Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps the Department is taking to support small and medium-sized manufacturing businesses to recruit apprentices.

Apprenticeships are a devolved matter, and the response outlines the information for England only.

This Government is transforming the apprenticeships levy into a new growth and skills levy in England, backed by £1 billion of additional investment. This will support 50,000 more young people into apprenticeships, give employers, including in the manufacturing sector, greater flexibility to develop the workforce they need, and support the industrial strategy.

We know that small businesses are more likely to offer apprenticeships to young people but recognise that they don’t have the economies of scale or HR resources of larger employers.

To support them, we have introduced a new apprenticeship hiring payment of £2,000 for non-levy paying employers (who are typically SMEs) when they take on 16–24-year-old apprentices as new employees. Employers hiring apprentices aged 18-24 who have been on Universal Credit for over six months will also be eligible for the new £3,000 Youth Jobs Grant.

This is on top of the £1,000 we provide to both employers and training providers when they take on apprentices aged under 19, or 19-to-24-year-old apprentices who have an EHCP or have been, or are, in care.

In addition, the government now fully funds apprenticeship training for all eligible under 25s at employers of all sizes, as we prioritise funding toward young people.

Alongside this, employers benefit from not being required to pay anything towards employees’ National Insurance for all apprentices aged up to age 25, when the employee’s wage is below £50,270 a year.

The government also facilitates and funds the Apprenticeship Ambassador Network (AAN), which comprises around 3,000 employer and apprentice volunteers, to promote the benefits of apprenticeships. It operates across all parts of England through nine regional networks which provide buddying and mentoring support to small businesses to help them recruit and retain apprentices.