Our industry was once a strong destination for school leavers, with high apprenticeship numbers. Today’s picture is different: apprenticeship starts for the 2025/26 academic year were 20-25% lower than pre-pandemic levels, and around 30% lower than a decade ago. Automotive now ranks a disappointing 11th out of 38 subject areas.
Are there fewer opportunities or less demand for technical expertise in automotive today? No.
Consumer demand is growing, especially with the transition to electric vehicles and the wider use of advanced driver assistance systems. The truth is that the apprenticeship system is making it too hard, too costly, and too complex for all employers, both large and small.
Under the current “use it or lose it” rules, analysis has shown employers have been returning the equivalent of £1.1bn a year in unspent levy funds to the Treasury. That is a travesty when the money should be spent building confidence, competence and careers for the more than 1 million young people not in education or training.
So what’s going wrong? Young people are left to navigate a complex, disconnected jobs and training landscape. And employers face too much red tape and complexity.
Reform is needed – and needed now. However, it mustn’t compromise the quality, integrity or safety of technical and safety critical occupations. Competence must continue to be verified objectively and consistently against national standards and in the automotive sector, technicians must demonstrate practical, job ready competence, not just theoretical knowledge.
The Prime Minister’s recent pledge to go ‘much further’ in investing in apprenticeships, Technical Excellence Colleges, and provision for young people ‘struggling to find a job’ is encouraging, but will “much further”, be far enough?
Nick Connor is CEO of the Institute of the Motor Industry
