Question to the Department for Education:

To ask Her Majesty's Government whether they plan to meet with the British Chambers of Commerce to discuss its concerns about the apprenticeship levy, in particular the need for it to be made more flexible.

Ministers have recently met with the British Chambers of Commerce, Confederation of British Industry, Institute of Directors and the Federation of Small Business to listen to their feedback on quality reforms and the levy.

The apprenticeship levy is an important part of the changes to raise the quality of apprenticeships; creating long-term, sustainable investment in training for apprentices in all sectors and regions across the country. 37 per cent of apprentice starts are now on the new and improved apprenticeship standards.

The apprenticeships levy is designed to achieve an increase in investment in apprenticeships, and by 2020 investment will be £2.45 billion, double that in 2010. It is right that the funds raised through the apprenticeship levy are spent training apprentices so that employers can access the skills they need.

In response to employer feedback, we have introduced some flexibility to the levy. Levy-paying employers are now able to transfer up to 10 per cent of the annual value of funds entering their apprenticeship service account to other organisations to pay for training and assessment on apprenticeship standards. We are introducing transfers on a gradual basis, allowing levy payers to benefit from added flexibility whilst protecting the integrity and affordability of the programme and the interests of non-levied employers. We will monitor the implementation of transfers, including how the 10 per cent limit is working. Over the coming months, we will be working with employers and employer organisations to make sure that they are aware of the flexibilities that already exist around apprenticeships.