Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government (1) how many, and (2) what percentage, of levy-paying employers have spent more than half the funds in their apprenticeship levy account, for each of the past five financial years.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
UK employers with an annual pay bill above £3 million pay the apprenticeship levy, which is collected by HM Revenue & Customs. The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes build their workforces. As the apprenticeships levy is UK wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.
In England, employers can use their levy funds for apprenticeships in their own business or transfer their funds to support apprenticeships in other businesses. Funds that levy payers do not draw on is used to fund apprenticeships in small and medium sized businesses. Levy payers are not expected to use all funds available to them, though they are able to do so.
Employers in England who pay the apprenticeship levy can access funds for apprenticeship training and assessment by registering for an apprenticeship service account. The funds in employers’ accounts reflect the ‘English percentage’ of an employer’s levy contribution and include a 10% top-up from the government.
The funds available to levy-paying employers through their apprenticeship service accounts does not represent the total spend on apprenticeships for levy-paying empoyers and is not the same as the apprenticeships budget which funds apprenticeships for employers of all sizes. On average, 98% of the apprenticeships budget has been spent in the last two financial years.
The table below shows the number of levy-paying employers that have spent more than 50% of the funds declared in their apprenticeship service accounts, including the 10% top-up from the government, in each financial year from 2018/19 to 2022/23.
FY | Number of employers who spent more than 50% of levy funds | Percentage of total employers who spent more than 50% of levy funds |
2018/19 | 4,210 | 27% |
2019/20 | 6,000 | 36% |
2020/21 | 6,080 | 35% |
2021/22 | 6,580 | 35% |
2022/23 | 6,970 | 35% |
The department is supporting employers to make greater use of their levy and have improved the transfer system to make it easier to find other employers who wish to take on apprentices with transferred funds. In April 2019, the department increased the transfer allowance from 10% to 25%, so levy-paying employers could transfer more of their annual funds to support any employer. Since September 2021, over 500 employers, including ASDA, HomeServe, and BT Group, have pledged to transfer over £33 million to support apprenticeships in businesses of all sizes. The table below shows the number of levy-paying employers who spent all of their transfer allowance in each financial year from 2018/19 to 2022/23.
FY (of allowance calculation) | Employers who used all their transfer allowance | Percentage of total employers who used all their transfer allowance |
2018/19 | 70 | 0.4% |
2019/20 | 170 | 1.0% |
2020/21 | 280 | 1.6% |
2021/22 | 370 | 2.0% |
2022/23 | 270 | 1.4% |
With regard to allowing levy-paying employers to use their funds on non-apprenticeship training schemes and courses, I refer the noble lady to the answer of 10 November 2023 to Question 614.
Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government (1) how many, and (2) what percentage, of levy-paying employers have transferred the maximum 25 per cent of apprenticeship levy funds to other businesses, for each of the past five financial years.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
UK employers with an annual pay bill above £3 million pay the apprenticeship levy, which is collected by HM Revenue & Customs. The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes build their workforces. As the apprenticeships levy is UK wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.
In England, employers can use their levy funds for apprenticeships in their own business or transfer their funds to support apprenticeships in other businesses. Funds that levy payers do not draw on is used to fund apprenticeships in small and medium sized businesses. Levy payers are not expected to use all funds available to them, though they are able to do so.
Employers in England who pay the apprenticeship levy can access funds for apprenticeship training and assessment by registering for an apprenticeship service account. The funds in employers’ accounts reflect the ‘English percentage’ of an employer’s levy contribution and include a 10% top-up from the government.
The funds available to levy-paying employers through their apprenticeship service accounts does not represent the total spend on apprenticeships for levy-paying empoyers and is not the same as the apprenticeships budget which funds apprenticeships for employers of all sizes. On average, 98% of the apprenticeships budget has been spent in the last two financial years.
The table below shows the number of levy-paying employers that have spent more than 50% of the funds declared in their apprenticeship service accounts, including the 10% top-up from the government, in each financial year from 2018/19 to 2022/23.
