Some retailers estimate they could create up to 1,000 new
apprenticeships each if the Apprenticeship Levy system was
reformed, according to the latest findings by the British Retail
Consortium (BRC). Previous studies suggest that greater
flexibility would bring about thousands of new apprenticeship
places within the industry.
Ahead of today’s APPG on Apprenticeships Five Year Review of the
Apprenticeship Levy, the BRC has published results from its latest
survey in the hope that it will prompt Government to take much
needed action.
The survey highlights the flaws in the Apprenticeship Levy system
and draws attention to much-needed reforms. The survey’s findings
include:
- Some retailers estimate that they could create up to 1,000
new apprenticeships each if the system was reformed
- 95% of respondents said the system needs change
- Two thirds of respondents say more than 40% of their Levy
funds go unspent
- Individual retailers have lost up to £12 million per company
in unspent Levy funds since 2017
The current system is inadequate, inflexible, and does not
support essential courses that are needed for a thriving retail
industry. People are losing out on essential training,
opportunities are being wasted, and money is being lost.
Apprenticeships are crucial for employees and businesses – they
provide vital opportunities for people to get into the workplace
and develop essential skills that will support them through their
careers. They are also vital for upskilling the workforce to
ensure it is equipped to meet the huge technological
transformation that retail is undergoing.
The BRC and its members call on the Government to make the Levy
more flexible in order to:
-
Fund high quality pre-employment courses to
help potential apprentices reach the required level to begin a
full apprenticeship
-
Allow apprenticeship funding to cover
some costs associated with hiring an apprentice, for
example covering the cost of back-filling roles while
apprentices are on off-the-job training
-
Provide high-quality short
courses, including functional and digital skills, to
allow existing employees to upskill or transition to new roles,
where a full apprenticeship is not necessary
-
Allow Levy-payers in Devolved nations to
directly access the funds they are being compelled to pay as
the Levy in these Nations is effectively another employment
tax, penalising businesses for employing workers
Retail is the UK’s largest private sector employer, and it
supports communities across the UK by contributing to local
economies and creating jobs. By making these changes, Government
will help retailers to increase the number of apprenticeships
they offer, fill skills gaps, and create new opportunities for
retail colleagues up and down the country. This is especially
important to ‘Levelling Up’ the more deprived parts of the UK.
Helen Dickinson OBE, Chief Executive of the British Retail
Consortium, said:
“It is crystal clear that the Apprenticeship Levy system is not
fit for purpose, and in desperate need of reform. Hundreds of
thousands of pounds are being wasted every month. But this is not
just a financial issue, it represents missed employment
opportunities, missed training, and missed career progression.
“Retailers want to invest in a higher skilled, more productive,
and better paid workforce. They want to create more opportunities
and contribute to local communities across the country. However,
this broken system is holding them back. If Government is serious
about its ‘Levelling Up’ agenda, the Levy must be made more
flexible so retailers can use the funds for high quality
pre-employment courses, short in-work developmental courses and
to cover other costs related to training their people.”
-ENDS-
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