Transformation

From 1 April 2027, responsibility for the delivery, administration and funding of Scotland’s National Training Programmes will transfer from Skills Development Scotland (SDS) to the Scottish Funding Council (SFC).

This is part of a range of responsibilities given to SFC, as the transfer forms part of the Scottish Government’s wider programme of post-school education and skills reform. All funding for post-school provision will be consolidated within a funding body that will be redesigned to meet its wider duties.

The redesigned organisation’s responsibilities will extend beyond SFC’s current role within apprenticeship funding and take in the duty to manage and deliver all Scottish Apprenticeships, national training programmes and work-based learning.

The transfer of apprenticeship functions to SFC is part of the Scottish Government’s approach to strengthening alignment across the post-school education and skills system.

SDS and SFC are working closely with the Scottish Government and key stakeholders to ensure the transition is well planned and supports learners, employers and providers.

Yes. SDS remains responsible for the delivery of its National Training Programmes portfolio until 31 March 2027 and is continuing to deliver services, contracts and support as normal. SFC continues to oversee the funding of Foundation and Graduate Apprenticeships for colleges and universities.

SDS and SFC are working closely together to plan and deliver a seamless transition, building on the successes of Scotland’s apprenticeship system.

Dedicated teams from both organisations are working together on a number of workstreams to ensure continuity of service from day one, 1 April 2027. These include Operations, HR, Data, Information Governance, Finance and Communications.

The objective of both organisations is to ensure a smooth and seamless transition with no disruption for employers, learning providers and apprentices.

Maintaining business as usual throughout the transition period is a key priority for SDS and SFC. Most recent statistics show positive delivery during the current period of transfer with first quarter Modern Apprenticeship statistics, for example, ahead of last year.

The SFC has committed to an ‘as is’ transfer, which means there will be no change to current processes or delivery for Foundation, Modern and Graduate Apprenticeships contracting across both organisations, including the handling of Modern Apprenticeship procurement and programme rules.

The same systems and software to support NTP delivery, service, contracts and reporting will remain, for example, Modern Apprenticeship contracted learning providers will continue to use the established Funding Information and Processing System (FIPS).

Learning providers should continue to work with SDS and SFC as they do currently.

The intention is that providers continue to receive the support they need throughout the transition period and beyond. Any significant changes to the delivery of Scottish Apprenticeships in the current year or after transfer will be subject to consultation and engagement or based on Scottish Government policy changes.

Yes. More than 130 SDS colleagues who currently support apprenticeship delivery are expected to transfer to SFC. This will provide continuity of expertise, relationships and service delivery.

For example, learning providers will continue to be supported by a Skills Investment Adviser (SIA), contract manager or SDS colleague, following transfer.

Employers should continue to engage with SDS and apprenticeship programmes as normal.

There are no immediate changes to apprenticeship opportunities, employer support arrangements or day-to-day engagement.

The focus throughout the transition is on ensuring employers continue to receive a high-quality service and support.

Current apprentices should see no interruption to the support they receive – before or after 1 April 2027.

SDS and SFC are committed to ensuring apprentices experience a seamless transition and can continue their learning and training journeys without disruption.

Employer and industry input will remain central under the redesigned funding body.

The Tertiary Education and Training (Funding and Governance) (Scotland) Act requires SFC to establish an Apprenticeship Committee to advise on and oversee apprenticeships and work-based learning, supported by a subcommittee responsible for developing, approving and reviewing apprenticeship frameworks. Recruitment will begin in October, with the Committee expected to be established by January 2027, ahead of the transfer in April 2027.

Government has announced a 10 per cent uplift in contribution rates – with further information below. Any future policy or funding decisions would be preceded by engagement with stakeholders and then communicated through the appropriate channels by the Scottish Government, SDS and SFC as required.

Existing contractual arrangements with learning providers, including Modern Apprenticeship key performance milestones, will continue to operate under current processes unless providers are advised otherwise.

If any changes are required as part of the transition, SDS and SFC will engage with stakeholders and provide clear guidance well in advance.

The ongoing programme of work led by SDS to develop Modern Apprenticeship Frameworks, incorporating core and meta skills, will continue for 2026/27 and post transfer in 2027/28.