The British Retail Consortium (BRC) has warned that the apprenticeship levy is “not working” for retailers as the fall in new starters on retail schemes outstrips the national average.
The BRC has hit out at the government’s approach to the apprenticeship levy, which it says is failing many operators despite the sector contributing £160m to the scheme annually.
The BRC said that, as a result of the current system being “overly rigid”, many retailers are prevented “from making full use of their apprenticeship levy pot”.
The number of retail starters on apprenticeship schemes fell 15% in the first quarter of the 2018-2019 financial year – three times the 5% decline in starters nationally. The number of starters on Level 2 retail apprenticeship schemes also declined by 20% during the period.
BRC chief executive Helen Dickinson said: “The Government’s current approach to apprenticeships is not working. Retailers continue to pay into an apprenticeship levy pot, yet the number of starts has been falling dramatically.
“Government should make good on their pledge to reform the levy, allowing retailers to make better use of the system and increasing the investment they make in the UK’s 3 million retail workers.”
Chair of the Education Select Committee Rob Halfon MP added: “We have to ensure that retail apprenticeships are a real ladder of opportunity for people wanting to get skills and jobs for the future.
“We need to look at possible reform of the levy and the tax system to make sure that we can incentivise and help retailers navigate through the bureaucracy, and [encourage them to] see apprentices as a vital part of their workforce.”
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