Review to examine how best to meet the needs of the future economy
A review of the publicly-funded contribution rates paid to help deliver modern apprenticeships (MAs) will be undertaken soon to ensure they continue to meet the country’s economy priorities and maximise public value.
Contributions are made to training costs for around 39,000 MAs each year from £90 million of Scottish Government funding. The review will look at the levels of contribution.
It will also assess how the current approach, delivered by Skills Development Scotland, operates across key sectors and age groups, while meeting the Scottish Government’s priorities for growing the economy.
Ministers committed to a review when Parliament was considering the Tertiary Education and Training (TET) Act – passed by MSPs earlier this year to simplify the funding system for post-16 education and skills. The first stage of this review will get underway later this month.
Higher and Further Education Minister Ben Macpherson said: “Apprenticeships help create positive futures for people, including many of our school leavers, as well as developing the skills required to meet the changing needs of the 21st century economy.
“The Scottish Government recognises that there are financial pressures surrounding the current apprenticeship model. That is why we are reviewing contribution rates, to look at whether current public funding for the Modern Apprenticeship programme is still appropriate and sustainable, as well as meeting our priorities and Scotland’s labour market needs.
“The Scottish Government will do more to help ensure that smaller employers can recruit more apprentices, for the benefit of their businesses and those in training.”
Scottish Training Federation Chief Executive Stuart McKenna said: “The Scottish Training Federation welcomes the Minister’s commitment to review funding rates for modern apprenticeships.
“To ensure the continued success of the programme, it is essential that we review the current funding model to ensure it remains fit for purpose.”
Lovell has opened its South Queensferry development to local young people, recently welcoming 51 pupils from Echline Primary School to the site and supporting work experience opportunities. The education project gives young people a hands-on introduction to construction and the wide range of careers involved in building new homes.
The Crossings is a major mixed-tenure development that will deliver 398 homes, including 100 for social rent in partnership with Sanctuary Scotland, 185 homes for private rent through Sigma Simple Life, 113 private homes for sale by Lovell Homes and 14 commercial units. The development will also support more than 300 local jobs.
The education activity forms part of the ongoing commitment by Lovell to deliver social value in communities where it builds, helping to create opportunities for young people and strengthen pathways into employment.
It comes at a time when attracting new talent to the construction sector is increasingly important, with the Construction Industry Training Board (CITB) estimating that Scotland will need to recruit 26,100 additional construction workers by 2028 to meet future demand.
Tony Rankin, Regional Managing Director at Lovell, said: “Construction offers a huge range of opportunities, but too often young people only know about a few job roles in the industry. Opening up our sites like this is about showing them the bigger picture and helping them understand the many different career routes available.
“With Scotland needing to attract thousands of additional workers to the construction sector over the coming years, it’s vital we support the next generation to see the possibilities and feel confident that there is a place for them in the industry.”
As part of the programme, P7 pupils from Echline Primary School were guided through a series of live demonstrations by Site Manager Kevin Kelly from Lovell, including broadband installation, underground pipework and the various stages involved in completing new homes.
The groups also visited a nearly completed home, where they learned about painting and had the chance to try it for themselves.
The tour concluded with a discussion about the wide range of roles involved in delivering new homes, from trades and engineering through to design, planning and project management.
Laura Marshall, P7 teacher at Echline Primary School, said: “This was a fantastic experience for our pupils. Seeing a live site and speaking directly with the team helped them understand how homes are built and how many different roles are involved.
“It’s important that young people are given opportunities like this to explore career paths they might not have considered and it was very inspiring for the children.”
The visit is part of a wider programme of activity by Lovell that engages local schools and young people in South Queensferry. Lovell teams have interacted with hundreds of pupils from Echline Primary School and Queensferry High School through site visits, workshops and career sessions. Additionally, 15 surveying graduates from Hardies, the employer’s agent on the development, visited to learn more about construction operations and live-site working.
Lovell has also supported work experience opportunities at The Crossings, offering real-world experience and helping participants build confidence for future employment.
The experience was delivered in collaboration with Positive Qualities and its Construction Skills Academy, which supports young people in developing essential workplace skills. Through the Academy, participants successfully completed three SQA units ahead of their placement, including the Construction Skills Certification Scheme (CSCS) Health and Safety certificate.
Lovell site teams worked alongside supply chain partners R&M Contractors and Ramsey Electrical to support placements and provide young people with meaningful experiences across various trades.
