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22/01/2026

MSPs Pass Bill To Overhaul Scotland's Skills Funding

The Scottish Parliament has voted to approve new legislation designed to simplify and unify the funding landscape for post-16 education and vocational training. The Tertiary Education and Training (Funding and Governance) (Scotland) Bill was passed in Holyrood this evening with a vote of 75 to 46.

Under the new laws, the Scottish Funding Council (SFC) will take over formal responsibility for national training programmes and apprenticeships. By housing these responsibilities alongside the funding of colleges and universities, the Scottish Government aims to create a more transparent, coherent, and flexible system that better serves the national economy and individual employers.

Key provisions within the Bill include:

- National Strategy: Enabling Ministers to define funding priorities through a new national strategy.

- Apprenticeship Committee: The creation of a dedicated committee to oversee apprenticeship schemes.

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- Stakeholder Engagement: Ensuring students, workers, and businesses have a direct influence on the funding process.

- Social Responsibility: Introducing measures to tackle gender-based violence and promote wider access to higher education.

The reform also brings a renewed focus on governance. Moving forward, there will be increased transparency regarding the salaries of college and university principals, and institutions will be expected to further adopt fair work principles. Additionally, the legislation triggers a review of the credit-based funding model for colleges and a re-evaluation of contribution rates for apprenticeships.

Higher and Further Education Minister Ben Macpherson commented on the Bill's passage: "The landscape this government has developed for post-school education and skills has served us well. We can point to significant successes in what it has delivered, especially for our young people. We must always continue to improve though, and this new law is an important part of that ongoing process and how, together, we meet the challenges ahead.

"By moving all the funding for apprenticeships to sit alongside colleges and universities in the SFC, we can streamline structures and decision-making making our system more coherent, and flexible, to adapt to current and future skills needs.

"I want our system to work even better for everyone who – at any age – wants to learn new skills, gain new qualifications, or train for a new role. By doing so, we will enable more people to fulfil their potential, provide more security for their households, and contribute more to Scotland's economy."

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