The Scottish Government has announced plans to reform the funding system for universities, colleges, and apprenticeships, along with changes to student support.

Under these proposals, responsibility for delivering national training programmes, including apprenticeships, will shift from Skills Development Scotland (SDS) to the Scottish Funding Council (SFC).

Furthermore, SFC's responsibilities for funding further education student support will be transferred to the Student Awards Agency Scotland (SAAS), consolidating all student support functions within a single agency.


These changes are based on extensive consultation across the education sector and will be implemented through legislation to be published in the coming weeks. The reforms are expected to take effect 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."