Across the employment sector, debate around the potential defunding of leadership and management apprenticeships and workforce development programmes has sparked real concern. As industry sectors respond to the current consultation on the future of levy-funded programmes, the question is no longer just about funding models — it is about how the UK can continue to invest in the skills that underpin productivity, workforce resilience, career progression and long-term economic growth.
At ILM, part of City & Guilds, we have been closely following these discussions, and our view is clear: leadership and management capability is not a “nice to have” — it is a national priority. How we develop those skills may evolve, but the need for sustained investment from employers, learners and Government must remain constant.
The three central pillars of skills education that underpin our current Growth and Opportunity missions are:
- technical and vocational skills related to key labour market sectors
- broader digital skills that enable full utilisation of investment in technology
- management and leadership skills that shape workforce recruitment and retention, and inform strategic direction
Leadership and Management: Central to Productivity, Performance and People
Set in this context, leadership and management skills have never been more important. They are central to the UK’s ability to deliver on the ambitions of the Industrial Strategy, which depends on a workforce capable of adopting new technologies, driving innovation and supporting growth across priority investment areas. They are also vital for the effective and efficient operation of our Foundation Economy, which offers personal prosperity and essential services to every region of the UK.
In every industry — from engineering and manufacturing to digital and AI-driven sectors, public services and hospitality — organisations are grappling with rapid change, automation and evolving generational expectations. Human centric capabilities such as collaboration, problem solving, adaptability and people leadership have become essential, durable skills that support career resilience. These skills form the foundation for unlocking new opportunities, creating high performing teams and navigating organisational transformation.
Recent work from the World Economic Forum, alongside Skills England’s UK skills taxonomy framework, highlights the growing demand for these capabilities as businesses move towards more technology enabled and people centred operating models. With the UK continuing to face productivity challenges and growth stagnation, we believe now is the moment to double down on leadership development — not step away from it.
This is also critical for supporting young people entering the workforce. Effective managers play a vital role in developing confidence, capability and purpose in early career employees, helping to create the future talent pipelines on which the Industrial Strategy depends.
Flexibility matters: Giving employers and learners real choice
While we strongly advocate for the value of leadership and management apprenticeships, we also recognise the importance of choice, flexibility and relevance.
Effective leadership development can take many forms:
- full apprenticeship programmes (either fully or co funded)
- shorter, modular or unitised learning (such as Apprenticeship Units)
- targeted interventions aligned to regional and sector needs
- blended or workplace based models for learners of all ages
- lifelong learning pathways that evolve as careers do
What matters most is not the format, but the sustainability and consistency of investment linked to high quality, high impact programmes. Whether through apprenticeships or alternative routes, employers and learners must continue to access meaningful development that builds the skills required to be effective in a rapidly changing world.
At ILM, part of City & Guilds, we champion a system that places both the learner and the employer at the centre — enabling leaders to develop the right skills, at the right time, in ways that best fit their role, sector and future ambitions.
A workforce that learns for life
Career paths today are more fluid than ever. People move across industries, job roles and specialisms far more frequently than previous generations. A technician can become a team leader, a data analyst can transition into operations, and a frontline manager may later lead digital transformation.
This reality demands lifelong learning and continuous reskilling — particularly in leadership.
That is why we believe in early investment, from Level 3 upwards, in supervisory capability and mentorship skills. A strong foundation enables people across all sectors — including engineering, digital, healthcare, manufacturing and the creative industries — to become rounded, adaptive and confident leaders, capable of navigating change.
Recognising and transferring achievement across careers
As careers become more fluid, learners need their achievements to be easily recognised and understood by employers across all sectors. Clear and portable signals of leadership and management capability help individuals progress, move between roles and demonstrate their strengths with confidence.
If the value or clarity of apprenticeships is diluted, it becomes harder for employers to assess what people have achieved and harder for learners to showcase their skills and gain promotion. A strong, coherent system is essential to supporting mobility, progression and a dynamic workforce aligned to national priorities.
A call for sustained investment
As debate over budgets continues, it is essential that we keep sight of the bigger picture. The UK’s prosperity depends on a workforce equipped not just with technical competence, but with the leadership strength to manage teams, drive innovation and create high performing organisations. These capabilities are essential to realising the Industrial Strategy, securing an effective Foundation Economy and enabling businesses to thrive in an AI enabled, rapidly changing world.
For that reason, ILM is calling for:
- Government to maintain support for leadership and management development — through apprenticeships or alternative forms of funded learning
- Employers to continue investing in their people, recognising that leadership capability directly impacts productivity, retention and culture
- Learners to embrace lifelong development as the foundation of modern careers and the route to personal prosperity
- A flexible system that allows leadership and management skills to be developed through multiple high quality pathways
Sustained investment, combined with real flexibility, is key to building the leaders of the future who will drive UK business performance.
Looking ahead
The evolving policy landscape presents an opportunity to reshape leadership and management development so that it better reflects the realities of work today. ILM will continue to champion the importance of leadership capability, advocate for choice and flexibility, and support employers and learners through whatever changes lie ahead.
Leadership and management skills power teams, organisations and economies. We must ensure they remain accessible, valued and properly invested in — for the benefit of individuals, employers and the UK as a whole.
