Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will make an assessment of the potential impact of changes to funding for Level 7 apprenticeships on levels of workforce (a) up-skilling and (b) productivity in (i) all sectors and (ii) the transport and aviation sectors; and how much and what proportion of the Growth and Skills Levy collected in the 2024-25 financial year has not been spent.

The government's decision on defunding Level 7 apprenticeships for those aged 22 and over, including a summary of the evidence that informed that decision, is published here: Written Statements - Hansard - UK Parliament.

All UK employers with an annual pay bill above £3 million pay 0.5 per cent of their pay bill to invest in apprenticeship training. HM Revenue and Customs (HMRC) is responsible for collecting the levy on behalf of the government.

The Department for Education is responsible for apprenticeships in England only. The department receives an annual protected apprenticeships budget which is agreed at Spending Reviews. Although closely linked, this is distinct from the total levy income collected and the funds in employer accounts.

In total, this apprenticeship budget covers the spend drawn down by all levy-paying employers, as well as apprenticeships for those who do not pay the levy, the costs of English and maths tuition for apprentices, and additional payments to employers, training providers and apprentices. It also covers the administrative costs of running the apprenticeships programme.

100% of the apprenticeships budget was spent in the 2024-25 financial year. The final outturn was £2,769m, in line with the budget.