Scottish Funding Council: Apprenticeship Committee - Proposals for statutory guidance from the Scottish Ministers

Discussion Paper

Introduction

1. This discussion paper does not form part of the guidance but is provided for context for stakeholder engagement on the draft guidance over summer 2026. The Scottish Government will revise the guidance in September and issue to the SFC in final form on 1 October 2026. The final guidance will be published.

2. The statutory guidance is issued by the Scottish Ministers to the Scottish Further and Higher Education Funding Council (“the Scottish Funding Council” or “the SFC”) under paragraph 12A(6) of schedule 1 of the Further and Higher Education (Scotland) Act 2005 (“the 2005 Act”). Paragraph 12A is inserted by section 31 of the Tertiary Education and Training (Funding and Governance) (Scotland) Act 2026 (“the TET Act”).

3. The TET Act makes provisions for: a national funding strategy for tertiary education, skills and apprenticeships; changes to the functions and governance of the SFC; and financial support for students in further and higher education.

4. The TET Act establishes a more integrated and coherent system by consolidating responsibility for funding and securing tertiary education and training, including national training programmes, apprenticeships and work-based learning, within a single redesigned body.

5. It introduces new statutory functions, governance arrangements and powers that will shape how apprenticeships and work-based learning are delivered and quality assured. Central to these changes are strengthened governance structures and greater flexibility to respond to evolving skills needs in Scotland.

6. The TET Act amends the 2005 Act to require the SFC to establish an apprenticeship committee to support the effective delivery of its new functions in relation to apprenticeships and work-based learning.

7. Under paragraph 12A(6) of schedule 1 of the 2005 Act, the Scottish Ministers are required to issue guidance to the SFC on:

• the composition of the apprenticeship committee;
• the appointment of the chair of the committee; and
• the committee’s functions.

8. The purpose of the guidance is to outline the key principles and requirements that the SFC must have regard to when establishing the apprenticeship committee. It is intended to support the SFC in ensuring that the committee is appropriately constituted, effectively governed, and equipped to carry out its functions in line with the requirements of the 2005 Act, as amended by the TET Act.

Implementation timeline

9. The guidance is expected to come into force on 1 October 2026, with the commencement of section 31 of the TET Act which inserts paragraph 12A of schedule 1 of the 2005 Act into the 2005 Act. From that date, the SFC is expected to have regard to this guidance in carrying out its responsibilities in relation to the establishment and operation of the apprenticeship committee.

10. The SFC is expected to appoint members to the apprenticeship committee in autumn 2026 in time for it to meet for the first time in January 2027, with any subcommittees being established in time to meet in February 2027. This timeline will enable the SFC to undertake preparatory work ahead of it assuming its new responsibilities on apprenticeships and work-based learning from 1 April 2027.

Delegation of functions

11. Paragraph 15 of schedule 1 of the 2005 Act enables the SFC to delegate functions to its committees, including the apprenticeship committee, administratively. Without this delegation, the apprenticeship committee can only make recommendations to the SFC. Whether functions are formally delegated or not, the SFC itself retains responsibility for the exercise of the functions.

Review

12. The guidance will be reviewed in April 2028, allowing sufficient time for the apprenticeship committee to be established and to complete a year of operational activity and delivery.

Transition from the Scottish Apprenticeship Advisory Board

13. Apprenticeship delivery is currently supported by structures such as the Scottish Apprenticeship Advisory Board (SAAB) and its subgroups. These bodies have brought together employer-led expertise to ensure apprenticeships are demand-led and aligned with labour market needs.

14. Following commencement of section 31 of the TET Act, under paragraph 12A of schedule 1 of the 2005 Act, the SFC is required to establish an apprenticeship committee for the purposes of advising the SFC on matters concerning apprenticeships and work-based learning. As a result, SAAB will be wound down on a phased basis over the period to 31 March 2027, allowing for an effective transition to the new apprenticeship committee.

15. The intention is not to replicate existing arrangements, but to streamline governance and create a more effective and efficient system. The establishment of the apprenticeship committee should align with the SFC’s new statutory functions while complementing its wider functions on higher and further education and its governance framework. This will ensure the SFC is well placed to deliver all of its responsibilities effectively.

The purpose of guidance

16. The guidance should be used by the SFC to assist it in fulfilling its duties under paragraph 12A of schedule 1 of the 2005 Act, in particular when recruiting members of the apprenticeship committee and in the exercise of its functions.

17. The guidance may also be of interest to employers, learners, training providers, higher and further education institutions and local authorities.

Definitions

18. References to provisions in the 2005 Act include those inserted or amended by the TET Act.

Apprenticeships

19. The 2005 Act contains a single definition of Scottish apprenticeship which is capable of encompassing existing modern and graduate apprenticeships. The definition of a Scottish apprenticeship is set out in section 12E of the 2005 Act as an arrangement where:

a) an apprentice works for a person (“the employer”) for reward in an occupation or activity included in a Scottish apprenticeship framework,

b) the apprentice receives training to meet the relevant requirements specified in a Scottish apprenticeship framework,

c) there is an apprenticeship agreement in place between the apprentice and the employer and any training provider involved in the delivery of the apprenticeship, and

d) any other criteria set out in regulations made by the Scottish Ministers are satisfied.

20. References to “Scottish apprenticeships” or “apprenticeships” in this guidance are to be interpreted as including both modern and graduate apprenticeships. In exercising its functions, the SFC must have regard to both types of apprenticeships on an equal basis.

Work-based learning

21. Work-based learning is defined at section 12I of the 2005 Act. It means education and training received by an individual in a working or educational environment in which work-based activities are undertaken by the individual and under a work-based learning agreement. There is no requirement that an individual is paid, unlike an apprentice.

22. A “work-based learning agreement” means an agreement which sets out the educational and vocational standards to be met by an individual and provides for the individual to receive education and training in order to meet those standards.

23. All provision that is currently delivered through foundation apprenticeships will be delivered under work-based learning powers. There will be no changes to the scope of activities on 1 April 2027. This means that any references to work-based learning in the guidance document should also be understood to mean foundation apprenticeships.

SFC Board

24. In the guidance, SFC members mean members of the SFC Board, or Council as it is referred to in the 2005 Act.

Stakeholder engagement

25. This discussion paper does not form part of a public consultation. The Scottish Government will be discussing the draft guidance with selected groups of stakeholders over July and August 2026. The discussions will seek views on the clarity and content of the guidance and suggestions for any changes or improvements. If you would like to be part of a discussion, please contact the Apprenticeships and Simplification Unit at Policy-SG@gov.scot.