4. Making apprenticeships work for all in Scotland

Abstract

This chapter explores key challenges and policy responses to making the apprenticeship system more inclusive and equitable in Scotland (United Kingdom). The chapter examines strategies to ensure inclusion and equity are at the heart of policy making. It also looks at how the apprenticeship system can be more accessible and relevant for experienced adults and for those with aspirations for further learning.

The importance of inclusiveness in the apprenticeship system

Apprenticeships can foster lifelong learning by providing accessible and relevant training opportunities for all. This includes adults, who may risk being left with outdated skills in a fast-changing labour market, and in some cases without the learning capacity that allows them to adapt. However, apprenticeship systems are not necessarily equipped to adapt to changing skill needs and a more diversified pool of potential learners. They need to be organised in ways that strengthen existing efforts to support the needs of a diversity of learners – from displaced workers who urgently need retraining to learners with disabilities.

This means that Scotland should put inclusiveness at the heart of its apprenticeship policy. Equity and inclusion should be addressed as a dimension of all policies, in support of specific targeted initiatives, such as the Apprenticeship Equality Action Plan currently pursued by Skills Development Scotland (SDS, 2019[1]). Equity and inclusion will also serve to diversify apprenticeships to reach under-represented learner groups, sectors and education levels. Scotland can harness the flexibility built into its apprenticeship system to ensure that learners with different personal characteristics, skills and work experience have access to apprenticeship programmes that are tailored to their needs. Moreover, Scotland should adapt its apprenticeships to provide adults with better routes to upskill or reskill, including building pathways that give direct access to apprenticeship qualifications.

4.1. Mainstreaming inclusion and equity

Governments need to pay close attention to issues of equity and inclusion in all aspects of the labour market and training ecosystem to ensure that those who want to invest in their skills, including the most vulnerable, can do so. It follows that inclusion and equity should be mainstream issues in apprenticeship governance, so that all policies are examined from this perspective. For example, ensuring the funding principles for both higher education and apprenticeships are consistent would serve equity, while measures to do more to acknowledge prior learning would help those who lack formal qualifications and migrants.

The Scottish Government is mainstreaming its “fair work” agenda, including publishing its Fair Work First guidance in 2021. This guidance supports employers and public sector partners to implement practices that support staff well-being, enable a good work-life balance, and create a more diverse and inclusive workforce. The Fair Work tool for employers also enables organisations to self-assess their working practices against the Fair Work dimensions. Digital Scotland also put forward an agenda to diversify the digital skills pool by working with industry to improve the diversity of those studying digital technology in apprenticeships as well as school, further and higher education. This included reaching more women, workers with disabilities, those from minority ethnic backgrounds, and neurodivergent people (Digital Scotland, 2021[2]).

Strategic guidance and data collection are important for achieving such equality objectives. SDS has a systematic equity strategy, and routinely collects data on apprenticeship participation by under-represented groups, according to gender, ethnic minority status and disability as well as residence. Scotland’s Apprenticeship Equality Action Plan sets out gender, ethnicity and disability targets for 2021. While the disability target has already been achieved, and progress is being made in terms of ethnicity, progress on the gender target – to reduce to 60% the percentage of MA frameworks where the share of males is 75% or over – has been slow (Field, 2020[3]).

While Scotland’s efforts in this area have been generally positive, there are some broader equity aspects that cross the boundaries of responsibility between different government agencies and should be addressed in a holistic way. One of these relates to funding; as discussed below, apprentices – especially older adults – benefit from a much smaller government education and training subsidy than students entering higher education.

4.1.1. Making apprenticeships work for different groups

Challenge: Inequalities in society are reflected in apprenticeships

Apprenticeships and other vocational training opportunities can benefit groups traditionally under-represented in certain sectors of the labour market or higher education system. By combining learning and earning, apprenticeships allow people to enter the labour market but still develop their skills. Policy makers in many countries have used this unique aspect of apprenticeships to diversify the workforce, alleviate poverty and social disparity, help youth in their transition from school to work, and upskill or reskill workers.

However, many countries, including Scotland, struggle to achieve equal opportunities for people with extra difficulties or those who face discrimination due to entrenched social perspectives. Minority ethnic groups are under-represented: although they account for 6% of 16-19 year-olds in Scotland, they represent only 2% of MAs. Gender differences also remain, and often reflect broader challenges related to occupational segregation. The share of women in Modern Apprenticeships (MA) has not grown in recent years, although they have made significant progress in Graduate Apprenticeships (Figure 4.1). Among MAs some sectors (administration, hospitality/tourism, health/social care) and higher levels (Levels 8-10) had a relatively large and growing share of female learners (SDS, 2021[4]; SDS, 2022[5]). Similarly, only 22.1% of pupils undertaking a Foundation Apprenticeship in a science, technology, engineering or mathematics (STEM) subject in 2019-21 (SDS, 2020[6]) and only 24.5% of those studying a STEM FA at Scottish Credit and Qualifications Framework (SCQF) Level 6 in 2020 were female (SDS, 2021[7]). Such gender imbalances are not unique to the apprenticeship system, and one of the goals of Scotland’s 2017 STEM Education and Training Strategy is to reduce the gender gap in STEM education and training – recognising that gender imbalances in participation in STEM courses are evident across the education and training system, with girls being underrepresented in STEM subjects at school and two thirds of STEM learners at college being male (Scottish Government, 2017[8]).

