Failure to reform apprenticeship levy resulted in 12,000 lost apprenticeships last year

The retail industry took on around 17,000 apprenticeships over the past year, meaning the levy reform could have boosted this by 70%.

The BRC said a more flexible system would “not cost the taxpayer a penny” but would boost apprenticeship numbers and open up additional training opportunities for people in retail.

If the levy was reformed, retailers would have been able to train over 20,000 more people including 7,000 in digital skills to prepare for the technological transformation.

The survey also showed how reforms could help areas such as the North West, North East and Yorkshire, which would see the biggest rise in training if the levy funding was more flexible.

As the levy wasn’t reformed, more than £200m of potential retail investment into the UK labour market has gone to waste over the past 12 months.

The levy is a “use it or lose it” system, meaning businesses have to contribute hundreds of millions of pounds but are restricted in how they spend the money. 

The BRC is calling on the government to widen the apprenticeship levy into a broader skills levy. This would make it more flexible in order to fund high-quality pre-employment courses, allow apprenticeship funding to cover some costs, provide high-quality short courses and allow levy payers in devolved nations.

BRC chief executive Helen Dickinson said: “It could not be clearer that reform is needed. Tens of thousands of people up and down the country are missing out on apprenticeships, training and career progression.

“Retailers are blocked from investing in their workforce; harming productivity, wages and the government’s levelling-up agenda. The government must use the upcoming Budget as an opportunity to introduce the necessary reforms – it really is a no-brainer.”

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