Conor Watt, Development Manager at Sanctuary, said: “Creating great places to live is about more than building new homes. It’s also about supporting the communities around them and investing in opportunities for local people to ensure the benefits are shared and long-lasting.
!We’re proud to work alongside Lovell on initiatives that inspire young people and help them imagine a future career in construction.”
Post work placement surveys highlighted the real value of the live-site experience and showed measurable impact, including increased workplace confidence and improved understanding of the range of opportunities available within construction. Both work experience participants have since progressed to further education, moving on to college courses following their time at the South Queensferry development.
Sean Siala, work experience student, said: “It was great working on-site, especially gaining practical, hands-on knowledge.
“I really enjoyed the camaraderie. I loved chatting with the electricians and learning from their experience.”
More than 93% of young people were in work, training or further study nine months after they left school, according to the latest figures.
The proportion in these positive destinations has grown from 85.9% in 2009-10.
Education Secretary Jenny Gilruth said: “These figures show the proportion of Scotland’s young people achieving positive destinations is almost back to pre-pandemic levels and at a near record high.
“The increase among those in Higher and Further Education is hugely encouraging and testament to the hard work of those young people and the extraordinary support provided by Scotland’s teachers, lecturers and other support staff.
“The gap in positive destinations between young people from our most and least deprived communities has more than halved since 2009-10, but this latest data shows we still have more to do. We also know this cohort of young people faced significant disruption to their education during the pandemic.
“A range of support, including from careers advisers and the Developing the Young Workforce network, is available for young people considering their options after school.
“I am determined to ensure young people can access the right help they need to enable them into a positive destination and this Government will continue to invest in opportunities for young people across Scotland.”
The £725 million package of reforms to the apprenticeship system will help to tackle youth unemployment and drive economic growth, with thousands more young people expected to benefit over the next three years.
Major £725 million investment to deliver more apprenticeships for young people and help match skills training with local job opportunities.
Young people to benefit from increased access to training with full cost of apprenticeships at SME’s covered by Government.
New wave of foundation apprenticeships in sectors such as retail and hospitality sectors to get young people into work.
Backing thousands more apprenticeship starts for young people through a £140 million partnership with local leaders.
50,000 young people across the country will be better equipped for jobs of the future through a major investment to create more apprenticeships and training courses.
The £725 million package of reforms to the apprenticeship system will help to tackle youth unemployment and drive economic growth, with thousands more young people expected to benefit over the next three years.
The latest funding includes a £140 million for a pilot where Mayors will be able to connect young people – especially those not in education, employment or training (NEET) with thousands of apprenticeship opportunities at local employers.
By partnering with regional leaders who best understand their local economies, these pilots will ensure young people can access training that meets the needs of employers in their area.
As part of the package, the government will also cover the full cost of apprenticeships for eligible young people under 25 at small and medium-sized businesses.
Removing the 5% co-investment rate for SME’s means that the training costs for all eligible under 25 apprentices are fully funded opening up thousands of opportunities for young people. This will make it easier for young people to find opportunities and remove the burden from businesses, making it easier for them to take on young talent.
Businesses will also benefit from a major boost in flexibility as new short courses in cutting-edge areas including AI, engineering and digital skills will begin rolling out from April 2026.
This includes working closely with the defence sector to develop a new suite of flexible, work-based training options to help employers upskill their existing workforce in the critical skills needed for future success.
Today’s announcement comes alongside plans to open up new waves of foundation apprenticeships in sectors such as hospitality and retail.
The reforms will simplify and modernise the apprenticeship system, making it more efficient and responsive to the needs of employers and learners. From April 2026, short courses will be introduced to provide more flexible training options and a new Level 4 apprenticeship in AI will also be introduced, supporting employers to develop the skills of their workforce.
The reforms to the Growth and Skills Levy build on the Prime Minister’s ambition for two-thirds of young people to participate in higher level learners – academic, technical or apprenticeships – helping more young people gain the skills they need to start their careers.
Prime Minister Keir Starmer said: “For too long, success has been measured by how many young people go to university. That narrow view has held back opportunity and created barriers we need to break.
“If you choose an apprenticeship, you should have the same respect and opportunity as everyone else. That’s why the Government is investing £1.5 billion through the Youth Guarantee and the Growth and Skills Levy – creating 50,000 more apprenticeships and foundation apprenticeships for young people over the next three years.