Figure 4.1. The share of female Graduate Apprentices has grown, but not of Modern Apprentices

The rapid evolution in labour market demand, and changes in the use of technology, also means that workers who were once sought after in the labour market may now find themselves without appropriate qualifications. The need to pay more attention to adult learning to tackle this issue is well-recognised in Scotland – most recently in Scotland’s Future Skills Action Plan (Scottish Government, 2019[9]). This is reflected in the growing share of adults (aged 25 and over) starting apprenticeships (Figure 4.2), although this also reflects the declining share of under 20s in the population (see Annex A) and increasing demand from employers, including apprenticeship levy payers, who are using apprenticeships to upskill their existing workforce. Recent data show that adults in Scotland have higher achievement rates of apprenticeships (80% for apprentices aged 25 and over, compared to 74% for 16-19 year-olds and 77% for 20-24 year-olds) (SDS, 2020[10]).

Figure 4.2. Apprenticeships increasingly attract adult learners in Scotland

Regional disparities in apprenticeship participation also remain. Most council areas have made progress in both increasing participation in apprenticeships and in reducing the share of the working-age population (16-64 year-olds) with low or no qualifications. In some council areas, participation in apprenticeships has risen faster than the improvement in overall qualification levels, which could merit further analysis to identify the reasons behind it (Figure 4.3).

Figure 4.3. Not all council areas have made progress in both apprenticeships and overall qualifications

Providing targeted incentives and support for different groups of apprentices

Many initiatives are already in place in Scotland to enable different groups to take advantage of the benefits of apprenticeships and make them work for different groups. For example, Scotland provides subsidies for employers to take on apprentices from under-represented groups, including those with a disability, from ethnic minority groups, with care responsibilities or living in remote areas (SDS, 2021[15]). Scotland is also playing a leading role in understanding how apprenticeships can be made more attractive to learners with different learning challenges and in providing them with appropriate support. The country is also paying attention to the importance of achieving gender parity (both the need to attract more women to apprenticeships and also considering employment conditions such as gender wage parity), and providing opportunities for migrants and neurodivergent individuals (SDS, 2020[16]). The Scottish Apprenticeship Advisory Board (SAAB) is strongly involved in this agenda through the SAAB Employer Equalities Group (see Box 2.6 in Chapter 2). SDS also provides an Equality Toolkit for training providers and employers (SDS, 2016[17]).

To ensure that apprenticeships work for different groups, it is important to develop targeted support mechanisms such as pre-apprenticeships and special apprenticeship schemes. Scotland has already taken steps on this through Level 4 and 5 work-based learning programmes, which can lead to apprenticeships. These mechanisms can help low-performing students or early school leavers and disadvantaged young people to address basic skill challenges and motivate them to take up an apprenticeship. The mechanisms could also be extended to low-skilled workers and jobseekers, but they would need to be adapted to those groups’ particular needs.

Motivational and behavioural understanding and support are also important. The Apprenticeship Wellbeing Survey (AWS) asked 2 000 Modern Apprentices who had left their apprenticeship around 1-2 years before about their satisfaction and well-being. While the survey found that MAs report higher levels of well-being than the general population, it also found that the unemployed and those from a minority ethnic background tend to report lower level of satisfaction, and that female apprentices report higher level of anxiety (SDS, 2019[18]). This demonstrates the need for more tailored and targeted approaches for these groups in apprenticeships, alongside broader society-wide efforts to improve their well-being. To tackle gender bias and improve the balance of participation in school subjects, Education Scotland has in place a dedicated team of education professionals who deliver the Improving Gender Balance in Education programme. The aim is to help change perceptions about STEM and challenge assumptions about who does what jobs.

Apprenticeships are not just for the young, and many countries have experience with adult apprentices. In Scotland the proportion of apprentices over the age of 24 has been rising (Figure 4.2). Adult apprentices are often incumbent workers, where both employer and employee have seen an opportunity for upskilling through an apprenticeship programme. Unlike younger learners, adults may not be willing to accept the low wages of an apprentice and already have some of the skills delivered by the apprenticeship programme. Therefore, special measures may be needed to encourage adult apprenticeships, often involving both financial and non-financial incentives (Box 4.1). Switzerland, for example, has extended state funding to 50% of the costs of the preparation courses used in support of professional examinations, a primary means of upskilling workers (Swiss Confederation, 2019_[14]). Recognition of prior learning is one way to encourage older workers by enabling them to participate in accelerated apprenticeships, and many countries, including Scotland, have sought to develop ways to recognise such learning (see Section 4.2).

Box 4.1. Denmark: Incentives for adult apprenticeship

Tailored programmes for adult apprentices

Following a 2014-15 reform of the apprenticeship system, Denmark introduced a programme for those aged 25 and above (EUV). Adults enrol in apprenticeship programmes on special terms; most can shorten the total training period through recognition of prior learning. A special adult apprentice salary (voksenlærlingeløn) has been introduced to reduce the financial burden for low-qualified adults enrolling in apprenticeship. The salaries differ according to their employment status. Some adult apprentices are also entitled to grants from the State Education Fund instead of salaries. Teachers working with adults are required to understand and acknowledge the previous work experience and prior education that the adult learners bring into the classroom.

Employed adults may enrol by signing an apprenticeship contract with their employer and the learning programme is tailored to their needs. In some cases (when the learner has more than two years of relevant work experience), the learner needs training at the vocational school to gain a vocational certificate. Employed adults are paid an apprenticeship salary and the employer is reimbursed for the periods when the employee is at the vocational school.

Source: Cedefop (2019[19]), Apprenticeship for Adults: Results of an Explorative Study, http://data.europa.eu/doi/10.2801/24300.

Teachers and trainers are an important motivator and model for learners. Therefore, encouraging the recruitment of teachers and trainers from minority backgrounds can help encourage students with similar background to engage in apprenticeship. For example, Education Scotland is working with the Scottish Association of Minority Ethnic Educators (SAMEE) to provide coaching and mentoring support for minority ethnic colleagues. Similar approaches can be applied to vocational teachers and trainers.

