Funding for popular management apprenticeships is being withdrawn as the government redirects support towards younger workers in a £1 billion plan to create 200,000 jobs and training opportunities.
The changes form part of the biggest overhaul of apprenticeships in a decade, with ministers aiming to reverse falling participation among young people and tackle rising numbers not in education, employment or training.
The package, announced by the Department for Work and Pensions this week, includes new hiring incentives, expanded job schemes and a rebalancing of funding away from mid-career training.
Starmer backs ‘biggest reforms in a decade’
Prime Minister Sir Keir Starmer said the changes were central to improving access to work for younger people and addressing skills shortages, and that the reforms were focused on expanding practical routes into employment.
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“Backing young people is one of the most important investments we can make in this country’s future,” he said.
He said the government wanted to give employers greater certainty while tackling unemployment. “We are determined to tackle the rise in youth unemployment by expanding practical routes into work, boosting apprenticeships, and giving employers the clarity they need,” he said.
The prime minister added that the reforms would help build a stronger labour market, saying they “underpin our ambition to create an economy that works for everyone, closing the skills gap and supporting more young people into meaningful employment”.
Leadership apprenticeships lose funding
As part of the changes, 16 apprenticeship standards will be removed from funding by December 2026, including widely used leadership programmes such as Team Leader, Operations Manager and Chartered Manager.
These courses have been widely used by employers to develop existing staff, but ministers now want to prioritise entry-level opportunities and technical skills linked to economic growth.
The government said funding would instead be focused on areas such as artificial intelligence, engineering, clean energy and construction, alongside new foundation apprenticeships in sectors including hospitality and retail.
Grants of up to £3,000 to boost hiring
Employers will be offered new financial incentives to recruit younger workers, including a £3,000 Youth Jobs Grant for hiring 18- to 24-year-olds who have been out of work for six months.
Small- and medium-sized businesses will also be able to access £2,000 payments for taking on apprentices aged 16 to 24.
The Jobs Guarantee scheme is being expanded to cover 18- to 24-year-olds, instead of those aged up to 21, with subsidised roles offering paid work and training.
Peter Cheese, chief executive of the Chartered Institute of Personnel and Development (CIPD), the professional body for HR and people development, said the measures would help open up opportunities for younger workers.
He said the reforms were a step in the right direction. “The CIPD welcomes these initiatives, encouraging businesses to take on more young people, promoting apprenticeships and greater flexibility for the Growth and Skills Levy. These measures are a positive move towards tackling youth unemployment and creating more pathways into entry-level jobs,” he said.
Employers urged to rethink training plans
The removal of management-focused apprenticeships is expected to prompt businesses to review how they develop leadership capability.
Steven Hurst, director of corporate partnerships at Coventry-based Arden University, said employers should focus on practical skills and alternative routes.
“While funding for broad management degrees is off the table, highly specific, technical and project-focused apprenticeships remain fully funded,” he said.
“You can still leverage the apprenticeship levy to build a highly skilled, future-proofed workforce, you simply need to align your training needs with these specific operational skills, rather than generic management titles,” he said.
The government said the reforms would support up to 500,000 opportunities for young people over the next three years, as it seeks to strengthen the link between skills, employment and economic growth.
- William Furney
- William Furney
- William Furney
- William Furney
