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Scottish Government Backs Flexible Workforce Development Fund
After a successful pilot year, the Flexible Workforce Development Fund will receive additional funding to enable businesses to upskill and retrain employees.
The Scottish Government has announced it will invest £10 million in the Flexible Workforce Development Fund following a highly successful pilot year.
The development fund, which aims to support the upskilling and reskilling needs of Scotland’s existing workforce, is available to employers across the private, public and third sectors that are subject to the UK Government’s Apprenticeship Levy.
Jamie Hepburn, Minister for Business, Fair Work and Skills, said that the move comes as a direct result of the Scottish Government’s opposition to the Apprenticeship Levy – a policy he said was an “unwelcome” UK tax on Scottish levy payers.
Mitigating Costs
To mitigate the financial impact of the UK apprenticeship tax on Scottish businesses, the Scottish Government announced that the second year of funding for eligible levy-paying employers will increase by £5,000 to £15,000. Additionally, the college sector will continue in its mission to administer and deliver the £10 million fund – which Chief Executive of Colleges Scotland, Shona Struthers, claims is playing a critical role in enabling employers enhance training.
She said: “We are delighted that the college sector will continue to exclusively administer and deliver the £10 million Flexible Workforce Development Fund which supports levy-paying employers to undertake training and development as this helps to increase productivity, fill identified skills gaps, and upskill and retrain the existing workforce.
“The fund is already helping employers and colleges work together to enhance training and continuous professional development for staff and keep pace with new technology and changing markets.”
Struthers added that year two will “build on the progress made in the pilot year and add some positive developments which will be of benefit to levy paying employers.”
As well as an increase in the cap, employers will now experience greater flexibility through utilising some – or all – of the fund in their supply chain.
Scottish Opposition
He added: “Available to support all employees of all ages and across the private, public and third sectors, I would encourage all those who are subject to the apprenticeship levy in Scotland to get in touch with our colleges to learn more about the opportunities available to them to improve and diversify their skillset and benefit from new training opportunities.
“The Scottish Government will continue to support investment in skills and training to meet the changing needs of employers, the workforce, young people and Scotland’s economy.”
