Apprenticeships boosting tax take and employer training
Public investment in apprenticeships is fuelling investment in training from employers and tax revenues in Scotland.
Around £100 million is invested in apprenticeships training each year from the public purse.
Figures show that for every pound invested in apprenticeships between four and five pounds is returned in tax to the exchequer.
Additionally, for every pound of public money spent on training apprentices it is estimated ten pounds are invested by their employer.
Employers are also gaining more income by investing in apprentices, as the benefit to businesses is up to £63,000 over the duration of some apprenticeships*.
The figures come from studies into labour market outcomes and returns on investment, published by the Scottish Government.
Employer and apprentice contribution
Skills Development Scotland contributes towards the cost of training of apprentices on behalf of the Scottish Government.
Scottish Government is committed to up to 25,000 Modern Apprenticeships this financial year, with latest statistics indicating that figure is likely to be met.
Skills Development Scotland Chair, Frank Mitchell said: “Designed by industry, for industry, apprenticeships not only help the economy but also open access to jobs for many young people traditionally with restricted opportunities to progress.
“These are real jobs backed by employers who contribute £10 for every £1 spent by government, and at the same time apprentices contribute by paying their taxes.
“Creating a diverse and inclusive workforce through work-based learning is benefiting employers as apprentices enable them to adapt and sustain their business".
It is very encouraging to see the benefits that apprenticeships have for employers, individuals and our economy. Not only are they crucial for the challenges of the present day, they will be key in ensuring that our workforce is equipped to tackle future problems such as climate change.
Jamie Hepburn
Minister for Youth Employment and Training
Earnings premium for apprentices
Around 12,000 employers across Scotland support apprenticeships, with more than 40,000 apprentices in training right now.
Findings show that apprentices are seeing an earnings premium too, with between £65,000 and £84,000 net benefits over their careers for those completing higher level apprenticeships**.
Modern and Graduate Apprenticeships are jobs where people work, learn and earn – while Foundation Apprenticeships offered in schools across the country mean pupils can get industry experience and a head-start in their careers.
The Scottish Funding Council and Skills Development Scotland continue to work with partners to meet Scottish Government’s commitment to embedding Foundation and Graduate Apprenticeships in the learning system.
Recent figures from SDS show more than 530 employers are now taking on Graduate Apprentices – delivering vital skills and supporting learners across Scotland.
Minister for Youth Employment and Training Jamie Hepburn said: “It is very encouraging to see the benefits that apprenticeships have for employers, individuals and our economy. Not only are they crucial for the challenges of the present day, they will be key in ensuring that our workforce is equipped to tackle future problems such as climate change.
“The Scottish Government will continue to work with Skills Development Scotland to make sure that we are maximising the number of opportunities available and that they remain of the highest quality.”
The Scottish Apprenticeship Advisory Board provides the voice of industry for work-based learning.
Board Chair Peter Farrer is Chief Executive of Scottish Water. He said: “I want there to be an apprenticeship available to every young person who wants to do one in Scotland, and for any employer to be able to offer apprenticeships in their field.”
More information
Figures calculated from the Education and Skills Impact Framework (ESIF) reports published by the Scottish Government - providing an estimate of the labour market outcomes and returns on investment from post-school qualifications, the published summary reports include colleges, universities and Modern Apprenticeships.
- *Up to £63,000 net benefit to employers over lifetime of Modern Apprentice completer at SCQF Level 6/7.
- ** £65,000 – 84,000 is net benefit by completing an MA SCQF Level 6/7.
- Access the Scottish Apprenticeships Performance Report on the Publications area of the Skills Development Scotland website.