Logistics UK demands levy reform

The UK’s apprenticeship system needs a radical overhaul if busi­nesses which make regular levy payments into the scheme are to be able to train new recruits using these funds, according to a new report from business group Logistics UK.

The organisation’s Skills Review claims there is great interest across industry in taking on apprentices however, over the past five years, only four per cent of levy-paying employer accounts were able to fully utilise the funds available to them.

Michelle Gardner, deputy di­rector of policy at Logistics UK, explained: “Our latest report found that the total estimated amount of funding possible to be recovered by businesses in transport and logistics since the levy was introduced was £250 million: however, during the same period, the sector paid in £825 million in levy funds. This is unacceptable – especially con­sidering the current economic cli­mate – and highlights the urgent need to overhaul the Apprentice­ship Levy, especially if industry’s long-term skills shortage is to be resolved.

“With 68 per cent of respond­ents to Logistics UK’s survey in­terested in taking on apprentic­es, it is clear the demand across industry to support growing tal­ent is there, but the current sys­tem is fundamentally flawed. Tra­ditionally, there have been many barriers to entry for candidates and businesses, such as min­imum skills requirements and minimum duration of the appren­ticeship – many of which do not apply to logistics roles – as well as restrictive business size spec­ifications which prevent further uptake of the training scheme.

“Since 2021, Logistics UK has been highlighting to government the need for the current system to be replaced with a more flex­ible Training Levy to enable real­istic training and development programmes for new recruits. The industry itself is working hard to fill skills gaps and introduce the next generation of workers to the sector – via initiatives such as Generation Logistics – however it is now vital that government re­sponds accordingly to remove the barriers and ensure a continued skilled workforce is available to keep the UK economy supplied with everything it needs.”