Mentions:
1: Harriett Baldwin (Con - West Worcestershire) Is it the Secretary of State’s understanding that such independent provision would be affected by taxation - Speech Link
2: Gillian Keegan (Con - Chichester) If those schools were subject to increased taxation, that would make provision more difficult. - Speech Link
3: Gillian Keegan (Con - Chichester) I ask all Members to go on a visit to meet apprentices and talk about the opportunities that are available - Speech Link
Mentions:
1: Rennie, Willie (LD - North East Fife) The taxation policy has been incredibly volatile. - Speech Link
2: Rennie, Willie (LD - North East Fife) regulation measures need to be smart and fit for purpose.Finally, we need to have some certainty about taxation - Speech Link
3: Whittle, Brian (Con - South Scotland) the company could not grow at the rate that it should and could because it could not recruit enough apprentices - Speech Link
4: Smith, Liz (Con - Mid Scotland and Fife) As well as taxation, another key debate around economic growth is about meaningful public sector reform - Speech Link
Feb. 13 2024
Source Page: UK/San Marino: Convention for the Elimination of Double Taxation with Respect to Taxes on Income and on Capital and the Prevention of Tax Evasion and Avoidance [TS No.7/2024]Found: UK/San Marino: Convention for the Elimination of Double Taxation with Respect to Taxes on Income and
Asked by: Lord Stevenson of Balmacara (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government whether children in low-income families are permitted to use funding from the apprenticeship levy to stay on at secondary school.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
Apprenticeships are jobs with training that are open to anyone aged 16 and over. The apprenticeship levy was introduced to support employers of all sizes to invest in high-quality apprenticeship training. The department’s annual budget for apprenticeships in England has increased to over £2.7 billion in the 2024/25 financial year. This budget is ringfenced for spend on apprenticeships training and assessment only to meet employer demand for high-quality apprenticeships and cannot be used for other purposes.
To ensure that every child, regardless of their background, can excel at school and achieve their full potential, the department has targeted a greater proportion of the schools national funding formula towards deprived pupils than ever before. In total, 10.2%, over £4.4 billion, of the formula will be allocated according to deprivation factors in the 2024/25 financial year and 17.8%, or £7.8 billion, will be allocated for additional needs overall. This will help schools in their vital work to close attainment gaps and level up educational opportunities.
The pupil premium grant, introduced in 2011, also offers direct funding to schools to improve educational outcomes for disadvantaged 5 to 16 year olds in state-funded schools in England. The department increased the premium pupil funding to over £2.9 billion this financial year to ensure the most disadvantaged pupils receive the support they need to succeed at school.
The department is providing funding to ensure that every 16 to 18 year old has a place in further education or training if they want one. The department invested over £7 billion on 16 to 19 programme funding during the 2023/24 academic year, which included over £590 million to support students who are economically deprived and to account for low prior attainment in English and mathematics. Over £35 million has also been allocated in the 2023/24 academic year to provide free meals for 16 to 19 year olds in further education. Additionally, the department allocated over £159 million of bursary funding to institutions in the 2023/24 academic year to help disadvantaged 16 to 19 year olds with costs such as travel, books, equipment and trips, which is nearly 12% higher than published allocations for the 2022/23 academic year.
Asked by: Lord Blunkett (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what percentage of apprentice levy-paying employers have transferred the maximum 25 per cent of their levy contributions to other employers in each financial year since 2017–18.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
Levy paying employers have been able to transfer a proportion of their annual funds to other employers since April 2018, when the maximum transfer allowance was 10%. This was increased to 25% in April 2019 and from 22 April 2024, the department has doubled the levy transfer allowance to 50%.
The table below shows the percentage of levy-paying employers who spent all of their transfer allowance in each financial year from 2018/19 to 2023/24.
Financial year in which funds were transferred | Percentage of total levy-paying employers who used all their transfer allowance |
2018/19 | 0.0% |
2019/20 | 0.4% |
2020/21 | 1.0% |
2021/22 | 1.6% |
2022/23 | 2.0% |
2023/24 | 2.0% |
Transfers provide levy paying employers with more flexibility about how they spend the funds available to them, including supporting other businesses such as smaller employers, flexi-job apprenticeship agencies and charities to help meet local and sector-specific needs. The department has improved the transfer system, introducing a pledge and match service on GOV.UK, to make it easier to find other employers who wish to take on apprentices with transferred funds. Since the service was introduced in September 2021, over 500 employers have pledged to transfer over £37 million to support apprenticeships in businesses of all sizes, as of 9 February 2024.
Asked by: Lord Blunkett (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how much money (1) was raised by the apprenticeships levy, and (2) was passed onto the devolved nations from levy receipts, in each financial year since 2017–18.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Monthly receipts data for the Apprenticeship Levy is published by HM Revenue and Customs in their Tax and NIC Receipts publication which can be found online[1] at: https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk
While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. From FY2017-18 to FY2019-20, the devolved administrations received a population share of the Office for Budget Responsibility’s apprenticeship Levy forecast. Beyond 2019-20, the devolved administrations received funding through the Barnett formula in relation to English apprenticeship spending. The Block Grant Transparency publication which is available on GOV.UK sets out all Barnett consequentials generated at both departmental and programme level. It is for the devolved administrations to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.
