Supporting the future workforce
Increased funding for Modern Apprenticeships
Providers of apprenticeship places 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 Smith, 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
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.