Question

To ask the Secretary of State for Business, Innovation and Skills, what support his Department is giving to businesses who wish to take on apprentices.

The Apprenticeship Grant for Employers (AGE) provides £1,500 to help smaller employers recruit a new apprentice aged 16 to 24. We have made £170m additional funding available over 2014-16 financial years to fund over 100,000 additional incentive payments. Final data show that between February 2012 and July 2014 there were 96,400 apprenticeship starts for which a payment was made through the AGE Grant. A further 11,100 were in the pipeline (started but not yet paid).

Apprenticeship reforms are putting employers in the lead of designing apprenticeships, making it easier and more attractive for them to offer more in the future. The funding model being trialed during 2014/15 is based on the Government contributing £2 for every £1 the employer contributes towards training, with additional payments being made to small businesses; on employment of a 16-18 year old; and on completion of an apprenticeship.

In addition, from April 2016 employers will not be required to pay employer National Insurance contributions for apprentices under age of 25 on earnings up to the upper earnings limit.