Superdrug calls for apprenticeship levy reform amid new campaign

The boss of Superdrug has called for a reform of the government’s apprenticeship levy, claiming it would help promote social mobility and support the economy, according to The Times.

CEO Peter Macnab called for an overhaul of the apprenticeship levy funding system so that “valuable funds are no longer wasted”.

The levy currently requires employers with an annual wage bill of more than £3m to pay 0.5% of their payroll costs into a fund for training. 

The calls for a reform come amid a new campaign by Superdrug to promote apprenticeship employment across the UK. 

The ‘Rise Up to Level Up’ campaign will see Superdrug employ 500 apprentices this year, double its intake over the next three years and focus on five key areas where “unemployment amongst the young is high, but apprenticeship take-up is low”.

The campaign is fronted by TV star, former apprentice and business owner Tommy Mallet and supported by The British Retail Consortium (BRC).

It comes as Superdrug said apprenticeships are “vital to the economic future of the UK” and an important option for young people entering employment. 

It said the campaign reinforces the BRC’s calls for change to the “controversial” apprenticeship levy, to “make sure that valuable funds are no longer wasted, great applicants don’t have to be rejected due to strict rules, more young people and applicants from disadvantaged backgrounds can be brought into schemes and all apprentices are better supported to reduce drop-out rates”.

Helen Dickinson OBE, CEO of the BRC said: “With retail transformation underway and industry jobs becoming more productive, higher-skilled and better paid, retailers have a wealth of exciting apprenticeships on offer. 

“We are proud to support this ambitious scheme, which will showcase the wide range of career options within retail and grow the number of apprenticeship places, giving hundreds more young people and applicants from disadvantaged backgrounds a rewarding start to their careers.” 

She added: “Rise-up to Level Up shows how much value retailers place on apprenticeships and the proactive steps they’re taking to provide more opportunities for people from diverse walks of life.” 

“But the industry could go even further if the apprenticeship levy was more flexible, with the option to spend funds on a wider range of training which meets the industry’s skills needs. Now is the time for government to work with businesses to build an effective apprenticeship system which ensures a steady pipeline of talent and better supports apprentices, today and in the future.”