Improving working conditions, transforming workplaces and improving gender balance across sectors and occupations could help diversify both apprenticeships and the workforce. This includes tackling wage disparities for different groups (Figure 4.4). Scotland published a recruitment toolkit designed to support employers in recruiting more people from minority ethnic backgrounds as part of its efforts to improve outcomes for minority ethnic people moving into, staying in and progressing in employment. Scotland will also review the actions within its Fairer Scotland for Women: Gender Pay Gap Action Plan to ensure that these actions are fit for purpose and will help to support Scotland’s economic recovery through the pandemic and beyond (Scottish Government, 2020[20]).

Figure 4.4. Wage disparities persist for women and disabled workers

Joining up existing policies to overcome barriers to apprenticeships

Synergies could be found by linking existing policy packages with support for learners to participate in apprenticeships. For example, around 270 000 people in Scotland (and 3 million people across the United Kingdom) are estimated to combine working with caring responsibilities (Carer Positive, 2021[23]).1 This can present serious time and resource constraints for workers seeking to undertake additional training. Research undertaken by SDS examined the challenges young carers face when trying to access apprenticeship opportunities, including the unpredictability of their caring responsibilities and the impact on their workplace concentration and mental well-being (SDS, 2018[24]).

In this context, the Young Carers Package (and also child care support) could be combined with support for apprenticeships in order to provide support for caregivers while also enabling them to advance their careers. Similarly, the Young Carer Grant – which has had a positive impact on the ability of young carers to take part in opportunities that are the norm for their non-caring peers – could be given a more explicit connection with apprenticeships (Scottish Government, 2021[25]). Creating synergies and connections between such policy packages could increase the attractiveness and visibility of apprenticeships while also addressing the policies’ primary aims. Employers will also need to be supported to ensure that they are able to meet the needs of apprentices with care responsibilities.

4.1.2. Making the apprenticeship system more inclusive through equitable funding arrangements

Challenge: The funding system offers less support for apprenticeships than other forms of education

Scotland has a generous skills funding system for higher education (HE), especially for young people, but relatively less so for apprenticeships, especially for older adults. A four-year degree at a Scottish university will cost the government around GBP 36 000 (based on the fees charged to EU and UK non-Scottish students). In contrast, no Modern Apprenticeship involves a government contribution of more than GBP 10 000, and the vast majority cost the government less than GBP 5 000 (SDS, 2019[26]). Learning providers receive lower funding contributions for older apprentices, leaving employers to make up the shortfall, potentially reducing the number of apprenticeships available. Graduate Apprenticeships (GA) and Foundation Apprenticeships (FA) are different, because they are fully funded by the Scottish Funding Council.

The fact that government funding for training is often more generous for young people than for adults is not unique to Scotland and is common in OECD countries. This reflects the principle of state-funded initial education for all, the prioritisation of youth within limited budgets, and an expectation that adult education and training should primarily be supported by individuals or their employers. However, this last point may have to be rethought given a decline in employer-supported training (see Annex A), just when it may be needed most. Some countries are already changing course. Switzerland, for example, has extended state funding to 50% of the costs of the preparation courses used in support of professional examinations, a primary means of upskilling adult qualified apprentices (Swiss Confederation, 2019[27]).

The scale and mix of apprenticeship funding and provision needs to be considered in the whole context of post-school education and training, and where apprenticeships sit within that wider system. Some types of apprenticeships compete with HE. For example, in the first half of 2019-20, 30% of Modern Apprenticeship starts were at SCQF Level 7-8, the same as a Higher National Certificate (HNC, Level 7) or a Higher National Diploma (HND, Level 8), and a further 40% were at Level 6, just below HNC/HND level. In other words, 70% of MA starts were at International Standard Classification of Education (ISCED) Levels 3 and 5 (SDS, 2019_[7]) (see Annex A). Such competition is healthy because it allows students and employers to opt for the most suitable forms of provision, but it requires a level playing field.

The COVID-19 pandemic has added further pressure on the system by reducing employers’ capacity to offer apprenticeships – this is a typical phenomenon in times of economic crisis (Brunello, 2009[28]). Many young people in Scotland may therefore make the rational choice to take up a fully funded HE place over finding an apprenticeship. Indeed in 2021, the number of apprenticeships has fallen while applicants to Scottish universities are at record levels (UCAS, 2021[29]), particularly among youth from Scotland’s most deprived areas. Combined with other factors, such as parental preferences for academic learning, or a lack of knowledge among schools about apprenticeship opportunities, the current funding imbalance between HE and apprenticeship funding may be driving more students into academic degrees than is currently appropriate. It could also contribute to growing skill gaps as workers who may otherwise seek to retrain or upskill to meet labour market demand are unable to do so due to a lack of financial and other incentives. Scotland already stands out for its high levels of HE participation (Box 4.2).

Box 4.2. Scotland has a very high level of participation in tertiary education

Scotland currently has some of the highest levels of participation in higher education in the world – with 50% of 25-64 year-olds educated to tertiary level, more than any other EU country in 2019. This has increased from 47% in 2018. The trend appears to be accelerating, with applicants to Scottish universities reaching a record high in 2021 (UCAS, 2021[29]).

Scotland has fairly average results by European standards in the Programme for International Student Assessment (PISA), which measures 15-year-olds’ ability to use their reading, mathematics and science knowledge and skills to meet real-life challenges. This raises questions about whether all those entering higher education in Scotland have the foundation or basic skills they need. Evidence also suggests that graduates’ skills are not being well utilised: a Higher Education Statistics Agency survey found that 28% of first-degree leavers were entering “non-professional” roles (Field, 2020[3]). In 2018, 35% of businesses had at least one employee with higher skills or qualifications than needed – an estimated 225 000 employees (Scottish Enterprise, 2021[30]).

