Construction sector calls for full review of apprenticeship funding

Industry body concerned lack of opportunities for trainees is 'an economic crisis in the making'

The construction sector is calling for a full review of changes to the way apprenticeships are funded on the Isle of Man.

Construction Isle of Man, which is funded by the Department for Enterprise's Business Isle of Man agency, wants the education department to "listen, act and work with us".

The organisation has described the funding changes brought in last year as a "final blow" to the sector as it deals with an ageing workforce and skilled labour shortage.

Construction Isle of Man says the number of companies taking on apprentices is plummeting, causing "an economic crisis in the making".

The body is asking for a review of the changes and the implications for the Island's strategic and infrastructure needs, immediate dialogue with industry leaders and fair funding for apprenticeship training for the next academic year.

Those looking to complete courses and qualification in a number of trades must complete an apprenticeship as part of their training.

Students and companies have been expressing their concerns over the lack of opportunities for apprenticeships on the Island.

In response, the Department of Education, Sport and Culture said: "The Isle of Man Government remains fully committed to supporting apprenticeships as a valuable route into skilled employment for young people and a vital tool to help businesses develop the Island’s future workforce.

"We recognise the construction industry’s essential role in our national infrastructure and economic development, and we are mindful of the wider challenges currently faced by the sector.

"Following a full review, a number of changes were introduced to the Apprenticeship scheme in April 2024.

"Before highlighting the key changes included, it is important to note that the Department of Education, Sport and Culture continues to fully fund training and assessment for eligible apprentices irrespective of the size of the employer.

"Key changes include:

• A 50% increase in incentive payments to employers who have fewer than 10 employees
• However, the incentive payment for employers with more than 10 employees has been removed
• Standardised support across all trades, recognising progression
• Clarification within the scheme regarding paid release for the apprentice to be at the same rate as the employee’s normal rate

"With over 240 applications already received in the last year, it would seem the scheme is as popular as ever.

"Since the revisions to the apprenticeship scheme, 35 new businesses have opted to participate who had not done so before, demonstrating that apprenticeships remain a strong, practical option for young people.

"As students receive their results this summer, we encourage them to consider this fully funded route into skilled, meaningful work—benefiting both themselves and the Manx economy.

"We remain open to continued dialogue with the construction sector to ensure the scheme remains fit for purpose in a changing labour market."