Reforming post-school funding

Stage 1 vote backed by MSPs

Legislation to simplify the funding system for learners at college, university and apprentices in Scotland has been given in-principle backing by MSPs.

They voted by 62 to 39 to endorse the general principles of the Tertiary Education and Training (Funding and Governance) (Scotland) Bill, ensuring it passes Stage 1 and proceeds to Stage 2 in the Scottish Parliament.

If passed, the Bill will see responsibility for funding national training programmes and apprenticeships move to the Scottish Funding Council (SFC) from Skills Development Scotland (SDS). This will consolidate responsibility for provision of tertiary education and training within a redesigned SFC.

The Bill would also strengthen the SFC’s governance powers to allow for more effective oversight of colleges and higher education institutions, including a greater focus on their financial sustainability and the needs of learners.

Higher and Further Education Minister Ben Macpherson said: “At its core, this Bill would better enable funding to go where it matters most, supporting the skills, services and innovation that our economy and learners need to thrive.

“The Bill has been publicly backed by key sector organisations including the Scottish Training Federation, Federation of Small Businesses, Universities Scotland and Colleges Scotland.  

“This legislation intends to help build a more coherent, collaborative, flexible system where colleges, universities and training providers all play a collaborative role in delivering high-quality education and training.” 

The Scottish Government’s response to the Education, Children and Young People Committee report into the Bill shows a revised highest cost estimate of £21.6 million, a reduction of almost £12 million.

Financial sustainability reports launched

The Scottish Funding Council (SFC) has today (26 September 2025) published two reports that provide an aggregate picture of the financial health of Scotland’s colleges and universities.

Based on their annual accounts for academic years 2022-23 and 2023-24 and latest forecasts up to 2027-28 for colleges and 2026-27 for universities, the reports provide detailed information at sector level on the operating position, cash balances, sources of income, expenditure, liquidity, cash flow, borrowing and capital expenditure.

Both colleges and universities continue to operate in an extremely tight fiscal environment, with downward trends in cash balances showing both sectors under pressure.

While neither sector is homogenous, and the forecasts represent a snapshot in time, both colleges and universities face similar risks to their financial health, including:

  • Increasing staff costs.
  • Further flat cash settlements or unanticipated public spending cuts.
  • An uncertain macro-economic outlook, including rising inflation and persistently high interest rates.
  • Continuing high energy costs.
  • Infrastructure pressures, exacerbated by the impact of RAAC, impacting on the delivery of high-quality learning, teaching and research.
  • The requirement to invest in the achievement of public sector net zero targets.
  • The impact of UK government policies on maintaining international fee income.

The reports also outline the mitigating actions that colleges and universities are taking to adapt to challenges and uncertainties, including staff restructuring, vacancy management, freezing of non-essential spend, reviewing course portfolios, curriculum rationalisation and consolidation, moves to online and blended learning, delaying capital spend and reviewing estates strategies.

Commenting on the reports, SFC Chair, Professor Cara Aitchison, said: “While these reports represent a snapshot in time, the trends we’re seeing indicate the serious implications of the tight fiscal environment in which colleges and universities are operating and the need for action to address the challenges they face.

“We are encouraged by the proactive steps being taken by institutions as they adapt and build in resilience for this changing environment, recognising that this may include difficult decisions to secure long term financial sustainability which is a requirement of our Financial Memorandum.

“We continue to engage closely with Scottish Ministers on the case for investment in colleges and universities which are the drivers for economic growth, addressing child poverty, supporting the transition to net zero and delivering excellent public services.

“We are also increasing levels of engagement and monitoring activity for those institutions facing the highest risks to their financial health and are working with them to understand and assess plans to bring them back to a sustainable position.”

Principal of Edinburgh College, Audrey Cumberford said: “This report confirms what’s been known for a long time – that the financial situation facing colleges is dire.

“The status quo isn’t an option and urgent action needs to be taken before we see colleges fall further into financial trouble.

