Apprenticeship Levy

Lord Foster of Bath Excerpts

Tuesday 28th January 2020 Lords Chamber

[Baroness Berridge]

The noble Lord is trying me and I hope I will not be found wanting. The 10% co-investment fee has been reduced to 5%, which I hope will solve some of the issues. Also, if very small employers of less than 50 employees take on specific vulnerable or disadvantaged groups, such as 16 to 18 year-olds or 19 to 24 year- olds who are care leavers, the entire cost of the training is paid. They do not have to contribute anything.

[Lord Foster of Bath (LD)]

My Lords, further to the question of the noble Lord, Lord Grade, I am sure the Minister is aware that the vital creative industries currently have 70,000 vacancies, so they desperately need an apprenticeship scheme which works for them. The current scheme clearly does not; some 75% of money raised by the creative industries for the levy is not being spent on those industries. I accept that one of the problems is being addressed by the ScreenSkills trial, to which the Minister referred, but another big problem is the simple fact that only 25% of levy money can be passed on to smaller employers and ATAs. Will the Minister explain why that percentage cannot be increased so that more of the creative industries’ levy money can be spent on those industries?

[Baroness Berridge]

My Lords, there has recently been that change with the cap raised to 25%, and we are seeing the effect that it has. The Institute for Apprenticeships and Technical Education is responding to employers and creating 16 new standards, but I will take away these matters and write to the noble Lord.