Figure 4.5. Scotland has some of the highest levels of participation in tertiary education

In contrast, other European countries that also have free or heavily subsidised higher education, also provide relatively generous support for apprenticeships to employers (Box 4.3). In most European countries the off-the-job element of an apprenticeship is funded fully by government through direct provision in public vocational education and training providers.

Box 4.3. Examples from Europe: Government funding support for apprenticeships

Government funding of apprenticeships in European countries usually involves some form of direct funding for the off-the-job training component of apprenticeships, and sometimes grants or tax subsidies for employers taking on apprentices. In some countries, levies on employers play a role in the funding.

The countries highlighted here are broadly comparable with Scotland in that higher education is largely funded by government for EU students. In these countries, annual tuition fees in higher education for EU full-time students are either zero or modest (less than EUR 1 000), except in the case of Ireland, where a student contribution of EUR 3 000 is required from students, although around 40% of students have this contribution paid by government on a means-tested basis.

In Belgium Flanders, government fully funds all the off-the-job education and training of apprentices. Employers pay apprentices’ wages, but these are also subsidised by government as are their national insurance payments. To encourage employers to take apprentices, they receive a grant of EUR 500 for the first and second year of an apprenticeship and EUR 750 for the third year.
In Denmark, government funds all off-the-job education training for apprentices, which goes to training institutions. Its budget for this was around EUR 750 million in 2016. Employers do not contribute. An employer levy of around EUR 380 per employee per year provides a fund which covers the wages of apprentices while they are undertaking off-the-job training. Employers who take on additional apprentices in key occupational sectors receive government bonuses.
In Finland, government directly funds all off-the-job training of apprentices. In addition, the government provides allowances for apprentices during the times when they are undertaking off-the-job training and so are not being paid by employers. Employers may also receive “training compensation” grants to support their provision of on-the-job training to employees.
In France, government directly funds off-the-job training of apprentices through a budget of EUR 1.57 billion (in 2014). In addition, an apprenticeship tax on employers’ payrolls yielded EUR 914 million in 2014, some of which is used to fund off-the-job training. Employers do not contribute to off-the-job training costs. Employers are encouraged to take apprentices through a tax credit while the government bears the cost of an apprentice’s social charges (equivalent to national insurance).
In Germany, government directly funds all off-the-job education and training of apprentices through expenditure of EUR 2.5 billion annually (in 2016). Employers do not contribute. Apprentices may also receive some government financial support if they live away from their parents.
In Ireland, off-the-job training of apprentices is funded directly by government and through the national training fund, supported through a levy on employers. Employers do not contribute.

Source: Cedefop (2020[32]), Database on financing apprenticeships in the EU; European Commission (2018[33]), National Student Fee and Support Systems in European Higher Education Systems - 2018/19, https://eacea.ec.europa.eu/national-policies/eurydice/sites/eurydice/files/fee_support_2018_19_report_en.pdf.

Providing fully-funded off-the-job training for consistency with higher education funding

The partial subsidy approach to the funding of MAs is an anomaly in the Scottish skills system. It is inconsistent with (Field, 2020[3]):

The Scottish approach of full subsidy for higher education, which distorts provision in favour of higher education and is inequitable.
The approach of most other leading apprenticeship countries, in which off-the-job education and training is provided and funded by government, and often augmented by additional financial incentives for employers.
The approach to Foundation or Graduate Apprenticeships, both of which involve government paying the full costs of off-the-job training.
The reality that the SDS contribution represents all the funds available for the off-the-job training of Modern Apprentices aged 16-19.

Aside from the obvious difference in total funding distributed, this disparity creates issues around equity. For example, most Modern Apprentices do not enjoy the same socio-economic circumstances as those who benefit from higher education (Field, 2020[3]). And while apprentices do not pay for the off-the-job training themselves, potential apprentices lose out if the costs of off-the-job training deter employers from offering apprenticeships in the first place, or if off-the-job training is underfunded because employers are reluctant to provide adequate funding (Field, 2020[3]). To create a situation where school leavers and adult learners have equitable access to education, training, and labour market opportunities, funding for Modern Apprentices will need to be at least as generous as that for higher education.

To address this challenge, Scotland should entitle all apprentices to appropriate off-the-job training fully funded by the Scottish government. This means fully funding off-the-job training for older apprentices, allowing the system to do more to support adult upskilling and reskilling, a key element in a resilient skills system. In a demand-led system (as suggested in Chapter 2), an apprenticeship agreement between an employer and a potential apprentice would automatically lead to an entitlement for that apprentice to receive government-funded off-the-job education and training. In response, SDS would deliver (through learning providers) and without fees, the off-the-job training portion of the apprenticeship in the chosen field. The scale and mix of provision would therefore be determined by the choices made by employers and potential apprentices in the labour market (subject to any specific policy incentives that the government might choose). This approach would encourage more high-level apprenticeships and help to tackle specific skills shortages.

Fully funded MAs could also help tackle a skills gap at SCQF Levels 6-8, which, as noted above, currently accounts for 70% of MA provision. The Institute for Public Policy Research have argued that there is a significant skills gap at this level, with existing provision inadequate to meet the scale of current and likely future demand, across a range of sectors (Gunson, Hatfield and McGeoghegan, 2016[34]). While some of this demand is currently being met through HNCs and HNDs, these programmes involve a limited amount of work-based learning and may therefore not meet many employers’ needs. This suggests the need for some overall rebalancing through more apprenticeships at SCQF Levels 7 and 8 that draw on the best qualities of HNCs and HNDs. Irrespective of how this is pursued, the funding approach to HNCs, HNDs and apprenticeships at this level should be the same.

