Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government (1) how many, and (2) what percentage, of levy-paying employers have spent more than half the funds in their apprenticeship levy account, for each of the past five financial years.
Answered by Baroness Barran
UK employers with an annual pay bill above £3 million pay the apprenticeship levy, which is collected by HM Revenue & Customs. The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes build their workforces. As the apprenticeships levy is UK wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.
In England, employers can use their levy funds for apprenticeships in their own business or transfer their funds to support apprenticeships in other businesses. Funds that levy payers do not draw on is used to fund apprenticeships in small and medium sized businesses. Levy payers are not expected to use all funds available to them, though they are able to do so.
Employers in England who pay the apprenticeship levy can access funds for apprenticeship training and assessment by registering for an apprenticeship service account. The funds in employers’ accounts reflect the ‘English percentage’ of an employer’s levy contribution and include a 10% top-up from the government.
The funds available to levy-paying employers through their apprenticeship service accounts does not represent the total spend on apprenticeships for levy-paying empoyers and is not the same as the apprenticeships budget which funds apprenticeships for employers of all sizes. On average, 98% of the apprenticeships budget has been spent in the last two financial years.
The table below shows the number of levy-paying employers that have spent more than 50% of the funds declared in their apprenticeship service accounts, including the 10% top-up from the government, in each financial year from 2018/19 to 2022/23.
FY | Number of employers who spent more than 50% of levy funds | Percentage of total employers who spent more than 50% of levy funds |
2018/19 | 4,210 | 27% |
2019/20 | 6,000 | 36% |
2020/21 | 6,080 | 35% |
2021/22 | 6,580 | 35% |
2022/23 | 6,970 | 35% |
The department is supporting employers to make greater use of their levy and have improved the transfer system to make it easier to find other employers who wish to take on apprentices with transferred funds. In April 2019, the department increased the transfer allowance from 10% to 25%, so levy-paying employers could transfer more of their annual funds to support any employer. Since September 2021, over 500 employers, including ASDA, HomeServe, and BT Group, have pledged to transfer over £33 million to support apprenticeships in businesses of all sizes. The table below shows the number of levy-paying employers who spent all of their transfer allowance in each financial year from 2018/19 to 2022/23.
FY (of allowance calculation) | Employers who used all their transfer allowance | Percentage of total employers who used all their transfer allowance |
2018/19 | 70 | 0.4% |
2019/20 | 170 | 1.0% |
2020/21 | 280 | 1.6% |
2021/22 | 370 | 2.0% |
2022/23 | 270 | 1.4% |
With regard to allowing levy-paying employers to use their funds on non-apprenticeship training schemes and courses, I refer the noble lady to the answer of 10 November 2023 to Question 614.
Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government (1) how many, and (2) what percentage, of levy-paying employers have transferred the maximum 25 per cent of apprenticeship levy funds to other businesses, for each of the past five financial years.
Answered by Baroness Barran
UK employers with an annual pay bill above £3 million pay the apprenticeship levy, which is collected by HM Revenue & Customs. The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes build their workforces. As the apprenticeships levy is UK wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.
In England, employers can use their levy funds for apprenticeships in their own business or transfer their funds to support apprenticeships in other businesses. Funds that levy payers do not draw on is used to fund apprenticeships in small and medium sized businesses. Levy payers are not expected to use all funds available to them, though they are able to do so.
Employers in England who pay the apprenticeship levy can access funds for apprenticeship training and assessment by registering for an apprenticeship service account. The funds in employers’ accounts reflect the ‘English percentage’ of an employer’s levy contribution and include a 10% top-up from the government.
The funds available to levy-paying employers through their apprenticeship service accounts does not represent the total spend on apprenticeships for levy-paying empoyers and is not the same as the apprenticeships budget which funds apprenticeships for employers of all sizes. On average, 98% of the apprenticeships budget has been spent in the last two financial years.
The table below shows the number of levy-paying employers that have spent more than 50% of the funds declared in their apprenticeship service accounts, including the 10% top-up from the government, in each financial year from 2018/19 to 2022/23.
