Chartered ABS statement on leadership and management apprenticeships

The Government has announced it will withdraw funding for leadership and management apprenticeships, including the level 6 Chartered Manager Degree Apprenticeship (CMDA) from September 1, 2026. The withdrawal of funding will also apply to leadership and management apprenticeships at levels 3 and 5. The Government also confirmed that it will expand the Youth Jobs Guarantee and introduce a Youth Jobs Grant to get more young people aged 18-24 into employment.

This announcement follows the decision to withdraw all public funding for Level 7 apprenticeships, except for young people aged 21 and under from January 2026.

Professor Stewart Robinson, Chair of the Chartered Association of Business Schools, said: 

“The removal of funding for all leadership and management apprenticeships, including the hugely successful CMDA, will prove detrimental to the UK’s growth and productivity. Equally, by making this decision, the Government is doing a significant disservice to young people who are striving to develop the critical management skills needed to progress in their careers.

“Defunding leadership and management apprenticeships runs counter to the evidence demonstrating that these programmes play a critical role in promoting social mobility and are key to driving growth across the economy. They are also a deeply valued part of many employers’ skills offering.

“Successive reports from Skills England have highlighted that leadership and management skills are crucial to productivity and growth in the Industrial Strategy sectors. Employers across these sectors, and in our public sector, need strong leadership to achieve the growth our economy urgently needs.

“We recognise that the Growth and Skills Levy budget is under pressure and that the Government must make difficult decisions to increase funding for young people. However, restricting access to these apprenticeships does not serve young people’s interests. Approximately 30% of CMDA apprentices are under 25, providing a vital pathway into management.

“While the newly launched Apprenticeship Units will be welcome for learners seeking to develop skills in a modular way, they are not a substitute for a Degree Apprenticeship which offer young people employment and an alternative route to a traditional university degree.

“With businesses already facing significant costs of doing business in an increasingly challenging environment, the Government must provide a smoother glide path to allow businesses, particularly SMEs, to adapt to these changes and build the management capability to generate the growth that ultimately creates jobs and apprenticeships. Investing in leadership and management capabilities and youth employment are not mutually exclusive, if we want more young people in work, we need to invest in the managers who will train and develop them.

“We strongly urge the Government to work with employers and universities to ensure continued access to high-level leadership and management training and address the gap in attaining critical management skills created by this announcement.”

Along with other bodies in the High Level Skills Group, we have urged the Government to consider exemptions for continued access to the CMDA for limited groups which align with the Government’s priorities for the young and economic growth. The solutions we put forward include continued CMDA funding for young people under 25, SMEs, the 10 Industrial Strategy sectors (IS8+2), the public sector, and for learners without prior qualifications at the same level.  We have also called on the Government to explore co-investment models where employers would make additional contributions to allow them to continue to draw down at least some limited funding to access leadership and management apprenticeships.

Notes to editors:

Instead of flat defunding of leadership and management apprenticeships, the Chartered Association of Business Schools proposes there could be opportunities to focus eligibility for leadership and management standards, such as one or a combination of the following:  

• Continue to fund Level 6 management apprenticeships in the Industrial Strategy sectors and across the public sector. Employers across these sectors need to be well managed businesses to achieve the growth our economy needs.     

• Fully fund young people under 25 to access the CMDA. Approximately 30% of CMDA apprentices are under 25, providing young people with a route into management and providing employers with a pipeline of talent with the skills to help raise productivity. This would also allow the Government to retain 30% of apprenticeships starts from the CMDA.  

• Fully fund those without an existing qualification at the same level. For 87% of Business and Management level 6 apprentices their highest level of prior attainment was level 5 or below.   

• Allow eligible SMEs to have continued access to the CMDA. Skills England analysis recognises that management practices in UK SMEs underperform compared with those in competitor countries. Maintaining CMDA funding will enable SMEs to access vital leadership and management training that is critical to improving productivity and driving sustainable growth.  

• Explore co-investment approaches with employers, where employers would make additional contributions for CMDA apprentices. This could allow employers to draw down a proportion of levy funding whilst enabling the Government to retain apprenticeships starts and the value of management apprenticeships to growth and productivity. This model could be considered in conjunction with the exceptions above.