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.