Delivering a world-class skills system

The funding system which covers universities, colleges and apprenticeships, as well as student support, will change in Scotland.

Under plans published today, responsibility for providing national training programmes, including apprenticeships, will move from Skills Development Scotland (SDS) to the Scottish Funding Council (SFC).

SFC’s responsibilities for funding further education student support will move to the Student Awards Agency Scotland (SAAS), bringing this together with SAAS’s existing responsibilities for higher education student support.

The plans are being taken forward following extensive consultation across the sector and legislation will be published in the coming weeks with the intention of making these changes in autumn 2026.

Higher and Further Education Minister Graeme Dey said:

“We want to ensure that Scotland has a world-class skills system to meet the demands of the changing economy and that our £3 billon of investment in the tertiary skills system delivers the greatest impact for learners.

“The need for this change is now clear, with consultation responses and other evidence supporting reform to arrangements for post-school funding. These changes will help to reduce complexities and provide greater clarity around the roles and responsibilities of each funding body.

“We will now look to press ahead with the next stage in taking forward these changes, through legislation and other preparations.  We also will work closely with SAAS, SDS and the SFC to reassure staff and ensure continuity of services.”

Background

Written question and answer: S6W-33842 | Scottish Parliament Website

The planned changes follow a consultation which took place last summer and for which a report summarising responses was published today along with an outline business case.

SDS will continue to play a key role in the skills system, including its ongoing careers delivery.