“It’s time to change the way apprenticeships are viewed and to put them on an equal footing with university. This is a defining cause for this government and a key step towards our ambition to get two-thirds of young people in higher-level learning or apprenticeships.”
Work and Pensions Secretary Pat McFadden said: “Every young person deserves a fair chance to succeed. When given the right support and opportunities, they will grasp them.
“That’s why we are introducing a range of reforms to help young people take that vital step into the workplace or training and to go on and make something of their lives.
“This funding is a downpayment on young people’s futures and the future of the country, creating real pathways into good jobs and providing work experience, skills training and guaranteed employment.”
The reforms are designed to tackle the sharp decline in apprenticeship starts among young people over the last decade – which have fallen by almost 40% since 2015/16 and shift the focus towards supporting young people into high-quality training and employment.
This latest intervention follows an £820 million investment guaranteeing every young person the chance to gain the skills they need for success and support to find a job. This package will create 300,000 more opportunities to earn and learn and provide guaranteed jobs to almost 55,000 young people.
Over the coming months, DWP and Skills England will work intensively with business on the right balance to further boost apprenticeship starts for young people while delivering the right flexibilities for business.
Skills England will drive forward, with the Office for Investment, the service to support major investors and help them navigate the skills system. It will also establish a new skills infrastructure development service to support businesses to get training for jobs off the ground as quickly as possible and support young people in their careers.
McLaren Automotive Chief Executive Officer Nick Collins said: “Apprenticeships are a critical pipeline for developing the next generation of talent. They provide an immersive pathway for young people to gain practical experience and learn in real world environments.
“At McLaren we recognise the importance of investing in people and skills to create the world’s most extraordinary supercars. We are proud to inspire and equip the next generation to continue this tradition of excellence.”
Craig Beaumont, Executive Director at the Federation of Small Businesses, said: “Small businesses are incredibly enthusiastic about apprenticeships, and we are pleased the Government is taking steps to make the system more small business friendly.
“It will help unlock more local roles, meaning small firms can do what they do best – taking people on and giving them a great chance in life.”
Rt Hon Robert Halfon, Executive Director, Make UK, said: “Manufacturers support the Government’s commitment to a more flexible Growth and Skills Levy to boost investment in high-quality training.
“The development of foundation apprenticeships has been a positive step in ensuring that effective entry level routes into employment are there for young people.
Industry is also keen to work with mayoral authorities to recruit more young people into engineering and manufacturing apprenticeships. Enabling more businesses to invest in work-based training is critical to supporting more young people into skilled work, and mayoral authorities bringing together employers and young people will help this to happen.
Chris Perriton, Head of Learning Pathways, Marston said: “At Marston’s, we believe apprenticeships are a vital pathway for young people to build confidence, gain practical skills and unlock long-term careers in hospitality.
“We welcome the Government’s commitment to expanding opportunities and driving skills development, and we’re proud to play our part by offering high-quality apprenticeships across our pubs and support teams.
“These programmes not only provide hands-on experience but also the structured training and mentoring needed to help the next generation thrive in our industry.”
Dan Clarkson, Chief Operating Officer, Lee Marley Group said: “Apprenticeships play a vital role in sustaining the strength and capability of the construction industry. They give young people the structured development and real-world experience they need to carry essential craft skills forward, while building the confidence to pursue long-term, rewarding careers.
“As construction continues to evolve, apprenticeships help address skills shortages and uphold the high standards our built environment depends on. Supporting future talent is a responsibility we take seriously, and it remains central to everything we do at Lee Marley Group.”
Legislation to simplify the funding system for learners at college, university and apprentices in Scotland has been given in-principle backing by MSPs.
They voted by 62 to 39 to endorse the general principles of the Tertiary Education and Training (Funding and Governance) (Scotland) Bill, ensuring it passes Stage 1 and proceeds to Stage 2 in the Scottish Parliament.
If passed, the Bill will see responsibility for funding national training programmes and apprenticeships move to the Scottish Funding Council (SFC) from Skills Development Scotland (SDS). This will consolidate responsibility for provision of tertiary education and training within a redesigned SFC.
The Bill would also strengthen the SFC’s governance powers to allow for more effective oversight of colleges and higher education institutions, including a greater focus on their financial sustainability and the needs of learners.
Higher and Further Education Minister Ben Macpherson said: “At its core, this Bill would better enable funding to go where it matters most, supporting the skills, services and innovation that our economy and learners need to thrive.
