Apprentices: Taxation

Department for Education written question – answered on 5th February 2020.

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Photo of Lucy Allan Lucy Allan Conservative, Telford

To ask the Secretary of State for Education, whether he has plans he has to reform the Apprenticeship Levy to enable levy funds to be accessed by businesses for other forms of accredited training.

Photo of Lucy Allan Lucy Allan Conservative, Telford

To ask the Secretary of State for Education, whether he has plans to undertake a public consultation on proposals to reform the Apprenticeship Levy; and if he will make a statement.

Photo of Michelle Donelan Michelle Donelan Government Whip, The Parliamentary Under-Secretary of State for Education

The apprenticeship levy underpins our reforms to raise apprenticeship quality and supports employers to make long-term, sustainable investments in the skills that they need. Income from the levy is used to fund apprenticeships in all employers (both those who pay the levy and those who do not pay the levy).

In response to employers, we have already introduced the flexibility for levy-payers to transfer up to 25% of their funds, enabling them to support apprenticeship starts in their supply chains or to meet local skills needs. In January, we extended the use of transfers to cover the full cost of training for 16 to 18 year olds and eligible 19 to 24 year olds in employers with fewer than 50 employees.

We have listened to the concerns of businesses about the apprenticeship levy. We are committed to improving the apprenticeship programme to ensure that it continues to deliver the skilled workforce that employers need.

We will set out further detail on this in due course.

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