The Co-op is calling for companies to work together to make sure unspent cash gets used to fund more apprenticeships.
The group today said that last year more than £96m in unspent Apprenticeship Levy money was returned to the Treasury “due to the current Levy rules set up by the Government and its inflexibility”.
It is calling on public and private organisations to consider joining forces on “levy share” programmes that can tap into that unspent cash and use it to fund apprenticeship opportunities.
The Co-op itself has sourced £23m through its Co-op Levy Share service, supporting more than 2,000 apprenticeships across 140 roles.
The group says that to date £2,178m of Apprenticeship Levy funds have been returned to the Treasury since the scheme began in 2017. The peak year was 2020/21 during the pandemic, when £604m went unspent. In 2021/22 £11m went unspent - but that rose to £96m in 2022/23.
The Co-op says: “Pressure on budgets across local government, charities and healthcare organisations have led to understandable capacity constraints, limiting the time and resource available to secure targeted, beneficial apprenticeship training.”
It suggests that businesses could contribute excess, unspent apprenticeship levy funds to levy share programmes that allow employers to share up to 25% of unspent levy funds, rather than return them to the Treasury.
More than £23m has been pledged by 80 organisations to the Co-op’s own such service, Co-op Levy Share, supporting apprenticeships in areas including environmental consultancy, engineering, healthcare, education, legal practice, HR, and the emergency services.
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The organisation says the programme has also helped reduce the “opportunity gap” in apprenticeships for underrepresented areas and groups, with 75% of levy share funding used in disadvantaged areas and much of the support directed to SMEs.
Claire Costello, Co-op’s chief of people and inclusion officer, said: “We urge every organisation that finds itself with excess Apprenticeship Levy funds to consider supporting a Levy Share initiative. By doing so they can play a crucial role in supporting the creation of roles for people both starting out in their professional careers, and those with experience already under their belt, to get into purposeful careers at organisations that might otherwise be struggling with limited budgets in 2024.
"It’s fantastic to have reached our Co-op Levy Share target and to have improved access to training in areas of England that need it most. This success is a testament to our continued commitment to create more career opportunities for people from all backgrounds and age groups, and support the growth of a diverse, skilled economy.”
“We are proud to have partnered with so many organisations that share our values and vision. We thank each of them for their support and want to do even more. Our member owners have made it clear to us that they want to create a fairer world for young people. Apprenticeships are a key driver of social mobility among this group and can play a major role in shaping future economic prosperity.”
Sahar Makki’s social care apprenticeship and training at S4 Care in Stockport was made possible with £3,000 in support from the Co-op’s levy share scheme.
She said: “I always wanted to be a carer as I wanted to give something back. I love working with people and seeing the difference I can make in their lives. My client's smile when I arrive is enough for me.
“After being a carer for a little while I wanted to improve my skills and the apprenticeship was the perfect way to do this. C4 Care has been fantastic supporting me every step of the way, and I now want to go on to more studies and become a Team Leader with C4.”