National Transition Training Fund (NTTF): year 1 report

Executive Summary

The National Transition Training Fund (NTTF) was introduced in response to the unprecedented impact that the Covid-19 pandemic and subsequent restrictions to combat the virus had on our economy and labour market.^[1] NTTF aimed to help people take advantage of the jobs available in growth areas of the economy, such as digital and green technologies, as well as support the most exposed sectors, including tourism, oil and gas, and aviation. It has offered a fast track approach to giving people the skills they need to obtain and retain employment opportunities.

In Year 1 (2020/21), NTTF supported 9,482 individuals in sectors impacted by the pandemic, such as tourism and hospitality, and in growth sectors such as aerospace diversification and forestry. Support was split across three Strands, namely individual, sectoral, and tertiary education-led provision. NTTF-funded training enabled a breadth of sectors to respond to the changing circumstances of the pandemic and supported individuals at a time of unprecedented economic change and uncertainty.

1,206 individuals undertook training in Strand 1, against a maximum potential reach of 6,000 places. This Strand aimed to support those who had lost their jobs or were at risk of doing so as a result of the pandemic. The level of uptake for this Strand was lower than anticipated because unemployment did not reach the levels (up to 10%) projected at the outset of the pandemic or when the scheme was launched. This was largely due to the implementation and subsequent extensions of the UK Government's Coronavirus Job Retention Scheme (CJRS), but further restrictions in response to the Delta variant from December 2020 also impacted on the uptake and demand for training. Despite lower than anticipated demand, 70% of those undertaking training in Strand 1 reported that they had entered work 8-11 weeks after completion.

By contrast, engagement with Strand 2, which supported sectors impacted by the downturn or where there were growth opportunities and Strand 3, which funded Tertiary education-led training courses, was higher than anticipated with 8,276 individuals undertaking training across a variety of sectors, against a target of 4,000 opportunities. In particular, there was significant demand for support in the sectors which had been most severely impacted by the crisis. For example, the hospitality and tourism project attracted 1,900 individuals, 98.5% of which were still working in the sector after completion of their training. The flexibility in the NTTF model enabled funding to be redirected to meet the demands of individuals and the labour market during this uncertain period.

Many projects across Strands 2 and 3 attracted a diverse cohort of participants and reached minority communities. For example, the Skillsboost programme delivered through Scotland's colleges, reported that 52.6% of enrolments were from the four most deprived SIMD deciles, 64.8% were female, and 19.5% identified as disabled.