WIREDGOV

Delivery of funding and student support.

A consultation on simplifying funding for universities, colleges and apprenticeships, as well as student support, has opened for views.

Currently, funding is provided by Skills Development Scotland (SDS), the Student Awards Agency Scotland (SAAS), and the Scottish Funding Council (SFC).

In December, the Minister for Further and Higher Education, Graeme Dey, announced this will be streamlined to help enhance support for young people as part of the ongoing reform programme across the sector.

Two options for change were yesterday set out:

• one would see all student support funding delivered through SAAS, including responsibility for further education student support which is currently with colleges and SFC. Responsibility for national training programmes, including apprenticeships, would move to SFC and away from SDS.
• the other option would see the SFC become the single funding body responsible for student support funding, as well as funding for all national training programmes, including apprenticeships – effectively creating a single funding body for post-school education, research and skills

Work will now be taken forward in consultation with the bodies affected and wider stakeholders, with changes expected for the 2026-27 academic year.

Mr Dey yesterday said:

“More than £3 billion a year is invested across Scotland’s post-school system. This enables around 500,000 people in any given year to pursue opportunities at colleges and universities, with free tuition benefiting 120,000 students.

“Over the past decade the funding system has become increasingly fragmented with multiple bodies involved in different aspects of provision.

“We are facing the most challenging public spending climate since devolution, and it is vital that investment delivers the greatest impact to support learners. To do that, we must reduce complexities and the options being set out today are an important step towards this.”  

Background

Options for the simplification of the post-school funding body landscape.

Ministers will make a final decision on the way forward following an analysis of all the evidence collected through the consultation and through the working groups established to consider the costs and deliverability of the two options.

Ministers intend to legislate so that the law is changed before the end of this Parliamentary session in March 2026.

Student support covers student support such as bursaries, loans, tuition fees.

The Further and Higher Education Minister set out his intentions for change in the sector in December.