“Colleges have the potential to do so much more. By unlocking our potential, restructuring our funding streams and reforming our apprenticeship system we could deliver a brighter future for the whole sector.”

Record university acceptances for 18-year-olds from deprived areas

Increase in Scottish entrants

The number of 18-year-olds from Scotland’s most deprived areas securing places at university has increased by 100 to 1,960, a new record high, officials figures have shown.

The number of young Scots who have secured a place at university this year has also increased to a new high.

There have been 16,340 acceptances for 18-year-olds to  Scottish higher education institutions so far which is up 4% on last year, according to UCAS. Overall acceptances  to Scottish institutions have risen by 10 to  reach  35,940.

There are also  5,300 Scots domiciled applicants with ‘holding offers’, up 2% on last year. In the coming weeks, many of these applicants will convert to acceptances as offers are processed by universities.

Minister for Higher and Further Education Graeme Dey said: “I congratulate the thousands of young people across Scotland who have secured a place at university today. It is tremendously encouraging to see another rise in those  accepted to university.

“I am particularly encouraged to see another increase in 18-year-olds from the most deprived areas who have secured a place. We are determined to widen access to Higher Education and this shows the important work being done by our universities and colleges to ensure progress continues to be made.

“These figures show the great strength and resilience of Scotland’s education system.

“Our resolute commitment to free tuition and our enhanced student support offering means that access to university remains based on the ability to learn and not the ability to pay, ensuring that the opportunity of a university education is available to everyone, regardless of their background.”

Statistical releases – daily Clearing analysis 2025 | UCAS

SNP Government is supporting students, says local MSP

As pupils across the city await their exam results, Gordon Macdonald MSP has highlighted the support offered by the SNP which ‘allows all those seeking further education opportunities to seize them.’

From August 1st, tuition fees in England and Wales have risen to £9,535, with the average debt for students graduating now an eye-watering £53,000.

In Scotland, the SNP made university tuition free for all Scottish students, with tailored support for care experienced students worth up to £11,400.

In addition, there is more than £100 million funding to support Modern and Foundation Apprenticeships with around 400,000 apprenticeship opportunities provided to young people across the country since 2008.

Gordon Macdonald MSP said: “In Labour-run England and Wales, tuition fees and student debt are mounting. 

“But here in Edinburgh students can attend university for free, with extra support for those who need it as well as funding for alternative pathways. 

“We are making more opportunities available to young people while the Labour Party lumps costs on the next generation.

“That’s the difference made with the SNP in government.”

Rise in school leavers in positive destinations

Growing numbers in Higher and Further Education in 2023-24

The number of young people in work, training or further study nine months after they left school has increased.

The proportion of school leavers in a positive destination was 93.1% in 2023-24, up from 92.8%, according to the annual Summary Statistics for Follow-up Leaver Destinations. This is now at a similar level to the pre-pandemic peak of 93.3% in 2017-18.

The increase over the latest year has been driven by increases in school leavers reaching Higher education (from 37.1% to 38.1%) and Further education (from 21.2% to 21.9%).

Over the longer term, the proportion in positive destinations is up from 85.9% in 2009-10.

Education Secretary Jenny Gilruth said: “These figures show the proportion of Scotland’s young people achieving positive destinations is almost back to pre-pandemic levels and at a near record high.

“The increase among those in Higher and Further Education is hugely encouraging and testament to the hard work of those young people and the extraordinary support provided by Scotland’s teachers, lecturers and other support staff.

“The gap in positive destinations between young people from our most and least deprived communities has more than halved since 2009-10, but this latest data shows we still have more to do. We also know this cohort of young people faced significant disruption to their education during the pandemic.

“A range of support, including from careers advisers and the Developing the Young Workforce network, is available for young people considering their options after school. I am determined to ensure young people can access the right help they need to enable them into a positive destination and this Government will continue to invest in opportunities for young people across Scotland.”

