05 Mar 2024

IGA urges Chancellor to rethink use of Apprenticeship Levy

The IGA has written to the Chancellor or the Exchequer, encouraging him to use the upcoming Spring Budget to make changes to the Apprenticeship Levy to reverse an ongoing slump in the number of young people joining the garage trade.

Since the introduction of the Apprenticeship Levy in 2017, new Level 2 & 3 Light Vehicle apprenticeship registrations have fallen by 39%.

The IGA has proposed utilising unused Levy funds to enhance trainee earnings  for over-19s not employed, in education, or undergoing training to encourage them to enter the automotive industry, which would help garages and reduce the number of underqualified unemployed young people.

Commenting on the proposal, IGA Chief Executive Stuart James said: “It is widely recognised that there is a shortfall of suitably skilled professionals within the automotive sector, and we have urged the Chancellor to take appropriate action to holt the decline. This is a great opportunity for the government to provide help and to take steps to fill the skills gap in the automotive sector.”

He added: “It is paramount that the government recognises the urgency of our message and bring about measures to apprenticeship funding to ensure the future of our industry.”