Labour would reform the apprenticeship levy so that it can be spent on other types of training if the party comes into power.
The party plans to turn the policy into a “growth and skills levy” where businesses could use up to half of their contributions to fund non-apprenticeship training such as modular courses.
Full details of the policy are set to be published in a report produced by Labour’s Council for Skills Advisers – led by Lord Blunkett – in the coming weeks.
It is unclear at this stage how small and medium-sized employers would continue to access apprenticeships under the proposed system, but shadow skills minister Toby Perkins promised that non-levy payers will not see a reduction in the amount of funding available to them.