Management Apprenticeships Defunded: How CMI Courses Fill the Gap

Fri 02 Oct 2026

Angela Tracey-Brown

Product Manager - CMI & CIPD

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From September 2026, government funding is being withdrawn entirely from 16 apprenticeship standards.

These include three of the most widely used management routes: Team Leader/Supervisor, Operations/Departmental Manager and the Chartered Manager degree apprenticeship.

For employers who have relied on the levy to develop managers, and for individuals hoping to start one of these apprenticeships, that leaves a real gap to plan around. Our business management and leadership courses give you a way to keep building management capability that isn't tied to apprenticeship funding at all.

What's actually changing, and when

The changes will be introduced in two stages.

From 1 January 2026, Level 7 apprenticeships, the senior and strategic leadership tier, became government-funded only for apprentices under 22, or under 25 with an EHC plan or care experience. That restriction carried forward into the 2026 to 2027 funding rules.

The bigger change is management apprenticeships being cut in September 2026. The Department for Work and Pensions has confirmed that funding will be withdrawn entirely from 16 defunded apprenticeship standards for apprentices of any age. Three of these standards are management-focused: Team Leader (Level 3), Operations/Departmental Manager (Level 5) and the Chartered Manager degree apprenticeship (Level 6).

This creates an opportunity for employers to explore other proven routes for developing management capability across their workforce.

What this means if you're an employer

If you were planning to bring new managers through Team Leader or Operations Manager training using levy funds after September 2026, that route will close. However, existing apprentices are not affected.

Anyone already on a defunded standard will continue to be funded through to completion, and training providers are expected to keep delivering, assessing and preparing them for their end-point assessment as normal. Providers not already delivering an affected standard cannot start new learners on it once the notice period begins. Plus, those actively delivering are working to individual transition arrangements and start limits set by the DWP.

What this means if you're an aspiring manager

If you were hoping to move into management through an apprenticeship, the door isn't closing on management training itself, only on this particular funding route. You can still work towards the same CMI qualification and the same Chartered Manager status. The difference is that you or your employer pays directly rather than drawing on the levy.

For many aspiring managers this is simpler: no apprenticeship intake dates to wait for, and no requirement to be in a role that meets apprenticeship eligibility rules.

The wider funding picture from August 2026

This sits alongside a broader shift in how apprenticeships are run. Responsibility moved from the Department for Education to the DWP on 1 April 2026, and from 1 August 2026 employer co-investment rates increased, with the 10% government top-up on new levy funds removed.

Together, these changes mean less government money is available for management apprenticeships generally, not just the standards being withdrawn outright.

Manager apprenticeship alternatives: how CMI compares

Management training doesn't have to run through an apprenticeship standard to count. Here's how a direct CMI qualification compares with the apprenticeship route it's replacing:

Area	Level 3/5 Apprenticeship (Levy Funded)	CMI Level 3/5 Qualification (Direct)
Cost	Funded through the levy, up to a £9,000 cap at Level 5, but only while the standard remains fundable.	Paid directly: Level 3 from £395, Level 5 from £495, so the entry cost is far lower even without any funding at all.
Content	Covers the same core management knowledge, skills and behaviours, delivered through the apprenticeship standard.	Covers the equivalent CMI syllabus, but you choose the units, so training can target your actual skills gaps.
Accreditation	Apprenticeship certificate plus a CMI qualification, assessed through an independent end-point assessment.	A CMI qualification in its own right, assessed through work-based assignments rather than a formal end-point assessment.
Outcomes	Eligibility for Foundation Chartered Manager or Chartered Manager status through CMI membership.	The same Chartered Manager or Foundation Chartered Manager status and CMI membership on completion.

Our CMI Level 3 qualification is built for supervisors and first-line managers, while our CMI Level 5 qualification covers the same ground as the Operations/Departmental Manager apprenticeship. Because these routes sit outside the apprenticeship funding system, they're unaffected by the September 2026 defunding and can start whenever your business, or you, need them to.

If you're weighing up which route fits your team, our guide to what CMI qualifications are equivalent to breaks down the Award, Certificate and Diploma routes at each level. Our piece on the benefits of a CMI qualification also sets out the career and salary impact learners typically see. For anything else, our leadership and management course FAQs cover entry requirements, timelines and progression routes.

You can still build capable managers

Management apprenticeships aren't disappearing for everyone, and existing apprentices are protected, but the funding gap from September 2026 is real for anyone who hasn't started yet.

The good news is that the alternatives to manager apprenticeships lead to the same CMI-recognised outcome. There's no need to pause management development while the funding picture settles.

Get in touch and we'll help you work out the right route for your team.