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Apprentices: Taxation

Question for Department for Education

UIN HL4708, tabled on 15 January 2018

To ask Her Majesty's Government what steps they are taking to address reported concerns by businesses that the current apprenticeship levy is not working; and what plans they have to address this issue.

Answered on

29 January 2018

In response to employer feedback, the department is keen to provide greater flexibility to levy-paying employers. From April 2018, we will allow eligible employers to transfer up to 10% of the annual value of funds entering their digital accounts to other employers, including smaller employers in their supply chain.

The government will continue to work with employers and providers to determine how the apprenticeship levy is spent. This is to make sure that the funding system works effectively and flexibly for industry, meets employers’ skills needs, supports productivity across the country and supports our commitment to delivering three million apprenticeship starts in England by 2020.