[1] HM Revenue & Customs (2024), HMRC tax receipts and National Insurance contributions for the UK
Asked by: Lord Allen of Kensington (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what plans they have to change the apprenticeship levy and to grant firms more flexibility to use funds from the levy to skill up their workforce.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The apprenticeship levy supports employers of all sizes to invest in high-quality apprenticeship training, both for career starters as well as those looking to upskill or retrain.
The success of the levy is enabling the department to invest £2.7 billion in apprenticeships in England in the 2024/25 financial year, and means that 98% of the English apprenticeships budget was spent over the 2021/22 and 2022/23 financial years. It is important that this funding remains protected to support apprenticeships. The government has no current plans to allow employers to spend the funds available to them on non-apprenticeships training. Allowing employers to use 50% of funds for non-apprenticeship training could create an additional cost of up to £1.5 billion a year. Without additional investment this could reduce apprenticeship starts to 140,000 a year, which would represent an almost 60% decrease on the 2022/23 academic year.
This month the department increased the proportion of the funds that levy-paying employers can transfer from 25% to 50%. This gives levy-paying employers even greater flexibility in how they use the funds available to them while also supporting more apprenticeships in other businesses, including small and medium-sized enterprises, flexi-job apprenticeship agencies and charities.
Employers can choose from almost 700 high-quality apprenticeships and have the option of using flexible training models, such as flexi-job apprenticeships and accelerated apprenticeships. Employers can also access other government-funded skills programmes, including T Levels and Skills Bootcamps.
Asked by: Jonathan Gullis (Conservative - Stoke-on-Trent North)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment her Department has made of the effectiveness of apprenticeship levy networks in improving small businesses’ access to apprenticeship levy funding.
Answered by Luke Hall - Minister of State (Education)
The apprenticeship levy supports employers of all sizes to invest in high-quality apprenticeship training. Transfers are a great way for large employers to use their levy funds to support apprenticeships in other businesses, including small and medium sized enterprises (SMEs), flexi-job apprenticeship agencies and charities, to help meet local or sector skills needs. This could include businesses in their supply chain.
The department continues to promote the benefits of levy transfers and has increased the proportion of their funds that levy-paying employers can transfer to support more apprenticeships in other businesses from 25% to 50%. This will help SMEs hire more apprentices by reducing their costs and enabling them to benefit from the support and experience that larger employers can provide.
Hundreds of large levy-paying employers have already taken advantage of the opportunity to transfer their unused levy funds to other businesses. Since September 2021 over 550 employers, including ASDA, HomeServe, and BT Group, have pledged to transfer over £37 million to support apprenticeships in businesses of all sizes. It is also encouraging to see regional schemes to support local businesses through transfers, including in the West Midlands.
SMEs can also access funding directly from the apprenticeships budget. The department has increased investment in the apprenticeships system in England to over £2.7 billion this financial year to support employers of all sizes, including SMEs. In addition, last year, the department removed the limit to the number of apprentices that SMEs can take on, making it easier for them to grow their businesses. This has already benefitted almost 350 SMEs. The department also now fully funds the costs of training and assessment for new apprentices aged 16 to 21 in small businesses.
Asked by: Jonathan Gullis (Conservative - Stoke-on-Trent North)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps her Department is taking to (a) support and (b) promote regional levy networks.
Answered by Luke Hall - Minister of State (Education)
The apprenticeship levy supports employers of all sizes to invest in high-quality apprenticeship training. Transfers are a great way for large employers to use their levy funds to support apprenticeships in other businesses, including small and medium sized enterprises (SMEs), flexi-job apprenticeship agencies and charities, to help meet local or sector skills needs. This could include businesses in their supply chain.
The department continues to promote the benefits of levy transfers and has increased the proportion of their funds that levy-paying employers can transfer to support more apprenticeships in other businesses from 25% to 50%. This will help SMEs hire more apprentices by reducing their costs and enabling them to benefit from the support and experience that larger employers can provide.
Hundreds of large levy-paying employers have already taken advantage of the opportunity to transfer their unused levy funds to other businesses. Since September 2021 over 550 employers, including ASDA, HomeServe, and BT Group, have pledged to transfer over £37 million to support apprenticeships in businesses of all sizes. It is also encouraging to see regional schemes to support local businesses through transfers, including in the West Midlands.
SMEs can also access funding directly from the apprenticeships budget. The department has increased investment in the apprenticeships system in England to over £2.7 billion this financial year to support employers of all sizes, including SMEs. In addition, last year, the department removed the limit to the number of apprentices that SMEs can take on, making it easier for them to grow their businesses. This has already benefitted almost 350 SMEs. The department also now fully funds the costs of training and assessment for new apprentices aged 16 to 21 in small businesses.
Mentions:
1: Gibson, Kenneth (SNP - Cunninghame North) taxation for higher earners. - Speech Link
2: None There is the cost of taking on apprentices and the space and time needed to support an apprentice, and - Speech Link
3: None In Glasgow last year, we took on 10 trainee accountants—a mixture of apprentices and graduates—and we - Speech Link
4: Gibson, Kenneth (SNP - Cunninghame North) So far, everyone has body-swerved the issue of taxation. - Speech Link
5: Gibson, Kenneth (SNP - Cunninghame North) I asked Keir Greenaway about additional taxation or additional grant from the UK. - Speech Link