Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether his Department has made an assessment of the potential impact of funding apprenticeship training for under-22s in SMEs on apprenticeship starts prior to announcing an expansion to under-25s.

Employers who do not pay the levy, typically SMEs, are vital to the economy and to apprenticeships; they provide valuable opportunities for younger apprentices and apprentices from disadvantaged areas.

That is why from the next academic year, we will fully fund apprenticeship training for non-levy paying employers for all eligible people aged 16-24, to boost small business starts and prioritise funding for young people. At the moment, this only happens for apprentices aged 16-21, and apprentices aged 22-24 who have an Education, Health and Care Plan (EHCP) or have been, or are, in local authority care.

To further support non-levy paying employers with the additional costs associated with employing young people, we are also introducing a new apprenticeship hiring payment of £2,000 when they take on 16–24-year-old apprentices as new employees.

These changes are part of our plan to deliver 50,000 more apprenticeship opportunities for young people and are supported by £1bn of additional investment over the next three years.

In addition, we provide £1,000 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. Employers also 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 employers and apprentices who volunteer 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.