The Treasury has been accused of short-changing employers after FE Week analysis revealed HMRC pocketed around £415 million generated from apprenticeship levy receipts last year.
Experts have now called on ministers to rapidly address the emerging mismatch between the cash the apprenticeship levy raises compared to what is being allocated for public spending before it becomes a government “cash cow” amid the fiscal crisis.
Treasury figures show that £3.580 billion was raised by the levy in the 2022-23 financial year but just £2.554 billion was handed to the Department for Education to spend in England, while FE Week estimates that £608 million was handed to the devolved nations.
It means that £418 million of apprenticeship funding went unallocated. On top of this, the DfE underspent its budget by £96 million, meaning the total savings to the Treasury hit £514 million in 2022-23.