FY | Number of employers who spent more than 50% of levy funds | Percentage of total employers who spent more than 50% of levy funds |
2018/19 | 4,210 | 27% |
2019/20 | 6,000 | 36% |
2020/21 | 6,080 | 35% |
2021/22 | 6,580 | 35% |
2022/23 | 6,970 | 35% |
The department is supporting employers to make greater use of their levy and have improved the transfer system to make it easier to find other employers who wish to take on apprentices with transferred funds. In April 2019, the department increased the transfer allowance from 10% to 25%, so levy-paying employers could transfer more of their annual funds to support any employer. Since September 2021, over 500 employers, including ASDA, HomeServe, and BT Group, have pledged to transfer over £33 million to support apprenticeships in businesses of all sizes. The table below shows the number of levy-paying employers who spent all of their transfer allowance in each financial year from 2018/19 to 2022/23.
FY (of allowance calculation) | Employers who used all their transfer allowance | Percentage of total employers who used all their transfer allowance |
2018/19 | 70 | 0.4% |
2019/20 | 170 | 1.0% |
2020/21 | 280 | 1.6% |
2021/22 | 370 | 2.0% |
2022/23 | 270 | 1.4% |
With regard to allowing levy-paying employers to use their funds on non-apprenticeship training schemes and courses, I refer the noble lady to the answer of 10 November 2023 to Question 614.
Asked by: Baroness Blower (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government (1) how many, and (2) what percentage, of levy paying employers have spent all funds in their apprenticeship levy account, for each of the past five financial years.
Answered by Baroness Barran
UK employers with an annual pay bill above £3 million pay the apprenticeship levy, which is collected by HM Revenue & Customs. Employers in England who pay the apprenticeship levy can access funds for apprenticeship training and assessment by registering for an apprenticeship service account. The funds in employers’ accounts reflect the ‘English percentage’ of an employer’s levy contribution and include a 10% top-up from the government.
While levy-paying employers in England can use all their levy funds the majority do not, which allows these funds from the apprenticeship budget to fund apprenticeship training for small and medium sized businesses, so all companies can benefit from training apprentices.
The table below shows the number of levy-paying employers that have spent all the funds declared in their apprenticeship service accounts, including the 10% top-up from the government, in each financial year from 2018/19 to 2022/23.
Number of employers who spent all levy funds | Percentage of total employers who spent all levy funds | |
2018/19 | 1,620 | 10% |
2019/20 | 2,530 | 15% |
2020/21 | 2,520 | 15% |
2021/22 | 2,620 | 14% |
2022/23 | 2,540 | 13% |
The funds in levy-paying employers’ apprenticeship service accounts do not represent the total spend on apprenticeships for levy paying employers and are not the same as the total annual apprenticeships budget. The ring-fenced apprenticeships budget for England is set by HM Treasury and, although closely linked, is distinct from the total levy income collected. In the last two financial years, on average 98% of the English apprenticeships budget was spent.
Asked by: Priti Patel (Conservative - Witham)
Question to the Department for Education:
To ask the Secretary of State for Education, how many apprenticeship levy funded service accounts have (a) utilised all of the funds in their account and (b) not utilised all of the funds available within the two-year time period in each year since its introduction.
Answered by Robert Halfon
The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes build their workforces. As the apprenticeships levy is UK wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.
In England, employers can use their levy contributions to fund apprenticeships in their own business or transfer their funds to other businesses in their supply chain, sector or region. Funds that levy payers do not draw on is used to fund apprenticeships in small and medium sized businesses. Levy payers are not expected to use all funds available to them, though they are able to do so.
The table below shows the number of registered employer apprenticeship service accounts that utilised all their funds available, as well as the number that did not, in each financial year since the introduction of the apprenticeship levy in 2017.
FY | Number of registered employer accounts on the apprenticeship service that utilised all funds available | Number of registered employer accounts on the apprenticeship service that did not utilise all their funds available and therefore had expired funds |
2017/18 | 5650 | 7570 |
2018/19 | 5030 | 10660 |
2019/20 | 4930 | 11960 |
2020/21 | 5210 | 12230 |
2021/22 | 6790 | 11920 |
Please note that:
The funds available to levy-paying employers through their apprenticeship service accounts are not the same as the apprenticeships budget which funds apprenticeships for employers of all sizes. On average, 98% of the apprenticeships budget has been spent in the last two financial years. Spend for the 2023/24 financial year, and for future years, will be set out in the department’s annual report and accounts which will be published when available. The apprenticeships budget beyond 2024/25 will be determined at the next Spending Review.
With regard to allowing levy-paying employers to spend funds on non-apprenticeship training schemes and courses, I refer my right hon. Friend, the Member for Witham to the answer I gave on 10 November 2023 to Question 614.
