Thatcham Research is calling for an increase in the Apprenticeship Levy funding cap as it warns that a skills crisis in the vehicle repair sector could impact adoption of EVs.

Thatcham says the skills shortage could impact fleets, including through challenges with safe repairs of EVs

The apprenticeship levy, capped at £15,000 per apprentice, has remained unchanged since 2019, failing to keep pace with inflation – and no longer meets modern training standards, according to Thatcham.

It’s warning that the Government’s mobility agenda will be put at risk if the cap is not reviewed, with potential significant knock-on effects for UK fleets, including increased insurance premiums and challenges around the safe repair of EVs.

As highlighted in Thatcham’s Impact of BEV Adoption on the Repair and Insurance Sectors report last June, approximately 16% of UK technicians have the relevant qualifications to work on electric vehicles. The Institute of the Motor Industry has also predicted a shortfall by 2031.

Although Thatcham is working to address this shortage via training programmes such as its EV Ready initiative, it warns that the UK remains at risk of missing net zero targets which rely on new repair skills to ensure the sustainable adoption of EVs.

There are also concerns about rising insurance costs and the emergence of unrepairable vehicles, should the skills crisis continue.

Thatcham’s new petition urges Skills England and the Institute for Apprenticeships and Technical Education (IfATE) to increase the funding cap.

Thatcham is inviting stakeholders across the automotive sector to sign the petition. This includes fleets as it warns that action is needed today to meet net zero targets and successful adoption of automated and electric vehicles on UK roads.

Jonathan Hewett, chief executive at Thatcham Research, said: “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 a priority by Skills England and IfATE, unlocking funding to deliver much-needed technical training to the repair sector.”

Businesses and individuals can sign Thatcham’s petition here.