'It feels like a short-term decision that could create a long-term problem' - training provider says of plans to defund popular management apprenticeships

Speculation had been rife over the past few months that funding would be cut for Level 3 to 6 management apprenticeships in favour of new, shorter courses for things like AI training - and more than 5,000 employers, training providers and apprentices signed a petition launched by the Chartered Management Institute (CMI) in January to highlight opposition to the plans.

But this week it was confirmed that a host of apprenticeship standards will no longer be supported by funds from the Growth and Skills Levy, including popular team leader and operations manager qualifications, as the government moves forward with the biggest reforms to apprenticeships in a decade.

The Department for Work and Pensions said apprenticeship standards not considered to be meeting the country’s skills priorities will be defunded in favour of short, flexible training courses in subjects including welding, AI leadership, EV charge point and solar panel installation and maintenance - which it says will help employers to adapt to evolving skills needs.

Employers and training providers across the region and the country, however, have expressed concerns about the change saying it could have a detrimental impact on businesses by hitting their ability to develop tomorrow’s leaders.

Bekki Jones, executive director at In-Comm Training, which supports hundreds of apprentices each year at its two technical academies in the Black Country and Telford, said: “I genuinely think the Department for Education’s decision to cut funding for team leader and management apprenticeships will have a bigger impact than a lot of people realise.

“From what I’ve seen, these programmes have been one of the most practical ways for companies to invest in their people and build managers from within. For example, at In-Comm Training alone we have had nearly 100 learners from 35 employers embark on these courses in recent years.

“Without funding, many businesses - especially smaller ones - just won’t prioritise leadership development in the same way. Not because they don’t value it, but because budgets are tight and training is often one of the first things to get cut.

“Removing funding to develop operational managers and tomorrow’s business leaders is short sighted and, in my opinion, not in line with the government’s own research.”

She said the knock on effect of losing such programmes could end up "weakening the entire pipeline” - leading to a real shortage of competent managers - and she added: “It feels like a short-term decision that could create a long-term problem. If companies aren’t supported to develop their future leaders now, we’re going to see a widening gap in management capability and that’s something businesses will struggle to recover from.”

She said she welcomed support for new labour market entrants but added: “I’m just not convinced that defunding these apprenticeships is the right answer.”

Employers have been bracing themselves for the changes, which it’s understood will not come into effect before September 1.

Rob Colbourne OBE, CEO of Performance Through People, said: “The sudden removal of core management standards (Team Leader L3, Operations Manager L5, Coaching Professional L5, Chartered Manager L6, among others) will land hardest where employers have built capability pipelines around them.”

The education professional has warned the changes coming risk “unpicking a decade of progress in reframing apprenticeships as for all ages”.

He said of the government’s plan to introduce new, shorter apprenticeship courses: “There is plenty here to welcome. Modular options and foundation apprenticeships can widen entry points, help employers test demand, and accelerate first steps into work. If implemented well, they could create new bridges for young people who might otherwise stall at the threshold. Nearly 1 million young people classed as Not in Education, Employment or Training is a national tragedy.”

He said belief is that by removing public funding from programmes, deemed better suited to employer‑funded staff development, resources will pivot to younger starters and lower levels but he added: “Employer behaviour rarely changes by decree.

“Without a clearly articulated replacement model, and certainty on scope, content, assessment and funding for the new modular units, there is a real risk that organisations pause investment rather than reallocate it to youth pathways at pace.

“Sector voices are already asking for a coherent long‑term vision, not just short‑term incentives. Furthermore, employers already under financial pressures who pay into the apprenticeship levy, and deem this as their money, will be horrified they cannot choose how they spend this money on their staff development, and will now see it as just another tax to pay, which may be seen as another government own goal in terms of its current relationship with employers.”

He said if the hope is to reverse the long decline in youth apprenticeship starts then early intervention is key.

“Employer engagement, career guidance and exposure to real workplaces should be systematic from Year 9 - not sporadic in Year 11,” he said - adding that young people will not step into opportunities they have never seen or believed were for them.

