Apprenticeship numbers fall off a cliff

Apprenticeship starts in the motor industry were down a staggering 75% in June compared to the same month in 2019, according to figures from the Department for Education.

The figure was even more drastic in the vehicle maintenance and repair sector, where the annual decline was 87%.

This compares to a 57% reduction across all industries.

Steve Nash, CEO of the Institute of the Motor Industry (IMI), said: “Whilst it is disturbing to see such a sharp decline in apprentice recruitment, it is perhaps understandable that in the current, exceptional circumstances employers’ focus is very much on recovery.

“Sadly, in many cases that has meant having to realise efficiencies, including the closure of some operations and redundancies. It is understandable that in these circumstances the focus has switched away from future workforce development, including the recruitment of apprentices.

“Notwithstanding this, many automotive employers are still contributing to the apprentice levy, and seeing unused funds clawed back by the government.

“On behalf of employers I have personally represented the case to government that the levy clawback should be suspended for two years, allowing the levy funds to accumulate so that employers can refocus on apprentice recruitment once they have come through the recovery phase.  Those discussions are ongoing with ministers within the Department for Education and supported by opposition MP’s and we hope to see some measures announced in this regard in the chancellor’s Autumn Statement.

“In the meantime, we are encouraging employers to use rather than lose their levy money, making full use of the additional support funding announced in the chancellor’s emergency budget.”