The review into current public funding for the MA programme, which is due to start next month, follows intensive lobbying by SELECT, which says decreasing financial support for taking on apprentices is causing serious concern in the sector.

Earlier this month, SELECT marked Scottish Apprenticeship Week by insisting that recent financial decisions by the UK and Scottish Governments were “undermining the sector” and deterring employers from taking on young learners.

The review will now consider whether changes are required to support financial viability and quality delivery by contracted learning providers and maintain high levels of employer engagement.

Sharon Miller, SELECT managing director designate, said: “Apprenticeships are absolutely vital at a time when Scotland desperately needs electricians to fulfil housing demand and net zero targets, and meet the challenges implicit in an electric future.

“For this reason, we warmly welcome the decision to institute a review into funding support and we look forward to working with the Scottish Government to do everything possible to ensure the review has backing from the sector to make an informed decision.

“The electrotechnical industry has been the biggest single trade employer of apprentices for many years, which is why SELECT has been at the forefront of voices warning that a more positive approach to funding for MAs is crucial if businesses – particularly smaller enterprises – are not to be discouraged from investing in the future skills base of the sector.”

Around £90 million is paid annually for MAs by the public sector and £50m in credits are used to support MA delivery in colleges. Evidence shows that employers invest £10 for every £1 of public investment.

Mike Stark, SELECT president, said: “This review is very welcome news, particularly at a time when the financial support which the Scottish Government gives to the Scottish Electrical Charitable Training Trust (SECTT) to run the electrical apprenticeship scheme has decreased by more than 30% when inflation is taken into account.

“One of the aspects on which the review will focus is employer behaviour, and there are clear indications that, without a significant reconsideration of funding, the way employers view taking on young people will be adversely affected.”

The review will be held in two stages and will, where appropriate, recommend changes to public funding for the MA programme in a report which will be published on its outcome.

Mike added: “SELECT is committed to upskilling the electrotechnical workforce and works in close partnership with the SECTT, the approved training scheme for the country’s electrical apprentices.”