Question to the Department for Education:

To ask Her Majesty's Government what steps, if any, they are taking to address concerns that a lack of flexibility on the part of the apprenticeship levy regarding how companies are to spend funds prevents companies from investing in, and developing, the skills they require.

The apprenticeship levy has been specifically designed to raise funds to support apprenticeships rather than wider skills training. We work with employers and wider stakeholders on a continuous basis to ensure that the delivery of apprenticeship funding meets their needs. For example, in response to employer feedback, we are making changes to the funding system with the introduction of transfers, which will enable employers to transfer up to 10 per cent of their funds to other employers. This will allow levy payers to work with other organisations, including within their supply chains, to encourage new apprenticeship starts.

The 24 months expiry period is designed to give employers time to develop their apprenticeship programmes while encouraging employers to take action to create new apprenticeship opportunities. We currently have no plans to extend the expiry period, as this would likely lead to a delay in employer investment in apprenticeships.