The Scottish Government is investing an additional £8.8m in Modern Apprenticeships to give learning providers a 10% funding increase.
The uplift in contribution rates supports the training and assessment of any new and in-training Modern Apprentices from financial year 2027-28.
The announcement, made on 24 September by Minister for Innovation, Technology and Tertiary Education, Alyn Smith, is the first stage of the Scottish Government’s review of Modern Apprenticeship contribution rates and compared public contributions with provider delivery costs, financial viability, and employer contributions.
Stage two of the government’s review will commence in 2027.
STF Chief Executive, Stuart McKenna, said: ‘This is a very welcome first step which will help ease the current financial difficulties experienced by training providers delivering Modern Apprenticeships. I am pleased that Scottish Government has recognised the current financial strain experienced by training providers and has taken positive action to address this.’
He added” ‘The 10% funding increase is an important step in restoring funding to sustainable levels. Over the last decade, funding rates have reduced in value by around 35%, so it is clear that more needs to be done to ensure we retain a robust Modern Apprenticeship delivery infrastructure. STF looks forward to working with the Minister and his officials on stage two of the review’.
