Government must expand apprenticeship support for SMEs, says Logistics UK

SMEs are critical drivers of youth opportunity, local prosperity and social mobility, and decisive action is needed from government to help smaller businesses recruit apprentices, according to business group Logistics UK. In an open letter to the Secretary of State for Work and Pensions Rt Hon Pat McFadden signed by the group, alongside 28 other business leaders and sector stakeholders, failure to do so risks losing entry-level pathways that build skills, confidence and careers for the next generation.

The letter, signed by partners of Apprenticeships Work, a campaign spearheaded by education charity Edge Foundation, urges more government support for SMEs to recruit apprentices highlighting how it could unlock opportunities and growth across the country.

“SMEs often struggle to engage with the apprenticeship system,” said Bethany Windsor, Head of Skills Policy at Logistics UK. “Their businesses make up 99.7% of the logistics sector and 99.8% of businesses of the economy. Yet nationally, across all sectors, SMEs employ only 37% of apprentices, a fall of 17 percentage points since the Apprenticeship Levy was introduced in 2017.

“The decline needs to be addressed urgently. With the right support, SMEs can be instrumental in driving inclusive economic growth and opportunity.”

The letter to the Secretary of State sets out the need for decisive action from government to address the shortfall in SME uptake,  including establishing a coordinated framework to allow them to navigate apprenticeship funding and regulation, committing to a measurable increase in SME apprenticeship starts, and giving smaller businesses a greater voice in shaping apprenticeship design.

“The removal of training and assessment costs for SMEs taking on apprentices under 25 demonstrates the critical role government policy plays in enabling small businesses to grow,” continued Windsor. “To maximise impact, the government should now broaden this backing, helping more SMEs recruit apprentices and giving young people meaningful routes into work.”

The letter can be read here: Letter to Secretary of State for Work and Pensions Rt Hon Pat McFadden 

Logistics UK is one of the UK’s biggest business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, water and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods. For more information about the organisation and its work, please visit www.logistics.org.uk