lordswrans/lordswrans2025-01-31 conversation_8
Source: hansard.parliament.uk (2025-01-31)

UK Parliament Hansard data: lordswrans/lordswrans2025-01-31 conversation_8

Lord Reid of Cardowan:To ask His Majesty's Government what support mechanisms are in place for employers who take on apprentices; and how they plan to incentivise more businesses to participate in apprenticeship schemes. \p Baroness Smith of Malvern: Meeting the skills needs of the next decade is central to delivering all of the government's five missions on economic growth, opportunity for all, a stronger NHS, safer streets, and clean energy. Through delivering the opportunity and growth missions, we will ensure that we have the skilled workforce needed to deliver the national, regional and local skills needs. This will align with the industrial strategy and break down the barriers to opportunity for learners.

The government is reforming the current levy-funded apprenticeships offer to deliver greater flexibility for employers. Apprenticeships will remain at the heart of the offer. To support more businesses to participate in apprenticeships, the department is introducing shorter duration apprenticeships and foundation apprenticeships in targeted sectors.

Employers have been calling for greater flexibility in our apprenticeships offer and the government is taking action. Apprenticeships currently must have a duration of at least 12 months, but the department recognises that there are circumstances where someone can be fully competent in less time. We will introduce the flexibility where there is clear justification, to meet the needs of specific sectors and learners, whilst ensuring that we protect quality and continue to deliver strong outcomes.

Foundation apprenticeships will be a new work-based training offer that give more young people a foot in the door at the start of their working lives, whilst supporting the pipeline of new talent that employers will need to drive economic growth. The department is working closely with employers and providers to design foundation apprenticeships that offer young people a good route into good, skilled work and meets the needs of the industrial strategy.

The department will take advice from Skills England as it develops the offer. More broadly, Skills England has been established to work together with regional and local governments, employers, education providers, trade unions, and regional organisations to ensure that regional and national skills needs are met at all levels, from essential skills to those delivered via higher education. Skills England undertook initial engagement over the autumn on the early priorities for flexibilities the department will set out more details on its plans in due course.

To support non-levy paying employers, which are likely to be small and medium sized enterprises, to access apprenticeships, the government pays the full training costs for young apprentices aged 16-21, and for apprentices aged 22-24 who have an education, health and care (EHC) plan or have been in local authority care.

Employers of all sizes can also benefit from £1000 payments when they take on apprentices aged 16-18, or apprentices aged 19-24 who have an EHC plan or have been in local authority care. This is in recognition of the additional support that younger apprentices may require when entering employment. Employers can choose how they spend these payments. Employers also benefit from not being required to pay anything towards employees’ National Insurance for all apprentices aged up to age 25 where they earn less than £967 a week (£50,270 a year).

Employers that need help with employing an apprentice, including accessing funding, can access our employer support GOV.UK page, which is available here: https://help.employersupport.apprenticeships.gov.uk/hc/en-gb.