Ian Austin – 2016 Parliamentary Question to the Department for Education
The below Parliamentary question was asked by Ian Austin on 2016-09-02.
To ask the Secretary of State for Education, what assessment she has made of the potential effect of the Skills Funding Agency proposals to reduce 16-18 apprenticeship funding on the number of 16-18 apprenticeships delivered.
Robert Halfon
The introduction of the levy will mean that many more employers will offer many more apprenticeships opportunities to people of all ages and backgrounds than they would have otherwise done. Our funding proposals will introduce a simpler pricing system with a maximum cost for each type of apprenticeship, regardless of age or location.
Our proposals for how apprenticeships will be paid for in England in the future include incentives for taking on 16-18 year old apprentices – funding 100 per cent of apprenticeship training costs for small employers (with fewer than 50 staff) that don’t pay the levy when they employ 16-18 year old apprentices; and providing a £1,000 cash payment to both the employer and training provider to help with the extra costs of supporting apprentices in this age group.
As a result of the levy we will be investing £2.5 billion in apprenticeships; that’s double what was spent on apprenticeships in 2010-11.
Employers will have an incentive to employ apprentices to maximise the use of their levy funds and they will have control over funding for apprenticeships training. The generous co-investment rate will help them if they want to take on more apprentices than covered by their levy funds.
