Apprentices: Small Businesses

(asked on 23rd February 2021) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, what assessment he has made of the (a) potential merits of increasing the number of SME businesses involved in apprenticeship schemes and (b) potential effect on the economy of such an increase.


Answered by
Gillian Keegan Portrait
Gillian Keegan
Secretary of State for Education
This question was answered on 1st March 2021

The government recognises the enormous value that small and medium-sized enterprises (SMEs) contribute to the UK economy. We will make sure that training for apprentices in smaller employers is properly funded, to drive up the number of apprenticeship opportunities available in SMEs across the country. In 2021-22 financial year funding available for investment in apprenticeships in England is £2.5 billion – double what was spent in 2010-11. This includes funding for employers that do not pay the levy, who will continue to be able to access funding for 95% of apprenticeship training and assessment costs.

To help employers of all sizes offer new apprenticeships, they are now able to claim £2,000 for every new apprentice they hire under the age of 25, and £1,500 for new apprentices aged 25 and over between 1 August 2020 and 31 March 2021 as part of the government’s Plan for Jobs.

We are improving the system so that levy paying employers can more easily transfer their funds to support apprenticeships in other employers, particularly in SMEs where there is significant potential for job creation. From August 2021, employers who pay the levy will be able to transfer levy funds in bulk to other employers, including SMEs, with a new pledge function, supported by a new online service to match levy payers with SMEs. This will enable levy paying employers to support apprenticeship starts in their supply chains and help meet local or sectorial skills needs.

From 1 April 2021 all SMEs arranging new apprenticeship starts will do so through the apprenticeship service, giving them more control over their apprenticeship choices and the ability to reserve funds before choosing the provider that best meets their needs.

We continue to work with smaller employers to give them the confidence and support to take on new apprentices.

Reticulating Splines