Fairer funding for charities

More than £60 million for pilot projects focusing on essential services and eradicating child poverty

A new Fairer Funding pilot to deliver on the Scottish Government’s top priority of eradicating child poverty will provide additional multi-year funding in the form of 45 grants to organisations across Scotland.

The funding, subject to budget approval, will support projects in areas including health, education, poverty and culture and have a total value of £61.7 million in 2025-26 and £63.2 million in 2026- 27.

Speaking on her visit today to the Gathering, the largest third sector event in the UK, Social Justice Secretary Shirley-Anne Somerville said: “I know many charities, faced with rising costs and falling donations, need more security and stability to enable them to plan and develop.

“Child poverty, in particular, requires longer-term interventions to help achieve the solutions we want to see. For that, the third sector needs financial stability and certainty. That’s why I have prioritised delivering on our commitment to provide more multi-year funding where we can to support the vital work of the third sector in Scotland, as part of our fairer funding approach.

“The pilot is the first step in mainstreaming multi-year funding agreements more widely across the third sector. It will give organisations the ability to plan for the future and make the most of their resources.

“The pilot’s focus on grants connected to tackling child poverty and the delivery of frontline services to our communities will maximise the impact of longer term funding and support the delivery of our number one priority, eradicating child poverty.”  

Scottish Council for Voluntary Organisations (SCVO) Chief Executive Anna Fowlie said: “The voluntary sector has a crucial role to play in delivering essential services across Scotland that people and communities rely on.

Multi-year funding models are vital, providing security to voluntary organisations and, crucially, allowing them to get on and deliver for people and communities.

 “We welcome the Scottish Government’s commitment to piloting multi-year funding for a range of voluntary organisations across Scotland – a first step, we hope, towards rolling out Fair Funding principles to voluntary sector funding.”

Organisations to receive multi-year funding for 2025/26 and 2026/27

Social Justice

Scottish Refugee Council

Scottish Empty Homes Partnership

Homeless Network Scotland

Housing Options Scotland

Poverty Alliance

CentreStage – Social Innovation Partnership

COVEY – Social Innovation Partnership

Flexibility Works – Social Innovation Partnership

Heavy Sound – Social Innovation Partnership

MsMissMrs – Social Innovation Partnership

Street Soccer – Social Innovation Partnership

WorkingRite – Social Innovation Partnership

MCR Pathways

Economy and Gaelic

Scottish Mountain Rescue

Constitution, External Affairs and Culture

Youth Music Initiative

Sistema Scotland

Health and Social Care

Cruse Scotland Bereavement Helpline

Penumbra Self-harm support pilots

BASICS Funding PHEC BASICS Scotland

The Listening Service Samaritans

Communities Mental Health and Wellbeing Fund for adults

Communities Mental Health and Wellbeing Fund Management

Autism Advice Line Scottish Autism

Young Scot Carer support funding

Active Play Development Programme Inspiring Scotland

Active Play Development Programme Actify

Community Food Networks Edinburgh Community Food

Community Food Networks Lanarkshire Community Food and Health Partnership

Community Food Networks Community Food Initiative North East

Community Food Networks Glasgow Community Food Network

Drugs Policy: Core Funding Scottish Families Affected by Alcohol and Drugs

Drugs Policy: Family Recovery Initiative Fund Scottish Families Affected by Alcohol and Drugs

Fetal Alcohol Spectrum Disorder FASD Hub Scotland Service 

Finance and Local Government

Planning Aid Scotland

Education and Skills

Dyslexia Scotland

Children’s Advocacy for Children’s Hearings

Who Cares Scotland

Inspiring Scotland

Children in Scotland Enquire National Advice and Information Service on Additional Support for Learning

Scottish Book Trust Bookbug

Access to Childcare Fund

Scottish Association of Minority Ethnic Educators

Justice and Home Affairs

Victim Centred Approach Fund

Apex Scotland

Medics Against Violence

These pilots are in addition to the multi-year funding announced last week by Creative Scotland, which has been funded as part of a record £34 million uplift for culture in the draft 2025-26 Scottish Budget.

