Written by Adam Bernstein
There has never been a greater need to get the young into the automotive industry – and new government plans for 18-to-24 year-olds could prove a win-win for businesses in the car trade.
More than 47% of automotive workers are aged 45 or over, and there are close on 14,000 sector vacancies as of February 2026, according to the Institute of the Motor Industry (IMI).
In overview, the government initiative involves a new Youth Jobs Grant that offers businesses £3,000 for each 18–24-year-old they hire who has been on Universal Credit for at least six months, plus an expansion of the Jobs Guarantee scheme to cover ages 18–24, and the introduction of a £2,000 Apprenticeship Incentive for small-to-medium enterprises (SMEs) hiring workers aged 16–24.
The government says it wants to “unlock 200,000 new jobs and apprenticeships for the next generation.” Central to the plan is a £1bn fund intended to encourage employers to recruit more young people, particularly those under 25.
Will it work?
Emma Carrigy, Head of Research and Public Affairs, IMI, thinks the plans positive, “especially where they are focused on helping SMEs recruit younger people into apprenticeships.”
Carrigy said that around 90% of automotive businesses are SMEs that play a central role in training the next generation, but notes that “employers are facing rising employment costs, technological complexity and skills mismatches, so the plan will only really work if it sits alongside wider reform.”
In contrast, Dave Reece, co-founder of the School of Thought Automotive, is not so positive. “The government seems to think that throwing money at apprenticeships is the answer,” says Reece, “but that has been tried before without success.”
He adds that “in automotive, small companies don’t have time for an apprentice” and that the payments won’t make any difference because “small firms are not engaging with young people… £3000 might help, but who do firms talk to for advice?”
Carrigy thinks that the money is important: “Our evidence shows that even £2,000 can make a meaningful difference for SMEs. We estimate that the incentive could reduce the employer cost of a Level 2 Autocare Technician apprenticeship from about £14,391 to £12,560, and a Level 3 Motor Vehicle Service and Maintenance Technician from about £14,541 to £12,560.”
However, she says that employers “need confidence that government support will last long enough to cover recruitment, onboarding and the early training period.” She’d also like a simpler apprenticeship system, better access to relevant training, and fewer barriers to taking on apprentices.
Reece wants the same, but comments that the real problem is role awareness – it’s poor. “In automotive we have a variety of job roles that young people are unaware of; if they are not aware of our industry then they won't consider it.”
The right jobs
Carrigy wants the creation of “the right jobs with the right training attached” and says that “investment in infrastructure or growth without parallel skills investment can backfire.”
She details that getting the young into work matters, but getting them into skilled, future-facing roles matters more.
Reece too recognises that the focus needs to be on technical skills precisely because of a shortage of skilled workers, but wonders “why aren’t more companies engaging with education to find new talent?”
Similarly, he’s not sure that the shortage is a governmental problem as “it’s automotive that is resistant to employing young people from schools and colleges.”
Moving forward, Carrigy wants a system fixed around employers and learners: “We have long been calling for better careers guidance, more work experience in technical roles, vocational pathways from Key Stage 3 onward, more flexible apprenticeships and modular training, and reform of skills funding.” She notes that “reform has to make the route simpler, clearer and more inclusive if it is going to bring in new talent.”
Carrigy continues: “Hiring on demand is not enough in a sector dealing with an ageing workforce and facing an increased requirement for specialist technical needs … automotive now competes with other sectors for talent.”
Likewise, Reece says that the sector needs what he terms “a grow your own” policy as there is clearly a generational gap. He reiterates that “there is a resistance in the industry to work experience. At School of Thought we engage with schools, colleges and parents who all say they can’t get work experience from the sector and when young people take time to apply, they don’t get any response.”
Ultimately, he says that the problem of getting the young into automotive is more than money and that £3000 a head “will be great for the bigger companies already engaged with employing apprentices, but we have a much deeper problem in the sector.”
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