Reform

The Scottish Funding Council has an ongoing commitment to improvement and impact. Over the last decade, we have led and responded constructively to a number of reforms that have helped simplify and strengthen the education, skills, research and innovation landscape, including college regionalisation, widening access, and the launch of the innovation centre programme.

Reform of the funding body landscape

Following the recommendations of the Withers Review, in January 2025 the Scottish Government confirmed that it would proceed with the proposal to consolidate all post-school provision funding with SFC, and all student support funding within the Student Awards Agency for Scotland (SAAS).

In February 2025, the Scottish Government introduced the Tertiary Education and Training (Funding and Governance) (Scotland) Bill to simplify the funding landscape for post-school education and training.

On 20 January 2026, the Scottish Parliament passed the Bill at Stage 3. After Royal Assent this will become an Act.

A redesigned funding body

From April 2027, all funding for post-school provision will be consolidated within a redesigned SFC. In addition to funding colleges and universities, including Graduate Apprenticeships and some Foundation Apprenticeships, the redesigned funding body will have responsibility for funding apprenticeships, work-based learning, and national training programmes.

The Bill also brings some changes to the governance and duties of SFC, including:

• Further specification on the skills and experience of Board members.
• The requirement for a new Apprenticeship Committee to be established.
• A duty to have regard to the interests of current and future learners, and to have regard to fair work principles.
• A requirement to monitor and report on the financial sustainability of post-16 education institutions.
• New funding conditions including relating to gender-based violence and whistleblowing.

SFC continues to work closely with the Scottish Government, other relevant public bodies and stakeholders to support the development of this work.