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.

Skills Development Scotland contributes towards the cost of training of apprentices on behalf of the Scottish wellbeing. Interestingly, it is financial health where employees most want support, followed by mental health.

Debra Clark says: “The different pillars of health and wellbeing are often intertwined. Financial health will impact mental health; mental health affects physical health and so on. The fact that both employers and employees put financial and mental health at the top of the list suggests that these two are particularly impactful on each other in current times. Employers should consider a targeted response to address the issues, such as offering access to counselling, or to budgeting advice.”

Debra Clark says: “It is vital that employers consult their staff regularly to see how their needs are changing regarding health and wellbeing. Requirements are not static and the support needs to closely match the concerns. Employers should consider a holistic approach to health and wellbeing support, giving credence to each of the four pillars: mental, financial, physical, and social health. A workforce that feels unsupported will be less productive and less loyal.”

Government which 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.”

Around 12,000 employers across Scotland support apprenticeships, with more than 40,000 apprentices in training right now.

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.

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.”