The Institute of the Motor Industry (IMI) has hailed the introduction of free apprenticeships for under 25s in smaller businesses as a serious win for the automotive aftermarket – but warned that wider Apprenticeship Levy reform continues to be urgently needed.
Reacting to the Chancellor’s November 26 Budget, Nick Connor, CEO of the IMI, said the move directly responds to concerns long raised by the sector in regards to the barriers SMEs face in accessing and funding apprenticeships.
“The IMI is delighted that our pre-budget call for motion to enhance access to apprenticeships has been partly addressed in today’s Budget.
“With the introduction of free apprenticeships for under 25s in SMEs, this can be a significant step for a sector where 96,000 small and medium sized businesses play such a critical role.”
The IMI warned that the sector has suffered a sustained decline in apprenticeship numbers, undermining the pipeline of future talent into workshops and technical roles.
“Our sector has experienced a 30% decline in apprenticeship starts since 2018/19, a mean lack of over 500 apprenticeships per yr. And this decline has restricted the flow of recent expert employees entering our workforce, adding pressure to already tight recruitment pipelines across technical and specialist roles.”
The Independent Garage Association made calls earlier this yr for unused funds to be freed up.
Connor also welcomed the previously announced increase within the minimum Apprenticeship Pay rate.
“We were also encouraged by the announcement made before the Budget that the minimum Apprenticeship Pay will rise to £8 per hour from April next yr. This undoubtedly can even help with attracting young people to apprenticeships.”
Nonetheless, he stressed that the Budget measures don’t resolve long-standing frustrations amongst larger employers over how they’ll use their Apprenticeship Levy funds.
“We do, nevertheless, still have to see Levy reform for larger businesses. Our data shows that Levy utilisation in automotive is significantly lower than in other industries.
“Complex rules and inflexible structures prevent businesses from accessing funds for brief, targeted courses which are vital for maintaining safety and compliance – and for the federal government’s net zero ambitions. We are going to, subsequently, proceed to work with the relevant departments and industry stakeholders to get this issue addressed.”
On electric vehicles, the IMI warned that government policy stays too narrowly focused on infrastructure and manufacturing, without adequate support for the abilities needed within the aftermarket.
This Article First Appeared At www.am-online.com
