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Gloucestershire Business News

Tesco boss: Youth employment must be a priority

Tesco has launched a unique new apprenticeship, as it calls on Government to prioritise youth employment.

Writing in This is Money, Ken Murphy, Tesco Group CEO, said school leavers need more support because their education has been disrupted and there is a shortage of quality jobs. As a result, he said many are at risk of being left behind.

He said these barriers increase in the UK's most deprived areas, leaving a rising unemployment rate, which he believes needs to be tackled by Government and business working together - with retail playing a crucial role.

Ken Murphy said: "It doesn't matter who you are, where you live or what your background is, you can go from shopfloor to boardroom with determination, ambition and drive."

Last week, Tesco launched Stronger Starts apprenticeships for 16- to 18-year-olds, aimed specifically at young people who need extra support.

This is the first time Tesco has launched an apprenticeship scheme which doesn't require any qualifications. Instead, it can actually give young people the equivalent of five GCSEs.

Mr Murphy continued: "Entry level apprenticeships are proven to improve skills and typically raise pay by 20% within four years at Tesco."

He believes the apprenticeship levy isn't currently working and has been asking for reforms for five years. If that had happened, he said: "We would have recruited an additional 2,500 apprentices in Tesco alone.

"To date we have put in more than £100m to the apprenticeship levy, but according to the Government, our new Stronger Starts apprenticeship barely qualifies for levy funds."

As a result, Tesco is currently only able to offer 150 Stronger Starts apprenticeship, even though there will be demand for many more.

Since 2017, a combined £2bn of levy funds have been returned to the Treasury and the number of entry level apprentices has plummeted.

Mr Murphy concluded by urging politicians to put supporting young people into work right at the top of their agendas. And he said politicians should start listening to retailers, because the retail industry has practical ways to bridge the gap between education and employment.

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