Abta criticises plans to axe funding for management-level apprenticeships

Abta has criticised government plan to defund management-level apprenticeships as it shifts its focus to encouraging more young people into work.

The government has announced it will axe funding for 16 apprenticeships, including the team leader, operations manager and coaching professional courses used in the travel sector.

The government said its biggest shake-up of apprenticeships in a decade, backed by an extra £1 billion in funding, aimed to create 200,000 jobs for young people.

The changes include a new foundation apprenticeship in hospitality and retail from April 2026, with up to £2,000 for employers to support 16-21-year-olds to work in the sectors; a youth jobs grant of £3,000 for businesses for every 18-24 year old they take on who has been on Universal Credit and looking for work for six months; and an apprenticeship incentive of £2,000 for every 16-to-24-year-old taken on by a small or medium-sized business.

The government is also expanding the Jobs Guarantee to a wider age range, from 18-21 to 18-24-year-olds.

Abta said it supported the government’s incentives to entice more young people into work, particularly for small and medium-sized businesses, but said the decision to defund management-level apprenticeship would have a ‘detrimental’ impact on staff who wish to progress in their career.

Abta’s head of education and career development Vicki Wolf said a “significant” number of travel businesses would be affected by the move.

“Our members are very concerned that this will have a detrimental impact on opportunities for young people wishing to progress in their careers,” she said.

She added: “For many young people who do not want to go to university or who are not in a position to take on a student loan to fund their studies, a higher level apprenticeship represents a real opportunity to gain qualifications in a variety of areas without the associated debt.”

No date has been given for the change but, once defunded, businesses would have to pay to put employees on the level three to level five apprenticeships, which have funding levels ranging from £4,000 to £22,000.

Wolf said the likelihood of employers footing the bill for management training was unrealistic in the current climate.

She noted: “Government’s approach is to push the costs of higher level training such as management apprenticeships onto employers.

“However, bearing in mind the context of the already rising costs businesses have had to cope with, the reality is few will be able to fund those opportunities to the extent they have been able to use the apprenticeship levy.”

Defending its youth employment drive, the government said apprenticeships 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” would be defunded.

Work and pensions secretary Pat McFadden said: “We are focusing funding where it’s needed most and giving employers the flexibility and support they’ve asked for.”