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 to boost the skills of their workforces. As the apprenticeship levy is UK-wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.<\/p>
<\/p>
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\u2019 accounts reflect the \u2018English percentage\u2019 of an employer\u2019s levy contribution and include a 10% top-up from the government. The department does not record industry, sector or organisation type when levy-paying employers register an apprenticeship service account. For this reason, data which shows which sectors were most or least likely to spend their funds cannot be provided. The department does hold information relating to individual employer accounts but it would not be appropriate to disclose this information without consulting with employers.<\/p>
<\/p>
Employers can use their levy funds for apprenticeships in their own business or transfer up to 25% of their funds to other businesses. Funds that levy payers do not draw on are used to fund apprenticeships in small and medium sized businesses who do not pay the levy. Levy payers are not expected to use all funds available to them, though they are able to do so.<\/p>
<\/p>
The funds in apprenticeship service accounts are available for levy-paying employers to draw on for 24 months before they expire on a rolling, month-by-month basis. The table attached shows the total funds that expired from levy-paying employers apprenticeship service accounts in each month since May 2019. The decline in levy expiry value for October 2021 was due to a delay transferring levy into employer accounts. As a result, employers were granted an additional month to spend those funds, to ensure that the 24-month window to spend funds was maintained.<\/p>
<\/p>
The funds available to levy-paying employers through their apprenticeship service accounts are not the same as the apprenticeships budget which funds apprenticeships in England for employers of all sizes. As such, expired funds from employers\u2019 accounts do not represent funding that is lost to the system. Rather, the department directs this funding to supporting apprenticeships in small and medium-sized enterprises (SMEs), to English and mathematics training for apprentices and to additional payments to employers, training providers and apprentices. On average, 98% of the English apprenticeships budget has been spent over the last two financial years.<\/p>
<\/p>
<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3985", "label" : {"_value" : "Biography information for Robert Halfon"} } , "answeringMemberConstituency" : {"_value" : "Harlow"} , "answeringMemberPrinted" : {"_value" : "Robert Halfon"} , "attachment" : {"_about" : "http://data.parliament.uk/resources/1679057/answer/attachment/1", "fileName" : {"_value" : "7553_7554_Apprenticeship_levy_funds.xlsx"} , "title" : "7553 7554 Table "} , "dateOfAnswer" : {"_value" : "2024-01-08", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "7554"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2024-01-08T17:08:49.807Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "60"} , "answeringDeptShortName" : {"_value" : "Education"} , "answeringDeptSortName" : {"_value" : "Education"} , "date" : {"_value" : "2023-12-19", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Apprentices: Taxation"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Secretary of State for Education, pursuant to the Answer of 13 December 2023 to Question 3789 on Apprentices: Taxation, what the total expired unused Apprenticeship Levy funds were in each month since May 2019.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4066", "label" : {"_value" : "Biography information for Priti Patel"} } , "tablingMemberConstituency" : {"_value" : "Witham"} , "tablingMemberPrinted" : [{"_value" : "Priti Patel"} ], "uin" : "7553"} , {"_about" : "http://data.parliament.uk/resources/1679058", "AnsweringBody" : [{"_value" : "Department for Education"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1679058/answer", "answerText" : {"_value" : "
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 to boost the skills of their workforces. As the apprenticeship levy is UK-wide, income from the levy also supports the Devolved Administrations to invest in their skills programmes.<\/p>
<\/p>
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\u2019 accounts reflect the \u2018English percentage\u2019 of an employer\u2019s levy contribution and include a 10% top-up from the government. The department does not record industry, sector or organisation type when levy-paying employers register an apprenticeship service account. For this reason, data which shows which sectors were most or least likely to spend their funds cannot be provided. The department does hold information relating to individual employer accounts but it would not be appropriate to disclose this information without consulting with employers.<\/p>
<\/p>
Employers can use their levy funds for apprenticeships in their own business or transfer up to 25% of their funds to other businesses. Funds that levy payers do not draw on are used to fund apprenticeships in small and medium sized businesses who do not pay the levy. Levy payers are not expected to use all funds available to them, though they are able to do so.<\/p>
<\/p>