There is a need to build aspiration and readiness well before GCSEs, he said, to tackle the decades-long NEET problem.

A former apprentice himself, he called for non-traditional routes to leadership to be preserved - saying: “Many of our best team leaders are grown in‑house, former apprentices, returners, career‑changers, who need structured development to translate experience into leadership. Removing funded management apprenticeships without fully‑fledged alternatives risks freezing mobility for exactly those workers.”

He said at least the government’s announcement brings some clarity after months of speculation and he said: “We know what is being removed and by when, and we have headlines on what’s coming - units, foundation routes, SME incentives. We do not yet have detailed operational guidance for the new units - hours, assessment, funding mechanics - or a settled vision for how employers develop supervisors and managers in the public system after 2026. That gap fuels hesitation at precisely the moment when employers need confidence to act.”

He said the news of the changes to apprenticeships “will reshape the landscape” but he urged ministers to “make sure they widen it” and he said: “The case for boosting opportunities for young people is compelling. But so too is the case for preserving lifelong access to apprenticeship‑quality training - especially for the non‑traditional, often overlooked routes into leadership that keep organisations moving. We don’t have to choose. With clearer design, earlier outreach, and a managed transition, we can do both.”

The Department for Work and Pensions has said the Growth and Skills Levy will be changed to reprioritise investment where it is needed most to ensure young people can access jobs that are vital to economic growth and to create more earning and learning opportunities for those aged 16 to 24.

Work and Pensions Secretary Pat McFadden, MP for Wolverhampton South East, said: “These measures will give life-changing opportunities to young people and significantly reverse the increase we inherited in those not in education, employment or training.

“We are focusing funding where it’s needed most and giving employers the flexibility and support they’ve asked for.

“These reforms will give young people a vital first step on the career ladder and help business leaders recruit the talent that will grow their companies.”

The CMI said it was disappointed that the voices of the education professionals who signed the petition "appear to have been ignored" and there was a lack of transparency around "what, if any, impact assessments were carried out to justify this policy change".

Petra Wilton, CMI director of policy and external affairs, said: "Ministers’ decision to defund all core management and leadership apprenticeships will be a critical setback to efforts to revive the UK’s lagging productivity. 

"Management apprenticeships are not a luxury for those seeking progression; they have been a lifeline for businesses and public sector organisations looking to use their Levy to drive up performance. For so many managers, they have also improved social mobility and allowed frontline managers to progress in the workplace through in-depth training that drives deep behavioural changes in the workplace culture."

She added: "This decision is set against a backdrop of 82 per cent of UK managers being promoted into the role without any management training; the prevalence of ‘accidental managers’ is damaging growth and international competitiveness. The new emphasis on training young people is clearly important, but they also need effective line managers to ensure they are successful in the workplace.

"Employers who face rising employment costs and tough economic conditions now look to the government for early reassurance that they can use their Levy to fund alternative routes such as high quality, short courses and apprenticeships units to meet their critical management and leadership skills needs."

She added that input from employers, training providers and professional bodies would be key to designing new, shorter courses capable of delivering "meaningful upskilling for the UK workforce at this time of rapid transformation".

Apprenticeship standards being defunded:

• Facilities Management Supervisor

• Improvement Practitioner

• Custody and Detention Professional

• Security First Line Manager

• Improvement Leader

• Public Sector Compliance Investigator and Officer

• Cleaning Hygiene Operative

• Coaching Professional

• Outdoor Learning Specialist

• Learning and Skills Assessor

• Learning and Skills Mentor

• Professional Security Operative

• Lead Practitioner in Adult Care

• Team Leader

• Operations Manager

• Chartered Manager

New short and flexible apprenticeship units will be available in:

• Welding – mechanised

• AI Leadership – developing AI strategy

• Electric vehicle charging point installation and maintenance

• Electrical fitting and assembly

• Mechanical fitting and assembly

• Permanent modular building assembly

• Solar PV installation and maintenance