UK Industry Urges Skills Investment to Boost Apprenticeship Numbers
As National Apprenticeship Week 2026 begins, the UK’s manufacturing sector is advocating for increased investment in skills development. Make UK, the national organization for manufacturers, urges the Government to introduce a Skills Investment Pledge to mitigate the decline in apprenticeship numbers and address rising youth unemployment and NEET statistics.
Current State of Apprenticeships
The number of apprenticeships available in the engineering and manufacturing sectors has declined by 40% since 2017. This sharp decrease, combined with the rising number of individuals not in education, employment, or training, represents a critical challenge for the UK economy.
Government Funding Misallocation
Despite collecting billions through the Growth and Skills Levy and the Immigration Skills Charge, much of this funding remains unutilized for training initiatives. Make UK estimates that over £1 billion from these levies is not being reinvested into apprenticeship programs. This situation exacerbates skills shortages, as manufacturers struggle to fill approximately 50,000 live vacancies across the sector.
Proposed Solutions for Boosting Apprenticeship Numbers
To reverse the decline in apprenticeship starts, Make UK has outlined several recommendations:
- Increase funding for apprenticeships and high-value courses, focusing incentives on smaller employers.
- Relax training criteria to better align with the needs of industrial sectors, empowering businesses to address their specific skills shortages.
Economic Impact of Skills Investment
Implementing a Skills Investment Pledge can potentially redirect over £1 billion annually toward workforce development by 2029-30. This investment is projected to facilitate up to 234,000 additional apprenticeship starts each year—significantly enhancing the available talent pool in critical industries.
Even under conservative estimates, the economic boost could reach between £4.4 billion and £5.9 billion in the long term. This increase would stem from improved wages and higher employment rates facilitated by a more skilled workforce.
Importance of Immediate Action
Rt Hon. Robert Halfon, Executive Director of Make UK, emphasizes the urgency of addressing the decline in manufacturing and engineering apprenticeships. He notes that without action, essential training opportunities will be at risk, potentially leading to further economic hardships.
By implementing a Skills Investment Pledge, the government could unlock the potential for hundreds of thousands of new apprenticeships. This initiative would not only help to fill skills gaps but also contribute substantially to the UK economy.
