The logistics sector is raising alarms over apprenticeship numbers, calling for significant reforms.
- New research highlights a 41% decline in apprenticeships for under 19s since the introduction of the Apprenticeship Levy.
- The logistics sector alone has contributed over £1.1bn into the levy, yet only a fraction of these funds have been utilised.
- Industry leaders express concerns over restrictive apprenticeship structures that fail to address specific training needs.
- Calls for a more flexible skills funding system are growing, to better meet the immediate needs of the industry.
The logistics industry has sounded an urgent call for reforms in response to alarming research findings, which reveal a significant downturn in apprenticeship numbers. The research conducted by the Chartered Institute of Personnel and Development (CIPD) shows a stark 41% decline in apprenticeship starts for those under the age of 19 and a 36% decrease for individuals aged 19 to 24, since the Apprenticeship Levy was introduced in 2017. This has raised serious concerns across the sector.
The RHA has responded to the findings by highlighting that while the logistics sector has paid over £1.1bn into the levy, only about 20% of these funds have been accessed. The association argues that the heretofore structure of some apprenticeships, including those for key roles such as HGV driving, imposes a strict 12-month minimum duration. This duration presents significant barriers for potential candidates, favouring shorter training options like bootcamps instead.
Further criticism is aimed at the levy system’s inability to accommodate the diverse training needs of businesses. Richard Smith of the RHA noted that the Apprenticeship Levy does not provide satisfactory value for employers, indicating that funding is inadequate compared to rising apprenticeship costs. He advocates for a more flexible utilisation of levy funds, enabling businesses to direct resources towards more appropriate upskilling initiatives.
Another aspect of concern is the high rate of training that is rebadged and not tailored to the actual needs of apprentices, with a lack of completion being a major issue. The report highlights that only 54.6% of apprenticeships reached completion in the 2021/22 period. Logistics UK has echoed these sentiments, underscoring the inadequacy of the current skills training system and the need for a restructuring to deliver real-time and relevant training.
Logistics UK and other industry voices are lobbying for systemic changes, urging the government to reconsider and redesign the approach towards apprenticeship schemes. As Jonathan Walker pointed out, the current structure does not align with the sector’s requirements, stressing the importance of adaptable skills programmes that respond effectively to both employer and employee needs.
The logistics sector continues to push for reform, seeking a skills funding system that caters more flexibly to its evolving needs.
