Department for Work and Pensions

We do not capture data on the number of graduates entering graduate schemes or graduate-level employment. The latest published DfE data shows that the unemployment rate for graduates is lower than non-graduates. A link to this data can be found here.(opens in a new tab)

Good work is good for health, so we want everyone to get work and get on in work, whoever they are and wherever they live. Backed by £240 million investment, the Get Britain Working White Paper launched in November 2024 is driving forward approaches to tackling economic inactivity. The Northern Ireland Executive received consequential funding in the usual way.

Disabled people and people with health conditions can face a wide range of unique, yet intersecting barriers, relating to not just their health, but their employment and circumstance (Work aspirations and support needs of health and disability customers: Final findings report - GOV.UK). We therefore have a range of specialist initiatives to support individuals to stay in work and get back into work, including those that join up employment and health systems. Existing measures include support from Work Coaches and Disability Employment Advisers in Jobcentres and Access to Work grants, as well as joining up health and employment support around the individual through Employment Advisors in NHS Talking Therapies, Individual Placement and Support in Primary Care and WorkWell. We are also rolling out Connect to Work, our supported employment programme for anyone who is disabled, and has a health condition or is experiencing more complex barriers to work.

We set out our plan for the Pathways to Work Guarantee in our Pathways to Work Green Paper and we are building towards our guaranteed offer of personalised work, health and skills support for disabled people and those with health conditions on out of work benefits. The guarantee is backed by £1 billion a year of new, additional funding by the end of the decade. We anticipate the guarantee, once fully rolled out, will include: a support conversation to identify next steps, one-to-one caseworker support, periodic engagement, and an offer of specialist long-term work health and skills support.

The 10 Year Health Plan, published in July, builds on existing work to better integrate health with employment support and incentivise greater cross-system collaboration, recognising good work is good for health. The Plan states our intention to break down barriers to opportunity by delivering the holistic support that people need to access and thrive in employment by ensuring a better health service for everyone, regardless of condition or service area. It outlines how the neighbourhood health service will join up support from across the work, health and skills systems to help address the multiple complex challenges that often stop people finding and staying in work.

In Northern Ireland, health, skills, careers and employment support are transferred matters. My officials work closely with those in the Northern Ireland Executive, sharing best practice on providing employment support to disabled people.

The Department for Work and Pensions maintains regular dialogue with the Department for Education (DfE) to ensure disabled students are supported as they transition into the labour market. Assistive and accessible technology (ATech) is key to enabling independence, greater inclusion, and participation for disabled people. While this technology is already creating opportunities, this government believes there is potential to do much more.

The Access to Work Scheme has been operating in Great Britain since June 1994 and provides grant funding to disabled people, as well as those with a health condition. The grant supports workplace adjustments that go beyond what would normally be expected from an employer through their duty to provide reasonable adjustments as outlined in the Equality Act 2010. The grant cap was increased in April 2024 to £69,920. To further support sustainable employment, the DWP is also investing in the “Connect to Work” initiative, which is expected to support around 100,000 disabled people and those with health conditions in 2026/2027.

The Department routinely keeps its policies under review and we are always interested in views from customers and stakeholders.

The current review of Universal Credit is looking closely at how the benefit supports self-employed people.

The Department does not hold data on how many applicants for (a) new Access to Work awards and (b) the renewal of existing awards who undertook holistic workplace assessments received support in line with the recommendations of those assessments in each of the last three years. Determining this information would require manually reviewing individual applications which would incur disproportionate cost.

The Department does not hold this data. Determining this information would require manually reviewing individual applications which would incur disproportionate cost.

We have interpreted this question as being about complaints that are resolved through The Pension Ombudsman’s (TPO) Resolution Service (RS). TPO operates independently to deliver its statutory responsibilities. Its RS includes 22 employed pension specialists and 150 industry experts working on a voluntary basis. RS provides an informal route for resolving disputes and reducing pressure on formal investigations. In 2024/25, the RS resolved 1,512 complaints, 80% of the 1905 received, without the requirement for a formal ombudsman investigation. Where early resolution is not possible, the Pensions Ombudsman retains full statutory authority to investigate and determine cases.

