Ryan FowlerLogistics UK has warned that the UK risks losing crucial entry-level pathways for young people unless the Government takes urgent steps to help SMEs recruit apprentices.
The call comes in an open letter to the Secretary of State for Work and Pensions, Rt Hon Pat McFadden, signed by the organisation alongside 28 business leaders and sector stakeholders.
The group argues that SMEs are critical drivers of opportunity, local prosperity and social mobility, yet face mounting barriers to accessing the apprenticeship system.
The letter was coordinated by Apprenticeships Work, a campaign led by the education charity Edge Foundation, and highlights the need for stronger Government action to reverse falling SME participation.
Bethany Windsor, head of skills policy at Logistics UK, said: “SMEs often struggle to engage with the apprenticeship system.
“Their businesses make up 99.7% of the logistics sector and 99.8% of businesses of the economy. Yet nationally, across all sectors, SMEs employ only 37% of apprentices, a fall of 17% since the Apprenticeship Levy was introduced in 2017.”
She added that the decline “needs to be addressed urgently” if SMEs are to continue acting as engines of inclusive economic growth.
The signatories are calling for a coordinated national framework to help smaller firms navigate funding and regulatory requirements, a measurable target to increase SME apprenticeship starts, and a stronger SME voice in shaping standards and programme design.
Windsor said the recent removal of training and assessment costs for SMEs taking on apprentices under 25 demonstrated how policy can influence business behaviour. “To maximise impact, the Government should now broaden this backing, helping more SMEs recruit apprentices and giving young people meaningful routes into work,” she said.
Logistics UK has positioned the issue as central to future workforce resilience, with the logistics sector heavily reliant on SMEs that often struggle to allocate administrative capacity or meet funding rules without specific support.
The organisation warned that continued decline in SME participation could reduce the number of entry points into industries already facing acute skills shortages.
