// BRC writes to the government with hopes to reform the Apprenticeship Levy
// The group says if flexibility is introduced, 8,000 new apprenticeships would be created
The British Retail Consortium (BRC) is urging the government to introduce much-needed flexibility to the apprenticeship levy, which it says could create 8,000 new retail apprenticeships.
The BRC has written to Secretary of State for Education, Nadhim Zahawi MP, calling on government to use the upcoming Spring Statement to introduce the update.
READ MORE: BRC: Apprenticeship Levy system is “broken”
It is asking for three main changes to the levy, which it says would allow more training to take place and reduce the amount of unused funds sitting in retailer levy accounts.
This includes allowing short courses in functional skills, the current rules mean courses have to be a minimum of one year, allowing the levy to cover associated training costs, such as transport or backfilling roles to free up staff for off-site training and also allow for a wider range of courses to be supported through Levy funds.
The apprenticeship levy, introduced from 6 April 2017, is an amount paid at a rate of 0.5% of an employer’s annual pay bill. Employers must pay an apprenticeship levy each month if they have an annual pay bill of more than £3 million.
Helen Dickinson, CEO of the BRC, said: “Bringing about more flexibility in the apprenticeship levy would not cost government or businesses a penny but could help bring about an estimated 8,000 new apprenticeship places across the retail industry. To deliver on government commitments to upskilling the UK workforce, we need the apprenticeship levy to work for both businesses and apprentices.”
Previously, Dickinson said: “The current Apprenticeship Levy system is broken,”
“It is inflexible, outdated, and it needs reform, otherwise retailers are forced to treat the Levy as little more than a tax.”
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