‘Critical’ skills crisis driving up vehicle repair costs, warns Thatcham

11th February 2026

The UK’s vehicle repair and salvage sector faces a critical skills shortage that is driving up insurance costs, extending collision repair times and undermining consumer confidence, according to Thatcham Research.

More than 70% of repair and salvage professionals surveyed by Thatcham identified the widening skills gap as a growing challenge requiring industry-wide action.

The study, conducted in partnership with the Centre for Economics and Business Research (CEBR) and published for National Apprenticeship Week 2026, also reveals that evolving vehicle technologies, including electric vehicles and advanced driver-assistance systems (ADAS), have compounded the issue due to increased repair complexities.

Thatcham Research data illustrates the scale of the challenge: repair costs increased by 50% between 2019 and 2024, primarily by technological advancement and the specialist skills required to repair modern vehicles safely and effectively.

Survey respondents said other factors influencing the skills gap include an ageing workforce and talent migration to other industries offering better opportunities.

The survey follows latest data from the Institute of the Motor Industry (IMI) warning that only a quarter of UK technicians are qualified to work on electric vehicles and that the shortfall could reach 44,000 technicians by 2035.

Dean Lander, head of repair sector services at Thatcham Research, warned that the automotive repair sector stands at a crossroads.

“As vehicles become more sophisticated, the gap between the skills our industry needs and the talent available is widening. This directly impacts insurance premiums, repair times and customer satisfaction across the UK.”

Thatcham Research said industry-wide action was a must.

The organisation’s own Automotive Academy has trained more than 5,000 technicians over the past five years, equipping them with the cutting-edge skills needed to handle today’s increasingly complex vehicles.

Lander continued: “We need industry-wide commitment to invest in training, creating and promoting sustainable careers to attract the next generation of talent into this vital sector.”

The survey also highlighted clear ways to address the current skills gap. A significant majority of respondents (61%) pointed to the need for greater visibility and promotion of apprenticeships within the education sector, underscoring the importance of inspiring the next generation to pursue automotive careers. This was followed by 48% who called for increased investment in technical training, reinforcing the need to equip the workforce with the specialised skills required to meet the industry’s evolving demands.

Thatcham Research said that closing the skills gap can deliver measurable benefits across the automotive industry that include reduced insurance costs, improved customer experience and increased trust in the repair process, and sustainable career pathways in a sector vital to the UK economy.

Following the Government’s recent Motor Insurance Taskforce Report, Thatcham Research is calling on insurers, repairers, vehicle manufacturers and policymakers to collectively invest in training infrastructure and actively promote automotive repair as a rewarding, technology-driven career choice.

Jonathan Hewett, CEO of Thatcham Research, said: “Skilled technical roles in collision repair should be more widely recognised as a great career choice that will never be replaced by AI or automation.

“We welcome the Government’s commitment to improving skills and training across the automotive sector outlined in the Motor Insurance Taskforce report. The engineering skills package, which will provide £100m investment over three years to support engineering skills in England, working with Skills England, represents a significant step forward in increasing the pipeline of talent our industry needs.

“Thatcham Research’s Automotive Academy is poised to support and fill this future pipeline of talent with our diverse range of courses, ensuring the next generation of technicians has the skills and expertise required for the evolving automotive repair landscape.”