According to a survey by members of the British Retail Consortium, reforming defective apprenticeship tariffs could create thousands of apprentices and save millions of pounds.
Five years after the introduction of the levy, 26 national retailers have told the business lobby group that if changed, they could each create about 1,000 new apprentices.
Millions of pounds of levy support are being lost every month because the rules surrounding the scheme are so strict that businesses find them inappropriate and irrelevant, critics claim. During the HGV driver crisis, companies complained that Levi did not support retraining staff as lorry drivers.
Two-thirds of retailers surveyed by the consortium say more than 40 per cent of their tariffs have been deducted each month, while one business said it has lost up to 12 12 million in unsolicited levy funds since its launch in 2017 because the rules basically retrain its workforce. Was extremely limited and retroactive to give.
Helen Dickinson, chief executive of the British Retail Consortium, said the system was “not fit for purpose and desperately needed reform. Thousands of pounds are being wasted every month. It’s not just a financial problem: it represents Miss Employment Opportunity, Miss Training and Miss Career Advancement.”
Retailers say the biggest hurdle in hiring more trainees was that they would have to take 20 percent of the time, extra costs, length of program and inappropriate courses for the scheme.
A study by the Chartered Institute of Personnel and Development found that about 2 2 billion in employers’ levy funds had expired and were returned to the Treasury between 2019 and 2021 because they were unable to spend on utensils.
The BRC said more people could be helped to return to work if the government offered a defined list of high-quality short courses.
Last year, Tesco chief executive Ken Murphy called on the government to revise tariffs, saying the reforms could create 8,000 new Tesco jobs. Supermarkets say that full-time apprenticeship schemes are not attractive to those who still want to learn new skills while working.
This has also proved difficult for small shops, which have to pay for stuffing cover when a trainee is absent for training.
The levy was introduced by George Osborne when he was Chancellor, and became effective in 2017 However, research has shown that the number of apprentices has decreased since then and is much lower among young people.
“If the government is serious about its ‘leveling’ agenda, tariffs need to be made more flexible so that retailers can use the funds to cover high-quality pre-employment courses, short-term development courses and other costs related to their training, people,” Dickinson said. .