SCOTTISH Government plans to moving responsibility for apprenticeships to the same body that funds colleges and universities “pose significant risks”, business leaders have warned.
The Scottish Chambers of Commerce (SCC) voiced concerns after ministers announced a series of changes for the post-school sector – which covers both further and higher education as well as apprenticeships.
As part of that, the Scottish Government is planning to transfer responsibility for national training programmes, including apprenticeships, from Skills Development Scotland (SDS) to the Scottish Funding Council (SFC).
But SCC chief executive Liz Cameron said: “This decision to re-allocate funding away from an organisation that the business community deeply respects poses significant risks to the customisation and accessibility of industry-focused training that employers rely on to meet their specific needs.”
She added: “Skills Development Scotland has been instrumental in delivering comprehensive career services and facilitating apprenticeships, directly contributing to the development of a skilled and adaptable workforce.”
The business leader urged the Scottish Government to reconsider the change, saying: “Transferring this funding to Scottish Funding Council undermines the progress made in equipping Scotland’s workforce with essential skills and jeopardises the nation’s economic future.
“Business should be at the forefront of shaping the future workforce and in our view, we should be building up and expanding Skills Development Scotland, not breaking it down.
“We call upon the Scottish Government to reconsider this decision.”
However higher and further education minister Graeme Dey insisted there was a “clear” need for reform to the current system.
In addition to transferring responsibility for apprenticeships to the SFC, the Scottish Government proposes to switch responsibility for student support for those in further education from this body to the Student Awards Agency Scotland (SAAS) – which is already responsible for student support for those in higher education.
Ministers said the changes are being made following extensive consultation with the sector, with legislation to be published in the coming weeks so the new arrangements can come into force from autumn 2026.
Mr Dey said: “We want to ensure that Scotland has a world-class skills system to meet the demands of the changing economy and that our £3 billion of investment in the tertiary skills system delivers the greatest impact for learners.
“The need for this change is now clear, with consultation responses and other evidence supporting reform to arrangements for post-school funding.
“These changes will help to reduce complexities and provide greater clarity around the roles and responsibilities of each funding body.”
The minister added: “We will now look to press ahead with the next stage in taking forward these changes, through legislation and other preparations.
“We also will work closely with SAAS, SDS and the SFC to reassure staff and ensure continuity of services.”
Meanwhile, Colleges Scotland said the government’s changes could help simplify funding and responsibilities across the post school sector.
A spokesperson said: “The college sector has long recognised the need to simplify funding and responsibilities for apprenticeships, in order to meet accelerating demand from industry, and student support as part of the overall post-school education and skills reform.
“While we had hoped for further streamlining, we believe the proposal for two funding bodies – one for student support, the other for college and university funding – will significantly reduce complexity and enhance simplicity for learners to navigate, and maximise the level of funding going towards the delivery of learning, teaching and apprenticeships in Scotland’s colleges.
“We look forward to working with the Scottish Government and the two new agencies to ensure that colleges can provide the best possible services for the learners, businesses, and communities they serve.”
