Apprentices: Taxation

(asked on 13th October 2023) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, whether her Department has made an assessment of the adequacy of the accessibility of the apprenticeship levy for (a) construction and (b) trade businesses.


Answered by
Robert Halfon Portrait
Robert Halfon
This question was answered on 23rd October 2023

The apprenticeship levy enables large employers to access up to 110% of their levy contributions for high-quality apprenticeships, which can equip them with the skills they need to develop and grow their workforce. It also enables the government to fund 95% of the cost of apprenticeships in small employers who do not pay the levy.

We are increasing apprenticeship funding in England to £2.7 billion by 2024/25, which will support even more people to access apprenticeships, and we have introduced flexi-job apprenticeships, making it easier for apprentices to complete their training across different projects.

We are working across government and in partnership with the construction industry, through the Construction Skills Delivery Group, to ensure apprenticeships meet the needs of employers in the sector. In 2021/22 there were over 26,000 apprenticeships starts in Construction, Planning and the Built Environment sector, an increase of 31% from 2020/21.

Employers have developed 97 standards in the Construction and the Built Environment sector including Level 2 bricklayer, Level 3 craft carpentry and joinery and the Level 6 chartered surveyor degree apprenticeships. A new version of the bricklayer standard also went live in August 2023, with funding increased by 40%, and we have increased funding for the scaffolder apprenticeship by over 20%.

We have made it easier for SMEs in construction to recruit the next generation of talent by removing the limit on the number of apprentices they can take on. We also meet 100% of the cost for the smallest employers (fewer than 50 staff) when they take on young apprentices and have simplified our levy transfer system so SMEs can more easily benefit from transferred funds.

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