“The Bill has been publicly backed by key sector organisations including the Scottish Training Federation, Federation of Small Businesses, Universities Scotland and Colleges Scotland.
“This legislation intends to help build a more coherent, collaborative, flexible system where colleges, universities and training providers all play a collaborative role in delivering high-quality education and training.”
The Scottish Government’s response to the Education, Children and Young People Committee report into the Bill shows a revised highest cost estimate of £21.6 million, a reduction of almost £12 million.
Financial sustainability reports launched
The Scottish Funding Council (SFC) has today (26 September 2025) published two reports that provide an aggregate picture of the financial health of Scotland’s colleges and universities.
Based on their annual accounts for academic years 2022-23 and 2023-24 and latest forecasts up to 2027-28 for colleges and 2026-27 for universities, the reports provide detailed information at sector level on the operating position, cash balances, sources of income, expenditure, liquidity, cash flow, borrowing and capital expenditure.
Both colleges and universities continue to operate in an extremely tight fiscal environment, with downward trends in cash balances showing both sectors under pressure.
While neither sector is homogenous, and the forecasts represent a snapshot in time, both colleges and universities face similar risks to their financial health, including:
Increasing staff costs.
Further flat cash settlements or unanticipated public spending cuts.
An uncertain macro-economic outlook, including rising inflation and persistently high interest rates.
Continuing high energy costs.
Infrastructure pressures, exacerbated by the impact of RAAC, impacting on the delivery of high-quality learning, teaching and research.
The requirement to invest in the achievement of public sector net zero targets.
The impact of UK government policies on maintaining international fee income.
The reports also outline the mitigating actions that colleges and universities are taking to adapt to challenges and uncertainties, including staff restructuring, vacancy management, freezing of non-essential spend, reviewing course portfolios, curriculum rationalisation and consolidation, moves to online and blended learning, delaying capital spend and reviewing estates strategies.
Commenting on the reports, SFC Chair, Professor Cara Aitchison, said: “While these reports represent a snapshot in time, the trends we’re seeing indicate the serious implications of the tight fiscal environment in which colleges and universities are operating and the need for action to address the challenges they face.
“We are encouraged by the proactive steps being taken by institutions as they adapt and build in resilience for this changing environment, recognising that this may include difficult decisions to secure long term financial sustainability which is a requirement of our Financial Memorandum.
“We continue to engage closely with Scottish Ministers on the case for investment in colleges and universities which are the drivers for economic growth, addressing child poverty, supporting the transition to net zero and delivering excellent public services.
“We are also increasing levels of engagement and monitoring activity for those institutions facing the highest risks to their financial health and are working with them to understand and assess plans to bring them back to a sustainable position.”
Principal of Edinburgh College, Audrey Cumberford said:“This report confirms what’s been known for a long time – that the financial situation facing colleges is dire.
“The status quo isn’t an option and urgent action needs to be taken before we see colleges fall further into financial trouble.
“Colleges have the potential to do so much more. By unlocking our potential, restructuring our funding streams and reforming our apprenticeship system we could deliver a brighter future for the whole sector.”
As thousands of young people across Scotland receive their exam results, two leading electrical bodies have reminded students that there’s no wrong path to a rewarding and successful career in the electrotechnical industry.
With many school leavers unsure of their next step, and others disappointed by their grades, SELECT and the Scottish Joint Industry Board (SJIB) have highlighted the valuable opportunities and potential high earnings offered through an electrical apprenticeship.
Alan Wilson, Managing Director of the country’s largest construction trade body, SELECT, said: “This week’s results will have brought joy for some and disappointment for others, but our message is simple – there is no wrong path.
“We want young people and their parents to understand that an electrical apprenticeship is a highly respected and financially rewarding career option that offers lifelong skills and exciting opportunities. Qualified electricians earn excellent salaries and their services are in high demand here in Scotland and across the world.
“A great number of our members are always on the lookout for potential apprentice recruits so whether you’ve achieved top grades or are still unsure about what comes next, this is a chance to build a future that’s hands-on, challenging and constantly evolving. After all, the future is electric.”
Catherine Gillon, Secretary of the SJIB, added: “Becoming an electrician means joining an economically crucial, modern profession with increasing demand, especially in areas like renewables, electric vehicles, and smart technology.
“Apprentices are supported throughout their journey and come away with respected industry qualifications that open doors around the world.
“We encourage anyone with an interest in how things work and a desire to learn to consider applying. It’s never too late to start.”
