The association is warning the Learning and Skills Council that its 800m annual budget for Apprenticeships cannot accommodate the 250,000 young people aged 16 to 21 currently on courses and meet the target of taking on 175,000 new recruits in August this year.
The shortage has been triggered by young people on this year's programme staying on courses for an average of two weeks more than expected, according to figures released by the Learning and Skills Council.
Graham Hoyle, chief executive of the Association of Learning Providers, said: "The money is not going to be enough because the cost of retention is taking up a much larger share of the budget. Apprentices are staying on longer and a higher proportion are now successfully completing the courses. All of this is good news, but it costs more money."
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