FY | Number of employers who spent more than 50% of levy funds | Percentage of total employers who spent more than 50% of levy funds |
2018/19 | 4,210 | 27% |
2019/20 | 6,000 | 36% |
2020/21 | 6,080 | 35% |
2021/22 | 6,580 | 35% |
2022/23 | 6,970 | 35% |
The department is supporting employers to make greater use of their levy and have improved the transfer system to make it easier to find other employers who wish to take on apprentices with transferred funds. In April 2019, the department increased the transfer allowance from 10% to 25%, so levy-paying employers could transfer more of their annual funds to support any employer. Since September 2021, over 500 employers, including ASDA, HomeServe, and BT Group, have pledged to transfer over £33 million to support apprenticeships in businesses of all sizes. The table below shows the number of levy-paying employers who spent all of their transfer allowance in each financial year from 2018/19 to 2022/23.
FY (of allowance calculation) | Employers who used all their transfer allowance | Percentage of total employers who used all their transfer allowance |
2018/19 | 70 | 0.4% |
2019/20 | 170 | 1.0% |
2020/21 | 280 | 1.6% |
2021/22 | 370 | 2.0% |
2022/23 | 270 | 1.4% |
With regard to allowing levy-paying employers to use their funds on non-apprenticeship training schemes and courses, I refer the noble lady to the answer of 10 November 2023 to Question 614.
Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government (1) how many, and (2) what percentage, of levy paying employers have spent all funds in their apprenticeship levy account, for each of the past five financial years.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
UK employers with an annual pay bill above £3 million pay the apprenticeship levy, which is collected by HM Revenue & Customs. Employers in England who pay the apprenticeship levy can access funds for apprenticeship training and assessment by registering for an apprenticeship service account. The funds in employers’ accounts reflect the ‘English percentage’ of an employer’s levy contribution and include a 10% top-up from the government.
While levy-paying employers in England can use all their levy funds the majority do not, which allows these funds from the apprenticeship budget to fund apprenticeship training for small and medium sized businesses, so all companies can benefit from training apprentices.
The table below shows the number of levy-paying employers that have spent all the funds declared in their apprenticeship service accounts, including the 10% top-up from the government, in each financial year from 2018/19 to 2022/23.
Number of employers who spent all levy funds | Percentage of total employers who spent all levy funds | |
2018/19 | 1,620 | 10% |
2019/20 | 2,530 | 15% |
2020/21 | 2,520 | 15% |
2021/22 | 2,620 | 14% |
2022/23 | 2,540 | 13% |
The funds in levy-paying employers’ apprenticeship service accounts do not represent the total spend on apprenticeships for levy paying employers and are not the same as the total annual apprenticeships budget. The ring-fenced apprenticeships budget for England is set by HM Treasury and, although closely linked, is distinct from the total levy income collected. In the last two financial years, on average 98% of the English apprenticeships budget was spent.
Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what is the average training cost of a traineeship.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
In the 2022/23 financial year, the average cost of a traineeship was £2,700. This includes the costs of training and outcome payments, but excludes the cost of the £1,000 incentive payments, introduced in response to COVID-19. As of August 2023, the government has integrated the traineeship programme into the 16-19 study programme and adult education provision.
Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what is the average cost of a Higher Technical Qualification at (1) Level 4, and (2) Level 5.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
Higher Technical Qualifications (HTQs) started being taught in providers in England in September 2022. At this time, the department does not hold data on the average cost of HTQs across all providers.
The government sets maximum fee limits for providers registering with the Office for Students as Approved (Fee Cap) Providers who can charge up to £9,250 for a full-time course leading to an HTQ and up to £6,935 for a part-time course leading to an HTQ in the 2023/24 academic year.
Eligible students, who are starting designated full-time and part-time courses leading to an HTQ in the 2023/24 academic year, qualify for up-front fee loans to meet the full cost of their tuition and partially means-tested loans for living costs.
Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what is the average training cost of an (1) intermediate, (2) advanced, and (3) higher level, apprenticeship.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The table below shows the average cost of all apprentices who participated in learning across the 2022/23 academic year by level. This includes those who remain on programme, those who withdrew across the year, and those who completed their apprenticeship. Apprenticeships have a minimum 12-month duration and can last for a number of years. These figures cover all costs associated with these apprentices, including costs incurred in previous years and those incurred within the 2022/23 academic year. These figures include payments for apprenticeship training and assessment, as well as additional payments made to employers, providers, and apprentices, including for English and maths.
Level of Apprenticeship | Average Cost* |
2 | £4,600 |
3 | £6,000 |
4 | £5,600 |
5 | £5,000 |
6 | £10,800 |
7 | £9,000 |
*Numbers rounded to the nearest 100
Each apprenticeship standard has its own funding band, which denotes the maximum amount that the government will fund for training and assessment. The total cost of an apprenticeship will therefore vary by standard, duration, and eligibility for additional payments. Existing standards can have their funding bands reviewed, or be withdrawn for new starts, while new standards can be introduced. These figures are therefore a snapshot in time, subject to change in future and cannot be used to extrapolate future costs of apprenticeships.
Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what is the average cost of a National Vocational Qualification at (1) Level 2, and (2) Level 3.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The Adult Education Budget (AEB) fully funds or co-funds skills provision for eligible adults aged 19 and above from pre-entry to Level 3. About 60% of the AEB has been devolved to nine Mayoral Combined Authorities and the Mayor of London and these authorities are now responsible for, and determine, the funding rates for the provision in their areas. The Education and Skills Funding Agency (ESFA) provides the remaining funding for learners who live in non-devolved areas. Within the ESFA AEB, the department funds qualifications on the programme weighting of the qualification and its size. It is up to providers to decide what provision they offer and then claim the funding rate and therefore the department does not hold the information regarding the cost of delivering specific National Vocational Qualifications (NVQs).
For 16 to 19 year olds, the department calculates funding for institutions using national funding rates, which depend on the overall size of students’ programmes, rather than funding based on specific qualifications. Therefore, the department does not hold information regarding the costs of delivering specific NVQs.
Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what are the (1) mean, and (2) median, amounts spent by a school or local authority on an unregistered alternative provider place in England for (a) pupils with an Education, Health and Care Plan, (b) pupils classified as a Child In Need, (c) Pupil Premium Pupils, and (d) pupils excluded from school.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The department does not hold information about the mean and median amounts spent by a school or local authority on an unregistered alternative provider place in England for (a) pupils with an Education, Health and Care Plan, (b) pupils classified as a Child In Need, (c) Pupil Premium Pupils, and (d) pupils excluded from school. Commissioning arrangements are managed directly by schools and local authorities who require the provision, and they do not report their expenditure at the level of detail requested.
The department also does not routinely collect data on the number of safeguarding concerns that have taken place in unregistered APs. Commissioners are responsible for the AP they use and ensuring that it is safe.
The Alternative Provision (AP) statutory guidance is clear that AP, including unregistered AP, should be good quality, registered where appropriate, and delivered by high quality staff with suitable training, experience and safeguarding checks. The guidance can be found in the attached document. Responsibility for the AP used rests with the commissioner. The nature of the intervention, its objectives and the timeline to achieve these objectives should be agreed and clearly defined.
Some local authorities or partnerships of schools have developed a local directory of ‘approved’ provision, which meets clearly defined standards, including registration where necessary, safeguarding, health and safety, quality of accommodation, quality of education etc. These lists, where they exist, can provide a helpful starting point. However, prior to placement, commissioners should still assess whether the provision offers high quality education and is suitable for the pupil’s individual needs.
‘Keeping children safe in education’ is statutory guidance to which all schools and colleges must have regard when carrying out their duties to safeguard and promote the welfare of children, and can be found in the attached document. The guidance states that where a school places a pupil in AP, the school continues to be responsible for the safeguarding of that pupil and should be satisfied that the provider meets the needs of the pupil. Schools should obtain written confirmation from the AP that appropriate safeguarding checks have been carried out on individuals working at the establishment, for example, those checks that the school would otherwise perform in respect of its own staff.