Because employers would no longer be obliged to fund any off-the-job training for apprentices under this reform, it might therefore be reasonable to link it to increased expectations on them to deliver high quality work-based training to apprentices (see Chapter 2). The net impact on public expenditure would need to be carefully assessed through a pilot, but might be close to zero, if there is enough demand for apprenticeships to lead to a shift in participation away from more expensive higher education.

There are efforts underway which could address the funding imbalance between HE and apprenticeships. The Enterprise and Skills Review in Scotland proposes an integrated approach to skills provision, co-ordinating the work of SDS and the Scottish Funding Council (SFC). This commits SDS, the SFC and the Scottish government to an implementation plan that will align planning, commissioning and evaluation. Similarly, the SFCs Review has recommended that the SFC build capacity and a more systematic approach to the way they collectively plan coherent tertiary education and skills provision and investment, so that it responds better to the current and future needs of learners and employers and broader economic and social drivers, while promoting fair access and equalities, and the journey to a net zero carbon future. Administrative machinery is being developed to deliver this commitment and to ensure that the needs of learners, employers and the economy are central. Part of that process should be to move towards common funding principles. This would allow employers and students to choose between higher education and apprenticeship based on their needs, capacity and interests rather than because of funding. In practice, given the firm commitment of the Scottish government to free higher education for students living in Scotland, this should mean adopting the same principle in relation to the off-the-job component of apprenticeship, including for older students, and creating a culture of promoting, recognising and facilitating apprenticeships as a worthwhile education and training pathway.

Recommendations and implementation for mainstreaming inclusion and equity

4.1. Mainstreaming inclusion and equity

In order to facilitate the participation of a wider group of learners with different backgrounds in the apprenticeship system, Scotland should mainstream inclusion and equity not only in the apprenticeship system but also in the wider skills system and the society:

Ensure that the full range of apprenticeship opportunities are accessible to all and provide supportive measures for those facing additional barriers to participation. Scotland can also explore potential synergies by linking existing policy packages with support for learners to participate in apprenticeships. Examples include using young carer packages, childcare support or individual training accounts for apprentices in need; encouraging the recruitment of teachers and trainers from minority backgrounds; and improving working conditions and transforming workplaces, all of which have potential to contribute to diversifying apprenticeships.

To ensure that MAs provide training opportunities on a level playing field with other types of education:

Pilot the provision of fully funded off-the-job training for Modern Apprentices of all ages, without any employer contributions or cap on numbers. This proposal should be developed and implemented incrementally and carefully, starting with a pilot in selected apprenticeship frameworks to evaluate the potential costs and impact. The government should provide a budget to support the pilot exercise and develop a methodology to assess the reasonable cost of providing the off-the-job training (and assessment) for apprenticeship frameworks. This should determine the payments by SDS to learning providers. This “reasonable cost” approach would be linked to clearer minimum expectations on off-the-job training and the length of apprenticeships, as proposed in Chapter 2.
Evaluate the pilot studies to determine how the total number of apprenticeships increases as the result of the increased funding available for older apprentices. It should also examine how the age, regional and equity mix of apprenticeship changes. Employers and apprentices should be surveyed to explore their experience. The full funding scheme could then be rolled out to all sectors, based on the results of the pilot. Adjustments may be needed to rebalance participation from higher education to apprenticeships.

4.2. Developing a direct route to apprenticeship assessments and qualifications

Challenge: Recognising existing skills within the apprenticeship system

Many adults entering vocational programmes already possess valuable but uncertified knowledge and skills, often acquired informally through work experience. Recognising and certifying these skills helps to make the labour market work better, allowing individuals to obtain work that uses and rewards their skills, while also helping employers to recruit more efficiently, and allocate workers to more appropriate jobs. Moreover, the potential of recognition encourages individuals to develop their skills during their working life. Recognition of prior learning (RPL) also has equity benefits, granting recognition to the skills of those with limited formal education or qualifications, including migrants (Kis and Windisch, 2018[35]). RPL for workers who are experienced and highly skilled yet lack qualifications can help them accelerate the attainment of the qualifications they need to demonstrate their skills to employers.

While the formal recognition of existing skills improves transparency and benefits both individual workers and other labour market actors, the implementation of such recognition faces obstacles. These include complex assessment procedures, resistance from education providers, and weak support from employers (CEDEFOP and European Commission, 2017[36]).

Many leading apprenticeship countries offer accelerated apprenticeships options, sometimes only for older adults (Box 4.4). In Scotland, apprentices may already use RPL for accelerated programmes although because few frameworks formally specify a required programme length (see Section 2.3 in Chapter 2), the principle of accelerated apprenticeship works slightly differently. RPL is strongly encouraged within the SCQF; the SCQF handbook sets out a series of guiding RPL principles (SCQF, n.d.[37]) linked to the acquisition of credit points in the SCQF framework. While this is only guidance, it may influence at least some large employers. The National Health Service (NHS) in Scotland, in collaboration with Education for Scotland offers guidance for its employees regarding RPL (NHS Education for Scotland, 2019[38]). In apprenticeships, the principle is that an initial skills assessment should allow programmes to be accelerated through RPL. All learning providers are required to have an RPL policy, under which they should assess new apprentices and grant credit for prior learning, leading to accelerated completion. Individual apprenticeship frameworks define ceilings for how much RPL is possible (SDS, 2019[39]). To support learners, employers, educators and advisors, an online SCQF RPL Tool gives tailored information, guidance and signposting about RPL based on a set of questions about users’ learning backgrounds and the kind of recognition they are looking for.