Asked by: Priti Patel (Conservative - Witham)
Question to the Department for Education:
To ask the Secretary of State for Education, what estimate her Department has made of the amount and proportion of apprenticeship levy funds that will be unspent in financial year 2023-24; and whether she has made an assessment of potential trends in the level and proportion of that underspend in each of the next five financial years.
Answered by Robert Halfon
The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes build their workforces. As the apprenticeships levy is UK wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.
In England, employers can use their levy contributions to fund apprenticeships in their own business or transfer their funds to other businesses in their supply chain, sector or region. Funds that levy payers do not draw on is used to fund apprenticeships in small and medium sized businesses. Levy payers are not expected to use all funds available to them, though they are able to do so.
The table below shows the number of registered employer apprenticeship service accounts that utilised all their funds available, as well as the number that did not, in each financial year since the introduction of the apprenticeship levy in 2017.
FY | Number of registered employer accounts on the apprenticeship service that utilised all funds available | Number of registered employer accounts on the apprenticeship service that did not utilise all their funds available and therefore had expired funds |
2017/18 | 5650 | 7570 |
2018/19 | 5030 | 10660 |
2019/20 | 4930 | 11960 |
2020/21 | 5210 | 12230 |
2021/22 | 6790 | 11920 |
Please note that:
The funds available to levy-paying employers through their apprenticeship service accounts are not the same as the apprenticeships budget which funds apprenticeships for employers of all sizes. On average, 98% of the apprenticeships budget has been spent in the last two financial years. Spend for the 2023/24 financial year, and for future years, will be set out in the department’s annual report and accounts which will be published when available. The apprenticeships budget beyond 2024/25 will be determined at the next Spending Review.
With regard to allowing levy-paying employers to spend funds on non-apprenticeship training schemes and courses, I refer my right hon. Friend, the Member for Witham to the answer I gave on 10 November 2023 to Question 614.
Asked by: Priti Patel (Conservative - Witham)
Question to the Department for Education:
To ask the Secretary of State for Education, how much and what proportion of funds raised from the apprenticeship levy have remained unspent within the two year threshold in each year since its introduction.
Answered by Robert Halfon
The government introduced the apprenticeship levy to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships. Through the levy, the government is increasing investment in the apprenticeships system in England to £2.7 billion in the 2024/25 financial year to support employers of all sizes build their workforces. As the apprenticeships levy is UK wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.
In England, employers can use their levy contributions to fund apprenticeships in their own business or transfer their funds to other businesses in their supply chain, sector or region. Funds that levy payers do not draw on is used to fund apprenticeships in small and medium sized businesses. Levy payers are not expected to use all funds available to them, though they are able to do so.
The table below shows the number of registered employer apprenticeship service accounts that utilised all their funds available, as well as the number that did not, in each financial year since the introduction of the apprenticeship levy in 2017.
FY | Number of registered employer accounts on the apprenticeship service that utilised all funds available | Number of registered employer accounts on the apprenticeship service that did not utilise all their funds available and therefore had expired funds |
2017/18 | 5650 | 7570 |
2018/19 | 5030 | 10660 |
2019/20 | 4930 | 11960 |
2020/21 | 5210 | 12230 |
2021/22 | 6790 | 11920 |
Please note that:
The funds available to levy-paying employers through their apprenticeship service accounts are not the same as the apprenticeships budget which funds apprenticeships for employers of all sizes. On average, 98% of the apprenticeships budget has been spent in the last two financial years. Spend for the 2023/24 financial year, and for future years, will be set out in the department’s annual report and accounts which will be published when available. The apprenticeships budget beyond 2024/25 will be determined at the next Spending Review.
With regard to allowing levy-paying employers to spend funds on non-apprenticeship training schemes and courses, I refer my right hon. Friend, the Member for Witham to the answer I gave on 10 November 2023 to Question 614.
Asked by: Priti Patel (Conservative - Witham)
Question to the Department for Education:
To ask the Secretary of State for Education, what estimate she has made of the (a) amount raised through the apprenticeship levy and (b) number of apprenticeship levy service accounts in each year since its introduction.
Answered by Robert Halfon
The apprenticeship levy is a key part of the government’s reforms to the apprenticeship system and enables employers of all sizes to make a long-term, sustainable and high-quality investment in training. Monthly receipts data for the apprenticeship levy is published by HM Revenue and Customs in their tax and national insurance contributions receipts publication, which can be found at: https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk.
