From January 2026, Level 7 (master's-level) apprenticeships are only funded for 16–21-year-olds. If you fund senior leaders on a Level 7, your next cohort needs a different route. The fastest, fully-funded successors are the new AI Leadership Units (Level 5) and the AI Leader Level 4 programmes.
Level 7 apprenticeships lose government funding for anyone aged 22+ from January 2026 (16–21s, and under-25 care leavers/EHCP, remain funded; in-progress learners finish). For senior leaders affected, the funded successors are TESS's AI Leadership Units at Level 5 — short, modular, 100% funded, no EPA, completed in weeks — and the AI Leader Level 4 apprenticeships, all levy-eligible and Ofsted Good.
The headline you need to brief your leadership and reward teams on.
Three levy-eligible routes, depending on the leader and how fast you need them moving. Most Level 7 senior-leader cohorts move to the AI Leadership Units.
Three short, modular Skills England units for senior leaders — AI Strategy & Opportunity, AI Adoption & Governance, and AI Delivery & Transformation. 100% funded, no EPA, completed in weeks. The natural home for directors and senior teams losing a Level 7 route.
For managers who lead teams and need AI governance, ROI-build and adoption skills with a recognised CMI qualification embedded. Full apprenticeship, levy-funded.
For leaders who want to build AI workflows directly, not just sponsor them. The ST1512 flagship — vendor-neutral, no-coding, with an 8-month accelerated option and the Coachy AI tutor included.
A fair comparison so you can brief your team. The AI Leadership Units are a different shape to a Level 7 — shorter and modular by design — but they keep your senior leaders funded and moving.
| Dimension | Level 7 apprenticeship (defunded for 22+) | AI Leadership Units · Level 5 (TESS) |
|---|---|---|
| Funding (22+ staff) | No government funding for new starts from Jan 2026 | 100% funded · £0 out of pocket |
| Level | Level 7 (master's-level) | Level 5, modular units |
| Audience | Senior leaders / mid-career professionals | Directors, senior leaders, function heads |
| Duration | Typically 18–30 months | Weeks per unit (e.g. 5 instructor-led days) |
| End-point assessment | Full EPA | No EPA — portfolio & deliverable |
| Focus | Broad leadership / discipline-specific | AI strategy, governance and delivery for leaders |
| Flexibility | One long programme | Take one unit or all three; mix across the team |
| Time to value | Slow | Fast — leaders apply it in current role immediately |
From 1 January 2026, only apprentices aged 16–21 at the start of a Level 7 remain government-funded (plus under-25s who are care leavers or have an EHCP). Anyone aged 22 or over is no longer eligible for funding on a new Level 7 start.
Yes. Anyone who started a Level 7 before the cut-off is funded through to completion. The defunding only affects new starts.
It's a different shape, not simply a step down. The AI Leadership Units are deliberately short and modular — built so senior leaders gain applied AI strategy, governance and delivery capability in weeks rather than committing to an 18-month-plus programme. For most employers the priority is keeping senior leaders funded and moving, and the units do that.
They're funded through the Growth & Skills Levy — 100% funded with £0 out of pocket for the employer. Levy-paying employers draw from their levy account; non-levy SMEs are fully government-funded for the units.
Yes — that's the usual approach. Senior leaders typically move to the AI Leadership Units (L5); managers who lead teams move to an AI Leader Level 4; and leaders who want to build AI directly take the AI & Automation Practitioner Level 4. We'll map each person to the right route on a discovery call.
A 30-minute call to map your affected Level 7 cohort to funded AI routes — with the levy maths for a clean transition.
Last updated: 4 June 2026