“Strong professional and employer involvement” will be needed if the government’s decision to shift responsibility for apprenticeships to the Department of Work & Pensions (DWP) is going to pay off for the automotive sector, according to major industry players.
Following the surprise cabinet reshuffle last week, apprenticeships and adult skills moved across to the DWP. Previously, these were run by the Department for Education (DfE) alongside further and higher education. Skills England, which replaced the previous Institute For Apprenticeships and Technical Education (IFATE) is set to work across both departments as part of the move.
"The Institute of the Motor Industry welcomes the government’s move to bring apprenticeship and adult skills policy under the Department for Work & Pensions,” said IMI CEO Nick Connor. “Aligning skills policy more closely with employment outcomes offers a valuable opportunity to drive responsive, high-quality training in the automotive sector. As highlighted in our Spring Statement response, the automotive sector must not be lost in the broader shuffle.”
This is not the first time apprenticeships have been moved between departments. Prior to being run by DfE, it was the responsibility of the Department for Business, Innovation and Skills, which took it on from the Department of Innovation, Universities and Skills.
Despite these changes, take-up remains sluggish. The IMI’s latest Automotive Education Report showed that during the first three quarters of 2024/25, 7,340 automotive apprenticeships were begun. While this was 1% higher than during the same period in 2023/24, it was still 30% below pre-pandemic levels.
Connor continued: “To ensure this change works in practice, it is essential that the transition is managed carefully; ensuring strong professional and employer involvement, protecting standards; ensuring funding for upskilling and re-training, especially in evolving areas such as EV and digital diagnostics, and enabling career progression pathways from apprenticeships into higher learning and careers.”
The ongoing impact of technological change also needs to be considered: “We reiterate the need for a ring-fenced or adequately resourced allocation for key areas like EV maintenance, ADAS, and alternative energy systems, as well as the need to reduce complexity and improve access to funding,” said Connor.
The IMI’s ADAS TechSafe Technician Forecast shows just 3% of the UK technician workforce holds an ADAS qualification. Meanwhile, its EV TechSafe Technician Forecast showed that the number of technicians gaining EV certification was up 6% in Q1 2025, compared with Q4 2024, but was still 25% lower than Q1 2024.
Connor added: "We look forward to working with the DWP and DfE to ensure the reforms support both learners and those employed in the sector, delivering the skilled workforce we need for the future."
Simon Quantrell, Deputy MD at Carwood also noted: “As a company that has run a successful apprenticeship programme for many years, we welcome the renewed focus on apprenticeship reform. Whilst we see some logic in aligning apprenticeship policy with employment services, under the DWP, it’s too early to say how this will impact both the programme, and us as a company, longer term. If what we read in the papers – i.e. a bigger emphasis on skills, more joined up training and a more a structured pathway into work – is correct, then the change in responsibility should be positive.”
Quantrell concluded: “A well-funded, flexible, training-focused apprenticeship scheme, regardless of who it falls under, is key to that.”
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