Competition for degree apprenticeships in England has quadrupled in just three years, according to figures reported by the BBC this week, but steelwork manufacturer Tadweld is warning that the surge in demand for technical careers is being met with a shrinking number of opportunities in manufacturing.
BBC figures show applications for degree apprenticeships through the Government’s central platform have risen from 8,100 to 21,800 in three years, while available positions have almost halved from 7,300 to 3,700. Against this backdrop, Tadweld says its September 2026 Level 3 engineering apprenticeship intake is set to be its lowest in a decade.
The Yorkshire-based business says rising employment costs are making it increasingly difficult for SMEs to offer apprenticeship opportunities, despite the urgent need for skilled workers across British industry.
As a result, it predicts that engineering apprenticeship uptake could fall to its lowest level in a decade.
Tadweld’s own experience illustrates the scale of the challenge. The apprentice minimum wage was £6 an hour in 2023, rising to £7.50 in 2024 and £10 in 2025 – a 66% increase in just two years. The minimum wage for under-18s rose again to £10.85 in April 2026.
The pressure is particularly acute for SMEs, which play a critical role in providing hands-on training but must absorb the employment costs of apprentices alongside the cost of running and training their wider workforce.
While apprentices spend part of their week in college as part of their structured training, businesses remain responsible for paying their wages and absorbing the wider cost of employing and developing them.
The company is now facing the difficult decision of reducing its intake at a time when the UK is already facing a significant shortage of skilled welders, with the UK 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.
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Chris Houston, Managing Director of Tadweld, said:
“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.
“The message from young people is clear – they want these opportunities. But for SMEs, the cost of employing and training an apprentice has risen dramatically, and the result is that businesses are being forced to reduce the number of places they can offer.
“We urgently need to close the gap between the demand for apprenticeships and the number of opportunities available. If we don’t, we risk losing a generation of skilled engineers and welders at precisely the time British industry needs them most.”
Tadweld says the issue is not about opposing increases in pay for young workers, but about recognising the unique position of apprentices, who are undertaking substantial periods of structured training while developing the skills required to become productive members of the workforce.
The company is urging policymakers to work more closely with SMEs to ensure that apprenticeship policy supports, rather than restricts, the businesses responsible for delivering much of the country’s practical skills training.