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Co-op has called for private and public sector organisations to collaborate to ensure the Apprenticeship Levy is used more effectively to support young people.
It comes as it was revealed this week that millions of pounds of funds remain unspent and have been returned to the central government, due to the current Levy rules set up by the government and its flexibility.
This unspent amount totalled £96m in 2022/23, which could have funded over 9,000 apprenticeships across the public and private sector. This figure marks a significant increase in underspent funds, with £11m being recorded in 2021/22.
While recent figures are six times smaller than this peak, Co-op has urged businesses to come together to close the gap further and make better use of the funding.
According to Co-op research, young people are increasingly interested in applying to apprenticeships, while 56% of young people want to work or volunteer in something that makes a positive difference to society.
Some 37% of Co-op’s own Levy Share funding has been used by publicly funded organisations since 2021, and with reported funding gaps of up to £4bn across the UK, this trend is expected to continue into 2024.
Claire Costello, chief of people and inclusion officer at Co-op, 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.
“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 and we are proud to have partnered with so many organisations that share our values and vision.”