Summary statistics for follow-up leaver destinations, no. 7: 2025 edition – gov.scot

Queen Margaret University welcomes locals to summer Community Forum

Members of the local community are invited to Queen Margaret University’s upcoming Community Forum on Wednesday 18 June 2025, from 6:30pm to 7:45pm, where attendees can learn more about the University’s efforts to support innovation, entrepreneurship, and inclusive economic growth across East Lothian. 

Held twice a year, the Community Forum is a valuable opportunity for local residents and East Lothian representatives to engage directly with the University, share ideas, and explore areas of mutual interest. 

This summer’s forum will take place at QMU’s Start-Up Studio, a new hub dedicated to nurturing entrepreneurial ambition. The Studio, which combines business support from Business Gateway and the new Bright Red Triangle service, provides expert advice, resources, and funding for students, staff, graduates and the local community to turn ideas into impactful services and ventures. 

The evening will feature a short presentation from Carolyn Low, QMU’s Knowledge Exchange Manager, and Angela Lamont, East Lothian Council’s Community Wealth Building Officer.

They will highlight collaborative projects designed to stimulate local innovation and economic development as part of the East Lothian Community Wealth Building Charter – an initiative which aims to harness the collective economic and social influence of key institutions to benefit local communities. 

In addition to exploring recent developments at QMU, the event will also include an open discussion where attendees are encouraged to share their perspectives on the University’s role in the community and how these relationships can be strengthened.

Jane Scott, Director of Marketing and Communications at QMU, said: “The Community Forum is an important space for dialogue.

“We’re eager to hear from our neighbours and share updates on some exciting developments at the University that we believe will positively impact the region.” 

Queen Margaret University always welcomes new members of the community to join the Forum. Anyone interested in attending the summer Community Forum on 18 June should register by emailing marketing@qmu.ac.uk.  

The full schedule for the event can be found in the events section of the QMU website:

https://www.qmu.ac.uk/news-and-events/events-listing/qmu-community-forum-spring-2025

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Uni partnership boosts higher education progression

Pupils in Scotland on a unique educational programme have seen a positive impact on their rates of progression to university.

Now in its fourth year, the ground-breaking partnership between the University of Edinburgh, the University of Glasgow and educational charity IntoUniversity has supported thousands of young people in centres in the Craigmillar area of Edinburgh and Glasgow’s Maryhill and Govan.

The ongoing project aims to improve educational opportunities for those who may face challenges during their schooling, with close to 4,000 school pupils accessing the service in the past year alone.

Since the IntoUniversity centres opened, more than 70 per cent of school leavers from the programme have progressed to university or college, compared with the national average of 24 per cent of those from similar backgrounds.

The three centres have teams of specially trained staff who work closely with local schools in areas traditionally associated with social deprivation.

Each centre provides a programme of after-school academic support, mentoring, workshops and work experience for young people aged between seven and eighteen years old.

Rise in students from most deprived areas

Widening access to university education

Access to higher education at university for Scottish students from the most deprived areas has increased to a near record high, official figures have shown.

The latest Higher Education Statistics Agency (HESA) figures for 2023-24 show that 16.7% of full-time first degree entrants to Scottish universities came from the nation’s 20% most deprived areas. This marks an increase from 16.3% the previous year.

The figures also show an increase overall in the number of Scottish-based students at Scottish universities to 173,795, as well as a rise in full-time Scottish first degree entrants.

However, non-EU international student numbers have seen a decline in 2023-24 following changes by the UK Government to the immigration system, such as ending the inclusion of family members on student visas.

Minister for Higher and Further Education Graeme Dey said: “These figures show the significant progress of Scotland’s universities in making higher education not only more inclusive, but also attracting a rising number of Scots overall.

“The number of Scots from the most deprived backgrounds entering university on full-time first degree courses is now up 37% since the establishment of the Commission on Widening Access by this Government.

“This means many more people, no matter their background, have the opportunity to prosper in their lives.

“We recognise the issues raised by the sector around a decline in international student numbers and damaging UK migration policies which is why we have proposed a ‘Scottish Graduate Visa’ which would allow us to retain international students after they graduate from Scottish institutions.”

