Scottish Government announces new funding for apprenticeships

Education Secretary Jenny Gilruth has confirmed over £100 million in funding to support Modern and Foundation Apprenticeships in 2025-26.

Skills Development Scotland will now issue contracts to employers, training providers, and colleges for Modern Apprenticeship starts, as well as to learning providers for Foundation Apprenticeship starts.

The announcement was made by the Education Secretary during a visit to Glenrothes High School as part of Scottish Apprenticeship Week.

“Feedback from employers indicates that there are key skills gaps and we are aiming to focus investment on apprenticeships in sectors facing labour market shortages," Ms Gilruth said. "I would encourage businesses to consider opportunities available to them, to help them adapt and sustain their operations."

SDS Chair Frank Mitchell said “Created by employers, for employers, apprenticeships are crucial to unlocking economic opportunity in growth sectors."

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Funding for 25,500 new Modern Apprentices, 2,500 Foundation Apprentices.

More than £100 million funding to support Modern and Foundation Apprenticeships in 2025-26 has been confirmed by Education Secretary Jenny Gilruth.

Contracts will now be issued by Skills Development Scotland to employers, training providers and colleges for Modern Apprenticeship starts and learning providers for Foundation Apprenticeship starts.

The Education Secretary made the announcement following a visit to Glenrothes High School to mark Scottish Apprenticeship Week.

Ms Gilruth said: “Around 400,000 apprenticeship opportunities have been provided to young people across the country since 2008 and our latest funding commitment makes clear they will continue to be a key feature of Scotland’s education and skills system going forward. Apprenticeships provide vital opportunities for young people to acquire key skills and a route into high quality careers, helping the economy and creating sustainable jobs.

“Feedback from employers indicates that there are key skills gaps and we are aiming to focus investment on apprenticeships in sectors facing labour market shortages. I would encourage businesses to consider opportunities available to them, to help them adapt and sustain their operations.

“Supporting apprenticeships is just one part of the £2 billion we are investing each year in colleges, universities and the wider skills system, recognising the vital role they play in education and the economy.”

Chair of Skills Development Scotland Frank Mitchell said: “Created by employers, for employers, apprenticeships are crucial to unlocking economic opportunity in growth sectors.

“With demand from employers and young people remaining strong, SDS will continue working to maximise apprenticeship starts aligned to industry need within its available budget.

“Apprenticeships foster innovation, economic growth, and new opportunities whilst providing great social return, generating opportunities for many young people from Scotland’s most deprived communities.”

Background
Funding for Modern and Foundation Apprenticeship starts is part of the £202.3 million provided to SDS in the 2025-26 budget, approved by the Scottish Parliament on 25 February 2025. Around £102.5 million of this will be deployed to maintain the existing numbers of apprentices of approximately 25,500 Modern Apprenticeship starts and around 2,500 Foundation Apprenticeship starts. This is in addition to a further 2,500 Foundation Apprenticeships and around 1,200 Graduate Apprenticeships funded through the Scottish Funding Council. This will ensure that as much demand as possible for Modern Apprenticeships is met from within the SDS budget.

In total, the Scottish Government will provide £185 million investment to deliver apprenticeships to SDS, Scottish Funding Council and SAAS in 2025-26.

Ministers will work with SDS on ensuring appropriate sectoral coverage to help address evidenced skills gaps.