Scottish Budget 2025 to 2026

The Scottish Budget sets out the Scottish Government’s proposed spending and tax plans for 2025 to 2026, as presented to the Scottish Parliament.


Chapter 6 Education and Skills

Portfolio Responsibilities

The Education and Skills portfolio 2025-26 budget emphasises the First Minister’s priorities and champions programmes with far-reaching impacts in addressing child poverty and improving outcomes for families and learners across Scotland.

With funding to enable reform of our school and lifelong learning systems, we are supporting delivery of national infrastructure that will bolster our education system.

We are funding continued development of flexible, affordable childcare for priority families in our Early Adopter Communities, giving families the opportunity to seek employment and improve their living standards. We are delivering our commitment to ensure early learning and childcare and children’s social care staff in the private and voluntary sector are paid the real living wage.

The budget recommits the Scottish Government to closing the poverty-related attainment gap through the Scottish Attainment Challenge, and to ensuring children and young people are happy and thriving at school. We are investing in Scotland’s teachers and funding initiatives which address the challenges facing the education workforce, including supporting new teachers into the profession.

We are delivering modern, state-of-the-art schools from the Shetland Islands to the Scottish Borders through our Learning Estate Investment Programme. Further investment targets support to children from the poorest backgrounds, including the expansion and testing of free breakfast clubs; free school meals provision for P6/7 children in receipt of the Scottish Child Payment; and continued support for the school clothing grant.

We will fund increasing provision for additional support for learning and we will work with Local Authorities to deliver our shared commitment to maintain teacher numbers, helping councils respond to the increased need in our schools post-pandemic.

This budget commits to keeping The Promise for all care-experienced children and young people, creating a supportive environment for all children and young people to grow up loved, safe and respected. The budget also reinforces support for Whole Family Wellbeing Funding, preventing crises before they arise and helping families to flourish, reducing the chances of family breakdown and of children entering the care system.

Finally, this portfolio is driving economic growth through its support for colleges, universities and the wider skills system. We are protecting the right to free tuition and driving forward our commitment to Widening Access. The budget prioritises financial assistance to students, supporting them to complete their studies in the face of significant cost-of-living pressures. The budget also supports adult learners – including parents and carers – to enter, sustain and progress in work, critical to our mission of eradicating child poverty.

Education and Skills intended contributions to the National Outcomes

Primary National Outcomes

  • Education
  • Children and Young People
  • Economy
  • Poverty

Secondary National Outcomes

  • Communities
  • Human
  • Fair Work and Business
  • International
  • Culture

For further information on the purpose of the portfolio budget, and contributions to national outcomes (including impacts of spend on equality of outcome) please refer to the relevant portfolio annex in the published Equality and Fairer Scotland Budget Statement.

Education & Skills

The prior year 2024-25 Budget comparator figures are based on the latest in-year budget numbers which were revised at the Autumn Budget Revision. The 2023-24 Scottish Budget comparator figures reflect the outturn numbers for that year.

Table 6.01: Spending Plans (Level 2)
Level 2 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Learning 176.9 426.4 778.5
Education Reform 88.1 53.5 84.8
Education Scotland 45.3 30.9 31.0
Children and Families 184.4 226.0 363.2
Higher Education and Student Support* 1,344.9 1,502.1 794.7
Scottish Funding Council 2,034.1 1,955.9 1,926.6
Lifelong Learning and Skills 254.3 250.3 255.2
Total Education & Skills 4,127.8 4445.1 4,234.0
of which
Total Fiscal Resource 2,572.2 2717.5 3,194.1
of which Operating Costs 40.8 32.3 46.8
Non-cash 366.9 401.8 (334.7)
Capital 454.8 530.6 512.5
Financial Transactions (FTs) 15.0 (8.9) (12.2)
UK Funded AME 719.0 804.1 874.3
Presentational Adjustments for Scottish Parliament Approval
Education Reform (NDPB Non-Cash) (4.5) (1.9) (5.3)
Children and Families (NDPB Non-Cash) (5.1) (1.8) (4.4)
SFC (NDPB Non-Cash) (31.4) (31.7) (36.1)
Lifelong Learning (NDPB Non-Cash) (3.2) (1.8) (3.1)
Central Government Grants to Local Authorities 130.5 130.6 120.0
Total Education and Skills 4,214.1 4,538.6 4,305.2
Total Limit on Income (accruing resources) 350.0

*Note – there is a technical adjustment in AME and non-cash figures above which does not impact the fiscal resource and capital allocations.

