Commons Sense

House of Commons · Ministers' Questions

Apprentices

Tuesday 22 June 2021 · 6 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 3 Partly answered 3 Not answered 0

Key points

  • The Government offers a 3,000 hiring incentive for employers taking on new apprentices until the end of September.
  • Over 50,000 incentive payments have been claimed by employers, with 80% hiring young apprentices between 16 and 24 years old.
  • Employers can use a new bulk transfer service from August to send unspent apprenticeship levy funds to SMEs and find appropriate businesses through this mechanism.

Topics (select to filter)

Questions & Answers

Q1 Laura Farris
Business & Trade
Context

The MP is concerned about the limited uptake of apprenticeships by SMEs despite government incentives.

Question

I am concerned about the steps my Department is taking to encourage small and medium-sized businesses to take on more apprentices. I note that many larger employers are currently taking the majority of new apprentices, leaving smaller firms lagging behind in providing these opportunities.

Answer from Rishi Sunak

We are encouraging employers of all sizes to take on new apprentices through our hiring incentive. Employers who hire a new apprentice of any age until the end of September will receive £3,000 per apprentice. We are also continuing to improve the apprenticeship system for employers by introducing more flexible trading options, making the transfer of unspent levy funds to small businesses easier, and supporting apprenticeships in industries with flexible working patterns through the launch of portable apprenticeships.

Answered
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Q2 Mark Eastwood
Employment Business & Trade
Context

The MP mentions several companies in his constituency planning to apply for the Government's £3,000 initiative and highlights its success.

Question

The Government's £3,000 initiative incentive for businesses to employ apprentices is welcome, with Shackletons in Dewsbury, John Cotton and Alexander's Bar in Mirfield looking to take advantage. With more than 50,000 incentive payments claimed by employers, will the right hon. Friend consider an extension of funding beyond September?

Answer from Rishi Sunak

I pay tribute to Shackletons and John Cotton in my hon. Friend's constituency for setting a good example, which I hope is followed by employers across our country. The scheme has been successful, with more than 50,000 incentive payments claimed by employers, 80% of whom hired young apprentices between 18 and 24. We will keep this very successful scheme under review.

Partly answered

Not addressed: extension of funding beyond September

How: Under Review

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Q3 Chris Clarkson
Education Economy Employment
Context

The MP advertises an apprenticeship position with Hopwood Hall College in his constituency, highlighting the scheme's success.

Question

Apprenticeships are a fantastic way for people to learn and earn. I have just advertised for one to join my team via Hopwood Hall College in Heywood and Middleton. Does my right hon. Friend agree that businesses big and small can play their part in turbocharging our post-covid recovery by offering these opportunities?

Answer from Rishi Sunak

I am delighted to hear that my hon. Friend is working with Hopwood Hall College in his constituency to hire an apprentice, and I hope to meet them in the future. He is right about the ability of this scheme to support all types of employers, particularly small businesses who benefit from a 35% wage subsidy for young apprentices, with the Government covering 95% of training costs.

Partly answered

Not addressed: specific commitment on economic recovery plan

How: Agreeing Generally Without Specifics

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Q4 Lucy Allan Con
Education Economy Employment
Context

The MP highlights the impact of the pandemic on young people in Telford, noting that Telford College has secured 1,000 quality apprenticeships this year.

Question

Telford's young people have been hit hardest by the pandemic. Telford College is securing 1,000 quality apprenticeships this year, helping young people to build their future. Will the Chancellor congratulate Telford College on its work and commit to putting skills and opportunities for young people front and centre in his economic recovery plan?

Answer from Rishi Sunak

I am delighted to hear that news from my hon. Friend, and I congratulate Telford College on creating new apprenticeships and working with local employers to provide opportunities. She is right: young people have borne the brunt of economic losses due to this crisis. That is why we are focused on providing them with support through initiatives like the kickstart scheme, tripling traineeship numbers, and implementing the lifetime skills guarantee.

Partly answered

Not addressed: specific recognition of Telford College's work

How: General Commitment Without Specifics

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Q5 Edward Timpson Con
Employment
Context

The MP mentions local businesses using the kickstart scheme to bring good jobs to young people as part of economic recovery.

Question

Safety Shield in Winsford is using the kickstart scheme to create more opportunities for young people. Can my right hon. Friend tell us about the roll-out's impact and how other businesses can join?

Answer from Rishi Sunak

I congratulate Safety Shield in Winsford on taking on new kickstarters. Over 31,000 kickstarters have started their jobs, with 10,000 more to come soon. Employers can go online or talk to local business organizations like the Federation of Small Businesses or chamber of commerce to be accredited and give a young person an opportunity as we recover.

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Q6 Laura Farris
Employment Business & Trade
Context

The MP notes the role of Newbury College in providing apprenticeships, with many large employers taking up most opportunities despite local economic needs.

Question

Unemployment is falling fast in west Berkshire due to Treasury-backed schemes. However, Newbury College says small and medium-sized enterprises are not taking enough apprentices when they form our economy's backbone. Is there an opportunity to reallocate surplus from the apprenticeship levy to encourage SME take-up?

Answer from Rishi Sunak

My hon. Friend makes a point. I am proud she is working with Newbury College in her constituency, where SMEs are crucial for local economies. From August, employers who pay the levy but have unspent funds can use a new bulk transfer service to send money to SMEs and find appropriate businesses through a match function.

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