A leading UK training provider is urging employers to act immediately to secure government funding for Level 7 Senior Leader apprenticeships before support is withdrawn for most learners at the start of 2026. Costs are expected to rise by £14,000 per employee once the funding ends.
Funding withdrawal to hit employers in 2026
Jemma Perks, Managing Director of S&A Academy, has called on company bosses and HR teams to enrol staff on the final funded courses before the January 2026 deadline. She warned that failing to act will leave organisations facing significantly higher training costs.
S&A Academy specialises in executive leadership and management training across business, insurance, financial services, science and technology. The Level 7 apprenticeship, equivalent to a master’s degree, is widely used by employees aiming for senior management roles and is designed to fit around full-time work.
From 1st January 2026, the government will stop funding Level 7 apprenticeships for learners aged 22 and over. The current support stands at £14,000 per employee. The change forms part of broader apprenticeship reforms announced in May 2025, which prioritise funding for younger learners. Funding will continue only for those aged 16–21, along with limited exceptions such as care leavers with an Education, Health and Care Plan.
The Department for Education has confirmed that learners who start before the deadline will remain fully funded until they complete the programme.
89% of current Level 7 participants are aged over 22, meaning most candidates will be affected.
Levy funding and economic pressures
In the 2023–2024 period, UK employers spent just under £240 million on Level 7 apprenticeships using the enterprise levy scheme. The levy, supported by a record £3 billion budget for 2025–2026, has helped organisations upskill staff without bearing full training costs.
December will mark the final intake eligible for subsidised funding. After January 2026, employees will need to self-fund or rely on employer support, at an estimated cost of £14,000 per person.
The announcement comes as businesses navigate challenging economic conditions, rising energy and staffing costs, and the impact of the employer National Insurance increase introduced in Chancellor Rachel Reeves’ October 2024 Autumn Budget. From April 2025, employer NI contributions will rise by 1.2% points –15%, with the threshold lowered from £9,100–£5,000.
The increase is forecast to generate around £25 billion annually for public services, although the Office for Budget Responsibility estimates it could raise employment costs by nearly 2%. While an increased Employment Allowance of £10,500 offers some relief for smaller firms, analysts warn that training budgets may come under further strain.
Concerns over widening leadership skills gaps
Experts warn that removing funding for older learners could deepen leadership shortages, particularly in the NHS, education and civil service. The Chartered Management Institute notes that fewer than 1% of senior leader apprenticeship starts are by people under 25, placing mid-career development at risk. Universities UK has also highlighted potential impacts on public services, with 2,040 Level 7 starts in health and care during 2023–2024.
S&A Academy, headquartered in London and operating nationally, is an Ofsted-regulated provider rated “Good”. Its sister company, S&A Transform, is a leading challenger consultancy. The S&A Tech Academy achieved a 100% achievement rate for apprenticeship training last year.
Industry response
Commenting on the announcement, Jemma Perks said: “We would urge all company bosses and HR departments to sign up as many employees onto the L7 senior leader programme before the funding is withdrawn on the 1st January 2026. After this deadline companies will then have to pay £14,000 for each employee undertaking an L7 course. This adds more financial pressure that UK companies are currently facing and is likely to impact future training of their senior leaders.”
S&A Academy delivers its 18-month Senior Leader programme across all English regions and sectors. The course uses a flexible blend of online workshops, one-to-one coaching and on-site training designed to fit around executive schedules. Executive coaching is integrated throughout, and cohort-based learning enables senior-level networking.
Leadership apprenticeships have demonstrated strong value. Hult International Business School reports 75% retention rates after completion and significant diversity impacts, with 60% female participants.
The World Economic Forum’s 2025 Future of Jobs Report identifies analytical thinking and resilience as critical skills that these programmes help to build.
Perks added: “The government’s withdrawal of vital funding means employers will be faced with finding an extra £14,000 per employee to put them onto the L7 courses. For a company wishing to put 10 employees onto this course will now cost £140,000 and for many SME’s this will be prohibitive. This is likely to impact senior leadership roles in companies with not enough talented future leaders coming through the executive leadership pipeline. This in turn will have an impact on growth within UK companies and organisations.”
Deadline looms for employers
With the funding deadline approaching and NI increases set to raise workforce costs, employers are accelerating efforts to use remaining levy funds. However, analysts warn that combined fiscal pressures could limit long-term investment in leadership development. As the government focuses on fiscal repair, businesses face increasing responsibility to protect their leadership pipelines before opportunities close.