Select committee: Transport Committee
Recommendation 4
5th Report - Engine for growth: securing skills for transport manufacturing
Published 28 Jan 2026
Addressed to Department for Transport
Transport Committee Skills for transport manufacturing All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Substantial amounts of levy funding has expired unspent. Rather than further constraining the opportunities for spending such funding, the Government should increase flexibility. We welcome the Government’s Budget 2025 commitment to fully fund apprenticeships for eligible people under 25 at small and medium-sized enterprises (SMEs). However, more should be done to better ensure that levy funds reach SMEs and supply chain manufacturers in the transport manufacturing sector. The current restriction that levy funding can only be directly spent by manufacturers who operate across the UK on their operations in England is throttling opportunities for transport manufacturers which operate UK-wide to directly invest that funding in skills across their wider workforce. (Conclusion, Paragraph 34)
From: Transport Committee, 5th Report - Engine for growth: securing skills for transport manufacturing (HC 1223), 28 January 2026
Government response
The government responded to the whole report on 5 May 2026 (deadline 28 March 2026).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with the Committee on several aims, such as keeping occupational standards current and strengthening careers guidance, but does not accept key funding and reporting recommendations on the levy.
- On levy funding, the government says capital projects are ineligible for apprenticeship funding and "there are no current plans to change this". From August 2026 the expiry window for levy funds reduces from 24 months to 12 months.
- On level 7 apprenticeships, it "has no plans to re-introduce levy funding" in the Industrial Strategy sectors, citing a priority on young people.
- On modular or part-time training and diversity reporting, it agrees on the importance of opportunities for people with caring responsibilities but does "not consider that these specific recommendations are the right way" to achieve this. It has no plans to make levy funding contingent on diversity.
- It agrees it is essential for occupational standards to remain current, but prefers a targeted review model to revisions at fixed intervals. It says Skills England will update standards "as needed".