Ministers insist no decisions have been made “yet” on streamlining England’s suite of apprenticeships, as employer anxiety grows over potential cuts to popular management courses and industry progression routes amid mounting budget pressure.
Skills England and officials at the Department for Work and Pensions (DWP) held a series of meetings with businesses before Christmas to discuss a review of the more than 700 apprenticeship standards currently available.
Several attendees told FE Week they left with a “real fear” that ministers would strip away employer choice by removing programmes that are not directly linked to government priorities.
The review was signalled by the chancellor, Rachel Reeves, in November’s budget, when she reiterated that the government would refocus apprenticeships on young people and simplify the system to ensure better value for money.
England has more than twice as many apprenticeships approved for delivery compared with Switzerland and Germany – two countries that are often referred to as having world-class technical education systems.
Baroness Alison Wolf, who served as an adviser on skills to the prime minister from 2020 to 2023, said rationalising the number of apprenticeships is “way overdue”, adding that the “trailblazer” system adopted by the former Institute for Apprenticeships and Technical Education “outlived its usefulness a decade ago”.
But critics fear the current streamlining effort is motivated less by simplification and more by the need to free up funding in England’s already stretched budget for new, untested initiatives such as foundation apprenticeships and short courses dubbed “apprenticeship units”.
Management cull?
FE Week understands that officials are scrutinising apprenticeships that resemble continuing professional development instead of discrete occupations, and are questioning whether employers should pay for them outside the levy as part of normal learning and development.
Employers and sector bodies fear that widely used management apprenticeships could be among the casualties, such as the level 5 operations manager and the level 5 people professional standards.
The Chartered Management Institute (CMI) launched a petition last week to act as an “evidence gathering tool” to show the removal of management apprenticeships would undermine productivity in industrial strategy sectors as well as other critical areas such as retail and hospitality.
The petition argues that “we must not ‘streamline’ away the very leadership skills that drive productivity and support the next generation of workers” and includes statistics from a Skills England assessment that shows “management is a critical occupation – accounting for 25 per cent of all roles in ‘critical demand’”.
It has over 4,000 signatures so far, including testimonies from big-name employers such as Amazon, BAE Systems, Heathrow, Barnardo’s, John Lewis, Kier, Lloyds Bank and Marie Curie.
The soaring popularity of management apprenticeships has, however, been controversial since the introduction of the apprenticeship levy in 2017, with critics arguing that companies are spending money on apprenticeships that might otherwise come from a regular training budget.
Tom Richmond, a former adviser to education ministers, published a briefing paper last year which showed that three management courses for existing staff that have been “rebadged” as apprenticeships – level 3 team leader, level 5 operations manager and level 7 senior leader – used an estimated £150 million of funding in 2023-24.
Richmond claimed the training offered by these management apprenticeships is “already available through standalone qualifications that are considerably cheaper and more flexible than an apprenticeship, yet they offer the same outcomes in terms of upskilling and reskilling the workforce”.
Industry casualties
Streamlining concerns extend beyond management. Employers in individual industries, such as hospitality, say they have been asked by officials to justify why senior-level apprenticeships should continue to attract levy funding.
UKHospitality skills director Sandra Kelly said officials have questioned, for example, whether standards such as the level 3 senior production chef and level 4 senior culinary chef apprenticeships should remain in scope.
She told FE Week the hospitality sector had 12 apprenticeships in total, and the proposed removal of the two senior standards would “dismantle a critical progression point”, adding that total funding committed for the two apprenticeships in 2023-24 was less than £4 million.
Kelly argued that defunding the two senior standards would deliver “disproportionate damage relative to the savings achieved”, saying: “This is not efficiency; it is false economy.”
Several employers, including catering giant Elior UK, are now lobbying the DWP to retain all hospitality apprenticeships.
They also warn that replacing senior apprenticeships with short courses in the form of “apprenticeship units” would “dilute quality and undermine professional standards”.
The power of ‘yet’
Labour MP Lauren Edwards brought the issue to the House of Commons during education questions on Monday. She said industries such as hospitality are a “key means” by which the country can tackle its NEET (not in education, employment or training) challenge, but to “deliver positive long-term change, we must have an apprenticeship system that allows young people to progress, not just give them a foot in the door”.
She added: “So may I urge the minister to continue to support these apprenticeships, which should be a high priority for both our labour market and our economy.”
Josh MacAlister, the Department for Education’s children’s and families’ minister, responded by saying “nothing has been decided on defunding apprenticeships, yet”, and added: “We share her ambition that the apprenticeship system in the future is entirely designed around progression as well as one-off learning.”
