Providers offering apprenticeship places will receive higher public contributions from 2027/28, supporting the training and assessment of the next generation of skilled workers. The increase applies to both new apprentice starts and those already in training.

The uplift follows the first phase of the Scottish Government's review of contribution rates and will be applied consistently across all apprenticeship frameworks.

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.

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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."

The £8,880,000 increase sits alongside approximately £198 million in annual investment that supports 25,500 modern apprenticeships, plus 5,000 foundation and 1,500 graduate apprenticeships.

Stage 1 of the Contribution Rates Review examined how public contributions compare with provider delivery costs, overall financial viability, and the role of employer contributions, and identified changes needed for 2027-28 contracts. The review was a commitment under the Tertiary Education and Training Act 2026.

Confidential evidence from a sample of training providers highlighted the pressure created by static rates and difficult trading conditions. A more detailed analysis of delivery costs across frameworks will form Stage 2 of the review, beginning in 2027.