IMI Response to the Milburn Review

Commenting ahead of the release of the Milburn Review, Nick Connor, CEO of the Institute of the Motor Industry, said,

“The IMI submitted its insight to the Work and Pensions Committee Inquiry -  Preventing Youth Unemployment: Supporting Young People to Stay Engaged. We are, therefore, very interested to understand the findings from the interim report from the independent Milburn Review on young people not in education, employment or training (NEET).

“The transition from education into the workplace is fragmented and poorly supported. Young people are being left to navigate a complex and disconnected jobs and training landscape largely on their own. And those who face additional barriers, whether that’s disability, mental health challenges or care experience, are the ones most likely to fall through the gaps. We cannot keep treating this as a failure of individual ambition when the evidence points so clearly to structural failure.

“Automotive has, historically, been one of the strongest sectors for providing that vital transition from education into the workplace with an above average representation of apprenticeships. However, whilst it remains a high-volume apprenticeship sector, ranking 11th out of 38 subject areas, our latest data shows that automotive apprenticeship starts are 20-25% below pre-pandemic levels for the new academic year. 

“That is not because demand for skilled technicians has dried up - quite the opposite. It is because the system makes it too hard, too costly and too complex for smaller employers to take on young people. 

“SMEs make up over 95% of our sector. And they are the businesses most willing to offer young people a first step into skilled work. But these organisations have been given too many hurdles to overcome. In the first quarter of the 2025/26 academic year, only 45% of automotive apprenticeship starts were levy funded. This was 7% lower than in both 2024/25 and 2023/24, and 18% below the all-sector average of 63%. 

“The IMI is calling for front-loaded financial support for SMEs, a simplified apprenticeship system, better and earlier careers guidance, and joined-up transitions from education into work. We don’t believe they are radical requests – it is simply a question of making it easier for employers to appeal to and engage with young people as they leave education.

“We know that when the conditions are right, things do change. We’ve seen it with HGV apprenticeships, where targeted support, clear career pathways and genuine employer engagement have made a real difference. 

“We hope that the interim report from the Milburn Review will provide some clear indication that change will be made to achieve the difference that is needed at scale.”

You can read the IMI's full policy position statement on youth employment here.