The Retailer Winter edition_2020

workforce

NEWS FROM THE bRC

The new Government must Level up the Levy to create a workforce fit for the future

‘‘With all the main parties in Westminster committed to lifelong learning, the Government must now reform the Apprenticeship Levy and support the retail industry in its key role in creating to a more productive workforce fit for the future’’.

Chantelle De Villiers External Affairs Adviser british Retail Consortium

The BRC recently welcomed members from across our HR Community to discuss the future of apprenticeships in retail and what the Government must do to support the industry as we continue through a period of significant transformation. It was no surprise that much of the focus was on the future of the Apprenticeship Levy. This was in part due to the obvious reality that financially, the system as it currently operates is unsustainable, but more importantly for our members, the retail industry is not getting its fair bite of the cherry. The retail industry’s levy contribution is significant; we estimate it to be £160m per year, yet broadly our members tell us they can’t even access half of what they pay in. Barriers to access remain, as apprenticeship standards - which define programme content - are not being approved quickly enough by the Institute for Apprenticeships and the process to access funding has become more complex and time consuming than many expected. Now that the general election is over and a new Government is in place, it is vital that policy makers recognise industry’s key role in creating jobs for the future that are higher skilled and drive productivity growth. Apprenticeships are the way to achieve this and we want to work with Government to deliver reforms that ensure the system is fit for purpose. Given the financial trajectory of the scheme and the Budget due to be announced next month, our members are clear that there is no room for an increase in Levy funds. Any gaps in the system must be plugged by Government. It is fundamentally important but also fair that any changes to the system ensure that the status quo is maintained and there is availability of deliverable apprenticeships at all levels and age entry points so retailers can continue to access existing funds for a wider net of skill sets. Though maintaining what currently exists is a priority for members, we should not be complacent when it comes to overhauling the system and freeing up levy funds for other forms of training. With the rising cumulative burden that the retail industry is experiencing through business rates, national living wage increases and costs on crime prevention, there is a clear case for the Treasury to support the largest private sector employer and allow levy funds to be accessed for any form of accredited training to suit workforce needs. With all the main parties in Westminster committed to lifelong learning, the Government must now reform the Apprenticeship Levy and support the retail industry in its key role in creating to a more productive workforce fit for the future.

#LevelUpTheLevy

10 | winter 2020 | the retailer