Annual spending on level 2 apprenticeships has plummeted by more than £200 million since the launch of the levy – as money paid out for higher levels rockets, FE Week can reveal.
New figures obtained through a Freedom of Information request also show the only age group that has experienced a fall in apprenticeship spending over that period is 16 to 19-year-old school leavers.
Experts have put the trend down to the “clunky and arduous” apprenticeship system that small and medium-sized employers (SMEs), who have traditionally taken on a disproportionate number of lower level and young apprentices, struggle to navigate.
A Department for Education spokesperson said apprenticeships were “employer-led and businesses have flexibility to spend their levy funds to invest in the skill level they need”, adding that “these figures show they are doing that”.