As discussed above, the share of adult starting Modern Apprenticeships has increased since 2015 (Figure 4.2, Panel B), but there are no detailed data on whether they already possessed relevant skills to be recognised before they started. However, it could be presumed that many of them will already have relevant skills, because some will have been incumbent workers when they started their apprenticeship, and others were previously working in a closely related field. RPL has allowed over 10% of new entrants to Graduate Apprenticeships to directly enter the second or third year of the programme (SDS, 2019[40]); in comparison, however, 25% of apprentices over the age of 25 in Switzerland were able to graduate from shortened programmes due to RPL in 2020 (Box 4.4).

Accelerated completion of apprenticeship suits the needs of those who already have a modest proportion of the skills required for their target qualification. For example, young people who completed a FA can in some cases get credit when moving on to an MA or GA. Sometimes such flexibility can also be used to accommodate those who are simply fast learners rather than because of prior learning. However, although Scotland makes extensive use of RPL, it offers no options for direct access to an assessment leading to the same qualification as that obtained through apprenticeship. This is a significant gap in provision, which bears particularly on adults who already have a significant proportion of the skills required for their target qualification. In Scotland, where there is a strong case for the system to improve its capacity to serve adults, provision of this type is needed.

Box 4.4. International examples: Accelerated completion of apprenticeship in recognition of prior learning

In Australia, apprentices may receive course credits for skills they already have and prior work experience, reducing training duration. Apprenticeships are “competency-based”, so that if an apprentice can demonstrate that they have acquired the required skill level, they may progress to the next stage of their training. Competence is assessed both by training providers and employers.

In Denmark those aged over 24 may complete an apprenticeship through two alternative pathways following initial competence assessments (which last between half a day and ten days). Those with at least two years of relevant experience are exempted from the basic course (which includes school-based vocational training) and follow a shortened main course (which normally combines school-based and work-based training) and do not need on-the-job training. Those with some relevant work experience or prior education and training may follow a shortened basic course (up to 20 weeks), a shortened main course and up to two years of on-the-job training.

In Germany, reductions in programme length may be granted to those with prior qualifications or adults aged 21 and above. Those with a secondary qualification can obtain a reduction of 6 months, while those with a general upper secondary school qualification, or those over 21 and already holding a vocational qualification, can reduce it by up to 12 months. An apprentice may take the final qualifying examination earlier than usual if both the training firm and the vocational school attest to the strength of their performance.

In Switzerland, the duration of an apprenticeship may be reduced for those with prior qualifications (e.g. general upper secondary qualification, vocational qualification) or skills that allow them to acquire the targeted skillset faster (e.g. work experience with validated learning outcomes). Typically, durations may be reduced by one or two years. In 2020, among apprentices over the age of 25, around 25% of graduations involved reduced programme durations.

In the United States, registered apprenticeship programmes range from one to six years, with the majority taking four years. Some programmes are competence based; others are time based. In competence-based schemes, apprentices may complete faster or take extra time to develop the required competences, though these schemes still have to comply with certain requirements regarding time spent on each major process.

Source: Kis and Windisch (2018[35]), “Making skills transparent: Recognising vocational skills acquired through work-based learning”, https://dx.doi.org/10.1787/5830c400-en.

Providing a direct route to apprenticeship qualifications

Direct access to a final apprenticeship assessment and qualification has benefits. Although programmes can be shortened for experienced workers, as discussed above, no apprenticeship programme would be suitable for those who already have most of the required occupational skillset, as little of the programme would be relevant or necessary. This may increasingly be the case for young people who have obtained skills through self-taught materials, online courses or other informal channels, particularly in emerging technology subjects. Therefore, Scotland should follow the example of other countries and establish direct routes for certification currently realised through apprenticeship. Such routes would not be apprenticeship programmes, but would require previous relevant work experience.

The feasibility of this approach has been well demonstrated in many other countries. Several strong apprenticeship systems in Europe offer a direct route to the same qualifications that can be gained through an apprenticeship, usually through a free-standing assessment or examination (Box 4.5). This is usually augmented by other prior learning requirements, most commonly that the candidate has been working in a relevant field for a period of time – for example five years in Switzerland. This helps to ensure that possession of the qualification is backed by relevant work-based learning. Candidates may pursue some form of tailored preparation for the assessment, to fill in any gaps in their occupational knowledge and skills. In Norway one-third of those qualifying as journeypersons, an apprenticeship qualification, go through a direct route, while two-thirds follow a regular apprenticeship programme.

The direct route would also effectively serve migrants. Adult migrants often have most of the skills required for a target occupation as a result of previous experience or qualifications, but in Scotland the occupation may involve slightly different requirements from those they are used to and their qualifications may not be recognised. The needs of such migrants will be most effectively met through a direct route to an assessment, supported by some tailored training to cover any gaps in their skillset. Having a direct route to assessment could therefore help to attract and make the best use of foreign talent and contribute to tackling skill shortages.

Box 4.5. International examples: Direct access for adults to final apprenticeship examinations

In Austria, individuals aged 18 or over with relevant experience may directly apply for the final apprenticeship examination without enrolling as an apprentice. This route accounted for 15% of apprenticeship qualifications awarded in 2012.

In Germany, individuals may take an “external examination” (Externenprüfung), taking the final assessment of regular apprenticeship programmes without completing the programme itself. Access is limited to those who have worked in the target occupation at least for one and a half times as long as the duration of the apprenticeship, and who have been performing skilled tasks in their job. Candidates may prepare for the assessment by following preparatory courses. In 2009, candidates who took the external examination accounted for about 6% of successful apprenticeship final examination candidates.

In Norway, it is possible to take the trade or journeyman's examination without an apprenticeship. The candidate must demonstrate comprehensive competence in the field. The candidate must have work experience in the field equal to the length of the apprenticeship plus 25% (usually meaning five years in total) and must pass a theoretical exam. About one-third of journeyman certificates were awarded on the basis of experience-based certification in 2015/16.

