Prime Minister’s reforms to create Apprenticeships Nation welcomed by Stuart Anderson MP candidate for South Shropshire
A major package of reforms to create up to 20,000 more apprenticeship places has been welcomed by Stuart Anderson, South Shropshire’s Conservatives Parliamentary Candidate. The Prime Minister has announced that the Government will fully fund apprenticeships in small businesses from 1 April by paying the full cost of training for anyone up to the age of 21. This will be backed up by an additional £60 million of new government funding for next year. It will guarantee that, where there is demand for apprenticeships from businesses, the Government will ensure there is enough funding to deliver them.
Stuart welcomed the move, which will remove the need for small employers to meet some of the cost of training and saves time and costs for providers like further education colleges who currently need to source funding separately from the Government and businesses. He said it will deliver more opportunities for young people to kickstart their careers, with the Government having already removed the limit of funding 10 apprentices a year in SMEs and made it easier to register.
In his first economic speech since the Spring Budget, the Prime Minister also announced the Government is increasing the amount of funding employers paying the Apprenticeship Levy can pass onto other businesses. From April, the amount of funding that large employers who are paying the Apprenticeship Levy can pass onto other businesses, including smaller firms in their supply chains, will increase from 25% of their unused Levy up to 50%.
This will help SMEs hire more apprentices by reducing costs and enabling more employers to get the skilled workers they need while unlocking more opportunities for young people in a huge range of sectors, industries, and professions. The Government introduced the levy in 2017 and in the last two years, 98 per cent of the levy has been spent on average. 530 employers including ASDA, HomeServe and BT Group have already pledged to transfer over £35.39 million to support apprenticeships in businesses of all sizes.
Stuart Anderson said: “Apprenticeships are a key part of my plan to unleash rural prosperity in South Shropshire. They provide people of all backgrounds with the opportunity to earn and learn the skills needed to start, or progress in, an exciting career. In the past decade, thousands of apprenticeships have been created in our community, with more than 390 in the last year alone. With over 70% of careers now accessible via an apprenticeship, I want to go even further. So I welcome this £60 million extra investment in training costs, together with increasing the amount of funding that large employers paying the Apprenticeship Levy can pass onto other businesses, including smaller ones . This will ensure that, where there is demand for apprenticeships from businesses, there is enough funding to deliver and run them.”
Prime Minister Rishi Sunak said: “Growing up in my mum’s pharmacy, I know first-hand how important small businesses are. Not just for the economy, but as a driver for innovation and aspiration, and as the key to building a society where hard work is always recognised and rewarded. Whether it’s breaking down barriers and red tape for small businesses, helping businesses hire more young people into apprenticeships and skilled jobs or empowering women to start up their own businesses – this government is sticking to the plan and leaving no stone unturned to make the UK the best place to do business. Taken together, these measures will unlock a tidal wave of opportunity and make a real difference to businesses and entrepreneurs across the country.”
Over 70 per cent of careers are now accessible via an apprenticeship. They are available for individuals over the age of 16 and combines on the job training with study. Between 2010 and 2023, 7,190 new apprenticeships have been created in the Ludlow constituency (390 in 2022-23) and over 5.7 million apprenticeships have been created across England, with the number of people starting an apprenticeship up 18 per cent since then. There are now high-quality apprenticeship routes into more than 680 occupations from entry level right through to masters level, with over 5,000 employers involved in their development. Details regarding support for businesses can be found on Stuart’s website at https://southshropshire.stuartanderson.org.uk/supporting-shropshires-businesses.
