To ask Her Majesty's Government whether, in the light of the reduced number of young people starting an apprenticeship in the current year, they have considered withdrawing the apprenticeship levy charged to companies with more than 250 members of staff.
Answered on
30 October 2017
There have been over 1.1 million apprenticeship starts since May 2015 and the Government remains committed to reaching 3 million apprenticeship starts in England by 2020. The Government has introduced the Apprenticeship Levy to provide sustainable investment in high quality apprenticeships, and by 2020 apprenticeship funding in England will be £2.45 billion, which is double than in 2010.
The Government is monitoring the number of apprenticeship starts as these changes take effect. Ultimately, it is too early to draw conclusions on the impact of these reforms before employers have had time to adjust. However, the Government will continue to oversee the apprenticeship program to ensure its success.
These reforms to apprenticeships are the biggest changes the Government has ever made in this area, and include the introduction of the Apprenticeship Levy and new funding arrangements in April and May respectively. As a result, the Government expects a period of adjustment for employers wanting to explore the opportunities such reforms offer. Employers have 24 months to spend their levy funds.