Asda has become the latest retailer to call on the government to overhaul its apprenticeship’s levy rules in next month’s budget.
The supermarket said the current scheme needed greater flexibility in where the levy funds can be distributed.
Under the current rules, large employers can transfer up to 25% of its levy funds each year to other businesses to fund their apprenticeships, training and development.
However, due to restrictions on the type of apprenticeships and training that can be funded through the levy transfer, many SMEs are unable to take advantage of this support.
The supermarket, which has circa £450,000 available to allocate from its 2023 levy, said it allocated £1m in transfer funds last year and to date has transferred £663,000 to small and medium sized business (SMEs) and public sector bodies.
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The financing has been used to fund more than 100 apprenticeships, from plumbers and electricians, to Police Community Support Officers and adult care workers.
Asda chief people and corporate affairs officer Hayley Tatum said: “At Asda we are incredibly proud of our current apprenticeship scheme and we know that apprenticeships are vital in providing young people with opportunities for growth, employment and to build new skills.
“However, we believe that the current apprenticeship levy scheme requires reform to provide greater flexibility in the schemes where the levy funds can be distributed.
“Asda would welcome reform that would make it easier for businesses to spend Levy funding as intended – offering new opportunities across the country as well as upskilling the existing workforce.”
M&S joined the campaign on Monday urging Chancellor Jeremy Hunt to review the “difficult” apprenticeship levy rules.
Group director of human resources Sarah Findlater said the current scheme was “too difficult to access, so millions of pounds are going unspent”.
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