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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’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.

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.

The reason behind the withdrawal of £26m transition funding in 2023 is on record.

The funding was originally announced as part of the 2023-24 Budget to support strategic change and transformation in the college sector. That it had been necessary to take this as a required saving given new portfolio pressures was communicated in this letter to the Education Children and Young People Committee on 2 May 2023 found here: Minister for Higher and Further Education; and Minister for Veterans.

The Scottish Government recognises the critical role that colleges play in delivering high-quality education. The 2025-26 budget provided almost a 5% increase in capital maintenance funding to help colleges further invest in student’s learning experiences. In collaboration and with agreement from the college sector, SFC retained £2.5m of its 2025-26 capital budget for high priority needs (including health & safety issues).

The Scottish Funding Council’s College Infrastructure Strategy (CIS) describes the SFC’s approach to determining future investment in Scotland’s college estate and other college infrastructure. The CIS sets out the collective approach between the SFC and colleges to develop a 10-year Infrastructure Investment Plan (IIP) for Scotland’s colleges. The plan will identify future infrastructure investment needed for a sustainable sector and is due to be published in autumn 2026.

At this point in the budget cycle no decision has been made on the funding that will be made available for colleges in financial year 2026-27. The Scottish Government is aware of the pressures colleges are facing and remains committed to working constructively with the sector and the Scottish Funding Council. The College Tripartite Alignment Group has membership from a range of colleges, SFC and the Scottish Government and provides strategic direction on the pressures and opportunities facing colleges. You can read more about the Group’s activities here Colleges: Tripartite Alignment Group - gov.scot.

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 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.

The SFC provides regular advice to the Scottish Government on the pressures facing the college sector. This is based on the regular financial returns received from colleges.

As our national skills body, Skills Development Scotland (SDS) have operational responsibility for managing apprenticeship funding and delivery in Scotland. SDS regularly monitor demand throughout the year to maximise apprenticeship opportunities, in line with key policy priorities.

The number and range of apprenticeships available are informed by industry demand and training capacity, within the constraints of available budgets and affordability. This involves close consultation with employers, employer groups and training providers, as well as priorities identified through reformed national and regional skills planning.

We are providing around £185 million for apprenticeships this year and are committed to working with the Scottish Funding Council and Skills Development Scotland to understand the extent of demand, and in which sectors. Our aim is to ensure that funding is targeted most effectively to support sustainable economic growth and vital public services and provide best value for public investment.

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.