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SMEs may Turn Back on Apprenticeships, Economic 'Shock and War' Disrupts Skills Provision
A survey of more than 250 firms found 25% employ no apprentices, while 84% said labour costs are their biggest pressure, Enginuity said.
- On Wednesday, April 01, 2026, SMEs warned they may slash apprenticeship programs to survive rising economic pressures, with Enginuity CEO Ann Watson stating current conditions could prove "disastrous for the skills system."
- Rising labour costs impact 84% of firms, while energy and raw material expenses burden 61%; Tadweld Managing Director Chris Houston noted that wage increases have made training "exceptionally expensive," with costs reaching more than £157,000 per three-year program.
- With 25% of surveyed companies currently employing no apprentices, SMEs comprise more than 99% of all businesses yet collectively generate £1.9 Billion to the economy, making apprenticeship cuts a threat to skills provision.
- Government figures released last week show Under 19 apprenticeship starts have fallen to their lowest level in 5 years, as the OECD downgraded growth forecasts and suggests the UK faces significant economic fallout.
- Ongoing economic pressure from the Middle East energy crisis threatens to worsen the situation, and Their Policy Centre for Supply Chain and SMEs leaders are urgently feeding these findings to the Government.
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newcastleworld.com+17 Reposted by 17 other sources
UK SMEs may turn their backs on apprenticeships, experts warn
The UK’s small and medium sized businesses (SMEs) are bracing themselves for further economic shocks in the pipeline and are already struggling to fund apprenticeships – which threatens the skills provision required to power growth.
SMEs may Turn Back on Apprenticeships, Economic 'Shock and War' Disrupts Skills Provision
LONDON, April 01, 2026 (GLOBE NEWSWIRE) -- The UK's small and medium sized businesses (SMEs) are bracing themselves for further economic shocks in the pipeline and are already struggling to fund apprenticeships – which threatens the skills provision required to power growth. Skills charity Enginuity, the former sector skills council dedicated to boosting skills provision in engineering and manufacturing, issued the warning as it released the res…
·New York, United States
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Total News Sources21
Leaning Left0Leaning Right1Center15Last UpdatedBias Distribution94% Center
Bias Distribution
- 94% of the sources are Center
94% Center
C 94%
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