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News • August 21st, 2026
|Recent figures reveal a concerning trend in the UK’s engineering apprenticeship landscape. Despite a growing interest in technical careers among young people, the number of Level 3 engineering apprenticeships is at its lowest in a decade. This alarming situation has been highlighted by Chris Houston, Managing Director of the Yorkshire-based steelwork manufacturer Tadweld, who warns that the industry is facing a significant skills gap as demand for skilled workers continues to rise.
Applications Surge, Opportunities Shrink
Over the past three years, applications for degree apprenticeships have skyrocketed, jumping from 8,100 to a staggering 21,800. However, the number of available positions has dramatically decreased from 7,300 to just 3,700. This disparity illustrates a growing competition for apprenticeships in England, which has quadrupled during this period. In light of this, Tadweld anticipates that its September 2026 intake for Level 3 engineering apprentices will be the lowest it has seen in ten years.
Challenges for Small and Medium Enterprises
The situation is particularly dire for small and medium enterprises (SMEs), which play a vital role in providing practical training for apprentices. Rising employment costs are making it increasingly difficult for these businesses to offer apprenticeship places. Despite the urgent need for skilled workers across British industries, SMEs are struggling to fund these opportunities. The financial burden of training apprentices, alongside the costs of running their operations, presents a significant challenge.
Rising Costs of Apprenticeships
One of the key factors contributing to this crisis is the increase in the minimum wage for apprentices. The wage was £6 an hour in 2023, then rose to £7.50 in 2024, and further jumped to £10 in 2025—a staggering 66% increase in just two years. As of April 2026, the minimum wage for apprentices under 18 has risen again to £10.85. This rapid increase in costs is putting immense pressure on SMEs, which are expected to pay these wages while also providing training and resources.
The Need for Skilled Workers
The urgency of the situation cannot be overstated. The UK is expected to need around 35,000 new welders over the next five years, yet only 231 welding apprentices were trained across the entire country in 2024. This stark contrast highlights the critical shortage of skilled workers in the industry. Tadweld is now faced with the tough decision of reducing its apprenticeship intake, despite the clear demand for skilled professionals in the field.
A Call to Action
Chris Houston expressed his frustrations:
“It is incredibly frustrating that, just as young people are showing greater interest in vocational education and technical careers, businesses are finding it harder to offer the apprenticeship places they need.”
He emphasised that the message from young people is clear—they want these apprenticeship opportunities. However, the rising costs of employment and training are forcing businesses to cut back on the number of places they can offer.
Supporting Apprenticeships
Tadweld is not against increasing pay for young workers; rather, the company argues for a better understanding of the unique position of apprentices. These individuals are undergoing significant training while developing the skills necessary to become valuable members of the workforce. The company is calling on policymakers to work more closely with SMEs to ensure that apprenticeship policies support, rather than hinder, the businesses responsible for delivering essential skills training across the UK.
As the UK faces a critical shortage of skilled engineers and welders, the need for effective apprenticeship programmes is more important than ever. The future of many young people seeking careers in engineering rests on the ability of SMEs to provide the training they need. Without immediate action to address these challenges, there is a risk of losing a generation of skilled workers at a time when British industry needs them the most.
