Apprenticeship Levy Scheme

Lord Haskel Excerpts

Thursday 16th June 2022 Lords Chamber

Asked by

[Lord Haskel]

To ask Her Majesty’s Government what assessment they have made of the survey by the British Retail Consortium, published on 17 May, which concluded that the apprenticeship levy scheme was “not fit for purpose”; and what steps they intend to take to modify that scheme.

[The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)]

My Lords, the apprenticeship levy has enabled government to increase apprenticeship funding to £2.7 billion by 2024-25. We are continuing to improve apprenticeships to meet the needs of employers and drive up their quality even further. This includes developing more flexible training models that provide improved pathways for young people to access apprenticeships, while simplifying the transfer of levy funds, which will enable employers to make greater use of their funds and support smaller businesses.

[Lord Haskel (Lab)]

I thank the Minister for that reply. Some of the Government’s so-called improvements were actually announced a year ago, but this report was issued last month, so they are not working. The BRC is not alone: the food industry and manufacturers are all equally critical of the levy in its present form—in fact, it faces opposition from 80% of employers. We all want to create a higher-skilled and more productive workforce, yet entry-level apprenticeships are declining, letting down the very young people who would benefit most, while more levy money is being spent on management and other courses for existing employees. When will the Government put this right and introduce the sensible changes proposed in this and other reports?

[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.