The Scottish Government has published its terms of reference for the review of Modern Apprenticeship Contribution Rates.
Details of the background, purpose, scope and outputs of the review are now available.
Background
During the passage of the Tertiary Education and Training (Funding and Governance) (Scotland) Act the Scottish Government confirmed that there would be a review of modern apprenticeship (MA) contribution rates which would start by April 2026. A commitment was also given that a report would be published on the outcome of the review, including any SG actions in response to the review once it has concluded.
This review will build on an earlier contribution review undertaken in 2012/13 and implemented by 2019, which focused on value for money, transparency, and differentials across frameworks and policy priorities.
Contributions range from £300 to £10,300 paid for the duration of the training. Current annual public sector investment is c. £90 million for MAs (Skills Development Scotland (SDS) budget contribution). In addition, the Scottish Funding Council (SFC) estimate that c. £50m credits are used to support MA delivery in colleges. Evidence shows that employers invest £10 for every £1 public investment.
