Leadership and management apprenticeships latest to be defunded

Government pulls money as part of efforts to prioritise funding for young people but universities say move ‘not in interests of economy’

Published on
March 16, 2026
Last updated
March 16, 2026
Source: iStock/fizkes

Universities have criticised the Westminster government’s decision to defund leadership and management apprenticeships.

As part of its reform of the Growth and Skills Levy, the Labour administration said it was expanding foundation apprenticeships in hospitality and retail, and introducing new apprenticeship units aligned to its industrial strategy priorities.

But as a result, the government said apprenticeship standards that do not meet the country’s skills priorities or take resources away from opportunities for young people and could be better delivered through on-the-job training will be defunded.

Pat McFadden, the secretary of state for work and pensions, said that this would mean no longer funding three leadership and management apprenticeship standards.

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With these mainly used by employers for older, established staff as continuing professional development, McFadden said the funding would be used for new apprenticeship starts for young people instead.

The government has already defunded level 7 apprenticeships, equivalent to a master’s qualification. The latest move will affect courses run by universities at lower levels of the education system.

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One of those affected, the chartered manager standard, is a level 6 qualification, equivalent to an undergraduate degree, as is the improvement leader standard.

“Streamlining the existing offer ensures that our increased investment delivers maximum value for money, supports clearer routes into skilled jobs, and creates headroom for investment into new opportunities for young people and employers alike,” said McFadden.

Vivienne Stern, chief executive of Universities UK, said universities knew how difficult it was for young people entering the world of work at the moment and shared the government’s commitment to tackling youth unemployment.

“However, defunding the apprenticeships that businesses say are vital to productivity and people’s career advancement is not a compromise that is in the interests of the economy or individuals,” she added.

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“These courses are crucial to driving the government’s growth mission. In just one year, management apprenticeships contributed £119.5 million to GDP, and the skills that they instil in learners are central to the UK’s ambition for a more productive, high-skilled economy.”

In a recent report, the British Chambers of Commerce said further restrictions to management apprenticeships would damage business confidence and “be counterproductive to growth”.

“Management and leadership skills are absolutely key to boosting productivity in the workforce from Level 3 to Level 7.”

patrick.jack@timeshighereducation.com

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