Apprentices: Taxation

Department for Education written question – answered on 25th February 2020.

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Photo of Lord Bassam of Brighton Lord Bassam of Brighton Shadow Spokesperson (Further & Higher Education)

To ask Her Majesty's Government whether any review of the apprenticeship levy will prioritise the employer-led element of the current system.

Photo of Baroness Berridge Baroness Berridge Baroness in Waiting (HM Household) (Whip), Parliamentary Under-Secretary (Department for International Trade) (Minister for Women), 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 they need to grow. Income from the levy is used to fund apprenticeships in all employers, both those who pay the levy and those who do not.

We value the employer-led element of apprenticeships and are receptive to their concerns of businesses about the apprenticeship levy. We are committed to ensuring the apprenticeship programme continues to provide opportunities for people of all backgrounds, whilst meeting the needs of employers of all sizes and delivering for the economy more broadly.

In response to employers we have already introduced the flexibility for levy-payers to transfer up to 25 per cent 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.

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