Question to the Department for Education:

To ask Her Majesty's Government, for the most recent year in which figures are available, (1) how many, and (2) what percentage of, companies which pay the apprenticeship levy spent their entire apprenticeship fund in that year.

Employers in England who pay the apprenticeship levy can access funds for apprenticeship training by registering for an apprenticeship service account. The funds in employers’ accounts reflect the ‘English percentage’ of an employer’s levy contribution and include a 10% top-up from the government. During the 2019-20 financial year, 15% of employer accounts fully utilised the funds entering the levy-payer’s account. This is shown in the attached table.

Levy declarations relating to the 2019-20 financial year entered employer accounts between May 2019 and April 2020, as payments enter accounts a month in arrears. Payments relating to the 2019-20 financial year were made between May 2019 and April 2020, also a month in arrears. These payments cover the cost of apprenticeships training only. The cost of any additional payments to employers and/or providers and additional support, such as for English and maths training, is met by the apprenticeship budget and therefore is not deducted from employer’s accounts.

Employers have 24 months to spend the funds available to them. It is therefore possible for employers to spend more than they declare in a financial year.

Spending on the apprenticeship programme is demand-led and employers can choose which apprenticeships they offer, how many they offer and when they are offered. We do not anticipate that all employers who pay the levy will need or want to use all the funds available to them, but they are able to do so if they wish.