Skills Crisis Driving Up Vehicle Repair Costs

A growing skills crisis in the UK’s vehicle repair and salvage sector is now directly pushing up repair costs, raising insurance premiums, and causing longer repair wait times — a situation Thatcham Research says is reaching a critical point.

Thatcham’s findings reveal a sector struggling to keep pace with rapidly evolving automotive technology, especially electric vehicles (EVs) and advanced driver‑assistance systems (ADAS). These systems require more advanced technical skills, and the shortage of qualified repairers is widening far faster than the industry can fill the gap.

Technicians are now expected to handle highly sophisticated EVs, intricate battery systems, sensor‑rich body panels, and delicate calibration procedures — all tasks that require far more expertise than traditional repair work.

Insurance providers are also feeling the strain, as longer repairs and higher labour costs increase claims expenses — a trend that inevitably feeds back into rising premiums for motorists.

So, what’s causing the skills shortage? An ageing workforce is accelerating the loss of experienced technicians whilst other skilled workers are leaving the sector for other industries offering better pay or progression.

New technologies—particularly EVs and ADAS—require specialised knowledge many workshops don’t yet have.

The skills shortage isn’t just an industry problem; it affects every driver: repairs can take longer, keeping vehicles off the road for extended periods and insurance premiums may rise as claims costs escalate.

If left unaddressed, the issue could lead to more vehicles being written off unnecessarily, simply because repair costs become excessive, or the expertise isn’t available.

To prevent the situation getting worse, Thatcham warns that the sector must treat training and apprenticeships as urgent national priorities.

Without new talent entering the field repair costs will continue to climb, slowing the UK’s transition to advanced vehicle technologies and undermining consumer trust.

The decisions made now will determine whether the UK repair sector thrives or struggles in the years ahead.