Funding apprenticeships

15 Mar 2026 11:30 PM

Review to examine how best to meet the needs of the future economy.

A review of the publicly-funded contribution rates paid to help deliver modern apprenticeships (MAs) will be undertaken soon to ensure they continue to meet the country’s economy priorities and maximise public value.

Contributions are made to training costs for around 39,000 MAs each year from £90 million of Scottish Government funding. The review will look at the levels of contribution.

It will also assess how the current approach, delivered by Skills Development Scotland, operates across key sectors and age groups, while meeting the Scottish Government’s priorities for growing the economy.

Ministers committed to a review when Parliament was considering the Tertiary Education and Training (TET) Act - passed by MSPs earlier this year to simplify the funding system for post-16 education and skills. The first stage of this review will get underway later this month.

Higher and Further Education Minister Ben Macpherson recently said:

“Apprenticeships help create positive futures for people, including many of our school leavers, as well as developing the skills required to meet the changing needs of the 21st century economy.

“The Scottish Government recognises that there are financial pressures surrounding the current apprenticeship model. That is why we are reviewing contribution rates, to look at whether current public funding for the Modern Apprenticeship programme is still appropriate and sustainable, as well as meeting our priorities and Scotland’s labour market needs.

“The Scottish Government will do more to help ensure that smaller employers can recruit more apprentices, for the benefit of their businesses and those in training."

Scottish Training Federation Chief Executive Stuart McKenna recently said:

“The Scottish Training Federation welcomes the Minister’s commitment to review funding rates for modern apprenticeships.

“To ensure the continued success of the programme, it is essential that we review the current funding model to ensure it remains fit for purpose.”

Background

This review will build on an earlier contribution review undertaken in 2012-13 and implemented in 2019, which focused on value for money, transparency and differentials across frameworks and policy priorities. Contributions currently range from £300 to £10,000 paid for the duration of the training.

Stage one of the review will focus on gathering evidence and reviewing the data and is expected to be completed in September this year.

Stage two will be a more in-depth consideration of the costs of delivery. This will be concluded in 2028.