Question to the Department for Education:

To ask the Secretary of State for Education, what steps his Department is taking to increase the number of apprenticeships in (a) the West Midlands and (b) Worcestershire.

The government’s Plan for Jobs will help to kickstart the nation’s economic recovery. We believe that apprenticeships will be more important than ever in helping businesses to recruit the right people and develop the skills they need to recover and grow - both now and in the long term.

To help businesses offer new apprenticeships, we are providing £1,500 for every apprentice they hire as a new employee from 1 August 2020 to 31 January 2020. This will rise to £2,000 if they hire a new apprentice under the age of 25 - in recognition of the particular impacts of COVID-19 on the employment prospects of this group.

The new payment will encourage employers to offer new apprenticeship opportunities and take advantage of existing flexibilities to train their apprentices in a way that suits their needs. We will ensure that there is sufficient funding this year to support small businesses wanting to take on an apprentice.

We also introduced a number of flexibilities to ensure that apprenticeships can continue where possible, helping employers to retain their existing apprentices. We are working with key partners such as the Worcestershire Local Enterprise Partnership, the West Midlands Combined Authority, local business to business organisations, sector and trade bodies to raise the awareness of the incentives and the benefits of apprenticeships.

We have increased the amount that levy payers can transfer from 10% to 25% and are seeing numbers of transfers rise steadily. We are also working closely with the West Midlands Combined Authority to promote levy transfers from large employers, to date these include HSBC and Lloyds, BT, BBC, RAC, University of Birmingham and University of Warwickshire. These levy funds are being used to support local small and medium-sized enterprises in the automotive, digital and construction sectors across the West Midlands Region. Hereford and Worcestershire Chamber of Commerce are actively promoting levy transfers. They are also now producing marketing materials to promote levy transfers to employers across a broad range of sectors.

We have produced guidance to help employers looking to transfer levy funds. This is supported by online tutorials, but we know we need to make the process even more simple. The guidance is avaliable here: https://www.gov.uk/guidance/transferring-apprenticeship-service-funds.

We are committed to working with large employers to improve the transfer process, making it easier for them to find smaller employers to transfer surplus levy funds to, thus helping them maximise the amount of funding they will be able to transfer. In doing so we will build on successful regional pilot schemes, such as that in West Midlands Combined Authority.