As the country transitions to a net zero future, demand for skilled electricians has never been higher and apprenticeships remain one of the most effective ways to develop talent for the future.
Catherine went on: “Getting started as an electrical apprentice is easy, with typical entry requirements beingNational 4/5 in English, maths and a science or technical subject.
“Anyone interested in finding out more and applying to become an apprentice should contact the Scottish Electrical Charitable Training Trust (SECTT), who manage Scotland’s industry-approved training scheme for electrical apprenticeships on behalf of the SJIB.”
After studying music at college and working a range of manual jobs, Scott changed direction in his mid-20s and is now thriving as a qualified electrician with DRB UK Maintenance in Hamilton.
Scott, from East Kilbride, said: “I didn’t think it would be possible to start an apprenticeship later in life, but I’m so glad I did.
“I’ve been lucky to work on major electric vehicle charger projects across the UK and now I’m aiming to become an Approved Electrician and even run my own business one day.”
He added: “My message to anyone unsure about their future is simple – just go for it. You’ll be supported every step of the way, and the opportunities are endless.”
Westminster government announces radical skills reforms giving young people opportunity to develop skills in priority areas for the country
Young people are set to benefit from 120,000 new training opportunities as part of a ‘radical skills revolution’, giving them the chance to develop skills where they are most needed across the workforce to rebuild Britain.
More skilled brickies, carpenters and healthcare support workers will soon be trained up as the UK Government continues it’s drive to get Britain working, with landmark reforms announced today that refocus the skills landscape towards young, domestic talent.
The measures, backed by a record-breaking £3 billion apprenticeship budget, will open up opportunities for young people to succeed in careers the country vitally needs to prosper.
More routes into skilled work means more people building affordable homes, more care for NHS patients and more digital experts to push our economy forward. This includes an additional 30,000 apprenticeship starts across this Parliament.
This unprecedented investment is a critical step in delivering the government’s Plan for Change mission to create a decade of national renewal. They say they are backing our young people and investing in skills as an engine of economic growth – putting more money in people’s back pockets and breaking down barriers to opportunity.
Education Secretary Bridget Phillipson said: “A skilled workforce is the key to steering the economy forward, and today we’re backing the next generation by giving young people more opportunities to learn a trade, earn a wage and achieve and thrive.
“When we invest in skills for young people, we invest in a shared, stronger economic future – creating opportunities as part of our Plan for Change.
“But everyone has a role to play in a thriving economy, and we’re taking our responsibility seriously providing more routes into employment, it’s now the responsibility of young people to take them.”
To support this, the Westminster government is:
Implementing a 32% increase in the Immigration Skills Charge, which will deliver up to 45,000 additional training places to upskill the domestic workforce and reduce reliance on migration in priority sectors. As announced in the recent Immigration White Paper.
Refocusing funding away from Level 7 (masters-level) apprenticeships from January 2026, while maintaining support for those aged 16-21 and existing apprentices. This will enable levy funding to be rebalanced towards training at lower levels, where it can have the greatest impact.
Launched 13 new Level 2 construction courses for adults in non-devolved areas under the Free Courses for Jobs scheme.
In addition to the £3bn apprenticeship budget, the government is backing the new generation of workers through:
£14 million of adult skills funding for construction to be devolved to local mayors for next academic year, expected to support up to 5,000 additional adult learners.
£136 million for Skills Bootcamps across a range of priority sectors in 2025-26, providing training to over 40,000 learners.
£100 million over four years to expand Construction Skills Bootcamps.
Ten Technical Excellence Colleges specialising in construction skills, opening in September 2025.
As part of the UK government’s Plan for Change, the reforms are a vital step in delivering our youth guarantee and addressing skills shortages to drive growth while creating better opportunities for young people and adults across England.
Today’s announcement comes following a dramatic fall in the number of apprenticeship starts over the last decade, and as recent ONS statistics show as many as one in eight 16-24 year olds are not in employment, education or training.
Projects across the country to receive a share of funding
Eleven projects designed to accelerate Scotland’s hydrogen economy are set to benefit from a share of £3.4 million funding.
The Scottish Government funding will help develop green hydrogen production, improve the hydrogen supply chain, and enhance hydrogen transport and storage infrastructure.
