Proceeds of the Apprenticeship Levy, which has just come into force, will largely replace existing funding.
The SNP Government has been clear that, unlike in England where digital accounts can only be used to pay for apprenticeship training and assessment for apprentices, in Scotland all of the funds raised through this new tax will be invested in skills, training and workforce development that will meet the needs of employers in Scotland.
Minister for Employability and Training Jamie Hepburn said:
“Despite the UK Government introducing this new tax on employers without any consultation, we have taken time to speak with those affected and can confirmed that in Scotland all funds raised will be invested in skills, training and workforce development to meet the needs of employers, the workforce, young people and Scotland’s economy.
“The proceeds will largely be replacing existing funding however given that the public sector will be required to pay the Levy it will reduce Scottish Ministers’ spending power by £30 million this year. Despite this, against a challenging backdrop we are responding to the needs of employers by expanding the number of Modern Apprenticeship opportunities to 30,000 new starts each year by 2020, increasing the number of Graduate Level and Foundation Apprenticeships and developing a Flexible Workforce Development fund to help employers invest in their workforce.
“I will continue to meet with the industry, employers and the Scottish Apprenticeship Advisory Board throughout the first year of this tax to make sure their views can continue to shape the policies that will help people enter and remain in the labour market and contribute to the Scottish economy.”
Added Kenneth Gibson
“The SNP Government has refocused Individual Learning Accounts and are rebranding them as Individual Training Accounts to improve the quality of courses and ensure they result in industry recognised qualifications. This will make it easier for job seekers and low paid workers to gain access to qualifications and skills training.”
Check here to see details of the Scottish Government’s consultation on Apprenticeship Levy funding available.
Advice for employers who want more information about Scottish Apprenticeship Programmes, or are looking to offer apprenticeship opportunities, is available on the Skills Development Scotland apprenticeship website