As Apprenticeship Week kicks off, third party logistics provider Staci is calling on the government to do more to help businesses hire apprentices.
The call follows the government’s major reform of the Apprenticeship Levy system. Under the changes SMEs - who are not required to pay the levy - now have 100% of training costs covered for apprentices under 25, removing the previous 5% co-investment requirement.
However, from January this year, new starts on Level 7 apprenticeships, which are Master’s level programmes, for individuals aged 22 and over, will no longer be funded through the levy. Existing apprentices who started before January 2026 will continue to be funded.
In addition, from April 2026, employers will have just 12 months, reduced from 24 months, to use their levy contributions before they expire.
Employers will also need to contribute 25% of training costs once their levy balance is exhausted, up from the current 5%.
The government’s monthly top-up will also be withdrawn. Employers will only be able to access the value of their own contributions.
On the upside, the changes could see more flexible training options introduced, with the government signalling that short-course apprenticeship units and foundation apprenticeships will become available from April 2026, removing the employer’s need to commit to full apprenticeship programmes.
Staci, which has its headquarters in Blackburn, employs over 500 people and operates one million sq ft of warehousing capacity in the UK.
The company specialises in multichannel logistics, POS fulfilment, 3PL, and warehousing solutions, and delivers services across multichannel B2B and B2C logistics, D2C and e-commerce.
Staci offers apprenticeships roles across the business, including Management Degree, apprenticeships, and Warehouse Operative, Procurement, HR, Finance, Team Leading and Business Improvement apprenticeships.
These have led to permanent roles or promotions within warehouse management, HR and procurement and have often been followed by Staci-funded professional qualifications. The company also offer apprenticeships to existing team members to enhance their skills and try something new.
Amanda Harvey, Staci HR director, said: “We began hiring apprentices when the Apprenticeship Levy was introduced and have remained committed to developing early-career talent. However, we have encountered some practical challenges with the scheme.
“The range of apprenticeship courses available remains limited, and training programmes can be lengthy. In some cases this makes it difficult to recruit apprentices at much less than the salaries of experienced team members, whilst the employer also funds the qualification and has to support and backfill off the job learning time.
“While the Levy was intended to encourage greater investment in skills and support long-term economic growth, its current structure can reduce the flexibility companies need to invest in the training that best supports their growth.
“Additional government support, such as salary subsidies for apprentices, could help make apprenticeships a more viable and attractive option, and reduce the risk of early-career talent being drawn towards short-term roles that offer higher immediate pay but offer no skills development.”
Harvey added: “Despite the challenges, we are passionate about bringing more young people into the supply chain sector.
“Logistics workers are at the heart of the UK retail sector, yet the industry faces a growing talent gap, as misconceptions and low awareness hold young people back from exploring these careers.
“In reality, logistics offers vast opportunities: from people management and problem-solving to operations, data, and technology skills.
“With rapid career progression in a stable, essential sector, logistics is a smart choice for the next generation entering the workforce.”
A survey of 500 leaders of mid-sized businessed by accountancy and advisory firm BDO, published this week, has revealed that over a third in the North West are planning to increase apprenticeship hiring in 2026, following the government’s recent announcement of free training for apprentices under the age of 25.
The survey revealed that over a fifth (21%) will increase the number of apprentices they hire in 2026, while 15% will start hiring apprentices.
Separate research from BDO’s ‘Young Minds’ survey of 2,000 young people aged 18-25, showed that whilst apprentices are a popular career route, 19% of young people in the North West are completely unaware of degree-level apprenticeships, with over a fifth (21%) finding access to quality apprenticeships a barrier.
Location also remains a challenge, with a fifth of university students or graduates in the region saying that they would have reconsidered their choice to go to university if they lived somewhere with more apprenticeship opportunities.
These challenges and opportunities for young people come as the majority (76%) of North West companies plan on increasing headcount overall in 2026.
Angela Cross, BDO regional managing partner in the North West, commented: “It’s encouraging to see so many mid-sized businesses, the engine of the UK economy, doubling down on their apprenticeship hiring, despite challenging economic conditions.
“Apprenticeships are by no means a new concept, but we know there is a shortage of high-quality, degree level apprenticeships. Those that do exist are often found in specific pockets of the UK making them less accessible to young people who are unable or unwilling to relocate.
“The Government’s funding for apprentices under the age of 25 is a significant step forward in reforming our apprenticeship system, but it is clear from both businesses and young people that more needs to be done to spread opportunity.
“A national programme linking local businesses with local schools and colleges would be a great next step. As is increasing the promotion of apprenticeships during the UCAS clearing process, so that those who have been unsuccessful in their chosen course are offered a whole range of options, not just university.”