We are committed to reducing waiting times in Access to Work so that people can access the support they need. We have increased the number of staff processing Access to Work applications and prioritise cases where someone has a job starting in the next four weeks or who are renewing existing support.

The Pathways to Work Green Paper launched a consultation on the future of Access to Work which has now concluded. Following over 47,500 responses from individuals, charities and other stakeholders, as well as 18 consultation events, we published our summary of the responses to the Pathways to Work Green Paper consultation on 30 October 2025.

We are now considering the responses, and will bring forward our proposals for reforming Access to Work as soon as we are able to.

Good work is good for health, so we want everyone to get work and get on in work, whoever they are and wherever they live. Backed by £240 million investment, the Get Britain Working White Paper launched in November 2024 is driving forward approaches to tackling economic inactivity.

Disabled people are a diverse group so access to the right work and health support, in the right place, at the right time, is key. We therefore have a range of specialist initiatives to support individuals to stay in work and get back into work, including those that join up employment and health systems.

Existing measures include support from Work Coaches and Disability Employment Advisers (DEAs) in Jobcentres and Access to Work grants, as well as joining up health and employment support around the individual through Employment Advisors in NHS Talking Therapies, Individual Placement and Support in Primary Care and WorkWell. We are also rolling out Connect to Work, our supported employment programme for anyone who is disabled, has a health condition or is experiencing more complex barriers to work.

DEAs in the Jobcentres supporting the constituency deliver in-depth Work Ability conversations, focusing on strengths, suitable work options, workplace adjustments and confidence building. Additionally, part of the constituency is served by the WorkWell West pilot in the NHS Bristol, North Somerset and South Gloucestershire Integrated Care Board.

We set out our plan for the “Pathways to Work Guarantee” in our Pathways to Work Green Paper and are building towards our guaranteed offer of personalised work, health and skills support for disabled people and people with health conditions on out of work benefits. The guarantee is backed by £1 billion a year of new, additional funding by the end of the decade. We anticipate the guarantee, once fully rolled out, will include: a support conversation to identify next steps, one-to-one caseworker support, periodic engagement, and an offer of specialist long-term work health and skills support.

Additionally, we have developed a digital information service for employers, oversee the Disability Confident Scheme and continue to increase access to Occupational Health. Bath Jobcentre organised a Disability Confident job fair which was held at the Guildhall in October with Disability Confident employers, further job fairs targeting disabled people are currently in planning.

In recognition of employers’ vital role in addressing health-related economic activity, we appointed Sir Charlie Mayfield to lead the independent Keep Britain Working Review. The Report was published on 5 November. In partnership with the Department for Business and Trade and the Department for Health and Social Care, we are rapidly designing the Vanguard phase to test new employer-led approaches to support individuals to stay in work and develop a Healthy Workplace Standard, putting Sir Charlie’s key recommendations into action.

The 10 Year Health Plan, published in July, builds on existing work to better integrate health with employment support and incentivise greater cross-system collaboration, recognising good work is good for health. The Plan also states the Government’s intention to break down barriers to opportunity by delivering the holistic support that people need to access and thrive in employment by ensuring a better health service for everyone, regardless of condition or service area. It outlines how the neighbourhood health service will join up support from across the work, health and skills systems to help address the multiple complex challenges that often stop people finding and staying in work.

The information requested is published and available at:

https://www.nomisweb.co.uk/default.asp

Guidance for users can be found at:

https://www.nomisweb.co.uk/home/newuser.asp

The estimated youth unemployment rates can be found by selecting “Query data” on the NOMIS home page and selecting “Annual Population Survey/Labour Force Survey” and then “annual population survey (Dec 2004 to Jun 2025)” in the lists of data sources. The Geography will need to be set for the relevant countries/regions. The Variable will need to be set to “Unemployment rate - aged 16-24”. The latest date is automatically selected.