Scottish Government: New approaches to eradicating child poverty

Wrap-around support delivering improved outcomes for families

Lessons learned from innovative work with families in Inverclyde are helping deliver new approaches to eradicating child poverty. 

Social Justice Secretary Shirley-Anne Somerville will visit Home-Start Renfrewshire and Inverclyde in Greenock today (Wednesday 29th January) to see work funded under the Scottish Government’s Child Poverty Practice Accelerator Fund, which is helping to reshape services locally and elsewhere in Scotland. 

The Social Justice Secretary will meet staff at the project as well as parents who have benefited from the work which focuses on providing early intervention to support families, particularly those with children under five and those affected by poor mental health.  

Learning from the project is supporting Inverclyde’s Fairer Futures Partnership, which is supporting local services to test and improve how they deliver services to promote family wellbeing, maximise incomes and support people towards education and into sustained employment.   

Ms Somerville said: “Eradicating child poverty is the Scottish Government’s top priority and a national mission.   

“I’m keen to hear more about how whole family, person-centred support is being developed in Inverclyde through the Child Poverty Practice Accelerator Fund and the Fairer Futures Partnership. 

“Through close partnership between Home-Start and Inverclyde Council, this project provides holistic support so that families can maximise their household incomes, and parents can improve their employment prospects through upskilling and volunteering. Putting this kind of vital support in place means that we don’t just help families in a  crisis but enable them to thrive in the longer term. 

“The Child Poverty Practice Accelerator Fund was set up to support local areas to test new ideas and innovate to improve local approaches to eradicating child poverty. I’m pleased to  have the opportunity to learn more about how this funding is informing Inverclyde’s overall approach to supporting families out of poverty.” 

Budget will increase provision of wrap-around help for families

Funding for local authorities to test and improve how they deliver wrap-around support for parents and families will be doubled to more than £6 million by the 2025-26 budget, helping expand work towards eradicating child poverty.

The Scottish Government’s Fairer Futures Partnerships will help test new approaches and identify lasting solutions rather than quick fixes, Social Justice Secretary Shirley-Anne Somerville said. Increased funding will allow Fairer Futures Partnerships to expand to more areas, supporting new approaches and holistic support.

On a visit to Irvine Royal Academy, Ms Somerville met parents and pupils and saw how North Ayrshire Council’s work is supporting families and informing the Fairer Futures programme to drive innovations in tackling child poverty.

At Irvine Royal Academy, where 32% of pupils are in receipt of free school meals, parents have been helped to maximise their incomes through welfare and debt advice and provided with support to find employment, while pupils run a ‘cost of the school day’ initiative to help ease the pressures on families.

Ms Somerville said: “Eradicating child poverty is the Scottish Government’s top priority and a national mission. But we can only do that by providing long-term, sustainable solutions, not quick fixes.

“The Scottish Child Payment, only available in Scotland, will this year help the families of over 330,000 children, and our five family payments could be worth more than £25,000 by the time an eligible child turns 16.

“We are extending provision of free school meals to pupils in P6 & P7 who receive the Scottish Child Payment, committing a further £14.3m to support the school clothing grant, and investing in the systems needed to end the two-child cap by April 2026.

“Through the Fairer Futures Partnerships we are working alongside local authorities, local communities and the Third Sector to test and improve how they deliver services to promote family wellbeing, maximise incomes and support people towards education and into sustained employment. 

“I’m visiting Irvine Royal Academy to hear about some of the programmes and activity North Ayrshire Council has in place to tackle child poverty, support families and children in the local area with the cost of the school day and maximise incomes.

“The work with the school community is a great example of the results that can be delivered when services work together to provide wrap-around support for families. We want to explore how we can do this even better and that is why we have doubled our budget for Fairer Futures Partnerships to £6 million for the next financial year.”

North Ayrshire Council Leader Marie Burns added: “Tackling child poverty is the number one priority for our administration.

“We have the second highest rate of child poverty in Scotland and we are determined – with support from the Scottish Government and our hard-working partners in the public, private and third sectors – to improve life for families across North Ayrshire.

“We look forward to welcoming the Cabinet Secretary to Irvine to hear, first-hand, about some of the great work that is being done to support families who are struggling to make ends meet.”