The funds in apprenticeship service accounts are available for levy-paying employers to draw on for 24 months before they expire on a rolling, month-by-month basis. The table attached shows the total funds that expired from levy-paying employers apprenticeship service accounts in each month since May 2019. The decline in levy expiry value for October 2021 was due to a delay transferring levy into employer accounts. As a result, employers were granted an additional month to spend those funds, to ensure that the 24-month window to spend funds was maintained.<\/p>
<\/p>
The funds available to levy-paying employers through their apprenticeship service accounts are not the same as the apprenticeships budget which funds apprenticeships in England for employers of all sizes. As such, expired funds from employers\u2019 accounts do not represent funding that is lost to the system. Rather, the department directs this funding to supporting apprenticeships in small and medium-sized enterprises (SMEs), to English and mathematics training for apprentices and to additional payments to employers, training providers and apprentices. On average, 98% of the English apprenticeships budget has been spent over the last two financial years.<\/p>
<\/p>
<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3985", "label" : {"_value" : "Biography information for Robert Halfon"} } , "answeringMemberConstituency" : {"_value" : "Harlow"} , "answeringMemberPrinted" : {"_value" : "Robert Halfon"} , "attachment" : {"_about" : "http://data.parliament.uk/resources/1679058/answer/attachment/1", "fileName" : {"_value" : "7553_7554_Apprenticeship_levy_funds.xlsx"} , "title" : "7553 7554 Table "} , "dateOfAnswer" : {"_value" : "2024-01-08", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "7553"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2024-01-08T17:08:49.863Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "60"} , "answeringDeptShortName" : {"_value" : "Education"} , "answeringDeptSortName" : {"_value" : "Education"} , "date" : {"_value" : "2023-12-19", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Apprentices: Taxation"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Secretary of State for Education, which (a) sectors and (b) employers were (i) most and (ii) least likely to utilise the funds provided through the apprenticeship levy in the latest period for which data is available.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4066", "label" : {"_value" : "Biography information for Priti Patel"} } , "tablingMemberConstituency" : {"_value" : "Witham"} , "tablingMemberPrinted" : [{"_value" : "Priti Patel"} ], "uin" : "7554"} , {"_about" : "http://data.parliament.uk/resources/1673149", "AnsweringBody" : [{"_value" : "Department for Education"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1673149/answer", "answerText" : {"_value" : "
The apprenticeship levy is a key part of the government\u2019s 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<\/a>.<\/p> 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.<\/p>
FY<\/p><\/td> | New accounts created<\/p><\/td> | Total accounts (cumulative)<\/p><\/td><\/tr> | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016/17<\/p><\/td> | 4,630<\/p><\/td> | 4,630<\/p><\/td><\/tr> | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017/18<\/p><\/td> | 8,640<\/p><\/td> | 13,270<\/p><\/td><\/tr> | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018/19<\/p><\/td> | 2,970<\/p><\/td> | 16,240<\/p><\/td><\/tr> | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019/20<\/p><\/td> | 2,030<\/p><\/td> | 18,270<\/p><\/td><\/tr> | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020/21<\/p><\/td> | 1,870<\/p><\/td> | 20,140<\/p><\/td><\/tr> | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021/22<\/p><\/td> | 1,920<\/p><\/td> | 22,060<\/p><\/td><\/tr> | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022/23<\/p><\/td> | 1,280<\/p><\/td> | 23,340<\/p><\/td><\/tr> | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023/24<\/p><\/td> | 750<\/p><\/td> | 24,090<\/p><\/td><\/tr><\/tbody><\/table>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3985", "label" : {"_value" : "Biography information for Robert Halfon"} } , "answeringMemberConstituency" : {"_value" : "Harlow"} , "answeringMemberPrinted" : {"_value" : "Robert Halfon"} , "dateOfAnswer" : {"_value" : "2023-12-05", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2023-12-05T12:19:53.553Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "60"} , "answeringDeptShortName" : {"_value" : "Education"} , "answeringDeptSortName" : {"_value" : "Education"} , "date" : {"_value" : "2023-11-27", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Apprentices: Taxation"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "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.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4066", "label" : {"_value" : "Biography information for Priti Patel"} } , "tablingMemberConstituency" : {"_value" : "Witham"} , "tablingMemberPrinted" : [{"_value" : "Priti Patel"} ], "uin" : "3786"} , {"_about" : "http://data.parliament.uk/resources/1673150", "AnsweringBody" : [{"_value" : "Department for Education"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1673150/answer", "answerText" : {"_value" : " 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.<\/p> <\/p> 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.<\/p> <\/p> 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.<\/p> <\/p> <\/p> <\/p> <\/p> <\/p> <\/p> <\/p> <\/p> <\/p> <\/p>
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