Management Apprenticeships: A Route to Unlocking Economic Growth

From the Prime Minister to the Chancellor, the UK government has made clear its commitment to boosting productivity, living standards, and life chances across the country. Achieving this goal requires agility and ingenuity across both the private and public sectors. One of the most effective tools to support these objectives is management apprenticeships—making their success during National Apprenticeship Week worth celebrating.

At the Chartered Management Institute (CMI), we have long championed the link between better management and higher productivity. New research from Oxford Economics reinforces this, demonstrating how management apprenticeships fuel economic growth, drive business success, and create career opportunities. With the Government and Skills England reviewing the apprenticeship system and shaping the new growth and skills levy, this research is more important than ever.

A £120 Million Boost to the Economy — and Counting

The numbers speak for themselves. Over 12,000 CMI management apprentices completed their training in 2023/24, injecting at least £75.4 million into the UK GDP. When factoring in the total number of management apprenticeships across the UK, the wider economic impact is an estimated contribution of  £120 million to the national economy last year alone. This significant boost underscores their vital role in strengthening UK businesses and ensuring long-term national prosperity.

Across the private sector, businesses with management apprentices generated an additional £106.1 million in revenue, demonstrating a strong link between skills investment and business growth. The highest-level apprenticeships, particularly at Level 7, had the most significant economic impact, with each apprentice contributing an average of £8,800 per year to GDP, followed by Level 6 apprentices (£7,400), Level 5 apprentices (£4,600), and Level 3 apprentices (£4,300).

Employers Reap Tangible Benefits

For businesses, management apprenticeships are a proven investment in workforce capability.  Indeed, apprentices can apply their learning on-the-job, so that their business benefits at the same time. They enhance decision-making, boost team productivity, and prepare businesses to navigate challenges with confidence. By embedding leadership development into their talent strategies, employers can future-proof their organisations and foster continuous improvement.

The public sector also faces pressing leadership challenges, particularly in the face of budget constraints and rising service demands. Investing in management apprenticeships helps build a pipeline of skilled leaders, ensuring effective service delivery and improved efficiency.

A Catalyst for Social Mobility and Inclusion

The benefits of management apprenticeships extend far beyond economic metrics—they are a game-changer for social mobility. More than one in three (35%) apprentices saw a salary increase after completing their training, with an average pay rise of £12,000. 

Moreover, 71% of CMI apprentices in 2023/24 came from families where neither parent attended university, proving that these programmes provide crucial opportunities for those who might not have otherwise accessed leadership roles. Management apprenticeships are also driving gender diversity in leadership, with women now making up 59% of apprentices—outpacing their 46% representation in the UK’s management workforce.

A Future-Focused Approach to Apprenticeship Investment

At CMI, we recognise the Government’s commitment to prioritise its education funding towards supporting more young people into work. However, in the context of falling levels of employer investment in skills, in order to ensure the continued success of management apprenticeships at all levels, we believe it is important to maintain incentives for employers to invest in leadership development. The new report from Oxford Economics provides clear evidence of the return on investment for businesses, reinforcing the need to sustain and enhance these apprenticeships at all levels.

One current area of focus is seeking co-investment models for Level 7 apprenticeships during any transition phase. By reducing funding levels gradually, rather than abruptly, employers can continue running these vital programmes without a cliff-edge drop in participation. Ensuring stability in these high-impact apprenticeships will help prevent valuable leadership development opportunities from disappearing.

Looking ahead, we are pleased to be working with employers and providers on new Level 2 apprenticeships and Higher Technical Qualifications (HTQs). Additionally, we are committed to identifying the additional support young people and their managers need to increase retention and achievement at these levels. Exploring foundation apprenticeships as new pathways into work-based learning is another avenue many are keen to develop, ensuring that management skills remain accessible to the next generation of leaders.

If the UK is serious about building a more prosperous and equitable future, management apprenticeships must be at the heart of the nation’s skills strategy. They don’t just benefit individuals—they deliver tangible results for employers and help drive UK growth.

By Petra Wilton, Director of Policy and External Affairs at the Chartered Management Institute(CMI)