Apprenticeship levy reform urgently needed, BRC says

The British Retail Consortium (BRC) has renewed its calls on the Government to reform the Apprenticeship Levy, arguing that it is no longer fit for purpose and does not support essential courses that are needed for retail in 2022.

BRC suggests that the current system is leading to funds are being wasted, crucial investment in skills being held back and opportunities in the industry being curtailed.

The consortium said "As the UK’s largest private sector employer, retail supports communities across the country by contributing to local economies and providing employment opportunities and career progression for people from all walks of life. If Government makes changes, it will allow retailers to increase the number of apprenticeships they offer, filling skills gaps, and creating new opportunities for retail colleagues up and down the country."

The BRC is calling on the Government to:

• Make the Levy more flexible to allow the use of levy funds to support more young people in high quality pre-employment and pre-apprenticeship programmes
• Allow the levy to support other training and shorter courses
• Allow levy funds to be used to cover a portion of apprenticeship costs outside of training e.g., transport costs

Helen Dickinson OBE, Chief Executive of the British Retail Consortium, commented: “The current Apprenticeship Levy system is broken. It is inflexible, outdated, and it needs reform, otherwise retailers are forced to treat the Levy as little more than a tax. For retailers who put money into this pot but cannot use it, the Levy amounts to little more than a tax and is a detriment to current and potential employees.

“Retailers continue to invest in their workforce, however the government must redouble its efforts to find broader usage opportunities for the Apprenticeship Levy to ensure the industry continues delivering on its mission of a higher skilled, more productive, and better paid workforce. The benefits will be far-reaching and will help to create more jobs and boost local economies of areas which need it the most.