The Co-op Group has announced a £70m commitment through its Levy Share scheme to create 7,000 matched apprenticeships by 2030.
It hopes the move will boost skills and social mobility across the country – and points to Office for National Statistics data which warns that apprenticeship starts have dropped 31% since the government introduced the apprentice levy in 2017, leaving nearly one million young people out of education, work, or training.
Apprenticeships now add £25bn to England’s economy, according to Department for Education figures, the Group adds.
The Group says the Co-op Levy Share has already raised £40m and is “making a real difference for underrepresented groups, with 31% of apprentices identifying as non-white British, 67% as female, and 16% declaring a disability”, according to data from its receiving organisation.
The initiative is designed to break down barriers to work and progression, adds the Group, and supports the government’s recent call for more young people to access “gold standard” apprenticeships.
While the definition of “gold standard” is still being clarified, the Group says the Co-op Levy Share has the potential to support this ambition by unlocking opportunities for high-quality apprenticeships – including Level 4 and above – across the UK.
Related: Midcounties Co-op hails results of apprenticeship programme
Launched in 2021, Co-op Levy Share enables levy paying employers to transfer unused apprenticeship levy funds to businesses, charities, and community organisations.
In four years, the scheme has matched over 3,800 apprenticeships, with two thirds in the most deprived communities and a third in the care sector, says the Group. It adds that the scheme is tackling skills shortages in areas like rail engineering, early years education through its partnership with The Early Years’ Foundation, and digital.
The Group has now called on Skills England to start collecting socio-economic background (SEB) data for apprenticeships, to allow policymakers, employers, and educators to see who is, and isn’t getting access to apprenticeships, and to target support where it’s needed most.
“We launched Co-op Levy Share to unlock unused levy funds and turn waste into opportunity,” said chief people and inclusion officer Claire Costello. “Four years on, alongside our contributing partners, we’ve already channelled £40m into thousands of life-changing apprenticeships, and today we’re going further, committing £70m to create 7,000 apprenticeships by 2030.
“But to truly drive social mobility, we need to measure who benefits. That’s why we’re calling on Skills England to start collecting SEB data for apprenticeships. Without it, the system risks leaving some groups behind. Shining a light on access means we can target support where it’s needed most and build a fairer future for all.”
Sarah Atkinson, CEO of the Social Mobility Foundation, said: “Young people from low-income backgrounds – like the ones our charity supports – are crying out for more apprenticeship opportunities. And no wonder: the chance to earn while you learn can be life-changing for people who otherwise can’t afford to pay for training or university.
“But there are fewer apprenticeships around, especially for young people, and the opportunities that exist are dominated by those from more privileged backgrounds. We need more apprenticeships, like the ones created by the Co-op Levy Share, to help our young people flourish and fill our skills gaps.
“And we need to make sure that the people who need apprenticeships most can access them. Until Skills England collects socio-economic data on apprenticeships, we’re in the dark about whether they’re driving social mobility or entrenching inequality.”
The Apprenticeship Levy requires large employers to contribute to a fund supporting apprenticeship training. Unspent funds expire after 24 months and are returned to HM Treasury. Co-op Levy Share enables employers to transfer up to 50% of their annual levy to other organisations, covering training and assessment costs for apprenticeships and supporting growth across sectors.
The Group is calling on more businesses to join the Levy Share initiative, helping to create a stronger, fairer economy by supporting apprenticeships in sectors and communities that need them most.
Major businesses such as Amazon, JD Sports, Mitie, GXO, Nat West, Direct Line, PPF, HH Global, and The Growth Company have all pledged significant support, helping to fund apprenticeships in sectors from early childhood to engineering and digital.
For more information, visit cooplevyshare.co.uk
