New training barometer exposes widespread concerns over government support and workforce development
Engineering and manufacturing leaders have painted the bleakest picture yet of the UK’s skills shortage in the latest annual Training Barometer released by In-Comm Training.
Nearly three-quarters of businesses surveyed reported a lack of government support to tackle skills gaps following last year’s budget, while only a third believe the Industrial Strategy will aid their workforce development plans.
These worries are playing out against an uncertain economic backdrop, with fewer than half (46 percent) increasing training budgets and just 45 percent planning to recruit an apprentice in the next 12 months.
This marks the first time in the survey’s history that apprenticeship recruitment intentions have fallen below 50 percent, representing a significant 24 percent drop compared with 2025.
Apprenticeship decline sparks alarm in industry
Staff retention has also emerged as a major challenge for the 103 companies that responded, with 58 percent of bosses reporting difficulty retaining employees. Factors contributing to this include an ageing workforce, wage inflation, and recent changes to employment law.
Gareth Jones, managing director of In-Comm Training, said: “Skills continue to be one of the pressing challenges for manufacturers, and it appears the majority have lost faith in the government playing its part in helping them bridge the gap.
“Changes to skills provision and the pace it is being delivered is damaging engagement due to a lack of industry understanding and a belief that they will not deliver the skill levels required.
“It’s not difficult to see where the lack of confidence stems from. The removal of certain qualifications, defunding of some standards, and reducing the level of competency involved in apprenticeships has left firms feeling the system is unwieldy and not fit for purpose.”
He added: “There has also been no increase in funding for engineering apprenticeships since 2020, whilst costs have risen astronomically in the same period. All of this is translating into less of an appetite to invest in apprentices.
“A 24 percent drop in the number of companies planning to take on a new apprentice is more than worrying and should send shockwaves through the corridors of Whitehall.”
The In-Comm Training Barometer is one of the UK’s leading reports on the current skills and training landscape. Releasing staff from core activities (55 percent) remains the biggest barrier to upskilling, while nearly a third of firms are looking to boost leadership and management training. However, the government’s decision to defund certain Level 3 and above pathways in this area may dampen future demand.
Mr Jones added: “Interestingly, 60 percent of respondents felt recent changes to the Skills and Growth Levy, particularly around modular, apprenticeship-aligned training, will add value to their organisations.”
Other findings include 53 percent of respondents using apprenticeships to upskill their existing workforce, 68 percent investing in new technologies for productivity, and just 17 percent of management teams using AI to support training and skills planning. More than a quarter (27 percent) said new funding for under-25 apprenticeships would make them more likely to recruit.