Jobs Plus is a community-based model with strong potential to tackle inactivity and unemployment. The department is testing the model in ten social housing communities across England to generate evidence on place-based support. The pilots will be evaluated to assess their effectiveness in helping people enter and remain in work.

We will carefully consider what we have learnt from these pilots as we develop our future employment support offer.

Jobs Plus is a community-based model with strong potential to tackle inactivity and unemployment. The department is testing the model in ten social housing communities across England to generate evidence on place-based support. The pilots will be evaluated to assess their effectiveness in helping people enter and remain in work.

We will carefully consider what we have learnt from these pilots as we develop our future employment support offer.

Jobs Plus is a community-based model with strong potential to tackle inactivity and unemployment. The department is testing the model in ten social housing communities across England to generate evidence on place-based support. The pilots will be evaluated to assess their effectiveness in helping people enter and remain in work.

We will carefully consider what we have learnt from these pilots as we develop our future employment support offer.

Jobs Plus is a community-based model with strong potential to tackle inactivity and unemployment. The department is testing the model in ten social housing communities across England to generate evidence on place-based support. The pilots will be evaluated to assess their effectiveness in helping people enter and remain in work.

We will carefully consider what we have learnt from these pilots as we develop our future employment support offer.

Members of the Timms Review steering group will be paid at a rate of £300 a day, with an expected time commitment of up to 5 days a month. The Review’s two external co-chairs, who were appointed in October 2025, are paid at a rate of £400 a day, with the same expected time commitment. In addition to their fees, members of the steering group and the co-chairs will be reimbursed for any reasonable expenses, including travel, accommodation and the costs of any accessibility requirements required in the course of their work on the Review.

This approach is to remove financial barriers to participation, ensuring no one is excluded due to cost, and is based on strong feedback from disabled people and other experts.

The Department also put in a contract with The Public Service Consultants (PSC) to support the Review. This is the first time that the Government has undertaken co-production on this scale, and we want to ensure we have the expertise to get it right. The contract was signed by the Department on 29th December 2025. To date, there have been no payments through this contract to them as external contractors.

Members of the Timms Review steering group will be paid at a rate of £300 a day, with an expected time commitment of up to 5 days a month. The Review’s two external co-chairs, who were appointed in October 2025, are paid at a rate of £400 a day, with the same expected time commitment. In addition to their fees, members of the steering group and the co-chairs will be reimbursed for any reasonable expenses, including travel, accommodation and the costs of any accessibility requirements required in the course of their work on the Review.

This approach is to remove financial barriers to participation, ensuring no one is excluded due to cost, and is based on strong feedback from disabled people and other experts.

The Department also put in a contract with The Public Service Consultants (PSC) to support the Review. This is the first time that the Government has undertaken co-production on this scale, and we want to ensure we have the expertise to get it right. The contract was signed by the Department on 29th December 2025. To date, there have been no payments through this contract to them as external contractors.

We are aware that some private companies provide advice on how to claim Personal Independence Payment (PIP), including some who may charge a fee for their services.

For those claiming PIP, we provide detailed guidance and information. We would also encourage individuals to seek advice from sources such as charities and Citizen’s Advice, which offer reliable and trustworthy guidance without charge.

We’re delivering a modern deal for working parents through the Employment Rights Act. Improving access to flexible working to allow parents to fit work around their family life, and employers will be expected to agree flexible working requests unless there is a clear and reasonable reason why they can’t.

Access to childcare support is essential in enabling parents to move into or progress in employment. Eligible Universal Credit (UC) customers can be reimbursed up to 85% of their registered childcare costs each month up to the maximum amounts (caps). The UC childcare offer can be used alongside the Department for Education’s early years and childcare entitlements in England to help cover costs of childcare during school holidays and before or after the school day, and there are similar offers in the Devolved Nations.

