Apprenticeship Levy Scheme

Baroness Blake of Leeds Excerpts

Thursday 16th June 2022 Lords Chamber

[Baroness Barran (Con)]

The noble Lord is a bit harsh; we are very focused on SMEs, in part because of the productivity potential that apprentices can offer them, but also because of the opportunities that they offer to young people. I am not aware that we have published targets for this, but it is a particular focus in the department.

[Baroness Blake of Leeds (Lab)]

My Lords, in February this year, IPPR North reported a 72% fall in entry-level apprenticeships since 2014. The London Progression Collaboration has revealed a major decline in entry-level apprenticeships in the capital, while starts in high-level apprenticeships, often taken by older people, have skyrocketed. SMEs report that apprenticeship starts fell by more than 36% following the introduction of the levy in 2017. I acknowledge the successes of the apprenticeship levy but, given the priority to help young people through skills training, including apprenticeships, and the levelling-up agenda, and given the obvious problems, can the Minister explain why the Government have ruled out a formal review of the levy as part of their wider considerations?

[Baroness Barran (Con)]

I think the noble Baroness would acknowledge that some of the changes that we have introduced, including the levy, to create a sustainable model of funding for apprenticeships, reflect some of the problems of quality identified in the Richard review in 2012. I hope that she would also acknowledge that we have seen an important growth in degree apprenticeships. She is absolutely right that we have seen a drop in intermediate apprenticeships, but that is a principal area of focus for the department going forward.