New Flexible Workforce Development Fund: can it pay for AI training?

Is the Flexible Workforce Development Fund open for 2026-27?

Yes. Scheme status checked on 7 Nov 2026: the Scottish Funding Council's guidance for colleges covers the 2026-27 and 2027-28 academic years, and says: "Running from August 2026 to December 2027, the New FWDF initiative contributes to Scotland’s mission to increase earned incomes and eradicate child poverty by investing £10 million in colleges."

This is the New Flexible Workforce Development Fund, aimed at in-work poverty. Older guides describe the fund launched in 2017. City of Glasgow College puts it plainly: "Please be aware that the New FWDF is not the same as the FWDF previously launched in 2017."

Can the Flexible Workforce Development Fund pay for AI training?

It may, for eligible staff, if the college agrees the AI training meets your business needs: the college decides. The guidance names no subjects, so AI is neither listed nor ruled out. It sets the kind of course instead: "Colleges must deliver content which is relevant to business needs." It adds: "These are ideally short, employability and employment-focused courses intended to support career and earning progression, delivered in a work-friendly and family-friendly way."

Colleges should deliver accredited training where they can. In the guidance's words: "In the context of the New FWDF, this means training that is recognised by the Scottish Credit and Qualifications Framework (SCQF) and/or training that meets the requirements of an appropriate industry or employer standard."

What it can't pay for: places for full-time students, extra on top of apprenticeship provision, and training the law already requires. On that last point the guidance says: "This funding cannot be used to provide industry qualifications or training that businesses are legally required to provide."

Does it matter if you pay the apprenticeship levy or run an SME?

No. Colleges record what kind of employer you are, for the Scottish Funding Council's reports: "To track uptake by employer type and size, Colleges must gather details of each learner’s employer and determine their status (Small or Medium Enterprise [SME], levy payer, micro-business)." The next sentence settles it: "Access to funding is not determined by these factors." Public, private and third-sector employers can all apply, as long as they operate in Scotland and meet the Fair Work condition quoted further down this page.

What does training through the fund cost the employer?

The fund pays up to £5,000 per worker and up to £15,000 per employer a year, for staff with an income under £33,000 who meet one of the three conditions quoted further down this page.

The Scottish Funding Council's guidance doesn't state an employer contribution. The colleges describe the training as paid for in full: Glasgow Kelvin College says the fund lets employers "invest in their workforce at no cost", and City of Glasgow College, Glasgow Clyde College and South Lanarkshire College call it fully funded. Edinburgh College words it as funding "towards training". Ask your college whether any part of the price falls to you before you commit.

The two caps set how far the money goes:

• Workers an employer can fund at the full amount each year: 3 (computed: £15,000 divided by £5,000). Shorter, cheaper AI courses stretch it to more staff.

One employer, one application: "Employers operating on a Scotland-wide basis or across more than one college region may submit only one New FWDF application to the college of their choice." Money is limited, and City of Glasgow College adds that it "will be awarded on a first-come, first-served basis".

Which colleges run the Flexible Workforce Development Fund?

Every college region in Scotland has a share: the Scottish Funding Council splits £9,500,000 between them. Beyond a fixed base for each college, the split follows Scottish Child Payment data. You apply to one college. In the Highlands and Islands, the University of the Highlands and Islands passes the money on to its colleges.

Which AI courses do Scottish colleges run?

Two AI courses at Scottish colleges, both checked against the college's page on 7 Nov 2026:

• Forth Valley College's Introduction to Artificial Intelligence (AI) - Online: free, for people who live in Scotland.
• North East Scotland College's An Introduction to AI: £82.00, 5 weeks.

Neither page mentions the New Flexible Workforce Development Fund. For AI training built around your own business, ask the college to put it in your application.

Who can get New Flexible Workforce Development Fund?

In the official words (official page, checked 7 Nov 2026):

• "In line with the aim of the New FWDF, funded training opportunities are open only to workers with an individual annual income below £33,000 who are either: parents or carers of a child aged under 18 living at home, individuals aged under 24, or care-experienced/disabled individuals aged under 30."
• "Funding per eligible learner will be capped to a maximum of £5,000 per person."
• "Funding per employer will be capped to a maximum of £15,000 per annum."
• "The New FWDF is available to all employers in Scotland across the public, private and third sectors."
• "Employers must operate in Scotland and be implementing Fair Work practices or, if not yet doing so, be committed to working towards doing so."

Who pays: Scottish Funding Council, through colleges; up to £15,000 per employer a year.

How do I apply?

Apply through a college, as an employer or as a worker whose employer knows. Employer applications need an explicit statement committing to Fair Work practices.

Status: Open for 2026-27: running from August 2026 to December 2027 (Scottish Funding Council guidance, 6 July 2026).