Co-op praises government overhaul of ‘broken’ apprenticeship levy
The Co-op and the BRC have welcomed the new government’s plans to overhaul the current apprenticeship levy.
Prime minister Sir Keir Starmer and education secretary Bridget Phillipson launched a new Skills England initiative in an aim to restore “the fractured skills landscape and create a shared national ambition to boost the nation’s skills”.
The new plans were welcomed by the convenience retailer who called the changes “key” to both individuals and employers.
Co-op chief people and inclusion officer Claire Costello said: “We welcome the announcement of the Growth and Skills Levy, this is something that we’ve been asking for.
“A robust and stable skills policy is key for individual life chances and key to employers, like the Co-op, in having access to the skilled workers they need.”
“Skills matter because put simply it helps people to ‘get on’ and we know gaining skills can open up opportunities within communities across the country and enable young people to start a career and older workers to develop or change their career.”
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Elsewhere, British Retail Consortium (BRC) said that the reform to the apprentice levy targeted the “heart of the problem” with the current “broken” system.
BRC director of business and regulation Tom Ironside said: “In his speech today, the Prime Minister cut right to the heart of the problem with the current apprenticeship levy – its inflexibility.
“We welcome his call to give businesses more flexibility to spend funds on the training [businesses] think is really necessary”.
“The Apprenticeship Levy in its current form is broken, with half of the retail industry’s £250m contribution going unspent.
“Retailers are excited to see the details of the new Growth and Skills Levy, and are keen to work with government to ensure its greater flexibility would allow them to spend funds on the most suitable pre-employment courses and short courses encompassing functional and digital skills.
“If the government wants to drive growth, and reduce the reliance on non-domestic workers, businesses need the right tools to train their workforce for the jobs of today, and the jobs of tomorrow.”
Meanwhile AO founder and CEO John Roberts celebrated that the new plans were “finally on the cards”, and added that retailers are “are ready and willing to help with advice, practical testing and sharing lessons”.
Reform of the Apprenticeship Levy is finally on the cards. @ao, @currys, @tesco, @BandQ, and @McDonaldsUK are ready and willing to help with advice, practical testing and sharing lessons.
Let’s not leave it only to politicians but rather involve employers in how we mould the…— John Roberts (@johnrobertsAO) July 22, 2024
The overhaul follows ongoing calls within the industry for reform of the apprenticeship levy from retailers including M&S, Tesco and Asda.
Earlier this month, Sainsbury’s CEO Simon Roberts called the current system “inflexible” and called for change under the new government.
