Bill to redesign skills landscape passed

21st January 2026

Funding for colleges, universities and apprentices now in same place.

Legislation to simplify the funding system for post-16 education and skills has been backed by MSPs.

The Scottish Funding Council (SFC) will become responsible for funding national training programmes and apprenticeships, alongside colleges and universities.

The aim is to simplify the system, to make it more coherent and transparent, so that it works better for employers and Scotland's economy.

The Tertiary Education and Training (Funding and Governance) (Scotland) Bill will see the establishment of a new apprenticeship committee, enable Ministers to set funding priorities in a new national strategy and will ensure that the voices of workers, employers, businesses and students are at the heart of the funding process.

The Bill also makes new provision to promote widening access to higher education and to tackle gender-based violence at colleges and universities. The Bill was passed by 75 votes to 46 by MSPs in Parliament tonight.

Alongside the legislation, there will be greater transparency on college and university principals’ pay, and colleges and universities will be expected to adopt more fair work principles. There will be a review of contribution rates for apprenticeships, and the Bill requires a review of the credit-based funding system for colleges.

Higher and Further Education Minister Ben Macpherson said, "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."