Apprenticeship Levy

Baroness Twycross Excerpts

Tuesday 25th April 2023 Lords Chamber

[Baroness Barran (Con)]

I am happy to reassure my noble friend that we have no plans to do away with the levy. Indeed, as I said, based on the OBR forecast we expect it to increase to £2.7 billion in 2024-25. The levy is part of a wider strategy to offer more flexible opportunities, such as modular learning and the lifelong loan entitlement, to potential employees and address the skills gaps of employers more effectively.

[Baroness Twycross (Lab)]

My Lords, the chief executive of the CIPD has said that the apprenticeship levy

“has failed … Without reform it will act as a handbrake on employer investment in skills”.

Given reports that more than £2 billion of the levy money has been clawed back by the Treasury rather than being spent on apprenticeships, is it still genuinely the Government’s view that the levy as it stands is fit for purpose?

[Baroness Barran (Con)]

It is the Government’s view. Again, if we look at the trend in the use of the levy, we have seen an increase in adoption and use of the levy by employers, both levy-paying employers and much smaller enterprises. We are committed to offering all sorts of flexible and shorter courses, and to funding those to meet key skills gaps. We think this is a critical part of our strategy.