To deliver our long-term ambition, the Department for Education is leading a cross-government review of early education and childcare support to design and deliver a simpler system that maximises benefits for child development and parents’ ability to work or work more hours.

We are also investing up to £289m in Wraparound Childcare places before and after school, and during the school holidays, rolling out Free Universal Breakfast Clubs in every primary school, and spending over £200m each year on free Holiday Childcare places for our most disadvantaged children. These policies will ensure that parents have access to affordable, quality childcare so they can work, study, and train.

During the second half of 2024, DWP experienced a much higher level of demand for new Work Capability Assessments (WCA) than envisaged. As a result, 34,000 reassessments built up from individuals reporting a change in their condition before May 2025. We have worked with suppliers to rapidly increase capacity to clear this, including by accelerating the recruitment and training of additional assessors. As of 31 January 2026, 14,000 of these cases remain, and we expect the remainder to be cleared in the coming months.

In the meantime, claimants awaiting a reassessment will continue to receive their current rate. Where a reassessment leads to entitlement to a higher rate of benefit, that rate will be backdated accordingly.

Please note:

• All volumes have been rounded to the nearest 1,000.
• All of the above data is derived from contractual management information produced by the Assessment Suppliers
• The above data is derived from unpublished management information which is collected for internal departmental use only and has not been quality assured to Official Statistics Publication standards.

The Secretary of State regularly meets with colleagues across government to discuss a range of issues.

Motability Operations, an independent commercial company which delivers the Motability Scheme, will continue to prioritise customer needs, ensuring vehicles remain affordable and that support for wheelchair accessible vehicles and specialist adaptations remain at the heart of the Scheme.

Motability Operations has announced plans to support the government’s Modern Industrial Strategy. The number of British-made vehicles purchased by the Scheme will reach 25% by 2030, with an ambition of 50% of vehicles registered on the Scheme being made in the UK by 2035.

Statistics on the number of pensioners living in absolute and relative poverty in the UK are published annually in the “Households Below Average Income” publication, the latest available being Households below average income: for financial years ending 1995 to 2024 - GOV.UK. The table showing the percentage of pensioners in relative poverty over time by region is published as “table 6.10ts” of “pensioners- hbai-timeseries-1994-95-2023-24-tables”.

Statistics on the number of children living in absolute and relative poverty in the UK are pub-lished annually in the “Households Below Average Income” publication, the latest available being Households below average income: for financial years ending 1995 to 2024 - GOV.UK. The table showing the percentage of children in relative poverty over time is published as “table 4.1tr” of “children-trends-hbai-1994-95-2023-24-tables”.

Statistics on the number of children living in absolute and relative poverty on a before housing costs basis at local level are published annually in the “Children in low income families: local area statistics” publication, the latest available being Children in low income families: local area statistics 2014 to 2024 - GOV.UK.

The latest statistics published on 27 March 2025 are up to and including 2023/24. The latest available data can also be found on https://stat-xplore.dwp.gov.uk/. Guidance on how to use it can be found here: https://stat-xplore.dwp.gov.uk/webapi/online-help/User-Guide.html.

Indexation in the Pension Protection Fund (PPF) on pensions built up on or after 6 April 1997 (post-1997 indexation) broadly reflects the statutory requirements for Defined Benefit schemes more generally, which are in line with the consumer prices index, capped at 2.5%.

This may be different to the increases that would have been provided under the rules of the original scheme. The PPF is a compensation scheme and, as such, was never intended to replicate the benefits of schemes which were unable to secure their liabilities.

We recognise the challenges members of the AEA Technology pension scheme face and are directly tackling the point you raise about the loss of inflation protection. The Chancellor announced at the Budget that this Government will introduce annual increases on compensation payments from the Pension Protection Fund and Financial Assistance Scheme that relate to pensions built up before 6 April 1997. These will be Consumer Prices Index-linked (capped at 2.5%) and apply prospectively (i.e. to payments going forward) for members whose former schemes provided for these increases.