Ofsted does not inspect individual unregistered AP settings unless they are part of a criminal investigation where there are concerns that the provider may be operating illegally as an independent school. Any provider of AP must be registered as an independent school if it caters full time for five or more pupils of compulsory school age, or one pupil who is looked after or has an education, health and care plan. Under Section 97 of the Education and Skills Act 2008, the Unregistered Schools Team does not inspect the quality of the provision or the safeguarding arrangements.
The School Inspection Handbook states that during school inspections, inspectors will evaluate how well a school continues to take responsibility for its pupils who attend AP, including in unregistered AP. The Handbook can be found here: https://www.gov.uk/government/publications/school-inspection-handbook-eif/school-inspection-handbook-for-september-2023. Inspectors will normally visit a sample of any part-time unregistered AP during the inspection. This is to assess the adequacy of the school’s quality assurance process. A school is likely to be judged inadequate for leadership and management if it is making ineffective or inappropriate use of AP, failing to ensure the suitability of a provision, being unaware of the number of their pupils attending AP or not taking responsibility for their pupils who attend AP.
From January 2023, Ofsted is inspecting the local authority commissioning of AP as part of Area Special Educational Needs and Disabilities (SEND) inspections. The Area SEND inspection Handbook states that in doing so inspectors will consider whether the local authority’s use of unregistered and online provision is lawful and appropriate to children and young people’s needs. The Handbook can be found at: https://www.gov.uk/government/publications/area-send-framework-and-handbook/area-send-inspections-framework-and-handbook.
Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government whether there are any minimum standards for an unregistered alternative provider which provides education placements for school-aged pupils to operate in England.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The department does not hold information about the mean and median amounts spent by a school or local authority on an unregistered alternative provider place in England for (a) pupils with an Education, Health and Care Plan, (b) pupils classified as a Child In Need, (c) Pupil Premium Pupils, and (d) pupils excluded from school. Commissioning arrangements are managed directly by schools and local authorities who require the provision, and they do not report their expenditure at the level of detail requested.
The department also does not routinely collect data on the number of safeguarding concerns that have taken place in unregistered APs. Commissioners are responsible for the AP they use and ensuring that it is safe.
The Alternative Provision (AP) statutory guidance is clear that AP, including unregistered AP, should be good quality, registered where appropriate, and delivered by high quality staff with suitable training, experience and safeguarding checks. The guidance can be found in the attached document. Responsibility for the AP used rests with the commissioner. The nature of the intervention, its objectives and the timeline to achieve these objectives should be agreed and clearly defined.
Some local authorities or partnerships of schools have developed a local directory of ‘approved’ provision, which meets clearly defined standards, including registration where necessary, safeguarding, health and safety, quality of accommodation, quality of education etc. These lists, where they exist, can provide a helpful starting point. However, prior to placement, commissioners should still assess whether the provision offers high quality education and is suitable for the pupil’s individual needs.
‘Keeping children safe in education’ is statutory guidance to which all schools and colleges must have regard when carrying out their duties to safeguard and promote the welfare of children, and can be found in the attached document. The guidance states that where a school places a pupil in AP, the school continues to be responsible for the safeguarding of that pupil and should be satisfied that the provider meets the needs of the pupil. Schools should obtain written confirmation from the AP that appropriate safeguarding checks have been carried out on individuals working at the establishment, for example, those checks that the school would otherwise perform in respect of its own staff.
Ofsted does not inspect individual unregistered AP settings unless they are part of a criminal investigation where there are concerns that the provider may be operating illegally as an independent school. Any provider of AP must be registered as an independent school if it caters full time for five or more pupils of compulsory school age, or one pupil who is looked after or has an education, health and care plan. Under Section 97 of the Education and Skills Act 2008, the Unregistered Schools Team does not inspect the quality of the provision or the safeguarding arrangements.
The School Inspection Handbook states that during school inspections, inspectors will evaluate how well a school continues to take responsibility for its pupils who attend AP, including in unregistered AP. The Handbook can be found here: https://www.gov.uk/government/publications/school-inspection-handbook-eif/school-inspection-handbook-for-september-2023. Inspectors will normally visit a sample of any part-time unregistered AP during the inspection. This is to assess the adequacy of the school’s quality assurance process. A school is likely to be judged inadequate for leadership and management if it is making ineffective or inappropriate use of AP, failing to ensure the suitability of a provision, being unaware of the number of their pupils attending AP or not taking responsibility for their pupils who attend AP.