In Switzerland, adults with relevant work experience may access the final qualifying examination for apprenticeships and obtain a federal vocational diploma or certificate. Five years of work experience are required, and in most cases, this includes of minimum of several years – usually three – in the targeted occupation. Cantons provide advice to applicants about how to prepare for the examination. In some occupations, preparatory courses for adults are available. In all occupations, adults may pursue additional training by attending vocational schools or intercompany training centres.

Source: Kis and Windisch (2018[35]), “Making skills transparent: Recognising vocational skills acquired through work-based learning”, https://dx.doi.org/10.1787/5830c400-en.

Recommendations and implementation for developing a direct route to apprenticeship assessments and qualifications

4.2. Developing a direct route to apprenticeship qualifications

For experienced adult workers, Scotland should establish direct access routes to the qualifications currently realised through apprenticeship. This would follow the model of other countries and fill a gap in provision. Such routes would not be apprenticeship programmes, but would require previous relevant work experience. An assessment procedure would be defined for such individuals, assessment bodies identified, and funding arrangements addressed.

Implementation could be pursued through the Standards and Frameworks Group (SFG) of the SAAB, and would involve several steps:

Clearly define the direct access route in relation to the parallel apprenticeship programme leading to the same qualification. At present, each apprenticeship framework sets out a context in which different Scottish Qualifications Authority (SQA) or other qualifications are obtained, so this approach would need to be modified to define a single qualification associated with an occupational standard. That qualification would then be obtained either through an apprenticeship, or a direct access route. Such an arrangement would most naturally be pursued through the SFG, in consultation between SDS and the SQA (awarding body).
Set the amount of work experience required. The mastery of an occupational skillset requires development through practice under professional guidance. This principle underpins apprenticeship so any direct route to a qualification would need to reflect this point. Following the example of other countries, a substantial amount of relevant work experience should be a required precondition for access to a final assessment. The assessment itself should also include the practical demonstration of skills, as well as knowledge.
Designate a responsible body to administer the assessments. The responsible body should also ensure the eligibility of each candidate and provide a system to fund the assessments. Assessments could be undertaken by the learning providers that also deliver the linked apprenticeship in the target occupational field. Quality assurance oversight would be necessary.

4.3. Developing further learning opportunities for qualified apprentices

Challenge: Apprenticeships in Scotland need to offer opportunities for progression

Apprenticeships are not just a pathway into employment; they can also provide a gateway to further learning. Figure 4.6 shows how current apprentices in Scotland see their future: four out of five expect to stay with their current employer, but some anticipate going on to further learning (15%). Further disaggregation shows that older apprentices are less likely to expect to continue with more education or training, with only half as many over-25s (9%) as younger apprentices expecting to do so. Female apprentices lean more towards further learning, but less towards self-employment or starting a business – only half as many female apprentices expected to follow this latter route compared to their male counterparts (SDS, 2019[41]).

Figure 4.6. A significant share of apprentices expect to move on to further education in Scotland

This interest in further learning suggests that apprentices need progression opportunities. Changes in the labour market are also increasing the demand for higher-level technical and vocational skills in Scotland (at SCQF Levels 9-12, i.e. ISCED 6-8). Many OECD countries are experiencing similar trends and they are responding in different ways, for example (Field, 2020[3]):

A separate tier of higher education institutions focused on technical and professional programmes mostly at ISCED Level 6 (equivalent to SCQF Level 9-10) and above. These include “universities of applied science” in the German-speaking countries, the Netherlands, Finland and elsewhere. Over recent decades this sector has demonstrated rapid growth.
Special “professional bachelor” programmes at ISCED Level 6. In France, for example, such programmes have expanded rapidly in recent years, and by 2015 represented about one-third of all bachelor’s programmes.
Two year full-time vocational programmes (usually equivalent to SCQF Level 8/ISCED Level 5), that can often be a stepping stone to a bachelor’s degree programmes. These are found in many OECD countries – for example the Diplôme Universitaire de Technologie (DUT) qualification in France, and the associate degree in the United States. The Scottish version is the HND.
Building substantial elements of work-based learning into higher-level technical and professional programmes.
Higher-level apprenticeships, including at ISCED Level 6, typically developed in collaboration with universities – for example in the dual university programmes in Germany (Box 4.6). These are the international equivalent of Graduate Apprenticeships in Scotland.

Box 4.6. Example from Germany: Dual university programmes

In Germany, dual university programmes combine a university course with employer-based practical training, employment or work experience. Students must also sign a contract with an employer, and the curriculum is closely connected to a target occupation. They take different forms:

Programmes that combine a course of university study with training in a recognised occupation. Students obtain both a vocational qualification and a university degree. Participants must normally have a general university entrance qualification and an employment contract.
Programmes aimed at those who have already pursued vocational or professional training and/or have professional experience. These offer further professional development by combining a course of study with work experience relevant to the course. Students may enrol without a general university entrance qualification. The amount of time the student spends in the classroom and at the place of work is agreed in a contract between the institution, the student and the employer.
Programmes with a work experience component, combining a course of study with extended practical phases with an employer. Students obtain a university degree but not a recognised vocational qualification. As a rule, this programme normally requires students to have a general university entrance qualification.

Source: Higher Education Compass, German Rectors’ Conference (2017[42]), “Dual programmes - Studying and work experience”, https://www.hochschulkompass.de/en/degree-programmes/all-about-studying-in-germany/forms-of-study/dual-work-study-programmes.html.

While Scotland already has higher-level apprenticeship programmes that graduates from lower-level programmes could use to progress, greater clarity is needed over the qualifications architecture of mid- to high-level apprenticeship qualifications. For example, it is possible to take multiple unrelated forms of vocationally oriented qualification at SCQF Level 7 and 8: Modern Apprenticeships (Levels 7-8), and the Scottish HNC (Level 7) and HND (Level 8). Currently the various roles of apprenticeships and the HNC and HND are unclear – whether they are alternative routes to the same occupation, or routes to different occupations, backed by some rationale (other than historical accident) for the division of labour.

