The British Retail Consortium has welcomed the government’s plan to let employers spend the Growth and Skills Levy on short, flexible training from April 2026, a change set out in the Post-16 Education and Skills White Paper.
The reform aims to speed up upskilling in priority areas such as AI, digital and engineering, and will sit alongside existing apprenticeships.
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Levy flexibility seen as a practical win for retailers
Under the White Paper, employers will be able to fund “apprenticeship units” — short courses based on employer-designed standards — using their levy accounts.
The BRC said the move addresses long-standing calls from industry for greater flexibility so levy funds can match fast-changing skills needs on shopfloors, in distribution and across retail tech.
Luiza Gomes, the consortium’s employment and skills policy adviser, argued that a large share of the workforce needs upskilling and that enabling shorter courses should unlock more of the levy retailers already pay.
What the skills white paper changes
The White Paper sets out a broader package to align training with labour-market demand, led by a new executive agency, Skills England. It prioritises data-driven planning, sector “skills packages”, and a Youth Guarantee designed to help more young people into work or training.
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By GlobalDataFor levy payers, the headline shift is the ability to fund short courses from April 2026, with initial roll-out in AI, digital and engineering; foundation apprenticeships will also expand, with payments to support young starters.
Sector bodies note the change follows years of debate over how to reduce levy underspend and widen access to training.
Levy rules were recently tweaked to allow up to 50% of unused funds to be transferred to other employers, but funds still expire after 24 months if not used — a persistent frustration for large retailers. Industry press and provider briefings have flagged the incoming “Growth and Skills Levy” branding and the planned use of levy funds beyond full apprenticeships.
Implications for retail jobs and productivity
Retail remains the UK’s largest private-sector employer, with millions of roles across stores, logistics and head offices.
BRC analysis shows significant job losses over the past five years amid cost pressures and automation, intensifying the need for targeted training to raise productivity and progression.
Allowing short, modular training through the Growth and Skills Levy is intended to help employers address critical skills gaps more quickly, while preserving the full apprenticeship route where appropriate.
Gomes said the consortium will work with Skills England on next steps and pressed for further measures to help retailers make full use of levy funds to expand apprenticeships and training.
The government, for its part, has asked Skills England to steer provision to priority sectors and to ensure the new apprenticeship-unit model complements, rather than replaces, existing apprenticeships.
