Question to the Department for Work and Pensions:

To ask His Majesty's Government what plans they have to review the funding available for apprenticeship training, so that small and medium-sized enterprises can take on more apprentices.

This government is transforming the apprenticeships offer into a new growth and skills offer that will give greater flexibility to employers and support young people at the beginning of their careers.

In August, we introduced new foundation apprenticeships to give young people a route into careers in critical sectors, enabling them to earn a wage while developing vital skills. They are underpinned by additional funding for employers of up to £2,000 to contribute to the extra costs of supporting someone at the beginning of their career.

More recently, we have announced our ambition to support 50,000 more young people into apprenticeships and backed this with an additional £725 million of investment. This will enable us to expand foundation apprenticeships into sectors that traditionally recruit young people. It also provides £140 million to pilot new approaches, with Mayoral Strategic Authorities, to better connect young people aged 16–24, especially those who are NEET, to local apprenticeship opportunities.

In addition, from the next academic year, the government will fully fund apprenticeships for non-levy paying employers (essentially small and medium sized enterprises) for all eligible people aged under 25. 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. This change will make it easier for those employers to engage with apprenticeships by cutting costs and reducing bureaucracy for both them and their training providers.

We also provide £1,000 to both employers and training providers when they take on apprentices aged under 19, or 19-to-24-year-old apprentices who have an EHCP or have been, or are, in care. Additionally, employers benefit from not being 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.