The Levy is dry? Apprenticeship funding take-up third lowest in motor sector warns IMI

2 February 2023  

The Apprenticeship Levy is being under-used in the automotive sector, with just 52% of motor industry apprentices receiving support this way in 2022, against an all-industry average of 65% of apprentices, the IMI has warned on the run-up to National Apprenticeship Week (6-12 February).

The sectoris in the bottom third of all UK sectors hiring apprentices. On the plus side, there were 43% more automotive apprenticeship starts in 2021/22 than in 2020/21. However, this is still 13% lower than pre-Covid levels in the 2019/20 academic year.

Joanna Hollingdale, Careers and Student Membership Manager of the IMI observed: “Compared to other industries, automotive had the sixth largest year-on-year percentage increase in apprenticeship starts last year. However, levels have a long way to go before they reach pre-Covid levels, which were already falling. The need to act now is becoming more urgent by the day. We already do not have enough qualified professionals to meet the growing demand for technicians trained to work on the latest and most innovative vehicles – including electric, hybrid and ADAS-equipped.”

Via the Apprenticeship levy, employers with a total annual pay bill of below £3million pay just 5% of the cost of their apprenticeship training while the government pays the rest.
Joanna added: “There is a vast range of apprenticeship courses available, meaning apprentices can find the stream that interests and motivates them the most. It also means employers can attract the right talent to fill current or future skills gaps, and the levy scheme takes away much of the wage burden. It really is a win-win for apprentices, employers and the wider industry.”

For more information, visit: https://tide.theimi.org.uk/apprenticeships-epa/provide-apprenticeship/levy