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<p>The UK Government, via HM Revenue and Customs, collects an apprenticeship levy
of 0.5% on total payroll from businesses across the UK with an annual payroll expenditure
of more than £3 million.</p><p>From this, HM Treasury sets an English apprenticeships
budget for the department, and the devolved governments receive a share of the funding
calculated using the Barnett formula.</p><p>The apprenticeships budget in England
is used to fund training and assessment for new apprenticeship starts for all employers
of all sizes, both those who pay the levy and those who do not, and to cover the ongoing
costs of apprentices already in training and any additional payments made to employers,
providers and apprentices. The department’s apprenticeship budget for the 2021/22
financial year was £2,466 million and total spend was £2,455 million, meaning 99.6%
of the apprenticeships budget was spent.</p><p>The table below shows the percentage
of the apprenticeship spend against the budget by levy payers and non-levy payers
in the 2021/22 financial year, including the percentage spend by levy paying employers
through levy transfers to other employers. It also reflects the spend on apprenticeships
that started prior to the introduction of the apprenticeship levy reform, and non-apprenticeships
training, such as the cost of running the apprenticeship service, marketing, and communications
campaigns.</p><table><tbody><tr><td><p><strong>Apprenticeship Spend</strong></p></td><td><p><strong>2021/22
financial year (£ million)</strong></p></td><td><p><strong>% Spend against Budget</strong></p></td></tr><tr><td><p><strong>Levy
payers</strong></p></td><td><p>1,592</p></td><td><p>65%</p></td></tr><tr><td><p><em>Of
which: via levy transfer</em></p></td><td><p> </p></td><td><p>2%</p></td></tr><tr><td><p><strong>Non-Levy
payers</strong></p></td><td><p>817</p></td><td><p>33%</p></td></tr><tr><td><p><strong>Pre-apprenticeship
levy reforms</strong></p></td><td><p>7</p></td><td><p>0%</p></td></tr><tr><td><p><strong>Non-apprenticeships
training spend </strong></p></td><td><p>39</p></td><td><p>2%</p></td></tr><tr><td><p><strong>Total
Spend</strong></p></td><td><p><strong>2,455</strong></p></td><td><p><strong>100%</strong></p></td></tr></tbody></table><p>
</p><p> </p>
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