Higher Education Student Statistics: UK, 2023/24 | HESA

More support for Scottish universities

Further £10 million for Scottish Funding Council to support the university sector

Additional support is to be made available through the Scottish Funding Council (SFC) to support universities facing financial challenges.

Education Secretary Jenny Gilruth said an additional £10 million will be provided to the SFC to support higher education institutions such as the University of Dundee as they navigate current financial challenges.

It brings total additional support for the sector from the Scottish Government to £25 million, on top of the £1.1 billion in the 2025-26 budget for university teaching and research.

The Scottish Government will convene a range of expertise from across the higher education sector, government, and Dundee City Region to support the University of Dundee while it develops its Financial Recovery Plan. This is in addition to work already underway by the SFC, which engages closely with universities on financial sustainability.

Ms Gilruth said: “The Scottish Government is providing an additional £10 million support package to assist universities such as Dundee with navigating immediate financial challenges. This is on top of the £15 million of extra support previously announced for the sector in February.

“Ministers have held further meetings with the University of Dundee, unions and the Scottish Funding Council this week, building on the extensive engagement that has already taken place with the institution since financial issues came to light.

Both the Higher Education Minister and I have conveyed our deep concern at the level of job losses currently being discussed at the University. While the University is an autonomous institution, it is our clear expectation that the University’s leadership works with us, and engages fully with staff and trade unions, to explore all options to protect jobs.

“Work will continue in the coming days to convene the right range of expertise from across government, the sector, and the wider city region to support the institution as it continues to develop its Financial Recovery Plan.

“Scotland’s universities play a pivotal role in the economy and wider society, and they must be supported to thrive into the future. This support package is another clear sign of the Scottish Government’s commitment to support the sector with financial challenges – challenges which have been compounded by UK Government policies on migration and employer National Insurance contributions.” 

Chief Executive of Scottish Funding Council Francesca Osowska said: “We welcome Scottish Ministers’ continued commitment to the tertiary sector and confirmation of this additional funding.

“Recognising the particular challenges facing the University of Dundee, we look forward to engaging with a wide range of partners to secure its continued success as a world-renowned University delivering excellent outcomes for learners and researchers and contributing to economic growth and social wellbeing.”

The additional £10 million capital funding has been identified from within the education portfolio.

NUS Scotland responds to planned £140m cuts at University of Edinburgh

‘Scotland’s education system being allowed to crumble’ – NUS Scotland President

NUS Scotland is deeply concerned about the growing crisis in education across Scotland, highlighted by the recent announcement that the University of Edinburgh is planning to make £140m of cuts due to financial difficulty.

The University Vice Chancellor’s announced plans to explore ‘radical action’ to reduce costs including potential staff cuts, restructuring, and possible course closures, are part of a wider trend threatening the future of education in Scotland.

Commenting, President of NUS Scotland Sai Shraddha S. Viswanathan said: “This isn’t unique to the University of Edinburgh. Our education system in Scotland is crumbling, and it’s being allowed to happen. It’s becoming all too common to hear from university or college management that course closures are necessary and staff redundancy schemes unavoidable.

“Year after year of higher and further education cuts in public funding is taking its toll, including the real terms cuts just passed in the recent Scottish budget. We need to see recognition that education is a public good that enriches our society, and public investment to match.

“The long term damage that these kind of cuts will have cannot be understated – students, staff, and Scotland will all suffer as a result. NUS Scotland stands in solidarity with all students and staff across Scotland facing an uncertain future, and calls on the Scottish Government to intervene to halt damaging cuts in Edinburgh and elsewhere.

“Edinburgh University is one of Scotland’s richest institutions, and we join the UCU in calling for the University to use its significant wealth to protect jobs and courses, and echo the Edinburgh University Students Association’s call for management to prioritise students.

“However, not even our richest universities can fix this crisis alone. The Scottish Government must act to reverse the trend of falling education funding and fix our broken education system so that students and Scotland can thrive.”