To ask the Secretary of State for Education, what proportion of the Apprenticeship Levy has been spent in each of the last five years.
Answered on
28 November 2022
The apprenticeship levy is an important part of the government’s reforms to create a high-quality, employer-led apprenticeships system, and it supports employers of all sizes to invest in high-quality apprenticeship training
The apprenticeships budget is used to fund training and assessment for new apprenticeship starts in levy and non-levy paying employers, and to cover the ongoing costs of apprentices already in training and any additional payments made to employers and providers. The annual apprenticeship budget is set by HM Treasury (HMT) and although closely linked, it is distinct from the total levy income collected. The table below shows the Department for Education’s ring-fence apprenticeships budget against the ring-fenced apprenticeships spend (set by HMT) for the last five years.
FY 17/18 | FY 18/19 | FY 19/20 | FY 20/21 | FY 21/22 | |
£m | £m | £m | £m | £m | |
DfE Ring-fence Apprenticeships Budget | 2,010 | 2,231 | 2,469 | 2,467 | 2,466 |
Total Ring-fence Apprenticeships Spend | 1,586 | 1,738 | 1,919 | 1,863 | 2,455 |
The department does not anticipate that all employers who pay the levy will need or want to use all the funds available to them, but they are able to if they wish. As is usual practice, any underspends in overall departmental budgets by the end of the financial year are first returned to HMT as per the Consolidated Budgeting Guidance.