More apprentices in Scotland but the long-term benefits need to be clearer

The number of apprentices in Scotland has increased with more than 25,000 people starting training in each of the last two years, despite a challenging labour market, according to a report by Audit Scotland.

The report, published today, finds that Skills Development Scotland (SDS) manages modern apprenticeships well but there is a need to better understand the long-term benefits to establish whether they are value for money.

Modern apprenticeships assesses SDS's administration of its £75 million a year spend on apprenticeships and whether this represents good value.

The report says:

• The annual number of new apprentices has increased since 2008/09 and SDS achieved the Scottish Government's annual target of 25,000 new apprentices in each of the past two years, despite challenging economic circumstances and the uncertainty of employer demand.
• Spending on apprenticeships increased by 24 per cent in real terms between 2008/09 and 2012/13. Around 75 per cent of SDS's annual apprenticeship spending is on those in year two or later of their training. The Scottish Government's focus on more expensive, higher levels of apprenticeships, which take longer to complete, may mean that this percentage, and the overall costs, will increase.
• The Scottish Government stated in 2007 that its primary aim for modern apprenticeships is economic development. It has set various priorities for apprenticeships but existing performance measures do not focus on long-term outcomes, such as sustainable employment. More specific long-term aims and objectives, along with more information about their benefits and appropriate performance measures, are needed to assess value for money.

Auditor General for Scotland, Caroline Gardner, said:

"More people in Scotland are developing their skills while in paid employment through apprenticeships. Skills Development Scotland has done well in challenging economic circumstances to meet the Scottish Government's annual target of 25,000 new apprentices. However it will need to assess the financial sustainability of meeting this target while achieving the government's other priorities for apprenticeships."

"Modern apprenticeships can help create employment opportunities and meet the immediate needs of employers. The development of better outcomes measures would help the Scottish Government to understand the long-term benefits of apprenticeships. It would also allow funding to be directed to those apprenticeships which offer the best value for individuals, employers and the economy."