The table below shows the total number of levy-paying employer accounts created on the apprenticeship service in each financial yearsince its introduction in the 2016/17 financial year. It is pleasing to see annual increases in the number of levy-paying employers registering an account on the apprenticeship service.
FY | New accounts created | Total accounts (cumulative) |
2016/17 | 4,630 | 4,630 |
2017/18 | 8,640 | 13,270 |
2018/19 | 2,970 | 16,240 |
2019/20 | 2,030 | 18,270 |
2020/21 | 1,870 | 20,140 |
2021/22 | 1,920 | 22,060 |
2022/23 | 1,280 | 23,340 |
2023/24 | 750 | 24,090 |
Jan. 19 2010
Source Page: ‘Building Britain's Recovery: Achieving Full Employment: Impact assessment. 88 p.Found: Individuals also incur additional costs due to taxation as they move into work.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Education:
To ask the Secretary of State for Education, what recent assessment she has made of the impact of the apprenticeship levy on the uptake of apprenticeships.
Answered by Robert Halfon
Since 2010, there have been over 5.5 million apprenticeship starts. During that time, the department has built a new skills system from the ground up which better meets the needs of employers and apprentices today.
The apprenticeship levy was introduced in 2017 to incentivise larger businesses to develop and invest in their own apprenticeship programmes whilst ensuring the availability of funding for smaller employers wanting to offer apprenticeships.
There have been over 2.2 million apprenticeship starts in employers of all sizes across England since the levy was introduced. There are now over 680 high quality standards available from entry level right through to masters level, with over 5,000 employers involved in their development. There is now a much broader range of apprenticeships than ever before in occupations such as architect, cyber security, and nursing, in addition to traditional occupations like bricklayer, plumber, or hairdresser.
More apprentices are now taking higher level subjects linked to higher paid jobs in key areas. Starts on higher apprenticeships at Level 4 and above have more than doubled, from 48,150 in the 2017/18 academic year to 106,360 in the 2021/22 academic year. The department has also seen year-on-year growth of degree level apprenticeships with almost 196,000 starts since their introduction in 2014. The department is providing an additional £40 million over the next two years to support degree apprenticeship providers to expand and help more people access them.
The apprenticeship levy has enabled the government to increase investment in the apprenticeships system in England, reaching £2.7 billion by the 2024/25 financial year. In the past two financial years, on average 98% of the English apprenticeship budget was spent showing strong demand by employers for high quality apprenticeships training. Large employers can use their levy contributions to fund apprenticeships in their own business, or they can transfer their funds to other businesses in their supply chain, sector or region. Funds that levy payers do not draw on are used to fund apprenticeship training in small and medium sized businesses which allows employers of all sizes to benefit from training apprentices.
Asked by: Baroness O'Neill of Bexley (Conservative - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what steps they are taking to ensure that Apprenticeship Levy funding is used in its entirety rather than being returned to His Majesty's Treasury.
Answered by Baroness Barran
The apprenticeship levy is an important part of the government’s reforms to create a high-quality, employer-led apprenticeships system, and it supports employers of all sizes to invest in high-quality apprenticeship training. The levy is enabling the department to increase investment in apprenticeships to £2.7 billion by 2024/25, encouraging more employers across the country to recruit new apprentices.
In the last two financial years, on average, 98% of the English apprenticeships budget was spent. Where large employers do not make full use of their levy funds, the department reinvests this money to support apprenticeships in small and medium-sized employers who do not pay the levy. It is therefore important that the apprenticeships budget remains ring-fenced to support the demand by employers for high-quality apprenticeship training.
To make it easier for employers to make full use of their levy contributions, the department has created flexible training models, such as flexi-job and accelerated apprenticeships, to make apprenticeships more accessible for employers. The department has also improved the transfer system to make it easier for levy paying employers to find other employers who wish to take on new apprentices with transferred funds.
The department has worked with employers to develop over 680 high-quality apprenticeship standards, and the Institute for Apprenticeships and Technical Education will review the content of 100 apprenticeship standards in sectors like construction and healthcare by the end of December 2023, so they reflect the latest technological developments.
The department is also providing an additional £40 million over the next two years to support degree apprenticeship providers to expand and help more people access this provision, on top of its £8 million investment in 2022/23.
The department continues to promote apprenticeships to young people in schools and further education colleges across the country through its Apprenticeship Support and Knowledge programme, and UCAS are expanding its service to allowing students to search for and apply to apprenticeships alongside degrees.