Asda is backing calls across the retail industry for an overhaul of the apprenticeship levy to provide greater flexibility in how the funds can be used.
The apprenticeship levy allows large employers to transfer up to 25% of their levy funds each year to other businesses to fund their apprenticeships, training and development.
However, due to restrictions on the type of apprenticeships and training that can be funded through the levy transfer, many small and medium sized businesses (SMEs) are unable to take advantage of this support.
Last year, Asda allocated £1m in levy transfer funds and to date has transferred £663,000 to SMEs and public sector bodies to fund more than 100 apprenticeships.
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The supermarket now has around £450,000 available to allocate from its 2023 levy.
Asda senior vice president chief people and corporate affairs officer Hayley Tatum said: “We believe that the current apprenticeship levy scheme requires reform to provide greater flexibility in the schemes where the levy funds can be distributed.
“Asda would welcome reform that would make it easier for businesses to spend levy funding as intended – offering new opportunities across the country as well as upskilling the existing workforce.”
M&S and the Co-op have also urged the government to change the levy this week, as M&S group director of human resources Sarah Findlater told The Times that the current scheme is “too difficult to access, so millions of pounds are going unspent”.
She has called on Chancellor Jeremy Hunt “to reform the levy and make it more flexible and simpler for employers to access this fund so we can create even more apprenticeships and valuable career development opportunities”.
Co-op is also calling for private and public sector organisations to work together to ensure the levy is used more effectively.
