The Institute of the Motor Industry (IMI) is continuing to call for urgent review of the system to enable small businesses to offer apprenticeships to young people.
The IMI welcomed last week’s announcement that non-levy paying employers will receive £2,000 for every young apprentice they take on.
Nick Connor, CEO of the IMI, said: “The financial incentive is fantastic news for the thousands of independent garages, bodyshops and dealerships that operate in the automotive sector. And it is hugely encouraging to see that the Apprenticeship Hiring Payment will be routed through training providers so that under-resourced SMEs don’t need to face another pile of admin to apply.
“However, we are still waiting for news of how the apprenticeship reforms will address the complexity of the system, which is another barrier for small businesses. Finding the right standard, securing a suitable training provider, understanding eligibility rules are all challenges that are hard to overcome.
“Until this is fixed, the financial incentive can only go so far. A refreshed website is a step in the right direction, but it won’t solve the underlying complexity.”
The IMI is urging government to look beyond financial incentives and address the wider barriers that stop businesses from engaging with apprenticeships.
It states employers need simpler processes, accessible local training provision and practical support.
The Latest IMI Vacancy Tracker notes vacancies have increased for the second reporting period in a row, reaching around 17,000 in June to August 2026.
Across the UK, the total number of vacancies fell slightly.
The sector’s job openings rate, which compares vacancies with the number of employee jobs, rose to 2.8% which is the joint second-highest rate among UK industries.
