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 extent to which the additional funding for apprentices aged under 25 offsets changes in the level of (a) employer National Insurance contributions, (b) the National Minimum Wage and (c) employment regulation.

The government has committed a further £1 billion investment in young people, taking total additional investment into the Youth Guarantee and the Growth and Skills Levy to £2.5 billion over the next three years. This investment will support almost one million young people and create up to 500,000 opportunities to earn and learn.

We are transforming the Apprenticeships Levy into a new Growth and Skills Levy in England, backed by £1 billion of additional investment, which will support 50,000 more young people into apprenticeships, give employers greater flexibility to develop the workforce they need, and support the industrial strategy.

We are providing considerable financial support to employers, particularly smaller employers who play such a vital role in creating apprenticeship opportunities for young people. Employers of all sizes are not 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).

We are introducing a new apprenticeship hiring payment of £2,000 for non-levy paying employers (typically SMEs) that 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 from June 2026.

Additionally, the government provides £1,000 to both employers, of all sizes, and training providers when they take on apprentices aged under 19, or 19-to-24-year-old apprentices who have an Education, Health and Care Plan (EHC) or have been, or are, in care.

These payments can be stacked together where the employer and/or apprentice are eligible.

In addition, from August 2026, we will fully fund apprenticeship training for non-levy paying employers for eligible people aged 16-24, to boost small business starts and prioritise funding to 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.