Apprenticeships: Levy

Baroness Redfern Excerpts

Monday 25th June 2018 Lords Chamber

[Viscount Younger of Leckie]

We have already extended it from 18 months to 24 months and we think that that is fine. We are seeing strong signs that it is picking up, with the employers buying into the system. We always said that it would take some time, as I think the noble Lord knows. For example, we are seeing vacancies up and that is very encouraging.

[Baroness Redfern (Con)]

My Lords, the apprenticeship levy offers organisations the chance to review their workforce strategies, diversify their workforces and address skills shortages. Does my noble friend the Minister therefore think that any underspend of levy money should be ring-fenced to be invested strategically, to tackle identified sector skills challenges?

[Viscount Younger of Leckie]

I think we made it clear that if there is any underspend, it will become apparent probably no earlier than May 2019. It is clear that if there is any underspend, the money available will go back into apprenticeships, so it is important that the focus is on these new level standard apprenticeships.