Question to the Department for Education:

To ask the Secretary of State for Education, when will the Education and Skills Funding Agency provide an update on plans to refresh the cap on the number of new apprentices that a non-levy paying employer can take on.

The government recognises the important role that non-levy paying employers play in creating high-quality apprenticeship opportunities, particularly for young people and those in disadvantaged areas.

To support apprenticeships for all employers, the department is increasing funding for apprenticeships in England to £2.7 billion by the 2024/25 financial year. Non-levy paying employers can continue to reserve funding for 95% of apprenticeship training and assessment costs.

Since 1 April 2021, all small-medium-sized enterprises (SMEs) have been able to reserve funding for up to 10 new apprenticeship starts. Employers can continue to make reservations into the 2022/23 financial year up to the maximum of 10.

Reservations levels for employers who do not pay the apprenticeship levy are kept under review to ensure that this level is still sufficient to allow SMEs to use apprenticeships to support their business.

Non-levy paying employers can also access apprenticeship funding via transferred funds from levy-paying organisations. The department has made it easier for employers to benefit from levy transfers through a new ‘pledge and transfer’ online service. It is encouraging to see that over 145 employers, including Amazon UK, DPD and HomeServe, have pledged to transfer almost £9 million to support new apprenticeship starts in businesses of all sizes.