Transfer of National Training Programmes to the Scottish Funding Council (SFC)
Skills Development Scotland (SDS) and SFC are working closely together to deliver a smooth and seamless transfer of National Training Programmes currently delivered by SDS, including apprenticeship functions, on 1 April 2027.
Maintaining business as usual and service continuity is a shared priority.
SFC and SDS have committed to an ‘as is’ transfer, to ensure no disruption to learners, learning providers and employers. A structured and robust change programme managed by both organisations is in place to keep the work on track.
More than 130 SDS colleagues are expected to transfer to SFC, helping to retain expertise, relationships and operational knowledge.
For now, providers, employers and partners should continue to use existing SDS channels and contacts. From 1 April 2027, SDS colleagues will transfer into the redesigned funding body and, in line with the commitment to an ‘as is’ transfer, will continue to work with providers, employers and partners in the usual way.
Further information will be shared as transition planning progresses.
Questions and Answers
What is changing?
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.
Why is this transfer taking place?
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.
Will apprenticeship services continue to operate as normal before the transfer?
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.
How are SDS and SFC preparing for the transfer?
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.
Will there be disruption to apprenticeship delivery?
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.
How will apprenticeships be managed from 1 April 2027?
The Scottish Funding Council 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).
What does this mean for learning providers?
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 SG policy changes.
Will providers contracted to deliver apprenticeships under SDS continue to work with SDS contacts?
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.
What does this mean for employers?
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.
What does this mean for current apprentices?
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.
What input will employers and industry have into the development of apprenticeships from 1 April 2027?
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 April 2027.
Will apprenticeship funding change?
Current funding arrangements remain in place. 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.
Will contracts or agreements change?
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.
Are there any plans to change the content of Modern Apprenticeship frameworks, including changes to core skills and meta skills?
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.
What is happening with the Scottish Government-led contribution rates review?
In September 2026, the Scottish Government confirmed the first phase of the Modern Apprenticeships contribution rates review with a 10% uplift in contribution for all new and existing frameworks from financial year 2027-28, which would be an additional investment of £8.8million. Scottish Government has advised that phase two of the review will commence in 2027.