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How does apprenticeship funding work in Scotland?

If you deliver apprenticeships across England and Scotland, navigating the different funding systems can be complicated.

While both nations are focused on developing the skills learners and employers need, skills policy is devolved, meaning apprenticeship funding works differently on either side of the border.

Scotland is also going through a period of change, with increased Modern Apprenticeship funding and responsibility for National Training Programmes moving from Skills Development Scotland (SDS) to the Scottish Funding Council (SFC).

So, what do providers need to know?

 

Apprenticeship funding in England

 

In England, the Growth and Skills Levy is widening the types of training employers can fund, alongside full apprenticeships.

For providers, the key starting point is the 2026 to 2027 apprenticeship funding rules, which apply to apprenticeships starting between 1 August 2026 and 31 July 2027. 

The Growth and Skills Levy also supports new foundation apprenticeships and apprenticeship units. Apprenticeship units offer shorter, targeted training for existing employees aged 19 and over, creating another opportunity for eligible providers to respond to employers' skills needs.

 

Apprenticeship funding in Scotland

 

Scotland works differently.

Although Scottish employers pay the apprenticeship levy on the same UK-wide basis, apprenticeship provision is supported through Scotland's public funding arrangements.

There are three main types of Scottish Apprenticeship:

  • Modern Apprenticeships
  • Foundation Apprenticeships
  • Graduate Apprenticeships

SDS currently administers Scottish Apprenticeships on behalf of the Scottish Government. From 1 April 2027, responsibility for the delivery, administration and funding of Scotland's National Training Programmes will transfer to SFC. SFC already administers funding for college-supported Foundation Apprenticeships and funds Graduate Apprenticeships. Read more about the changes from SFC.

 

Modern Apprenticeships

Public funding for Modern Apprenticeships is provided through contribution rates supporting training and assessment.

There has also been an important funding update for providers.

On 24 September 2026, the Scottish Government announced an additional £8.8 million investment in Modern Apprenticeships, giving learning providers a 10% funding increase from 2027/28.

The uplift will support new and in-training Modern Apprentices and follows the first stage of the Scottish Government's contribution rates review. Stage two is due to begin in 2027. Read the full funding announcement from SDS.

 

Graduate and Foundation Apprenticeships

Graduate Apprenticeships combine paid employment with university study, enabling apprentices to develop workplace skills while working towards higher-level qualifications. SFC currently funds their provision in Scotland.

Foundation Apprenticeships give Scottish school pupils the opportunity to develop industry-relevant skills and workplace experience alongside their studies.

They're different from England's foundation apprenticeships, which are employed positions combining workplace experience with off-the-job learning. Explore England's foundation apprenticeships through Skills England.

 

What does this mean for providers?

With funding increasing and responsibility for National Training Programmes moving to SFC, Scotland's apprenticeship landscape is changing.

For providers, staying on top of funding requirements and understanding the differences between England and Scotland will be essential, particularly if you deliver across both nations.

And having the right technology can help make that delivery simpler.

Onefile helps training providers manage apprenticeship delivery in one place, supporting learners, employers and delivery teams throughout the journey.

Book a discovery call to see how Onefile could support your apprenticeship delivery.
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Onefile Ltd is registered in England with company number 4404879. The registered office is: 6th Floor, Cornerblock, Quay Street, Manchester, M3 3HN. VAT Number 792825685. © Onefile Ltd 2026. All Rights Reserved.

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