Apprenticeships: Levy

Lord Bishop of Peterborough Excerpts

Monday 25th June 2018 Lords Chamber

[Viscount Younger of Leckie]

We are in a very favourable position in comparison to Germany because, for example, it has 30% off-the-job training and we are going for 20%. As the noble Lord will know, this is part of a two-year programme, so we have deliberately given employers who pay the levy two years in which to bed in these new changes and get used to the process. We believe that that is happening.

[The Lord Bishop of Peterborough]

My Lords, is the Minister aware that for small businesses and voluntary organisations the process of drawing up the standards is very complicated and time-consuming, that there is little guidance on this and no financial help for it from government, and that since the levy was introduced the grant for apprenticeships has fallen from £6,000 for an 18-year-old to £2,500, so the YMCA tells me? That makes it unviable for the YMCA to offer apprenticeships.

[Viscount Younger of Leckie]

I understand what the right reverend Prelate says. However, we have increased the funding for providers, particularly on the non-levy side. I hope that he can be reassured that small businesses are being helped by our encouraging better providers for them.