Opening a parliamentary debate on Scotland’s hydrogen future, Acting Net Zero Cabinet Secretary Gillian Martin said: “Hydrogen stands as a critical pillar of Scotland’s route to net zero by 2045, but also, alongside the development of our offshore wind capacity, as one of Scotland’s greatest industrial opportunities since the discovery of oil and gas in the North Sea.
“A just transition remains at the heart of our approach, and we are determined that no community, particularly those which have powered our economy for generations, will be left behind as we move away from burning fossil fuels towards a low carbon energy system.
“We are working to build a hydrogen economy in which the benefits of our energy transition are shared, and which harnesses the full potential of our skilled people, our worldclass industries, and our natural resources.”
In September 2024 the Scottish Government invited projects to apply for a match-funding grant award of up to 50%, to the maximum value of £2 million.
Shortlisting saw 18 projects invited to submit a full application to delivery partner Scottish Enterprise, with funding ultimately provided to 11 successful projects.
UK’s first hydrogen training centre opens for next generation of green gas engineers
UK’s first hydrogen training centre for Gas Safe* registered engineers opens at Fife College.
Over 100 local engineers will be upskilled to safely install and maintain hydrogen appliances for SGN’s H100 Fife project.
The centre is a key milestone for H100 Fife which will deliver an end-to-end green hydrogen gas network, providing heating and cooking for several hundred local homes.
GMB union, SGN and Fife College leaders highlight the need to upskill gas workers for a low-carbon future.
Energy network SGN and Fife College are celebrating the opening of the UK’s first hydrogen training centre for gas engineers yesterday.
The facility, located at Fife College’s Levenmouth Campus, will train over 100 Gas Safe registered engineers this year, equipping them with the green skills needed to safely convert homes from natural gas to hydrogen.
This training is essential for the engineers who will be involved in SGN’s green hydrogen trial, H100 Fife, which will supply green hydrogen to homes in Levenmouth through a new purpose-built network.
Gary Smith, General Secretary of GMB, the UK’s largest energy union, welcomed the launch. He said: “The opening of this hydrogen training centre is a milestone for the gas industry and its workforce. As we transition to a net-zero economy, it’s vital that we not only protect jobs but also ensure that workers are upskilled for the future.
“This centre will empower today’s engineers to safely work with hydrogen while preparing them for roles that will shape the transition to green energy. It’s a testament to the resilience of the workforce and their ability to adapt to the changing energy landscape.”
The training centre offers hands-on experience with hydrogen appliances and systems, supported by leading manufacturers such as, Baxi, Worcester Bosch, Clean Burner Systems (CBS), Bosch Home Appliances and MeteRSit.
It will ensure that engineers gain the knowledge and competency to safely install, test, and maintain hydrogen appliances and heating systems in domestic settings, advancing the UK’s transition to green energy solutions. Every engineer taking part will gain an official hydrogen qualification added to their Gas Safe registration.
Simon Kilonback, CEO of SGN, commented: “The opening of the UK’s first hydrogen training centre for Gas Safe engineers is a major milestone for SGN and the energy sector as a whole.
“We’re excited to be working with the local community as we deliver our end-to-end hydrogen network in Fife. This is a key part of our wider plans to harness the potential of green gasses like hydrogen and biomethane to help decarbonise homes and businesses.”
Training will be delivered to local Gas Safe registered engineers in Fife by expert trainers with experience in delivering gas training with support from industry professionals. SGN has developed the courses in partnership with Fife College for the past two years, alongside key stakeholders such as certification body BPEC, Energy & Utility Skills and the Institution of Gas Engineers and Managers (IGEM).
Jim Metcalfe, Principal of Fife College, said: “Fife College is proud to be a national leader in clean energy skills as we launch this dedicated hydrogen training facility. We are honoured to work in such a deep and innovative partnership with SGN.
“Through this cutting-edge centre at our Levenmouth Campus, we are working to upskill over 100 engineers with the specialist knowledge needed to support the UK’s transition to net zero.
“This collaboration with SGN forms part of our wider commitment to sustainability, which also includes the opening of our new Dunfermline City Campus – Scotland’s first net-zero-ready vocational training campus – later this year. Together, these landmark developments place Fife College at the forefront of delivering the skills and infrastructure needed to shape a more sustainable future for us all.”
The engineers being trained from SGN, Baxi, Worcester Bosch and Warmworks will help convert natural gas homes over to hydrogen when the H100 Fife trial launches later this year. Fife Council staff will also be trained as part of SGN’s commitment to future-proof local engineers for the challenges ahead.
