Apprenticeships in Scotland could ‘dry up overnight’ without funding rethink, says NHBF

The NHBF has written to the Scottish Government urging it to rethink plans to slash funding for its Modern Apprenticeships programme, warning that, without change, its proposals could bring the recruitment of apprentices by hairdressing salons and barber shops to a grinding halt.

Skills Development Scotland has proposed that funding for SVQ Level 2 qualifications be cut by 14% (or around £350 per trainee) over the next five years and SVQ Level 3s by 54%, or the equivalent of £3,300 per trainee.

Employers will be expected to make up the shortfall through a greater cash contribution themselves towards the cost of training and assessment, on top of what they already pay in trainee wages and the time they invest in training.

In a letter to skills and training secretary Roseanna Cunningham, Skills Development Scotland and the Scottish Training Federation, NHBF chief executive Hilary Hall has warned that, with many salons in Scotland still struggling economically, asking salons to subsidise training in this way could simply lead to a collapse in apprentice numbers.

We remain extremely concerned about the impact funding changes will have on long-term take-up of apprentices, defeating the aim of both the Scottish Government and Westminster in driving up the number of apprentices,” said Hilary.

Hilary pointed out that similar reforms in England have included a bonus for small and micro businesses.

But in Scotland as yet no such provision has been included. “I note there are currently no plans to cushion small and micro businesses from the impact of the additional costs they will incur through employing apprentices,” Hilary warned.

“While the reforms in England are not popular, the additional support for small businesses has gone some way to ensuring demand for apprentices does not dry up overnight.

“It is essential therefore that, as well as clearly explaining the funding changes to employers and the additional costs they will be asked to pay, there is also careful research done into their future intentions on employment, and whether they will continue to employ apprentices or switch to less appropriate provision,” she added.

The NHBF’s concerns echo those of the Scottish Hairdressing Forum, which has warned reforming funding in this way could put salons off recruiting apprentices “and jeopardise the future of Modern Apprenticeships in Scotland”.