Asda urges government to rethink apprenticeship funding cuts

Asda has urged the government to reconsider plans to defund leadership and management apprenticeships to protect career paths for shop floor workers. 

The supermarket’s warning was released alongside its 2025 Apprenticeship Impact Report, which highlighted the effect of apprenticeship funding on staff and local communities. Figures from the report showed that half of all Asda workers who completed a programme since 2024 secured a promotion. 

The retailer, which is said to be the third largest supermarket in the UK with more than 140,000 employees, invested £2.7m in training during the 2024/25 period. This allocation of funds supported more than 200 people to finish their qualifications while working. 

Asda currently offers 85 different apprenticeship programmes. It also transferred £1.15m of its levy to support 165 apprentices at 80 small businesses in London, Leicester, West Yorkshire and Manchester.

Since the apprenticeship levy began in 2017, the retailer has invested £19m. This has supported more than 2,700 workers through funded training.

However, the report identified significant flaws in the current system. Last year, £11.7m of Asda’s levy expired unused because of government restrictions on how funds are deployed.

Proposed reforms may further limit access to leadership roles, according to the report, as the government will withdraw funding for many level seven apprenticeships for learners aged 22 and over from January 2026.

James Goodman, chief people officer at Asda, said: “Apprenticeships are central to helping colleagues build the skills they need to thrive and to developing the next generation of retail leaders. We’re proud to offer high-quality programmes that grow talent within Asda and support local SMEs to upskill their teams.

“The current funding system is holding employers back, with millions in levy funding going unused because of restrictive rules. Reports that the government plan to defund leadership apprenticeships would clearly be a further backward step, that would cut off proven progression routes and weaken the sector’s ability to develop future leaders.”