Funding for providers of Modern Apprenticeship places in Scotland will rise by 10% in 2027-28, the Scottish Government has announced.
The £8.8 million uplift applies to the contribution rates that support the training and assessment of apprentices. It covers all types of apprenticeship frameworks and will apply to new apprentice starts and to apprentices already in training from 2027/28.
The increase follows the first phase of the Scottish Government’s review of contribution rates. Stage 1 of the review looked at how public contributions for Modern Apprenticeships compare with providers’ delivery costs, as well as financial viability and employer contributions. It also aimed to identify the changes required for the 2027-28 contracts.
Evidence provided in confidence by a sample of training providers highlighted the unsustainability of static funding rates and challenging business conditions. A more detailed look at the cost of delivery across frameworks will take place in Stage 2, which will begin in 2027.
The commitment to carry out the review formed part of the Tertiary Education and Training Act 2026.
The £8.88 million increase is in addition to approximately £198 million of annual funding supporting 25,500 modern apprenticeships, alongside 5,000 foundation apprenticeships and 1,500 graduate apprenticeships.
Alyn Smith, Minister for Innovation, Technology and Tertiary Education, 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.
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“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.”