The opening of the training centre is a landmark event in SGN’s efforts to support the UK’s transition to net zero and underscores the vital role of skilled engineers in integrating hydrogen as a key low-carbon energy source.
Up to 60,000 more engineers, brickies, sparkies, and chippies to be trained by 2029, as Chancellor outlines how the Government will train more workers to tackle skills shortages and inspire the next generation into the construction sector.
New training will help deliver 1.5 million homes which will transform communities and drive growth through the Plan for Change.
Reforms will get young people into well paid, high skilled, jobs in the construction sector by funding additional placements, establishing Technical Excellence Colleges, launching new foundation apprenticeships, and expanding Skills Bootcamps.
This injection of over £600 million over the next four years will also encourage experienced builders to help train and inspire the next generation.
Ahead of the Spring Statement on Wednesday {26 March) the Chancellor has announced £600 million worth of investment to train up to 60,000 more skilled construction workers.
This will deliver well paid jobs across the country in the construction sector and help build 1.5 million homes to transform communities by the end of this Parliament.
Chancellor Rachel Reeves said: “We are determined to get Britain building again, that’s why we are taking on the blockers to build 1.5 million new homes and rebuild our roads, rail and energy infrastructure.
“But none of this is possible without the engineers, brickies, sparkies, and chippies to actually get the work done, which we are facing a massive shortage of. We’ve overhauled the planning system that is holding this country back, now we are gripping the lack of skilled construction workers, delivering on our Plan for Change to boost jobs and growth for working people.”
The sector is facing significant shortages, the latest Office for National Statistics figures show that there are over 35,000 job vacancies and employers report that over half of vacancies can’t be filled due to a lack of required skills – the highest rate of any sector. Demand is expected to increase further to deliver the homes and infrastructure that this country needs.
Funding and reforms announced today will pay for more training places, ensure a sustainable flow of skilled construction workers and help businesses invest more in training. It will encourage the men and women who have spent decades working on building sites, to pass on their skills to the next generation of construction workers.
Building the skilled workforce of the future is key to driving economic growth, the central mission of the Government’s Plan for Change. These construction jobs are the type of secure, well paid, in demand jobs that will help put more money in working people’s pockets and fuel growth.
Education Secretary, Bridget Phillipson, said: “Skills are crucial to this government’s mission to grow the economy under our Plan for Change, and nowhere is that clearer than in the construction industry.
“We are being held back by the largescale skills shortages in the construction sector which is a major barrier to the delivery of the growth mission.
“These measures will break down barriers to opportunity for thousands of young people, helping them to thrive in – and build – their local communities.”
Today’s announcement will provide £100 million of new investment to fund 10 new Technical Excellence Colleges and £165m of new funding to help colleges deliver more construction courses.
Skills Bootcamps in the construction sector will also be expanded, with £100 million of funding to ensure new entrants, returners, or those looking to upskill within the industry will be able to do so.
All Local Skills Improvement Plan (LSIP) areas will benefit from £20 million to form partnerships between colleges and construction companies, to boost the number of teachers with construction experience in colleges, sharing their vital expertise by training the next generation of workers.
Construction will also be one of the key sectors that will benefit from new foundation apprenticeships backed by an additional £40 million, which will be launching in August 2025. This will inspire more young people into the construction industry and allow them to progress and specialise in advanced apprenticeships, giving them the tools they need for a sustained and rewarding career.
As part of this new offer, employers will be provided with £2,000 for every foundation apprentice they take on and retain in the construction industry, on top of fully funding the training costs through the new Growth and Skills Levy.
A further £100 million of Government funding, alongside a £32 million contribution from the Construction Industry Training Board (CITB) will fund over 40,000 industry placements each year for all Level 2 and Level 3 learners, those studying NVQs, BTECs, T-levels, and advanced apprenticeships.
This will help get learners ‘site-ready’ and address the ‘leaky pipeline’ of learners who don’t progress into the sector. The CITB will also double the size of their New Entrant Support Team (NEST) programme to support SMEs in recruiting, engaging, and retaining apprentices.
To ensure employers are able to work collaboratively to secure the workforce needed to meet future demand, the Government will sponsor a new Construction Skills Mission Board. Co-chaired by Government and by Mark Reynolds, Executive Chair of Mace, the Board will be empowered to develop and deliver a construction skills action plan and provide strategic leadership to the construction sector.
The government’s communications campaigns continue to promote skills and their contribution to opportunity and growth for individuals and employers.
