Chartered ABS statement on the Government’s announcement defunding Level 7 apprenticeships

The Chartered ABS has responded to the Government’s decision to withdraw funding for Level 7 apprenticeships from January 2026, except for apprentices aged 18 to 21.  

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

"Level 7 business and management apprenticeships play a vital role in closing our nation’s productivity gap, strengthening public services and the NHS, and promoting social mobility. The decision to defund level 7 apprenticeships undermines the Government’s growth mission, the Industrial Strategy, and productivity levels in the UK. 

“A dynamic growing economy needs a skills system that supports development from lower level skills into higher level skills. The changes announced by the Government will severely limit aspiration and opportunities for learners to progress through the apprenticeships levels to attain the highest-level skills employers are looking for. 

"The impact of this policy will be devastating for UK business schools, the broader higher education sector, and learners and employers who benefit from these opportunities.” 
 
Along with other bodies in the High Level Skills Group we have urged the Government to extend the age-based exemption and introduce exemptions for the public sector and SMEs. We also called on the Government to grant levy-paying employers some flexibility to spend any flexible portion of their Levy entitlement on Level 7 apprenticeships. 

 Notes for editors 

• The economic impact of business and management apprenticeships is significant, with the Chartered Management Institute’s (CMI) research suggesting that management apprenticeships completed in 2023/24 resulted in an additional contribution to UK GDP of £119.5 million.  Our own research found that 61% of employers said that the Level 7 Senior Leaders apprenticeship significantly improved productivity. 

• There were 17,490 Level 7 business and management apprenticeship starts in 2022-23. This demonstrates demand from employers, in particular from the public sector to invest their levy funding in developing their managers. 

• Our analysis of Higher Education Statistics Agency data shows that only 16 Level 7 Business & Management apprentices in 2022/23 were in this age group, with only 100 more aged 22–24. In contrast, 88% were aged 31 or over.  

• The UK has the lowest levels of productivity in the G7, and lowest levels of firm level investment in management training in the G7. Level 7 management and leadership apprenticeships addressed this.

• According to the CMI 60% of Level 7 management apprentices are in public services such as the NHS, social care and local government. Less than 10% are in FTSE 350 companies. 

• Chartered ABS analysis of HESA data shows that Level 7 business and management apprenticeships support social mobility:

  • 25% join with no prior degree qualification, including 10% of apprentices with no prior qualifications.

  • 87% of Business & Management apprentices are over 31, outstripping traditional entry routes to postgraduate education (52%).

  • They enable fast track progression for those with lower-level qualifications (including those with no qualifications) at five times the rate of equivalent non-apprenticeship programmes.