Apprenticeship funding increase welcome, but remains insufficient says Logistics UK

Wednesday 28 June 2023

Following the outcome of the exceptional funding review for apprenticeships, Logistics UK has expressed its disappointment at the small increase in funding for the Heavy Vehicle Service and Maintenance apprenticeship, and has highlighted the barriers this may create in relation to the industry’s skills shortage, particularly regarding HGV technicians – of which there is a significantly growing recruitment challenge. 

Jonas Keat, Policy Advisor at Logistics UK comments: “While it is encouraging to note an increase in funding for the HGV C+E apprenticeship, from £7,000 to £8,000, the announced financial support to the Heavy Vehicle Service and Maintenance apprenticeship is limited.  In 2017, funding for this apprenticeship was £18,000, however in 2018 this was lowered to £15,000. While we are pleased that the announcement includes an increase in funding to £20,000, this only represents a £2,000 rise since 2017.” 

Following conversations with members, Logistics UK – together with key industry bodies – wrote a joint letter to the Institute for Apprenticeships and Technical Education (IfATE) calling for the funding to be increased to £23,000 in line with inflation, and repeated these calls to the Secretaries of State for Education and Transport.  

Mr Keat continues: “Currently, there are limited providers of the Heavy Vehicle Service and Maintenance apprenticeship course across the UK. This is primarily due to the high cost of the course, which often generates a loss in revenue for most training providers. We are therefore disappointed to see that the outcome of this review has failed to recognise the needs of industry; if skills shortages are to be resolved, sufficient support must be given to the providers who are being relied upon to deliver this training. Logistics UK will now continue to engage with government to prevent the number of courses from further declining.” 

Logistics UK is one of the UK’s leading business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods.