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<p>The apprenticeship levy is collected by HM Revenue and Customs from all UK employers
with a pay bill above £3 million. Separately, HM Treasury sets the Department for
Education a fixed, annual budget for apprenticeships in England. This budget is distinct
from the levy and is used to fund new apprenticeship starts for both levy and non-levy
paying employers, and must also cover the ongoing costs of apprentices already in
training<em>. </em></p><p> </p><p>We welcome employers designing higher-level apprenticeships
which are longer and require more off-the-job training. However, we are conscious
that this will increase costs in the longer-term. In 2019-20, funding available for
investment in apprenticeships in England is over £2.5 billion and we expect to remain
within budget this financial year. The recent spending settlement has set the department’s
budget for 2020-21. We keep apprenticeships funding policy under review to ensure
that apprenticeships continue to be affordable and offer value for money for the taxpayer.
We will consider how apprenticeships can continue to meet the changing needs of employers
as part of the forthcoming Spending Review.</p>
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