The Association of Employment and Learning Providers has made its submission to the Treasury ahead of the chancellor’s budget due to be delivered in the autumn.

In its submission, the membership organisation said that, over a year after the apprenticeship levy was introduced, it has been underutilised so far.

A spokesperson added: “Out of the £1.39 billion the levy has raised, only £207 million has been withdrawn by employers, and with funds set to start expiring from April 2019, there are concerns that this funding will not be spent as employers desperately wait for apprenticeship standards to be approved for delivery.

“If the government wishes to successfully pursue the 3 million [apprenticeship starts by 2020]  target and work towards achieving their social mobility and productivity goals, we urge ministers to address the issues identified in this AELP paper.”

The skills wish list

1. A guaranteed budget of £1 billion supported by the Treasury for apprenticeship delivery to non-levy employers that guarantees a minimum level of apprenticeships in non-levy employers.

2. A proportion of the current higher education fees budget to be made available to support higher and degree apprenticeships.

3. English and maths functional skills to be adequately funded when delivered as part of an apprenticeship programme in line with other delivery.

4. Apprenticeship frameworks to have adequate funding to ensure high-quality delivery until they are fully replaced by standards.

5. The entire adult education budget should be commissioned.

6. The  European Social Fund’s successor, the UK Shared Prosperity Fund, should prioritise education and skills provision, given the predicted skills gaps the UK is expected to face post-Brexit.

7. A review of the current disadvantage funding arrangements for apprenticeships is required to undo the damage of the most recent changes.

8. Open up apprenticeship levy transfers to support more small and medium-sized enterprises.

9. Full funding for small and medium-sized enterprise apprenticeships for 16- to 24-year-olds, or at least provide incentives against the cash co-investment and also demonstrate explicitly the “in kind” support from employers.

10. A commitment to more funding to be spent on frontline delivery rather than unacceptably high subcontracting fees.

11. Growth in traineeships urgently needs to be restored.