Question to the Department for Education:

To ask His Majesty's Government whether they plan to introduce differentiated funding bands to incentivise employers to take on younger apprentices.

The government has set out plans for a more flexible growth and skills levy. It will create opportunities for learners of all ages and give employers greater flexibility to address critical skill shortages in their workforces, whilst driving economic growth. This will include introducing new foundation apprenticeships for young people, as well as shorter-duration apprenticeships.

Foundation apprenticeships will be a work-based training offer that will provide young people with clear progression pathways into further work-based training and employment. Construction will be one of the key sectors that will benefit from new foundation apprenticeships, which will be launching in August 2025. This will inspire more young people into the construction industry and give them the tools they need for a sustained and rewarding career. As part of this new offer, employers will be provided with £2,000 for every foundation apprentice they take on and retain in construction.

To support employers to access apprenticeships, the government pays £1,000 to employers when they take on apprentices aged 16 to 18, and for apprentices aged 19 to 24 who have an education, health and care (EHC) plan or have been in local authority care. Non-levy paying employers can also benefit from the government paying the full training costs for young apprentices aged 16 to 21, and for apprentices aged 22 to 24 who have an EHC plan or have been in local authority care. Additionally, employers are not required to pay anything towards employees’ National Insurance for all apprentices aged up to age 25 where they earn less than £967 a week, £50,270 a year.