I am pleased to confirm that past members of the AEA Technology pension scheme with pre-97 accrual will benefit from this measure.

Young people are not required to hold GCSE qualifications in English and/or maths before starting an apprenticeship.

Apprentices under the age of 19 are funded to achieve up to a level 2 qualification in English and/or maths (where they do not already hold one) before the end of their apprenticeship, putting them in the best position to progress in their life and career. This can be a GCSE or functional skills qualification.

Further flexibility is in place for apprentices with a learning difficulty and/or disability, where there is evidence this is likely to be a barrier to them completing their apprenticeship. In these cases, they are able to achieve an entry level 3 functional skills qualification to complete. Since August 2024, this flexibility has been available to apprentices with a learning difficulty and/or disability but without an Education Health and Care Plan.

Young people are not required to hold GCSE qualifications in English and/or maths before starting an apprenticeship.

Apprentices under the age of 19 are funded to achieve up to a level 2 qualification in English and/or maths (where they do not already hold one) before the end of their apprenticeship, putting them in the best position to progress in their life and career. This can be a GCSE or functional skills qualification.

Further flexibility is in place for apprentices with a learning difficulty and/or disability, where there is evidence this is likely to be a barrier to them completing their apprenticeship. In these cases, they are able to achieve an entry level 3 functional skills qualification to complete. Since August 2024, this flexibility has been available to apprentices with a learning difficulty and/or disability but without an Education Health and Care Plan.

We are committed to reducing waiting times in Access to Work so that people can access the support they need. We have increased the number of staff processing Access to Work applications and prioritise cases where someone is about to start a job or needs to renew existing support.

Through the Pathways to Work Green Paper, we have consulted on how to improve Access to Work so it can support more disabled people. All elements of the scheme are now being reviewed as we develop plans for future reform.

Since Autumn Budget 2024, the Government has committed to gross savings of £14.6bn up to the end of 2030/31 from fraud, error and debt activity in GB, which includes savings from the new powers contained within the Public Authorities (Fraud, Error and Recovery) Act, an extension to continue Targeted Case Reviews to check accuracy of Universal Credit (UC) claims at risk of being incorrect until 2031 and the introduction of periodic redeclaration for UC claims to ensure claim accuracy, reduce fraud and error, and prevent avoidable debt.

The specific information requested is not readily available and to provide it would incur disproportionate cost.

This information is not held. Access to Work is available only to those in, or about to begin, employment, so this information is not recorded.

The Department does not hold data on Access to Work application processing times at the level requested. Determining this information would require manually reviewing individual applications which would incur disproportionate cost.

As of 31 March 2025, the PPF has built up a reserve of around £14.1 billion. This is a reserve and not surplus funds. While the risks that the PPF faces are lower given improved Defined Benefit (DB) scheme funding levels, this reserve provides security for its current 8.6 million members and the taxpayer. The reserve is crucial to managing future challenges and enabling the PPF to fulfil its role as the ultimate backstop to the near £1 trillion of liabilities in DB schemes.

This Government has brought forward improvements to the level of indexation it pays and introduced greater flexibility to adjust the levy it collects in line with its funding strategy. The PPF will continue to build its reserves through investment returns, while keeping its approach to funding under regular review, prudently balancing the needs of members and levy payers. This will increase security for its current and future members and, further reduce the risk of needing to call on levy payers in the future.

The Department has not recently evaluated the effectiveness of the Removal of the Spare Room Subsidy.

Information on the number of households subjected to the Removal of the Spare Room Subsidy, by nations and regions, is available on Stat-Xplore via the Housing Benefit and Universal Credit official statistics (https://stat-xplore.dwp.gov.uk/). The information can be found in the Households on Universal Credit dataset, and the Housing Benefit – Data from April 2018 dataset, and are currently available to August 2025.

