Chamber and committees

The Scottish Funding Council (SFC) regularly monitors and engages with the colleges and universities it funds as part of its role in ensuring the sustainable and coherent provision of fundable further and higher education.

It is for SFC to consider the criteria used to approve liquidity support. Given that the circumstances of individual colleges will differ, each case will be considered on its own merit.

Colleges in Scotland operate as autonomous institutions, with governance frameworks that grant them independence in managing their operations including decisions about campus footprint, staffing, and curriculum.

This autonomy is designed to enable responsiveness to local needs and flexibility in delivering education. However, Ministers are clear that colleges are expected to ensure their strategic decisions reflect the needs of the people, the region, and the communities they serve.

In its development of the 10 year College Infrastructure Investment Plan, in collaboration with the sector and due to publish in autumn 2026, the Scottish Funding Council is looking at the whole college sector to ensure the approach to infrastructure is strategic and supports coherent provision.

Despite continuing fiscal challenges, the Scottish Government has increased the direct mental health programme budget for 2025-26 by 1.2% to £270.5 million. We expect total mental health spending to reach record levels – around £1.5 billion - in 2025-26. We have invested significantly in a range of mental health services, including allocating over £160 million since 2020 on community-based support for children, young people and adults. It is important to emphasise that students have access to, and benefit from, the support services provided by the NHS and in our communities.

We also continue to fund NUS Think Positive to work with colleges, universities and students’ associations to develop and promote their mental health support offer.

Our Student Mental Health Action Plan was published in September 2024. The Plan aims, through collaboration between colleges, universities, public and third sector, to join up support that is already available, embedding students into the wider communities in which they live and study. Through the Action Plan’s Delivery Group, the Scottish Government is bringing partners together to make this happen.

The Scottish Funding Council’s (SFC) funding allocation to Scotland’s colleges for the current academic year (2025-26) equates to a 2.6% increase in funding for teaching activity, and a 4.8% increase for capital maintenance funding, to support colleges to continue to invest in student’s learning experiences.

In 2023-24, there was a reduction in very short courses which contributed to the reported decrease in overall college enrolments.

The Scottish Funding Council (SFC) regularly monitors college student numbers, including headcount, enrolment and full-time equivalent students. SFC publishes this information on an annual basis through its College Statistics 2023-24 - Scottish Funding Council.

Colleges receive funding from the Scottish Funding Council (SFC) based on the number of credits they deliver. The SFC increased the credit price from 2023-24 which is an increase to the investment in each individual student.

We recognise that managing agents undertake a range of valuable services to support apprentices and employers. This includes pre-assessment, support materials, pastoral care and the delivery of final assessments (where appropriate).

The role, responsibilities and funding arrangements for managing agents are being considered as part of our work on apprenticeship reform. We are committed to working with Colleges Scotland, managing agents and key agencies including SDS and the SFC, to ensure that apprenticeship funding is sustainable for the future and focused on supporting apprentices to train and progress.

It is important that we retain all of the very best elements of the current system while maintaining best value for public funding.

It is important to expand the sources of income into the college sector, which is why the Colleges Tripartite Alignment Group, comprised of Colleges Scotland, the Scottish Government and the Scottish Funding Council, has been exploring the perceived barriers to income diversification and how to overcome them.

The Scottish Funding Council’s (SFC) funding model operates alongside with its Outcomes Framework and Assurance Model - Scottish Funding Council (OF&AM) to ensure that college courses align with the needs of employers and communities.

Through its OF&AM, SFC engages with colleges to ensure they are engaging with employers to respond to industry and sector needs.

The Scottish Government recognises the vital role English for speakers of other languages (ESOL) plays in supporting people whose first language is not English, equipping them with the communication skills necessary to contribute and integrate economically, culturally and socially in Scotland.

Scottish Government funding for college based ESOL provision forms part of the Scottish Funding Council’s grant allocation. Colleges are responsible for decisions on course provision and are best placed to respond flexibly to local ESOL need alongside partners including local authorities and the third sector. Local authorities themselves play an important role in delivering their community learning and development (CLD) plans, which supports the provision of community based ESOL.

Recognising ESOL’s importance, the former Minister for Higher and Further Education wrote to the Scottish Funding Council with supplementary guidance: Letter to Mike Cantlay from Minister for Higher and Further Education; and Minister for Veterans - 04.03.25 to ensure ESOL remains a priority for colleges in the academic year 2025-26.

Additionally, the Scottish Government has directly made £1.2m available for ESOL provision in Glasgow since 2024-25. This funding has been provided in response to the Learning: For ALL. For Life report: Learning: For All. For Life. A report from the Independent Review of Community Learning and Development (CLD) - gov.scot which called on the Scottish Government to take immediate action to address high levels of need for ESOL, which disproportionately impacts Glasgow. There have been recent spikes of demand, for example, following the war in Ukraine.

A further £200,000 has also been invested in a nationwide online ESOL and employability pilot in 2025-26 for up to 1,800 learners which is administered by ESOL Scotland and focused on gaps in provision.

In response to the Learning: For All. For Life report following the independent review of CLD, Scottish Government and COSLA accepted report recommendation 1.1 to establish a joint CLD Strategic Leadership Group (SLG). The SLG will play a central role in developing our detailed response to the remaining 19 recommendations. The SLG, which includes the Scottish Funding Council as a member, has met on four occasions and identified taking action on ESOL an immediate priority.

The Scottish Government does not hold information on staffing levels and future workforce plans: operational decisions are for individual colleges to determine.