Table 6.02: Learning Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Education Analytical Services 4.6 4.9 6.0
Improvement, Attainment & Wellbeing 77.4 147.8 186.9
Workforce, Infrastructure & Digital 94.9 273.7 585.6
Total Learning 176.9 426.4 778.5
of which
Fiscal Resource 175.5 371.6 765.4
Non-cash
Capital 1.4 54.8 13.1
FTs
UK Funded AME
Table 6.03: Education Reform Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Curriculum 7.2 9.4 31.7
Education Reform 80.9 44.0 53.1
Total Education Reform 88.1 53.5 84.8
of which
Fiscal Resource 70.8 44.9 69.4
Non-cash 4.5 4.7 5.3
Capital 2.5 3.9 10.1
FTs
UK Funded AME 10.3
Table 6.04: Education Scotland Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Education Scotland 45.3 30.9 31.0
Total Education Scotland 45.3 30.9 31.0
of which
Fiscal Resource 42.5 28.3 28.4
Non-cash 2.5 2.6 2.7
Capital 0.1
FTs
UK Funded AME 0.2
Table 6.05: Children and Families Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Children's Rights, Protection & Justice 61.8 69.3 56.3
Creating Positive Futures 27.0 28.4 55.2
Disclosure Scotland Expenditure 27.5 29.3 25.8
Office of the Chief Social Work Adviser 32.3 26.0 54.7
Care Experience - Whole Family Wellbeing 21.2 38.2 87.2
Early Learning and Childcare 14.5 34.8 84.0
Total Children & Families 184.4 226.0 363.2
of which
Fiscal Resource 154.8 190.3 302.4
Non-cash 11.7 12.6 11.4
Capital 16.1 23.1 48.3
FTs
UK Funded AME 1.8 1.1
Table 6.06: Higher Education Student Support Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Student Support & Tuition Fee Payments 311.1 321.6 287.8
Student Loans Company Administration Costs 4.9 6.4 5.4
Student Loan Interest Subsidy to Bank 5.1 4.8 3.3
Cost of Providing Student Loans (RAB Charge) (Non-Cash)* 312.1 344.2 (396.7)
Student Awards Agency for Scotland Operating Costs 14.8 14.1 14.7
SAAS Capital 4.6 6.9 6.9
Net Student Loans Advanced 875.7 865.0 935.0
Capitalised Interest* (460.7) (200.0) (272.0)
Student Loan Fair Value Adjustment 280.3 144.1 213.5
Student Loan Sale Subsidy Impairment Adjustment (2.9) (5.0) (3.3)
Total Higher Education Student Support 1,344.9 1,502.1 794.7
of which
Fiscal Resource 334.2 344.6 307.6
Non-cash* 313.7 346.5 (393.1)
Capital 4.6 6.9 6.9
FTs
UK Funded AME 692.4 804.1 873.2

*NB there is a technical adjustment in AME and non-cash figures above which does not impact the fiscal resource and capital allocations.

Table 6.07: Scottish Funding Council Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Scottish Funding Council Administration 13.7 7.6 8.7
College Operational Expenditure 848.4 833.9 846.2
College Operational Income (185.9) (190.0) (190.0)
Net College Resource 662.4 643.9 656.2
College Not for Profit (NPD) Expenditure 30.8 29.3 31.6
College Depreciation Costs 30.9 31.8 35.6
HE Resource 852.7 810.5 773.6
College Capital Expenditure 62.8 84.9 64.8
College Capital Receipts
Net College Capital 62.8 84.9 64.8
HE Capital 365.6 356.9 368.3
HE FTs 30.4
HE FTs Income (15.4) (8.9) (12.2)
Total Scottish Funding Council 2,034.1 1,955.9 1,926.6
of which
Fiscal Resource 1,545.1 1,491.1 1,468.8
Non-cash 31.4 32.0 36.1
Capital 428.4 441.7 433.9
FTs 15.0 (8.9) (12.2)
UK Funded AME 14.2
Table 6.08: Lifelong Learning and Skills Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Lifelong Learning 10.8 12.6 17.6
Skills 34.5 35.3 35.3
Skills Development Scotland 209.0 202.4 202.3
Lifelong and Skills Learning 254.3 250.3 255.2
of which
Fiscal Resource 249.5 246.7 252.1
Non-cash 3.0 3.4 2.9
Capital 1.6 0.2 0.2
FTs
UK Funded AME 0.2
Table 6.09: Central Government Grants to Local Authorities Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Local Government Attainment Grant** 130.5 130.6 120.0
Education and Skills Total Central Government Grants to Local Authorities 130.5 130.6 120.0
of which
Fiscal Resource 130.5 130.6 120.0
Non-cash
Capital
FTs
UK Funded AME

** As in previous years, a portion of the raising attainment budget line will be used to top-up Pupil Equity funding above £120 million, to meet the increasing costs of the programme.

Contact

Email: ScottishBudget@gov.scot

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