Users can log in or access Stat-Xplore as a guest, and if needed, can access guidance on how to extract the information required. There is also a Universal Credit Official Statistics: Stat-Xplore user guide.

The Department has not recently evaluated the effectiveness of the Removal of the Spare Room Subsidy.

Information on the number of households subjected to the Removal of the Spare Room Subsidy, by nations and regions, is available on Stat-Xplore via the Housing Benefit and Universal Credit official statistics (https://stat-xplore.dwp.gov.uk/). The information can be found in the Households on Universal Credit dataset, and the Housing Benefit – Data from April 2018 dataset, and are currently available to August 2025.

Users can log in or access Stat-Xplore as a guest, and if needed, can access guidance on how to extract the information required. There is also a Universal Credit Official Statistics: Stat-Xplore user guide.

Each apprenticeship standard is allocated to one of 30 funding bands, which range from £1,500 to £27,000. These represent the maximum value that government will contribute towards the training and assessment for each apprenticeship.

All apprenticeship standards are reviewed periodically for both content and funding. Employers can also request an exceptional review where they are able to evidence significant cost changes. Skills England continues to work closely with employers throughout the revision process to ensure current delivery costs are reflected, whilst also delivering value for money.

The information requested is not readily available and to provide it would incur disproportionate cost.

The department hold records of how many consolatory payments were authorised for Child Maintenance Service customers. This information is provided in the table. We are unable to supply a breakdown of payments made to paying and receiving parents without additional work at disproportionate cost.

I refer the hon. Member to the answer of 13 June 2025 to Question 57098.

We are investing in education and skills training for adults through the Adult Skills Fund (ASF), spending £1.4 billion in the 2025/26 academic year. The ASF fully funds or co-funds skills provision for eligible adults aged 19 and above from pre-entry to level 3, to support them to gain the skills they need for work, an apprenticeship or further learning. This includes a statutory entitlement to fully funded qualifications for 19 to 23 year olds who don’t have either a level 2 or 3 qualification which may be relevant for learners who missed education due to medical conditions they experienced as children.

As of August 2025, approximately 68% of the ASF is devolved to 12 Strategic Authorities and the Greater London Authority. These authorities are responsible for the provision of ASF-funded adult education for their residents and allocation of the ASF to providers. For learners in Ashfield, the East Midlands Combined County Authority (EMCCA) decides how to make best use of their ASF to meet their local needs beyond four statutory entitlements, including which courses are funded and the eligibility criteria.

By honouring our commitments to combine and further devolve adult skills funding, we give those with local knowledge the power they need to make decisions that are best for their areas.

The ASF also funds learning providers to help adult learners to overcome barriers which prevent them from taking part in learning. This includes Learner Support, to support learners with a specific financial hardship, and Learning Support to meet the additional needs of learners with learning difficulties and/or disabilities.

In relation to access to higher education, all higher education providers registered with the Office for Students that intend to charge higher level tuition fees must have an Access and Participation Plan (APP) approved by the Office for Students. APPs articulate how higher education providers will improve equality of opportunity for underrepresented groups.

I refer the hon. Member to the answer of 13 June 2025 to Question 57098.

DWP works closely with industry bodies such as Make UK, the Manufacturing Technologies Association and the Institute for Grocery Distributors to support jobseekers to better understand the many career opportunities available in manufacturing.

DWP also promotes pathways into manufacturing to jobseekers, including skills interventions such as Sector-based Work Academy Programmes (SWAPs) and Skills Bootcamps, alongside paid employment routes such as Apprenticeships. Between April 2021 and December 2025, DWP delivered 16,080 SWAP starts in the manufacturing sector.

The department publishes estimates of the numbers of official error overpayments, available here: Fraud and error in the benefit system: financial year 2024 to 2025 estimates

As we introduce new products, such as apprenticeship units and foundation apprenticeships, we are also simplifying the Growth and Skills Levy, improving its transparency, and making it more efficient.

