Legislation to simplify the funding system for learners at college, university and apprentices in Scotland has been given in-principle backing by MSPs.
They voted by 62 to 39 to endorse the general principles of the Tertiary Education and Training (Funding and Governance) (Scotland) Bill, ensuring it passes Stage 1 and proceeds to Stage 2 in the Scottish Parliament.
If passed, the Bill will see responsibility for funding national training programmes and apprenticeships move to the Scottish Funding Council (SFC) from Skills Development Scotland (SDS). This will consolidate responsibility for provision of tertiary education and training within a redesigned SFC.
The Bill would also strengthen the SFC’s governance powers to allow for more effective oversight of colleges and higher education institutions, including a greater focus on their financial sustainability and the needs of learners.
MSPs have backed the general principles of legislation to simplify the funding system for learners at college, university and apprentices.
— ScotGov Education (@ScotGovEdu) September 25, 2025
Higher and Further Education Minister @BenMacpherson set out the need for change.
https://t.co/qhB0oYFseo pic.twitter.com/Nla24K847D
At its core, this Bill would better enable funding to go where it matters most, supporting the skills, services and innovation that our economy and learners need to thrive.
The Bill has been publicly backed by key sector organisations including the Scottish Training Federation, Federation of Small Businesses, Universities Scotland and Colleges Scotland.
This legislation intends to help build a more coherent, collaborative, flexible system where colleges, universities and training providers all play a collaborative role in delivering high-quality education and training.
– HIGHER AND FURTHER EDUCATION MINISTER BEN MACPHERSON
Background
The Scottish Government’s response to the Education, Children and Young People Committee report into the Bill shows a revised highest cost estimate of £21.6 million, a reduction of almost £12 million.
The Bill will now progress to Stage 2 consideration by the Education, Children and Young People Committee. If passed at Stage 3, the SFC is expected to take up its new responsibilities set out in the legislation from April 2027.