticeship levy, including delivering greater transparency on how the levy is being spent.

We have already increased the amount of funding that levy-paying employers can transfer to other businesses, from 10% to 25%, in response to feedback from employers. We are pleased to see that levy-payers with uncommitted funds are increasingly using transfers to support apprenticeship starts in smaller employers.

We continue to work closely with employers and business groups to help them take advantage of the levy and consider improvements to the system to meet long-term skills needs.

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