11 February 2021
- £500,000 pledged to kick start new pioneering £15m fund to improve opportunities for under-represented groups.
- Fund will support range of individuals including BAME and low socio-economic groups.
The Co-op today announces a nationwide initiative designed to improve employment opportunities for individuals from under-represented groups by channelling money from big businesses to smaller companies. The new Fund will create apprenticeships for candidates from BAME communities, as well as people from low socio-economic backgrounds.
Co-op will pledge an initial £500,000 and is calling on other employers to step in to create a £15m fund to support the creation of thousands of new apprenticeship opportunities. The Fund has been designed for maximum reach and flexibility and will provide apprenticeship opportunities for groups and individuals who are most disadvantaged due to systemic prejudice or economic deprivation.
Under the new initiative, businesses across England will be able to pledge unspent money from their apprenticeship levy. * Other employers seeking to recruit apprentices from under-represented groups will register and be matched to businesses with spare money. These smaller businesses will then be matched with a candidate that aligns to their own diversity and inclusion goals and requirements. The initiative is likely to be particularly attractive to smaller businesses and organisations that typically find creating apprenticeships more difficult.
The initiative has been designed with Business in the Community (BITC) and the Co-op is also working closely with the Department for Education to support the growth and development of apprenticeships. The first transfers under the fund are expected to be available in April and will be open to companies and organisations in any sector.
Alongside the scheme, the Co-op is working with the BITC Race Advisory Board to ensure BAME candidates who secure roles through the scheme are set up for success with individual support that will include mentoring.
‘Anti-racist in all that we do’
The announcement, which comes during National Apprenticeship Week, is the Co-op’s first major move since the adoption last year of ambitious new diversity targets. These include maximising the use of the apprenticeship levy to benefit BAME communities, a commitment to double the representation of Black, Asian, and minority ethnic leaders and managers across the business by the end of 2022 and encouraging a strong focus on inclusion for supply chain partners. In September last year Co-op CEO Steve Murrells’ also pledged a commitment from the business to be Anti-Racist in all that they do.
The Co-op’s ambition is that by 2023 the “apprentice opportunity gap” for young people from BAME communities will be overcome. Department of Education figures show that in 2019/2020, 9,500 young people from BAME communities missed out on apprentice opportunities; 13.3% of apprentices come from BAME communities, although the same communities make up 16% of the UK population. **
Steve Murrells, Co-op Group Chief Executive Officer, said: “Apprenticeships are a vital part of the lives of thousands of young people as they start their careers – and vital for the UK economy and business competitiveness. At the Co-op we have identified a significant opportunity to make the system fairer and more inclusive and benefit communities which are disadvantaged. Our levy sharing scheme is designed to ensure opportunities are fairly distributed and we believe it will help close an ‘opportunity gap’ that impacts so many young people.
“At the Co-op we have ambitious plans to become more diverse and inclusive and create greater social mobility. We know we cannot do that alone and today I am calling on other employers to join us in this important initiative and on the journey to becoming truly inclusive.”
Sandra Kerr CBE, Race Director, BITC, said: “By pledging funds to this initiative, companies will help create new apprenticeship opportunities for young people across the business sector. With 33% of black employees feeling their ethnicity will pose a barrier to their next career move, this initiative will be a great step forward to addressing inequalities that exist today. However, this will only succeed if enough businesses show their support. Business leaders should fund this initiative and show they are serious about changing the record for young black, Asian and minority ethnic people more broadly by signing the Race at Work Charter. Together let’s make the apprentice opportunity gap a thing of the past.”
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Notes to Editors: *The Apprenticeship Levy is an England only funding mechanism. As a Co-op we support the devolved nations, but they don’t utilise the levy so in this context it is England only.
About the Co-op The Co-op is one of the world’s largest consumer co-operatives with interests across food, funerals, insurance, legal services and health. Owned by millions of UK consumers, the Co-op operates 2,600 food stores, over 1,000 funeral homes and provides products to over 5,100 other stores, including those run by independent co-operative societies and through its wholesale business, Nisa Retail Limited.
Employing over 62,000 people, the Co-op has an annual turnover of £10 billion. As well as having clear financial and operational objectives, the Co-op is a recognised leader for its social goals and community-led programmes. The Co-op exists to meet members’ needs and stand up for the things they believe in.
About Co-op’s diversity and inclusion commitments In September 2020, the Co-op made the following commitments:
- Pledge to increase percentage of leaders from Black, Asian, or ethnic minority background from 3% to 6% by 2022 and 10% by 2025
- Requirement for diverse shortlists for leadership roles
- Working with Co-op Academies Trust to develop curriculum on anti-racism; plan to lobby government for national roll out
- Annual publication of ethnicity pay gap from 2021; call on government to make mandatory for all businesses
- Maximising use of apprenticeship levy; seeking partnerships and opportunities focused on benefitting Black, Asian and ethnic minority candidates
- Increasing to 25% the number of local causes supported that include Black, Asian, and ethnic minority beneficiaries
- Increasing involvement of Black, Asian, and ethnic minority communities through membership
About Co-op apprenticeships There are currently more than 1,200 active apprenticeships across the Co-op, from the support centre in Manchester right through to the frontline in UK high streets, throughout food stores and funeral homes. The Co-op has committed to top up apprentices’ national minimum wage allowance, to ensure every candidates’ income is in line with colleagues’ pay.
The group’s ‘Co-operating for a Fairer World’ vision seeks to address youth inequality and create social mobility.
About the apprenticeship levy, taken from gov.uk The levy is paid by large employers with a pay bill of over £3 million (they pay 0.5% of their total annual pay bill). Currently, only 2% of employers pay the apprenticeship levy. Levy paying employers access their funds through the online apprenticeship service. The funds in their accounts are available to spend on apprenticeship training in England. Employers have 24 months to use their funds once they enter their apprenticeship service account, after this point, their funds will expire. The funds expire to encourage levy paying employers to invest in high-quality training and assessment and to prevent levy payers from accruing very large balances. However, any unspent levy funds within each financial year are then used to support existing apprentices to complete their training, pay for apprenticeship training for smaller employers and additional payments to support apprentices.