Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential economic merits of a temporary suspension of the apprenticeship levy during the covid-19 outbreak.

The apprenticeship levy is an important part of our aim to raise apprenticeship quality, supporting employers to make a long-term, sustainable investment in training. Only the very largest businesses pay the Levy, which requires only those employers with an annual pay bill of £3 million or more to pay 0.5% on the part of their pay bill exceeding this threshold.

For employers operating in England, levy funds are available for them to invest in the training of their apprentices for 24 months. Given that Education and Skills Policy is devolved, the arrangements for apprenticeship funding elsewhere in the UK are the responsibility of the devolved administrations.

Where apprentices are furloughed, they can continue to train for their apprenticeship as long as it does not provide services to or generate revenue for their employer.