In collaboration with the Department for Work and Pensions (DWP) through Job Centre Plus, the DfE campaign highlights the construction industry’s value for growth, celebrating employers who contribute significantly to workforce training, and emphasising the benefits of careers in construction.
The announcement follows a series of reforms announced during National Apprenticeship Week, including changes to English and maths requirements that will see up to 10,000 more apprentices qualify each year in key sectors, and new shorter apprenticeships. Changes to end point assessments will also mean it is even easier for businesses and providers to support getting people into the workforce.
Last year the Education Secretary announced new Construction Skills Hubs, funded by industry, which will also speed up the training of construction workers crucial to supporting the government’s homebuilding drive.
Mark Reynolds, Executive Chair Mace, Co-Chair of the Construction Skills Mission Board and Co-Chair of the Construction Leadership Council said: “This is fantastic news and demonstrates that Government is committed to working with the construction industry to deliver 1.5m homes by the end of this Parliament and its ambitious plans for infrastructure delivery.
“It’s a hugely significant funding package, and the establishment of the Construction Skills Mission Board will enable us to collaborate with Government to drive change at pace.
“Understandably, construction firms across the country are looking for certainty of pipeline before they commit to investing in new jobs and skills – but this investment by the Chancellor will be critical in giving them the confidence they need. There is now no excuse – industry must embrace the Government’s growth mission and match their ambition.”
Tim Balcon, CITB (Construction Industry Training Board) Chief Executive, said: “We are delighted with the support the Government is giving the construction sector with increased investment.
“This package will provide vital support, where it is needed most – it will cut straight to the heart of the construction industry being able to address the challenge of building 1.5 new homes for people that desperately need them.
“As an industry, we now need to grasp this opportunity and play our part in delivering it. I genuinely believe this is a once-in-a-generation chance to us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future.”
NEW RESEARCH REVEALS GROWING APPEAL OF APPRENTICESHIPS AMONG NEXT GENERATION OF WORKERS IN SCOTLAND
As one of the UK’s largest apprenticeship providers, BAE Systems has investigated the latest attitudes towards career paths amongst young people to coincide with Scottish Apprenticeship Week (3 – 7 March).
The findings are part of a newly launched Apprenticeship Barometer, which surveyed 2,000 young people (16-24 year olds) to identify views on education, training and pathways to career success.
Main attractions
The survey revealed a growing interest in apprenticeships, with more than 74% of Scottish respondents willing to relocate to a different part of the UK to seize an apprenticeship opportunity and 6 in 10 preferring it as an alternative to university.
The findings highlight a significant shift toward flexibility and apprenticeships being increasingly recognised as a pathway to secure and rewarding careers, with respondents citing job security (31%), high starting salaries (25%) and hands-on training (21%) as the most appealing features.
An overwhelming 85% of respondents agreed that apprenticeships enhance social mobility, offer significant potential to support disadvantaged groups and provide alternatives to traditional higher education routes.
Barriers to access
Despite their appeal, responses suggest barriers such as limited opportunities (30%) and lack of information (41%) continue to hinder access to apprenticeships, highlighting the need for greater awareness and more accessible pathways.
Over half (53%) of the young people surveyed in Scotland said they felt uninformed about apprenticeship opportunities in their field of interest and 85% believed employers should expand apprenticeship programmes alongside graduate schemes to meet rising demand.
STEM leads the way
Industries linked to careers in science, technology engineering and mathematics (STEM) ranked highly in apprenticeship preferences, with over 1 in 4 (28%) of the young people surveyed expressing interest. They also ranked in the top three careers that respondents associated with the greatest job security.
Money matters
More than half (55%) of respondents identified earning while learning as the main reason for choosing an apprenticeship over university, while 25% cited avoiding student debt as a key motivator, reflecting a perceived growing financial awareness.
Richard Hamer, HR Director of Education and Skills at BAE Systems, said: “The Apprenticeship Barometer gives a real insight into the aspirations and values of the next generation of the UK workforce.
“It’s clear there’s a huge appetite for high quality vocational training that provides a clear career pathway, whilst offering financial security.
“I’d encourage anyone interested in apprenticeships to have a look at the thousands of highly valuable opportunities available across the country.”
BAE Systems is recruiting for more than 2,400 new apprentice, undergraduate and graduate roles in 2025,which will result in around 6,500 in training, making up approximately 15% of its UK workforce.
