Apprenticeship Levy Scheme

Baroness Bonham-Carter of Yarnbury Excerpts

Thursday 16th June 2022 Lords Chamber

[Baroness Barran (Con)]

I do not accept the noble Lord’s assertion that the changes that the Government have introduced are not working. Clearly, the context of the last 12 months, with the pandemic, has had a major impact on the confidence and ability of employers to recruit more generally. But, in the year to date, apprenticeship starts are up 17.4% and the number of starts among young people under 25 has risen to 55%, up from 50% the previous year.

[Baroness Bonham-Carter of Yarnbury (LD)]

The creative industries have also found the apprenticeship levy scheme to be not fit and have asked for modifications; I thank the Minister for listening to these concerns. Around £55 million of apprenticeship levy funds raised within the creative industries cannot presently be spent to support the training of their own workforce, so we welcome the flexi-job apprenticeship agency pilot project, launched yesterday, which is looking to address these issues. Will she look into how this can be sustainable and affordable for the sector after the initial investment runs out—in other words, beyond the pilot?

[Baroness Barran (Con)]

I thank the noble Baroness very much for acknowledging that we absolutely have listened to the sector with the flexi-job apprenticeships. She will be aware that there is enormous flexibility for larger employers to spend up to 25% of their levy funds, potentially, with their supply chain, as might well apply in a case like this.