Asda has urged the UK government to rethink reported plans to defund leadership and management apprenticeships, warning the move could block progression from the shop floor into management roles and weaken long-term careers in retail.
Publishing its 2025 Apprenticeship Impact Report during National Apprenticeship Week, the UK’s third-largest supermarket said apprenticeship funding has delivered clear benefits for colleagues, local communities and small businesses, while also exposing flaws in the current levy system.
Asda, which employs more than 140,000 colleagues, said it invested £2.7 million in apprenticeship training during 2024–25, supporting more than 200 colleagues to complete programmes alongside their day jobs. The retailer has expanded its offer to 85 apprenticeship programmes, with around half of all colleagues completing an apprenticeship since 2024 going on to secure a promotion.
The report also highlights Asda’s wider role in supporting local economies through levy transfers. In 2024–25, the business transferred £1.15m of levy funding to support 165 apprentices across 80 small and medium-sized businesses in London, Leicester, West Yorkshire and Manchester, helping to create jobs and drive local growth.
Since the apprenticeship levy was introduced in 2017, Asda said it has invested £19m in levy-funded apprenticeships and supported more than 2,700 colleagues through the programmes. However, the retailer said the current system is limiting its impact, revealing that £11.7m of Asda’s levy funding expired unused last year due to restrictions on how employers can deploy their funds.
The supermarket warned that proposed reforms could exacerbate these issues. Reports suggest the UK government is considering changes that would make it harder for retailers to offer leadership apprenticeships. Asda said such a move would prevent apprentices from progressing into management positions, particularly affecting young people seeking long-term careers in retail.
James Goodman, Asda’s chief people officer, said apprenticeships are critical to developing future retail leaders.
“Apprenticeships are central to helping colleagues build the skills they need to thrive and to developing the next generation of retail leaders. We’re proud to offer high-quality programmes that grow talent within Asda and support local SMEs to upskill their teams,” he said.
“The current funding system is holding employers back, with millions in levy funding going unused because of restrictive rules. Reports that the government plan 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.”
Asda’s intervention comes as other major players in the convenience and independent retail sector also underline their commitment to skills and training. OurCoop, the UK’s largest independent co-operative Society, announced one of its first major commitments since forming – a pledge to create 300 new apprenticeship placements as part of National Apprenticeship Week 2026.