Establishing a higher-level qualification such as master craftsperson

For apprenticeships to be attractive to able young people and experienced adults, they need to open up the possibility of future learning opportunities. Scotland has addressed the increasing demand for higher level technical qualifications (from both the student and employer side), through the encouragement of higher-level apprenticeships and, most recently, through the launch of Graduate Apprenticeships. Scotland is already well positioned to deliver tertiary-level vocational qualifications for qualified apprentices. This means offering options for transition to higher education, but also pathways to higher-level technical qualifications within a professional field (Field, 2020[3]).

Some skilled workers want and need further specialist training in their occupational field, rather than more general higher education. The development of higher-level professional qualifications to which those completing apprenticeships may aspire can help develop a skills system that embraces lifelong learning (Field, 2020[3]).The existence of such higher-level occupational programmes reinforces initial training with a career structure. In the German-speaking countries in Europe, this is partly addressed through the Meister, or “master craftsperson” qualification. This allows qualified apprentices, often with work experience, to acquire higher-level professional skills, learn how to run their own small business, and develop the skills to train apprentices themselves. Typically, such qualifications are acquired through a free-standing examination, following preparation courses which are optional and can be tailored to the existing skills of the candidate (Table 4.1).

Making a Meister qualification available as a higher-level qualification to those with initial apprenticeship helps to professionalise apprenticeship in several ways. First, it provides a career structure, and an aspiration for those pursuing an apprenticeship. Second, it trains experienced practitioners so that they, in turn, have the skills to train up the next generation of apprentices. Third, it provides a framework in which practitioners’ developing technical skills can be recognised and certificated, while also updating their technical knowledge. Fourth, it offers flexible provision for working adults, since it takes the form of an examination, with preparation for that examination being optional and tailored to individual needs. These are powerful advantages and this model has much to offer, but would need to be modified to fit the Scottish environment. It is no surprise that Wales is actively pursuing the introduction of these qualifications (Welsh Government, 2017[43]). The Welsh Government also cites as a factor its wish to take advantage of the experience and mentoring potential of older workers.

Table 4.1. Master craftsperson qualifications in Austria, Germany and Switzerland
	Austria	Germany	Switzerland
Examination	Meisterpruefung (Master craftsperson examination)	Meisterpruefung (Master craftsperson Examination)	Hoehere Fachpruefung (Federal professional examination - level 2)
Objectives	To acquire specialist + managerial knowledge to run one’s own handicraft business, to be entitled to train apprentices	To acquire specialist + managerial knowledge to run one’s own handicraft business, to be entitled to train apprentices	- To acquire specialist + managerial knowledge to run one’s own handicraft business, to be entitled to train apprentices - To certify required competencies in legally regulated areas (e.g. electrician, tank inspector) - To facilitate promotion; even university graduates use the exam to prove specialist qualifications
Regulation	Austrian Chamber of Commerce	Federal Ministry of Economics and Technology	State Secretariat for Education, Research and Innovation (SERI). Professional organisations submit their exam rules to the SERI for approval. The development of new exams takes 1-2 years
Fields of study	Trade, Construction, Technology	Trade, Construction, Technology	Trade, Construction, Technology, Commerce, Service, Security
Pre-requisites	Completion of the apprenticeship exam Candidates must be over 18	Completion of the apprenticeship exam	A Federal PET Certificate or qualification. The professional organisations define the entry requirements
Preparation	Preparation courses offered by the Institutes of Economic Promotion and Chambers of Commerce	The Chambers of Crafts and Commerce offer non-obligatory preparatory courses	Preparatory courses, pursued by most candidates, are offered by public and private training centres
Examination	Includes 1. practical; 2. oral; 3. written 4. instructor examination; 5. entrepreneur examination	Includes practical and theoretical components specific to the trade and economic and legal knowledge, pedagogical skills the same in all trades	The exam characteristics depend on the professional field
Finance	The Meister exam fees were EUR 2 329 in 2010	The Meister exam fee is EUR 2 000-2 500	The exam is subsidised by the Confederation, preparatory courses by the Cantons. 50% of employers support exam preparation.
Source: Field (2020[3]), Strengthening Skills in Scotland, http://www.oecd.org/skills/centre-for-skills/Strengthening_Skills_in_Scotland.pdf.

Recommendations and implementation for developing further learning opportunities for qualified apprentices

4.3. Establishing master craftsperson qualifications

Scotland could support qualified apprentices to acquire higher level professional skills, learn how to run their own small business, and develop skills in training further apprentices, by developing master craftsperson qualifications.

Implementation could be explored through the following steps:

Pilot the initiative in one or two occupations where there is strong employer support for a higher-level master craftsperson qualification. Such a qualification would need to be developed with close employer engagement, and ideally an employer lead, following the model of other countries.
Liaise closely with the Welsh Government, as it is pursuing the development of these qualifications in a context which is not dissimilar to Scotland.
Develop a funding model for the examinations. As with other elements in the Scottish skills system, it would need to take account of the fact that potentially competing qualifications in the higher education system are free of tuition fees. One model would be to directly fund the examinations but invite individuals to contribute to the cost of preparatory courses.
Add additional fields to the master craftsperson offer in light of careful evaluations of the pilots from the perspective of individuals, employers and government.

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Note

← 1. As the population is ageing and working longer, caring for an elderly population will increasingly affect those in and out of work. Employers will need to recognise this as part of workforce management – losing staff with care responsibilities can result in a loss of skills, knowledge and experience for the employer as well as leading to increased recruitment and training costs.

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