Apprenticeship Levy: Trends

10. What assessment she has made of trends in the number of level 2 and 3 apprenticeship starts since the apprenticeship levy was introduced.

Sixty-five per cent of all apprenticeship starts so far this year have been at levels 2 and 3, with level 3 remaining the most popular level, accounting for 43% of all starts. Over 360 apprenticeship standards are at levels 2 and 3, covering more than half of all apprenticeships.

I can understand why the Minister does not refer to the trends, because he knows that level 2 apprenticeships are way down. The Government’s reforms have seen level 2 apprenticeship starts fall by two thirds since 2012-13, and the number of people employed on an apprenticeship with a small and medium-sized enterprise has fallen by 49% since the levy’s introduction. The Minister talks powerfully about apprenticeships, but why does he think that young people are now half as likely to be on an SME apprenticeship than they were when the levy was introduced?

I hugely respect the hon. Gentleman. I know he is a bruiser, but I had been looking forward to his question. I thought he would celebrate the 13,000 apprentices in Chesterfield since May 2010, the 11,270 apprentices at levels 2 and 3, or the £19.5 million investment in Chesterfield College.[Official Report, 25 March 2024, Vol. 747, c. 11MC.] (Correction) If I were him, I would be urging his party to stop its plan to destroy the apprenticeship levy, which would halve the number of apprenticeship starts overall. It would be back to square one.

I call the shadow Minister.

It is not just that level 2 and 3 apprenticeship starts have plummeted by over 50% since the levy was introduced, but that 16 to 18-year-old apprenticeship starts are down by 41%. Research by the Sutton Trust and the London School of Economics further shows that, by 2020, the proportion of apprenticeship starts by those from poorer backgrounds had dropped significantly. Opportunities for all our young people to earn and learn expanded every year under Labour. Is it not now painfully clear that the biggest barrier to opportunity is this Tory Government?

As always, Labour Front Benchers are obsessed with quantity over quality. We have transformed the quality of apprenticeships. Seventy per cent of occupations are covered by over 680 apprenticeship standards.[Official Report, 25 March 2024, Vol. 747, c. 11MC.] (Correction) There has been a 6% increase since this time last year in the number of under-19 starts, and overall starts are up by 3% over the same period. The crucial thing is achievement, which is up by 22%. Female STEM starts are up by 7.5%, starts by people with disabilities are up by 6.3%, and starts by people from ethnic minorities are up to 15.4% of starts, compared with 10.6% in 2010. Not only are we focusing on quality over quantity; we are improving the number of starts and achievements too.