Apprenticeship Funding

3. What steps she is taking to ensure that non-levy paying employers receive apprenticeship funding.

Labour is transforming the Tories’ failed apprenticeship levy into a growth and skills levy. The Government offer a range of support to non-levy-paying employers, including assistance with training costs and payments to take on younger apprentices. New foundation apprenticeships in construction will unlock opportunities for up to 10,000 young people. Apprenticeships, participation, achievement and starts have already increased under Labour, and we are going further and faster for growth.

As the Minister will know, employers in Northern Ireland pay substantially into the apprenticeship levy but have no direct access to it. What steps is the Minister taking to enable them to receive direct benefits through the levy, so that we too can enjoy the benefits of which she spoke in her answer when she was having a dig at the Conservative party?

As I am sure the hon. Member knows, skills are a devolved matter, and funding in the devolved Administrations remains the responsibility of those Governments. However, we will continue to engage with them as we deliver the levy-funded growth and skills offer for England.

My constituency of Tipton, Wednesbury and Coseley, in the Black Country, is a proud manufacturing area and the birthplace of the industrial revolution. Will the Minister please tell me what she is doing to increase the uptake of manufacturing and engineering apprenticeships across the country and in the west midlands?

Too many young people have been locked out of accessing apprenticeship opportunities, and apprenticeship starts by young people under 25 fell by almost 40% between 2015-16 and 2023-24 under the previous Government. We are developing new foundation apprenticeships to give more young people a foot in the door at the start of their working lives.

I call the shadow Minister.

The British Chambers of Commerce has said that the lack of clarity around the future of the apprenticeship levy is creating uncertainty among businesses, and is “worrying and destabilising”. Employers in universities are worried about plans to cut higher apprenticeships, and the Institute of Chartered Accountants has said that plans to axe level 7 apprenticeships will lead to work leaving the UK altogether. Will Ministers agree to the proposal from the Campaign for Learning for a skills immigration worker test to be carried out before any cuts are made to level 7 apprenticeships, so that we do not go from simply investing in British workers to just importing workers from other countries?

We are very excited about what this Government are achieving for young people in our apprenticeship schemes. There are, of course, tough choices to take on how funding should be prioritised to generate opportunities for young people so that they can make a good start in fulfilling careers going forward. The Department has received a wide range of representations regarding level 7 apprenticeships, and we will communicate our decision going forward. We are absolutely committed to making sure that people are on the right apprenticeship courses and that we have a wide range of apprenticeships available.