UK industrial strategy will fail if skills shortage is not solved, says IET

Employers say that lack of skilled staff is damaging their business prospects

More than 60 per cent of firms say that recruiting qualified engineers and technical staff is a barrier to their business prospects, according to research by the Institute of Engineering and Technology (IET).

Three quarters of employers said that addressing the skills gap is ‘fundamental' to making the government's Industrial Strategy work.

Although more than 80 per cent agreed that more employers need to provide work experience opportunities to help the issue, only 30 per cent acknowledged that it is their responsibility to invest in training around automation and digitisation.

The government introduced an apprenticeship levy in April this year, which was welcomed by the engineering industry; 40 per cent of employers told the IET that they now run engineering apprenticeships. Only about a third (31 per cent) actually have an engineering or technical apprentice on board, however.

Joanna Cox, head of policy at the IET, said: "As the UK goes through a period of economic uncertainty, the skills shortage in engineering remains an ongoing concern for engineering companies in the UK.

"Employers tell us that tackling this problem is fundamental to making the government's Industrial Strategy viable.

"We must now bring businesses, academia and government together and strengthen their working relationships to ensure that the next generation of talent has the right practical and technical skills to meet future demand.

"We are urging more businesses to provide more quality work experience opportunities for young people and more apprenticeships, enabling employees to earn while they learn and develop their work-readiness."

The government's apprenticeship levy applies to all employers in England with an annual pay bill above £3 million, and is set at 0.5 per cent of that bill. Employers can use these funds to pay for training, along with a 10 per cent top up from the government. The scheme was established to fund 3 million new apprenticeships by 2020.