IMI welcomes Apprenticeship Hiring Payment for SMEs but warns funding alone will not remove barriers

Institute of the Motor Industry repeats call for urgent review of system to enable small businesses to offer apprenticeships to young people

The Institute of the Motor Industry (IMI) has welcomed today's announcement that non-levy paying employers will receive £2,000 for every young apprentice they take on. But it is highlighting a continued concern that the process remains complex for small organisations. 

Nick Connor, CEO of the IMI said: “The financial incentive is fantastic news for the thousands of independent garages, bodyshops and dealerships that operate in the automotive sector. And it is hugely encouraging to see that the Apprenticeship Hiring Payment will be routed through training providers so that under-resourced SMEs don’t need to face another pile of admin to apply.  

“However, we are still waiting for news of how the apprenticeship reforms will address the complexity of the system, which is another barrier for small businesses.  Finding the right standard, securing a suitable training provider, understanding eligibility rules are all challenges that are hard to overcome. Until this is fixed, the financial incentive can only go so far. A refreshed website is a step in the right direction, but it won't solve the underlying complexity.”

The IMI is urging government to look beyond financial incentives and address the wider barriers that stop businesses from engaging with apprenticeships. It is asking for a holistic view of what employers need, including simpler processes, accessible local training provision and practical support, so that the funding translates into more young people starting and completing apprenticeships in automotive.