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 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 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.
