Question to the Department for Work and Pensions:
To ask His Majesty's Government what was the total amount of unspent funds from the Apprenticeship Levy returned to the Treasury for each of the past five years.
The Department for Work and Pensions, and prior to that the Department for Education, has responsibility for apprenticeships in England only. The annual English apprenticeships budget is agreed at key fiscal events and ring-fenced. This budget is distinct from the total levy receipts collected by HM Treasury and the funds in employers’ apprenticeship service accounts.
The English 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.
Over the past two financial years the English apprenticeships budget has been almost fully spent. The table below provides details of the English apprenticeships budget. As is usual practice, any underspends in overall departmental budgets by the end of the financial year are returned to HMT as per the Consolidated Budgeting Guidance.
£ (million) | |||||
Financial year | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 |
Ring-fenced apprenticeships budget | 2,467 | 2,466 | 2,554 | 2,525* | 2,769 |
Underspend against the ring-fenced apprenticeships budget | 604 | 11 | 96 | 16* | 0 |
*The 2023-24 annual apprenticeship budget was revised in-year from £2,585 million to £2,525 million, as £60 million was surrendered in-year.