Statistics Released on the Spending Split and On Apprenticeship Levy and Underspend over the Past 5 years

MP Peter Bedford (Conservative) asked a Parliamentary question on the spending split on the Apprenticeship Levy over the past five years on the 11th April.

The Full Question was: To ask the Secretary of State for Education, what was the total (a) apprenticeship levy revenue received from eligible employers, (b) sum and proportion of levy revenue spent on Level 4, 5, 6 and 7 apprenticeship qualifications and (c) the sum and proportion of unspent levy revenue returned to HM Treasury in each of the last five years.

Labour’s Janet Daby for Lewisham East answered the question in full:

Answered on 11 April 2025

All UK employers with an annual pay bill above £3 million pay 0.5 per cent of their pay bill to invest in apprenticeship training. HM Revenue and Customs (HMRC) is responsible for collecting the levy on behalf of the government. Annual apprenticeship levy receipts are published at: https://assets.publishing.service.gov.uk/media/67b5fd2c9ae06ef4a71cf2e0/NS_Table_final.ods(opens in a new tab).

The department is responsible for apprenticeships in England only and receives an annual protected apprenticeships budget, which is agreed at spending reviews. Although closely linked, this is distinct from the total levy income collected and the funds in employer accounts.

In total, this apprenticeship budget covers the spend drawn down by all levy-paying employers, as well as apprenticeships for those who do not pay the levy, the costs of English and mathematics tuition for apprentices, and additional payments to employers, training providers and apprentices. It also covers the administrative costs of running the apprenticeships programme.

The table below provides details of the ring-fenced apprenticeships budget, and the total and proportion of the budget that was unspent in each of the last five years.

*The 2023/24 annual apprenticeship budget was revised in-year from £2,585 million to £2,525 million, as £60 million was surrendered in-year.

Where the department’s apprenticeships budget is underspent by the end of the financial year, funds are returned to HM Treasury in line with standard practice set out in the Consolidated Budgeting Guidance, a copy of which is available at: https://www.gov.uk/government/publications/consolidated-budgeting-guidance-2024-to-2025(opens in a new tab).

The table below provides a breakdown of spend against the apprenticeship budget by apprenticeship level 4 to level 7, and the proportion of the budget spent at level 4 to level 7 for each of the five past years.

REC comments on doubling of levy spending on highest level training

Responding to the publication of statistics on spending on apprenticeship levy, the Recruitment and Employment Confederation (REC) Director of Campaigns Shazia Ejaz said:

“Spending on high-level apprenticeships – equivalent to master’s degrees – has doubled in five years, while we risk entry-level routes being left behind. It is time to rebalance the system. Young people need real pathways into vital sectors such as health, social care, and construction, areas crying out for skilled workers. The status quo is not working. The government must act quickly and decisively on its manifesto pledge to deliver a more flexible Growth and Skills Levy. We need a system that creates a pipeline of opportunity for young people while ensuring employers and economic needs are at the heart of apprenticeship and skills funding.”

“REC has long voiced concerns that levy funds are only available to those who have the same employer for at least one year, which is the time it takes to complete an apprenticeship. This is a waste when there are a million temporary workers on assignment in the UK every day. The REC sees an urgent need for the new government’s promised reform to allow levy funding for high-quality, modular training to enable more people, including temporary workers, to train and fill vacancies.”