Co-op’s Levy Share to support UK’s first Prisoner Apprenticeship programme to address rail skill shortages and reduce reoffending

29 July 2025

• In a first, Co-op and City & Guilds partner to address reoffending and rail skills shortages with guaranteed employment pathways
• Co-op to offer a dedicated levy share service to support apprenticeships for serving prisoners who’ll go on to work in the rail sector
• The Level 2 Rail Engineering operative apprenticeships will be based at HMP Highpoint in Suffolk delivering vital hands-on training for the UK rail sector
• Reoffending costs the UK economy over £21bn a year—this initiative aims to break the cycle and boost the workforce
• Developed in response to requests from Co-op members to prioritise reducing re-offending and supporting rehabilitation
• Co-op calls on other businesses to get involved and share unspent levy

The Co-op, in collaboration with City & Guilds Foundation sees the launch of the first rail engineering apprenticeships at the Centre of Excellence skills hub at HMP Highpoint. The initiative aims to tackle the UK’s rail engineering skills shortages while significantly reducing reoffending rates, a problem currently costing the UK economy over £21 billion each year*.

From August, the new programme – created in response to Co-op members' requests at its AGM to focus on reducing re-offending and supporting rehabilitation - will allow prisoners to complete full apprenticeships and their end-point assessments before release, giving them the chance to earn a Level 2 qualification in Rail Engineering Operatives and move straight into employment and directly into track engineering roles on release.

Thanks to Co-op Levy Share which brings together funds from Co-op and other employers to support apprenticeships for underrepresented groups – employers can help support rehabilitation by transferring their unspent apprenticeship levy funds. Co-op Levy Share allows like-minded partners to pledge up to 50% of annual unspent apprenticeship levy funds and share them in a targeted way to support the provision of apprenticeships in underrepresented groups.

Currently, around 80% of offending is reoffending. Reoffending places immense pressure on frontline services and traps thousands in cycles of custody, with the average annual cost per prisoner exceeding £51,000 and over 87,000 people in custody across England and Wales**.

Recent data shows that if someone leaving prison is employed within six weeks of release, their likelihood of reoffending is cut by half — a powerful testament to the impact of meaningful work. Recognising the untapped potential within the prison system, this programme aims to support skills development and improve employment outcomes for those preparing to re-enter society.

Claire Costello, Chief People and Inclusion Officer at the Co-op, said: “At Co-op, we believe that everyone deserves the chance to build a brighter future—for themselves and for their communities. Our partnership with City & Guilds Foundation demonstrates the transformative power of targeted training, employment, and genuine opportunity.

“It is great that through our levy initiative we can invest in people and equip them with skills that are in high demand, not just reducing reoffending but also helping to tackle critical skills shortages in the UK rail sector, strengthening the fabric of society.
“We’re inviting other businesses to join us in pledging their unspent levy – helping to create more second chances and build a more inclusive workforce across the UK, whilst delivering lasting benefit to communities nationwide.”

Kirstie Donnelly, Chief Executive Officer at City & Guilds, said: “At City & Guilds we have a deep understanding of the power of skills to change lives. Apprenticeships have long been one of the most effective ways to gain quality skills and sustained employment, and I am delighted with some of the outcomes already achieved through quality training in the prison estate.

“Current programmes delivered through the Centre of Excellence skills hub model are achieving employment outcomes 2.5 times higher than the national average, with significantly more prisoners securing work within six months of release. When people in custody can access training that leads to meaningful work, they are far less likely to reoffend and instead can contribute to their community - rather than costing it - on release.

“By using the apprenticeship levy flexibly, we can support innovative apprenticeships and reach a whole talented but untapped workforce - one we will need if we’re going to deliver on the ambitions of the Government’s Industrial Strategy and opportunity missions – and meet the growing skills gaps in key industries.

“We hope this is just the start of realising the transformative impact of apprenticeships on the prison system, and our society as a whole will be a safer and more productive place as a result.”

The Governor of HMP Highpoint, Nigel Smith, said: “This is a truly exciting and positive initiative, and we’re proud that HMP Highpoint is the first site to host the new rail engineering apprenticeship scheme. This programme not only equips prisoners with hands-on, industry-recognised skills—it also gives them a real, tangible opportunity to build a better future on release.

“By linking training directly to employment in a critical sector like rail, this scheme helps break the cycle of reoffending and supports safer communities.”

Each apprenticeship represents a £12,000 investment, underscoring a strong commitment to high-quality training and ongoing support. Since its conception in 2021 Co-op Levy share has seen £38.2m in pledges and has funded over 3,500 apprentices from diverse backgrounds. Including partnerships with The Royal Foundation's Business Taskforce for Early Childhood to create over 600 apprenticeships in the early years sector.

ENDS

References the cost of reoffending per year to be over £21bn from current analysis: Cost of reoffending rises to more than half total impact of crime
*Cost per prisoner: Written questions and answers - Written questions, answers and statements - UK Parliament No. prisoners: SN04334.pdf

For further information, please contact:

• Co-op – sarah.fitton@coop.co.uk
• City & Guilds Foundation – press@cityandguilds.com

About Co-op
Co-op Group is one of the world’s largest consumer co-operatives, operating across food retail, funerals, insurance, and legal services. Owned by over 6 million active member-owners, Co-op exists to meet their needs and champion the causes they care about.  With more than 2,300 food stores, 800 funeral homes and a wholesale business supplying around 6,000 additional outlets, Co-op employs 54,000 colleagues and generates annual revenues of over £11 billion. It is a recognised leader in ethical business and community-led programmes, creating long-term value for members and communities across the UK.

About City & Guilds

City & Guilds is the trusted global skills partner. Since 1878, we have been dedicated to advancing the skills that people, organisations and societies need to thrive, both now and in the future.  With 5.1 million learners of all ages and backgrounds worldwide, we understand the life-changing link between skills development, social mobility, prosperity, and success.  We champion vocational and technical training routes and collaborate with industries and government to campaign for improvements across the global skills landscape.  Working with over 1500 employers we deliver high-quality skills training and credentials, both in person and online, that meet the evolving needs of industry and skills challenges.
Our qualifications and awards are delivered to thousands of colleges and training providers across the globe, creating end-to-end solutions and improving learner skills and productivity.  City & Guilds courses have contributed £15.3bn to society in the UK alone. Through our City & Guilds Foundation we amplify our purpose by focusing on high-impact social investment, recognition, and advocacy programs. These initiatives aim to remove barriers to getting a job, celebrate best practice on the job, and advocate for jobs of the future.

City & Guilds Training, Gen2, Intertrain, ILM and The Oxford Group brands are all a part of City & Guilds.

For further information please visit cityandguilds.com