The Department for Education has unveiled major changes to apprenticeship rules that will impact businesses in the automotive aftermarket.
Among the changes, Accelerated Apprenticeship programmes will be introduced from 1 August reducing the minimum duration of apprenticeships from 12 months to eight months.
Meanwhile, a new Foundation Apprenticeship route is launching for 16–21 year olds and 22–24 year olds with additional needs that will offer employers up to £2,000 in incentives and a further £666 if the young person progresses to a higher-level apprenticeship.
The government has also announced the ‘20% off-the-job’ training rule is being phased out, and from April 2025, all apprenticeship standards will have their end-point assessment plans rewritten, enabling employers the opportunity to shape the future of apprenticeships.
Other technical changes include cutting Level 7 apprenticeship funding for those over 22 from 2026, and increasing the Immigration Skills Charge.
Negative consequences
However, the IMI has warned that these changes could have negative consequences for the automotive sector.
Emma Carrigy, head of research, careers and inclusion at the IMI said: “The UK government’s recent decision to withdraw funding for Level 7 apprenticeships from January 2026, focusing support exclusively on individuals under 21, is poised to have a nuanced impact on the automotive sector.
“Historically the sector has exhibited lower engagement with Levy-funded apprenticeships, with only 55% being Levy-funded compared to 68% across all sectors. This trend is largely attributed to the sector’s younger apprentice demographic and the limited availability of higher-level apprenticeship pathways.
“While the reform aligns with the sector’s existing focus on younger entrants, it may inadvertently hinder the development of advanced skills necessary for emerging technologies like electric vehicles and autonomous systems. Therefore, while the policy shift supports entry-level training, it also underscores the need for alternative strategies to cultivate higher-level expertise within the automotive industry.”
