Welcome to Yorkshire
Published on September 8th, 2026
•September 2026 could mark a troubling time for manufacturing apprenticeships in Britain, as Yorkshire-based steelwork manufacturer Tadweld warns it may be the worst intake in a decade. Despite the continuing demand for skilled workers in trades like welding and electrical work, the obstacles faced by small and medium-sized enterprises (SMEs) are causing a significant drop in apprenticeship opportunities.
Rising Demand vs. Shrinking Opportunities
The competition for apprenticeships in technical fields is increasing, with recent figures showing a substantial rise in applications for degree apprenticeships. According to reports from the BBC, applications through the Government's central platform have jumped from 8,100 to 21,800 over the past three years. However, the number of available positions has nearly halved, dropping from 7,300 to just 3,700. This disparity highlights a growing concern in the manufacturing sector, where the supply of apprenticeship spots is failing to keep up with the rising demand for skilled workers. Tadweld's Level 3 engineering apprenticeship intake is set to be the lowest it has been in ten years. The company believes this decline is largely due to increasing employment costs, which are making it harder for SMEs to offer the hands-on training necessary to cultivate Britain's future skilled workforce.
Financial Challenges for SMEs
The financial burden of hiring apprentices has escalated significantly in recent years. The minimum wage for apprentices has risen sharply, going from £6 an hour in 2023 to £10.85 an hour for those under 18 by April 2026.
Chris Houston, Managing Director at Tadweld, explains the challenges faced by smaller businesses:
“The real problem is whether employers - particularly SMEs - can afford to provide the number of apprenticeship places industry needs. The costs associated with taking on an apprentice have risen significantly in just a few years. We absolutely support fair pay for young workers. But an apprentice is different from a fully trained employee. They are spending a significant proportion of their time in structured training and are still developing the practical skills and experience they need to become fully productive.”
For many SMEs, the financial strain of training an apprentice can be overwhelming. They must cover the costs of supervision, training, equipment, and college attendance, all while paying the apprentice’s wage. Larger companies may find it easier to absorb these costs, but SMEs like Tadweld are finding it increasingly difficult to maintain their apprenticeship programmes.
High Demand for Skilled Trades
Despite these challenges, the demand for skilled trades remains strong. Tadweld's research shows that skilled trades, such as electricians and welders, continue to be highly attractive career options, often providing salaries at or above the national median. For instance, data from the Office for National Statistics indicates that the average salary for the top 20 trade roles is approximately £38,925, which is quite close to the UK median annual salary of £39,039 for full-time employees.
Electricians and welders are among the best-performing trades, with other high-demand roles including HVAC engineers, lift technicians, and renewable energy installers. The potential for a lucrative career in these fields is clear, yet the number of apprenticeship opportunities is not keeping pace with the demand for these skilled roles. The UK is projected to need around 35,000 new welders over the next five years, yet only 231 welding apprentices were trained across the country in 2024. The Construction Industry Training Board (CITB) estimates that the wider construction and manufacturing sector will require more than 250,000 additional workers by 2028 to meet growing demand.
Call for Policy Changes
Given the looming shortage of skilled workers, Tadweld is urging policymakers to take action. The company believes that it is crucial for the government to consider the position of SMEs, which provide much of the practical skills training in areas like welding, fabrication, and engineering.
Houston emphasises the importance of investing in apprentices:
“The whole point of an apprenticeship is that you are investing in someone who will become a highly skilled member of your workforce. That investment takes time, and businesses need to be able to afford to make it. If we want more welders, engineers, and electricians in the future, we need to make sure businesses can afford to train them today.”
Without sufficient Level 3 apprenticeship opportunities, the UK risks creating a widening gap between the number of young people eager to pursue high-value technical careers and the actual number of skilled workers that the industry can train. The ongoing challenges faced by SMEs in providing these opportunities could have long-term implications for the country’s workforce and economic health. As the situation develops, the focus remains on how the government and industry can work together to ensure that the future of skilled trades in Britain is bright and sustainable.