From January 2023, Ofsted is inspecting the local authority commissioning of AP as part of Area Special Educational Needs and Disabilities (SEND) inspections. The Area SEND inspection Handbook states that in doing so inspectors will consider whether the local authority’s use of unregistered and online provision is lawful and appropriate to children and young people’s needs. The Handbook can be found at: https://www.gov.uk/government/publications/area-send-framework-and-handbook/area-send-inspections-framework-and-handbook.
Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government whether there are any safeguarding checks or requirements for an unregistered alternative provider that provides education placements for school-aged pupils in England.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The department does not hold information about the mean and median amounts spent by a school or local authority on an unregistered alternative provider place in England for (a) pupils with an Education, Health and Care Plan, (b) pupils classified as a Child In Need, (c) Pupil Premium Pupils, and (d) pupils excluded from school. Commissioning arrangements are managed directly by schools and local authorities who require the provision, and they do not report their expenditure at the level of detail requested.
The department also does not routinely collect data on the number of safeguarding concerns that have taken place in unregistered APs. Commissioners are responsible for the AP they use and ensuring that it is safe.
The Alternative Provision (AP) statutory guidance is clear that AP, including unregistered AP, should be good quality, registered where appropriate, and delivered by high quality staff with suitable training, experience and safeguarding checks. The guidance can be found in the attached document. Responsibility for the AP used rests with the commissioner. The nature of the intervention, its objectives and the timeline to achieve these objectives should be agreed and clearly defined.
Some local authorities or partnerships of schools have developed a local directory of ‘approved’ provision, which meets clearly defined standards, including registration where necessary, safeguarding, health and safety, quality of accommodation, quality of education etc. These lists, where they exist, can provide a helpful starting point. However, prior to placement, commissioners should still assess whether the provision offers high quality education and is suitable for the pupil’s individual needs.
‘Keeping children safe in education’ is statutory guidance to which all schools and colleges must have regard when carrying out their duties to safeguard and promote the welfare of children, and can be found in the attached document. The guidance states that where a school places a pupil in AP, the school continues to be responsible for the safeguarding of that pupil and should be satisfied that the provider meets the needs of the pupil. Schools should obtain written confirmation from the AP that appropriate safeguarding checks have been carried out on individuals working at the establishment, for example, those checks that the school would otherwise perform in respect of its own staff.
Ofsted does not inspect individual unregistered AP settings unless they are part of a criminal investigation where there are concerns that the provider may be operating illegally as an independent school. Any provider of AP must be registered as an independent school if it caters full time for five or more pupils of compulsory school age, or one pupil who is looked after or has an education, health and care plan. Under Section 97 of the Education and Skills Act 2008, the Unregistered Schools Team does not inspect the quality of the provision or the safeguarding arrangements.
The School Inspection Handbook states that during school inspections, inspectors will evaluate how well a school continues to take responsibility for its pupils who attend AP, including in unregistered AP. The Handbook can be found here: https://www.gov.uk/government/publications/school-inspection-handbook-eif/school-inspection-handbook-for-september-2023. Inspectors will normally visit a sample of any part-time unregistered AP during the inspection. This is to assess the adequacy of the school’s quality assurance process. A school is likely to be judged inadequate for leadership and management if it is making ineffective or inappropriate use of AP, failing to ensure the suitability of a provision, being unaware of the number of their pupils attending AP or not taking responsibility for their pupils who attend AP.
From January 2023, Ofsted is inspecting the local authority commissioning of AP as part of Area Special Educational Needs and Disabilities (SEND) inspections. The Area SEND inspection Handbook states that in doing so inspectors will consider whether the local authority’s use of unregistered and online provision is lawful and appropriate to children and young people’s needs. The Handbook can be found at: https://www.gov.uk/government/publications/area-send-framework-and-handbook/area-send-inspections-framework-and-handbook.