The Transport Committee has called on the Government to seize “once-in-a-lifetime” opportunities to secure the future skills pipeline for the UK transport manufacturing sector amid increasing shortages and the rapid shift to cleaner technologies.
In a new report published today, MPs warn that manufacturers in the aerospace, automotive, rail and shipping industries are struggling to access the skilled workers they need at a time when the transition to net zero and advanced technology is fundamentally changing work requirements.
The Committee believes that the UK’s long-standing strength in the manufacture of cars, buses, planes, trains and ships is at risk unless vocational training, apprenticeships and workforce development are better tailored to the needs of modern industry.
The inquiry found acute skills gaps exist across several sub-sectors, with witnesses highlighting that the move towards electric vehicles, alternative fuels and digital systems has changed the nature of roles in manufacturing. MEPs concluded that current training pathways are slow to adapt and are not attracting enough young people into careers that should be “lucrative and fulfilling”.
To address this issue, the report calls on the Department for Transport to undertake a comprehensive assessment of how well the UK’s vocational training system is meeting the needs of transport manufacturers. The results should then be shared across government to inform reforms to skills pathways.
The committee is also calling on Skills England to consult on the introduction of a “skills passport” which would formally recognize transferable skills and make it easier for workers to move between roles and sub-sectors in transport production.
While MPs acknowledged the Government’s intention to rebalance funding towards younger workers, they expressed concerns that the removal of funding for Level 7 apprenticeships for those aged 22 and over could harm the supply of experienced, highly skilled workers. The report supports calls taken up by the Education Committee for the reintroduction of Level 7 funding in the eight growth sectors identified in the Government’s Modern Industrial Strategy.
The report also examines the apprenticeship levy system. Although manufacturers broadly support the principle of the levy, MPs say restrictions on how the funds can be used limit employers’ ability to invest effectively in skills. The Committee recommends greater flexibility under the forthcoming Growth and Skills Levy and suggests that the Government consider linking access to levy funding to employers’ progress towards their own diversity targets.
The report addresses gender imbalance, highlights the underrepresentation of women in transport production and calls for greater accountability. It recommends that employers receiving levy funding report annually on take-up by those with caring responsibilities or those returning from a career break, and that the government review progress towards its target of reaching 35 per cent women in the advanced manufacturing workforce by 2035.
Ruth Cadbury, chair of the transport committee, said the sector was at a crucial moment.
“The UK’s track record in transport manufacturing is something to be proud of, but the sector faces a number of challenges,” she said. “We need to leverage the talent we already have while ensuring the next generation sees this sector as one full of opportunity.”
She added that outdated training pathways risk discouraging young people at a time when demand for skills in electric vehicles and alternative fuels is increasing. “If we don’t act now, other nations will move forward while we stand still,” she warned.
The report concludes that without urgent reform of training, funding and workforce mobility, the UK risks missing growth opportunities in transport production, particularly in net zero technologies, at a time when global competition is intensifying.
