but they clearly need a LOT of handholding in order to be competitive for funding.
What does that even mean? Its a bloody application form and statements , EVERY PhD funding application is a nightmare. Mine was a million times harder than applying and winning a place for a PhD program, its sort of the point, winning funding is HARD WORK.
If the OP thinks this is too much, she's in for a shock supervising any potential PhD candidate
Nowhere has OP expressed concern about the supervising element.
When one decides to take on a student helping with funding applications is part of the supervising element. If she's struggling with this, what's going to happen when she has a stressed out student getting ready to upgrade ? Or prepping for their VIva?? Its entirely normal and a huge responsibility.
To me, it sounds the OP is anxious about taking on her first student , its a massive learning curve, and she needs to share her concerns with the main supervisor who sounds like they aren't pulling their weight, she also needs to contact her Grad School for any training or reaching out to senior colleagues for support, they will all understand she's anxious as her first supervisor role.
As I said, she needs to either commit or step away if she can't handle it. Its one of the reasons I ensured both my supervisors were very senior , I saw in cohort fellow PGR's with supervisors in their first gig, they were AWFUL.