Thatcham Research is calling on Skills England and the Institute for Apprenticeships and Technical Education (IfATE) to increase the Apprenticeship Levy funding cap which has remained unchanged since 2019.

The levy, capped at £15,000 per apprentice, has not kept pace with inflation and no longer meets modern training standards, resulting in a real-term reduction in training capacity.  

Reliable and flexible access to apprenticeship funding is crucial in supporting businesses to address the skills crisis, enabling adequate provision of training opportunities for new starters.

 

 

 

 

As highlighted in Thatcham Research’s Impact of BEV Adoption on the Repair and Insurance Sectors report last June, approximately 16% of UK technicians have the relevant qualifications to work on electric vehicles (EVs). The Institute of the Motor Industry also predicted that by 2030 there will be a shortfall of 35,700 qualified technicians. 

While Thatcham Research has sought to address this shortage through the provision of training programmes such as EV Ready, the UK remains at risk of missing Net Zero targets which rely on new repair skills to ensure the sustainable adoption of EVs. 

There are also concerns about rising insurance costs and the emergence of unrepairable vehicles, should the skills crisis continue.  

To support urgent changes to the levy cap, Thatcham Research invites trainers, garages, bodyshops and others within the repair chain to sign a petition calling for Skills England and IfATE to review the 2019 cap. 

Thatcham Research is calling for: 

• An immediate 20% increase to the 2019 Apprenticeship Levy cap. For vehicle damage apprenticeships (including paint and panel technicians, and mechanical, electrical and trim (MET) technician) it would increase from £15,000 to a minimum of £18,000 per apprentice
• Future apprenticeship funding to remain in-line with inflation via periodic levy review

 

More more information, please visit our press site.