The UK government has agreed a funding deal for the upcoming apprenticeship levy for Scotland, Wales and Northern Ireland.

Population share of levy funding (£m)	2017-18	2018-19	2019-20
Scottish Government	221	230	239
Welsh Government	128	133	138
Northern Ireland Executive	76	79	82

The devolved administrations will be provided with funding certainty as the UK government will manage any difference between the levy forecast and actual levy revenues. This agreement has no impact on the existing arrangements in England. This population-based agreement is consistent with the UK’s general approach to sharing UK-wide revenues. Beyond 2019-20, once the levy is embedded, the normal operation of the Barnett Formula should provide a similar outcome. The devolved administrations will decide how to allocate this funding to their devolved responsibilities.

Scotland

A summary of responses to the Consultation on the Scottish Government Response to the Introduction of the UK Apprenticeship Levy has been published. Organisations in Scotland with a paybill of £3m+ will be required to pay the Apprenticeship Levy but there will not be an equivalent digital account/training funds as in England. The consultation asked the following questions:

• Whether the Scottish Government should maintain or increase the current Modern Apprenticeship (MA) growth ambition (i.e. 30,000 starts a year by 2020).
• Whether to use the Apprenticeship Levy funding to support growth in the number of Graduate Level Apprenticeships in Scotland.
• Whether to use the Apprenticeship Levy funding to establish a flexible skills fund to support wider workforce development.
• Whether to use the Apprenticeship Levy funding to support the expansion of Foundation Apprenticeships.
• Whether to use the Apprenticeship Levy funding to help unemployed people move into employment and to help meet the workforce development needs of employers

CTG’s response to the consultation can be read here. CTG’s concerns about the importance of providing support for volunteers is noted in the Government’s response.

This is purely a summary of responses document and there is no indication of the Scottish Government’s final position. However it is noted that “all of the consultation findings, and the detailed material within the full report and the individual responses, will help to inform the Scottish Government’s consideration of the way forward for the use of Apprenticeship Levy funding in Scotland”.

Wales

The Welsh Government has said that it has “no plans to introduce a digital voucher system. We have seen no evidence that a voucher system would improve quality within the system. It would, though, introduce bureaucracy for employers and uncertainties as to how non levy employers would be supported.” Welsh Skills Minister Julie James has also made it clear that she believes the Levy will bring no new money to Wales, when offset against the loss of apprenticeship funding elsewhere. Instead, the Welsh Government believes that the Levy will cut across its distinct approach to apprenticeships, and will simply act as another employment tax.

The Welsh Government has committed to a minimum of 100,000 quality, all age apprenticeships, to be delivered over the next five years. This Q&A provides details on the Government’s planned approach.

Northern Ireland

The Northern Ireland Assembly has yet to decide how the levy funding should be used or distributed.