Adsa urges Government to reverse DWP rule change(Image: PA)
Asda is urging the Government to U-turn on its plans to defund leadership apprenticeships.
They claim that if the Labour Party doesn't reverse its plans for the Department for Work and Pensions (DWP), it could prevent young people from progressing from the shop floor.
In 2025, the supermarket chain invested £2.7 million in apprenticeship training, expanding to 85 apprenticeship programmes, with more than half of those completing an apprenticeship since 2024 going on to receive a promotion.
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Following the announcement in Rachel Reeves' Autumn Budget, funding for leadership apprenticeships was restricted to people aged 16 to 21 – coming into effect from January 1, 2026.
This extended to are leavers aged under 25, which forced companies to independently fund apprenticeships for anyone aged 22 and older.
James Goodman, Asda chief people officer, said: “Apprenticeships are central to helping colleagues build the skills they need to thrive and to developing the next generation of retail leaders.
“The current funding system is holding employers back, with millions in levy funding going unused because of restrictive rules.
“Reports that the Government plans to defund leadership apprenticeships would clearly be a further backward step, that would cut off proven progression routes and weaken the sector’s ability to develop future leaders.”
The current Apprenticeship Levy rules require companies with a payroll over £3 million to set aside 0.5% of their bill for apprenticeship training, with funds expiring after 24 months.
A business cannot access any unspent funds, with Asda revealing it has £11.7 million in expired levy funds from last year.
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