A new report has been published by business group Logistics UK in which it is said that the current apprenticeship levy system is ‘flawed’. The report calls for a radical overhaul of the existing setup if businesses paying in are to be able to train new recruits with these funds.

According to Logistics UK’s Skills Review, there’s a real keenness across the sector for taking on new apprentices. However, over the past ½ decade, just 4% of levy-paying employers found it possible to fully utilise the available funds.

It’s ‘Unacceptable’ That Just £250m of £825m of Funds Were Used

Talking about the glaring disparity, Logistics UK deputy director of policy Michelle Gardner expressed shock at the findings, saying…

“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 £250m. However, during the same period, the sector paid £825m in levy funds.

This is unacceptable – especially considering the current economic climate – and highlights the urgent need to overhaul the Apprenticeship Levy, especially if the industry’s long-term skills shortage is to be resolved. With 68% of respondents to Logistics UK’s survey interested in taking on apprentices, it is clear the demand across the 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 the 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 respond accordingly to remove the barriers and ensure a continued skilled workforce is available to keep the UK economy supplied with everything it needs.”

Barriers to HGV Skills Training Must Be Mitigated

With a clear desire in the HGV industry to take on more apprentices but a fraction of the available levy system funds available being taken, there’s an obvious disconnect. As such, we’re fully behind the calls made by Logistics UK for moves to improve the current situation, whether by amendments or a radical overhaul – whatever improves access to funds.

In the meantime, the HGVC team will continue to deliver leading HGV licence acquisition programs via our network of 60+ national training centres. Scalable to meet the needs of both small businesses and large-scale operators, we’re here to help you combat the ongoing shortage of skilled HGV drivers in the UK.

Please browse our website to understand more about us and how we work. Alternatively, to speak to us directly about how we can help you, click on ‘contact us’ or call 0330 818 8888 where our friendly experts will be happy to discuss your needs.