From August 2026, we are removing the 10% top-up for levy-paying employers, changing expiry of levy funds to 12 months, and changing the government’s co-investment rate from 95% to 75% for levy-paying employers once they have exhausted all their funds.

Levy-paying employers will still be able to benefit from a very generous government contribution once their funds are exhausted, but it is right that employers who utilise all their levy funds contribute more to apprenticeship training and assessment.

These changes will ensure funding is available to roll out further flexibility for business and increase opportunities for young people.

We continue to support SMEs to take on apprentices and for the first time we will be fully funding the cost of training eligible apprentices aged 16-24 at non-levy paying employers (essentially SMEs). From August 2026, training and assessment will be completely free for SMEs who hire young people, boosting starts and reducing bureaucracy for both SMEs and training providers.

We will carefully monitor the impact of these changes once they take effect.

As we introduce new products, such as apprenticeship units and foundation apprenticeships, we are also simplifying the Growth and Skills Levy, improving its transparency, and making it more efficient.

From August 2026, we are removing the 10% top-up for levy-paying employers, changing expiry of levy funds to 12 months, and changing the government’s co-investment rate from 95% to 75% for levy-paying employers once they have exhausted all their funds.

Levy-paying employers will still be able to benefit from a very generous government contribution once their funds are exhausted, but it is right that employers who utilise all their levy funds contribute more to apprenticeship training and assessment.

These changes will ensure funding is available to roll out further flexibility for business and increase opportunities for young people.

We continue to support SMEs to take on apprentices and for the first time we will be fully funding the cost of training eligible apprentices aged 16-24 at non-levy paying employers (essentially SMEs). From August 2026, training and assessment will be completely free for SMEs who hire young people, boosting starts and reducing bureaucracy for both SMEs and training providers.

We will carefully monitor the impact of these changes once they take effect.

As we introduce new products, such as apprenticeship units and foundation apprenticeships, we are also simplifying the Growth and Skills Levy, improving its transparency, and making it more efficient.

From August 2026, we are removing the 10% top-up for levy-paying employers, changing expiry of levy funds to 12 months, and changing the government’s co-investment rate from 95% to 75% for levy-paying employers once they have exhausted all their funds.

Levy-paying employers will still be able to benefit from a very generous government contribution once their funds are exhausted, but it is right that employers who utilise all their levy funds contribute more to apprenticeship training and assessment.

These changes will ensure funding is available to roll out further flexibility for business and increase opportunities for young people.

We continue to support SMEs to take on apprentices and for the first time we will be fully funding the cost of training eligible apprentices aged 16-24 at non-levy paying employers (essentially SMEs). From August 2026, training and assessment will be completely free for SMEs who hire young people, boosting starts and reducing bureaucracy for both SMEs and training providers.

We will carefully monitor the impact of these changes once they take effect.

As we introduce new products, such as apprenticeship units and foundation apprenticeships, we are also simplifying the Growth and Skills Levy, improving its transparency, and making it more efficient.

From August 2026, we are removing the 10% top-up for levy-paying employers, changing expiry of levy funds to 12 months, and changing the government’s co-investment rate from 95% to 75% for levy-paying employers once they have exhausted all their funds.

Levy-paying employers will still be able to benefit from a very generous government contribution once their funds are exhausted, but it is right that employers who utilise all their levy funds contribute more to apprenticeship training and assessment.

These changes will ensure funding is available to roll out further flexibility for business and increase opportunities for young people.

We continue to support SMEs to take on apprentices and for the first time we will be fully funding the cost of training eligible apprentices aged 16-24 at non-levy paying employers (essentially SMEs). From August 2026, training and assessment will be completely free for SMEs who hire young people, boosting starts and reducing bureaucracy for both SMEs and training providers.

We will carefully monitor the impact of these changes once they take effect.