Providers of apprenticeship places in Scotland will see their
funding rise 10% in 2027-28, giving greater stability to those
that offer training.
Modern Apprenticeship contribution rates support the training and
assessment of the next generation of skilled workers, applying to
new apprentice starts and apprentices in training from 2027/28.
The £8.8 million uplift applies to all types of apprenticeship
frameworks, following phase one of the Scottish Government's
contribution rates review.
Minister for Innovation, Technology and Tertiary Education, Alyn
, said:
Apprenticeship training providers play a profoundly important
role in equipping people with the skills they need to have
successful careers. In doing so they make a significant
contribution to a healthy economy.
This funding increase demonstrates our commitment to Scotland's
apprenticeship system and to developing our future workforce. It
will also provide greater stability for training providers within
the context of a challenging financial environment.
We want to see more high-quality apprenticeships to meet our
skills needs and to support our vital public services. We look
forward to expanding our modern and graduate apprenticeship offer
in the future.
Background
Modern apprenticeship
contribution rates review: terms of reference - gov.scot
Current contribution rates.
Review to examine funding
apprenticeships - gov.scot
The Scottish Government's increase of £8,880,000 in funding for
Modern Apprenticeship (MA) contribution rates is in addition to
approximately £198 million of annual funding to support 25,500
modern apprenticeships, alongside 5,000 foundation
apprenticeships and 1,500 graduate apprenticeships.
Stage 1 of the Contribution Rates Review aimed to explore how MA
public contributions compare with provider delivery costs,
financial viability, and employer contributions. It also aimed to
identify changes required for the 2027-28 contracts. A commitment
to carry out the review was part of the Tertiary Education and
Training Act 2026.
Evidence provided in confidence by a sample of training providers
highlighted the unsustainability of static funding rates and
challenging business conditions. A more in-depth consideration of
the cost of delivery across frameworks will be conducted as part
of Stage 2, which will commence in 2027.
