Government Mobility Agenda at Risk Without Action on Repair Skills Crisis
The automotive sector is at a critical juncture, and the stakes have never been higher. Our education partners, Thatcham Research, the UK’s only not-for-profit automotive risk intelligence company, is spearheading a campaign to address the repair skills crisis that threatens the future of the industry. With the Apprenticeship Levy funding cap unchanged since 2019, there is growing concern that the UK lacks the necessary resources to train the next generation of technicians.
The Levy, currently capped at £15,000 per apprentice, has failed to keep pace with inflation and modern training requirements, resulting in a real-terms reduction in training capacity. Jonathan Hewett, Chief Executive of Thatcham Research, stresses:
“The automotive sector is facing a perfect storm of rapid technological change, a reduction in upskilling and recruitment, and an ageing workforce. Revisions to apprenticeship levy funding must be addressed as apriority by Skills England and IfATE, unlocking funding to deliver much-needed technical training to the repair sector.”
Why This Matters: EVs, Net Zero, and a Skills Shortage
The automotive repair industry is a linchpin for achieving NetZero targets and ensuring the successful adoption of Electric Vehicles(EVs) and other advanced technologies. Yet, only 16% of UK technicians are qualified to work on EVs, and by 2030, the Institute of the Motor Industry predicts a shortfall of 35,700 qualified technicians.
This gap has wide-reaching consequences:
- Rising insurance premiums due to costly, unrepairable vehicles.
- Increased complexity from Automated, Connected, and Electric (ACE) technologies and Advanced Driver Assistance Systems (ADAS).
- Risk of widespread college closures, further depleting training opportunities.
Hewett warns that without immediate action, the UK could face a future of “throwaway vehicles,” jeopardising the country’s automotive sustainability and safety standards.
Petition for Fairer Apprenticeship Funding
To address the issue, Thatcham Research is calling for:
- An immediate 20% increase to the Apprenticeship Levy cap, raising it to £18,000 for vehicle damage apprenticeships.
- Future levy caps to be periodically reviewed and adjusted to align with inflation.
They invite businesses, trainers, garages, and body shops to sign their petition, urging Skills England and IfATE to take decisive action.
Building a Sustainable Future
Beyond funding, the campaign highlights the need for the entire industry to rally together to:
- Change perceptions of careers in vehicle repair.
- Promote apprenticeships as progressive, dynamic, and rewarding opportunities.
- Attract new talent to fill the 21,000 job vacancies currently plaguing the sector.
The solution lies in fair funding, a renewed focus on training, and a commitment to showcasing the vibrancy and potential of careers in the automotive repair industry. As Hewett concludes:
“With fairer funding, we can reverse the trend of college closures, recover training capacity, and secure the future of the UK’s automotive repair sector. Together, we can ensure the skills crisis doesn’t jeopardize the industry’s critical role in achieving Net Zero and supporting mobility for all.”
AutoRaise is supporting Thatcham Research in their campaign to ‘Fix the Levy’, and we hope you will too. It’s critical to drive meaningful change and safeguard the future of the automotive repair industry.
Sign the petition here.
