Question
To ask the Secretary of State for Education, with reference to the National Audit Office report, The apprenticeships programme, published on 6 March 2019, HC 1987, what assessment he has made of the future financial sustainability of the apprenticeship levy; and if he will make a statement.
Answer
The apprenticeship levy is collected by HM Revenue and Customs from all UK employers with a pay bill above £3 million.
Separately, HM Treasury have set the Department for Education a budget for apprenticeships in England for the current Spending Review period (to 2019-20). This budget is distinct from the levy and is not dependent on receipts from the levy. This budget is used to fund new apprenticeship starts for both levy and non-levy paying employers and must also cover the ongoing costs of apprentices that are already in training.
In 2019-20 funding available for investment in apprenticeships in England is over £2.5 billion, double what was spent in 2010-11.
Currently, we expect to remain within budget in this spending review period to the end of the 2019-20 financial year. A detailed breakdown of spending for 2018-19 will be published in the Education and Skills Funding Agency Annual Report and Accounts.
The level of funding for the apprenticeship programme beyond 2019-20 will be determined by the forthcoming Spending Review.