Stretched resources
The review comes as pressure on England’s apprenticeship budget intensifies. The budget has been fully spent in recent years, with officials now scrambling to manage costs following a surge in the number of people starting level 7 apprenticeships ahead of levy funding being withdrawn at this level for people aged 22 and over this month.
Further strain is expected as foundation apprenticeships and shorter “apprenticeship units” are introduced through the reformed growth and skills levy from April 2026 – intended to give employers more choice over how they spend their levy pots in line with Labour’s manifesto commitment.
Rob West, former head of skills at the Confederation of British Industry and now associate director at the Education and Training Foundation, attended a meeting with the DWP in December and heard how the government “is struggling to stretch limited apprenticeship resources to meet the needs of learners, employers, providers, and the economy”.
He said “earlier engagement” with the skills sector as policies develop “is welcome”, but added it can also “draw providers and employers into responding to ideas that are still speculative, rather than addressing the real, immediate pressures in the system”.
West added: “What’s needed now is clarity, stability and a shared focus on the practical issues holding apprenticeship delivery back.”
The government has released minimal information about apprenticeship units, despite their impending introduction. Skills minister Jacqui Smith has previously said they could be as short as one week.
Wolf said she did not “understand the point of apprenticeship units other than to make it easier for levy-payers to use even more of the levy for existing staff”.
She added: “If the government really thinks this fragmentation of training is the answer to the declining number of young apprentices, I think they are in for a nasty surprise.”
Surplus required
The levy is generating more cash contributions than expected and is estimated to raise £4.4 billion this financial year.
England’s apprenticeship budget for 2025-26 is set at £3.075 billion, while the devolved nations receive over £500 million. It means the top slice the Treasury takes between how much the levy generates and how much is dished out for apprenticeship spending hits close to £840 million.
Forecasts for 2026-27 show the levy intake should rise to £4.6 billion. If the Treasury fails to increase apprenticeship spending budgets the Treasury margin will hit £1 billion.
The chancellor’s budget did announce an extra £725 million over the rest of this Parliament to be injected into the apprenticeship system, but £140 million of this will be going to mayors to help to connect NEETs to local employers.
Some of the additional cash will also go towards fully fund apprenticeships for under-25s in small and medium-sized businesses.
The DWP, which took over control of apprenticeships from the DfE last year, refused to tell FE Week what England’s apprenticeship budget is for 2026-27, claiming it hasn’t gone through final processes.
Meanwhile, Reeves’ budget red book also revealed the government will remove a 10 per cent uplift for levy payers, halve the time levy payers have to use their levy funds from 24 to 12 months, and slash the co-investment rate offered to big businesses when they exhaust their funds to 75 per cent. The changes will kick in from the 2026-27 academic year.
Matthew Percival, the CBI’s future of work and skills director, said businesses were “frustrated about continued speculation that apprenticeships could be further restricted or defunded, particularly as we know that the government is making significant profits on the growth and skills levy”.
He added: “Taken together with the immigration skills charge, hundreds of millions of pounds more is currently being raised for skills than is being spent on it.
“This money should urgently be released for its intended purpose so that businesses aren’t forced to ration the training opportunities they offer their staff.”
Watch out for heritage skills
Officials are understood to be considering removing apprenticeships with low starts as part of a housekeeping exercise that will also involve slashing apprenticeships in areas where there is too much overlap and duplication between standards.
An analysis by FE Week shows that there are 162 apprenticeship standards that have been approved for delivery for at least a year but which recorded fewer than 50 starts.
Experts have urged DWP officials to recognise that there are heritage skills and niche apprenticeships where small numbers were to be expected and which they said must not be disproportionately affected.
David Poole, education officer at the Worshipful Company of Clockmakers, said specialist apprenticeships such as the level 3 watchmaker, for example, are “fundamental to the public”, adding that this training route must be kept open to meet demand as industry professionals retire.
Wolf added that simply taking out apprenticeships based solely on their number of new starters would be “lazy and counter-productive”.
She said: “Many key small occupations need apprentices and we are facing skill crises in them. The problem tends to be the impossibility, in our pseudo-market system, of finding a good local provider. Sorting that out is another core government responsibility, as other countries recognise.”
A DWP spokesperson said: “We are committed to creating an apprenticeships system that addresses the nation’s skills challenges head on and are simplifying it to give businesses the flexibility to develop the skills they need.
“We have been working intensively with businesses on the next stages of reform and will consider their feedback before making any decisions about changes to funding apprenticeship standards.”

