The government announced a £725 million package in the Budget to create apprenticeships in sectors including AI, hospitality and engineering. Apprenticeships for people under the age of 25 at small and medium-sized businesses are also doe to be fully funded as part of the package.
Commenting on the new package of reforms, the Recruitment and Employment Confederation (REC) Director of Campaigns Shazia Ejaz said: “Employers have been waiting for real movement on getting more skilled people into work. Action on apprenticeships reform is welcome because the current system frustrates and fails many employers. The direction of travel is right on helping young people not in education, employment or training and a local focus based on understanding regional needs in partnership with employers and recruiters is important.
“However, to create many more ladders of opportunity, it needs to accelerate its promised support of short courses across multiple sectors. As the labour market is on the cusp of huge change, we cannot afford to exclude temporary workers from accessing training to help fill vacancies quickly and to keep them in the labour market.”
While manufacturing and engineering (M&E) is one of the top three destinations for apprenticeships, alongside business and construction, there’s a lack of growth that paints a worrying picture for the future of the sector, with an ageing workforce and increasing skills gap already leading to skills shortages.
Some key stats include:
- M&E apprenticeship starts:
- With 46,070 starts, M&E is atop three apprenticeship area alongside business and construction. (Digital tech’s rise to fourth (31,620) highlights the need for integration of digital skills in M&E pathways.)
- Marginal increase from 45,800 in 2023/4 – however this is down from peak number of starters in 2019/20 (52,000).
- Demographics:
- Young people engaging: 19,400 under-19’s entered M&E apprenticeships, showingthey’re a real alternative to GCSE leavers.
- Jobs and skills:
- Core technical demand: Installation & Maintenance Electricians (7,130) and Engineering Technicians (4,120) remain top two choices. Thisremains unchanged year-on-year.
- Over the last two years, huge growth in roles like Machining Technician (1,200) which had only 250 entriesin 2022/3.
Paraic O’Lochlainn, VP of eMaint, a Fluke Corporation Brand also commented on the package saying: “The latest DOE apprenticeship data highlights both the opportunity and the challenge facing UK manufacturing. While the sector remains one of the top three destinations for apprenticeships, growth of just 0.6 per cent year-on-year points to a stagnating skills pipeline at a time when industry transformation is accelerating.
“The Government’s new funding pledge for under-25 apprenticeships is an important signal of intent,” he added, “But success will depend on execution, collaboration, and a wider rethink of how we develop talent to fuel a competitive manufacturing base and power clean growth objectives.
“As manufacturers digest the recent Budget, now is the time to focus not only on recruiting new talent, but on deep, continuous upskilling to strengthen the UK’s industrial base. Closing the skills gap isn’t a numbers game; it’s a strategic investment in the nation’s capability and competitiveness.”