Scottish Budget 2026 to 2027

The Scottish Budget sets out the Scottish Government's proposed spending and tax plans for 2026-27, as presented to the Scottish Parliament


Chapter 6 Education & Skills

Portfolio Responsibilities

The 2026–27 Education and Skills budget reflects the Scottish Government’s continued commitment to tackling child poverty, improving learner outcomes, and strengthening the sustainability and resilience of our education and skills system. It maintains support for high-quality public services while advancing reforms and efficiencies in line with the Government’s Fiscal Sustainability Delivery Plan.

At a critical time for both sectors, this budget delivers a significant real terms increase in our investment in Scotland’s College and University sectors so that people of all ages have the opportunity to fulfil their potential. We will continue to work closely with both colleges and universities as they design and deliver the vital reforms needed to meet learner and business needs now and well into the future.

Scotland’s colleges will see a combined increase of £70 million in resource and capital funding, equivalent to a 10 per cent uplift on last year’s budget. This is an opportunity for the sector to demonstrate how they can come together to help people all across Scotland to fulfil their potential, and ensure that Scotland’s workforce needs are met.

Our continued investment in apprenticeships, careers advice, Developing the Young Workforce and adult learning will strengthen pathways into and through employment, supporting economic outcomes, helping parents and carers to sustain and progress in work, and help tackle child poverty. Overall, this budget will support sustainability and reform, protect free tuition, advance widening access and support learners to progress into and through work, helping address poverty and cost of living pressures.

Scotland’s schools are delivering literacy and numeracy attainment at the highest levels on record, with sustained progress in narrowing the poverty-related attainment gap through the Scottish Attainment Challenge. Attendance has improved, class sizes are smaller, and there are more teachers in Scotland’s classrooms. This budget builds on these gains by protecting teacher numbers, supporting workforce stability and ensuring that staffing levels continue to support high-quality teaching, learning and relationships in schools. Investment in learning infrastructure remains a priority through the Learning Estate Investment Programme, ensuring schools across Scotland are fit-for-purpose.

We will continue working with local government to expand free school meals provision to include children from families in receipt of Pension Credit, and those impacted by the increase in the Administrative Earnings Threshold. These measures will enable a further 5,500 pupils to access nutritious and healthy food, backed by investment of up to £3 million. We will maintain the Test of Change of secondary school meal provision during the full academic year, and increase school clothing grant funding in line with inflation.

The Budget delivers new funding to provide a national breakfast club offer in all primary schools in Scotland and also expands after-school activities clubs for children. This builds on existing breakfast delivery leading to the roll out of a national offer by August 2027. The offer includes the cost of providing up to one hour of supervision, to enable working parents to drop children at school early. This ensures that we are increasing the childcare options available to parents for whom cost and availability present a barrier to employment whilst also addressing issues of food insecurity for children.

In addition, the budget provides up to a further £2.5 million for wraparound activities provision building on the success of the ‘Extra Time’ programme, to expand after school club services for families most in need.

We continue to fund flexible and affordable childcare through our Early Adopter Communities, and our commitment to supporting the real Living Wage in private and voluntary sector ELC and children’s social care services. Support for care experienced children and young people remains central, with continued investment in Whole Family Wellbeing, preventing crises and helping families to flourish, reaffirming our commitment to Keeping The Promise to Scotland’s care experienced children and young people and the establishment of the new National Social Work Agency. 

Education & Skills intended contributions to the National Outcomes

Primary National Outcomes

  • Education
  • Children and Young People
  • Economy
  • Poverty

Secondary National Outcomes

  • Communities
  • Human Rights
  • Fair Work and Business
  • International
  • Culture

Education & Skills

The prior year 2025-26 Budget Comparator figures are based on the latest in-year budget numbers which were revised at the Autumn Budget Revision. The 2024-25 Scottish Budget comparator figures reflect the outturn numbers for that year.

Table 6.01: Spending Plans (Level 2)
Level 2 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Learning 178.4 426.1 530.6
Education Reform 89.6 98.9 90.2
Education Scotland 46.3 36.3 20.0
Children and Families 205.0 229.6 359.3
Higher Education and Student Support* 1,055.1 844.9 1,582.0
Scottish Funding Council 2,029.9 1,987.7 2,046.7
Lifelong Learning and Skills 251.3 258.7 256.4
Total Education & Skills of which 3,855.5 3,882.2 4,885.1
Total Fiscal Resource 2,613.2 2,846.2 3,102.4
of which Programme Costs 2,568.7 2,796.8 3,056.6
of which Operating Costs 44.4 49.4 45.8
Non-cash (130.3) (334.7) 437.8
Capital 454.1 484.5 465.2
Financial Transactions (FTs) (8.9) (12.2) (11.5)
UK Funded AME 927.4 898.4 891.2
Presentational Adjustments for Scottish Parliament Approval
Education Reform (NDPB Non-Cash) (5.5) (2.5) (5.5)
Children and Families (NDPB Non-Cash) (3.6) (4.8) (4.9)
SFC (NDPB Non-Cash) (35.4) (36.1) (36.1)
Lifelong Learning (NDPB Non-Cash) (2.9) (3.1) (2.4)
Central Government Grants to Local Authorities 130.7 130.7 120.0
Total Education and Skills 3,938.8 3,966.4 4,956.2
Total Limit on Income (accruing resources) 350.0

* NB there is a technical adjustment in AME and non-cash figures above which does not impact the resource and capital discretionary funding allocations.

Table 6.02: Learning Spending Plans (Level 3)
Level 3 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Education Analytical Services 5.4 6.5 6.2
Improvement, Attainment & Wellbeing* 78.2 83.0 190.7
Workforce, Infrastructure & Digital 94.8 336.5 333.7
Total Learning of which 178.4 426.1 530.6
Fiscal Resource 176.6 413.0 528.2
Non-cash - - -
Capital 1.8 13.1 2.4
FTs - - -
UK Funded AME - - -

* This line transfers funding in-year to Local Government. This includes amounts for Free School Meals, Additional Support for Learning Support Staff, Pupil Support Assistants and School Clothing Grants.

Table 6.03: Education Reform Spending Plans (Level 3)
Level 3 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Curriculum* 9.8 11.2 31.9
Education Reform 79.8 87.7 44.9
HM Inspectorate of Education - - 13.4
Total Education Reform of which 89.6 98.9 90.2
Fiscal Resource 69.2 83.5 81.7
Non-cash 5.5 5.3 5.5
Capital 4.6 10.1 3.0
FTs - - -
UK Funded AME 10.3 - -

* This line transfers funding in-year to Local Government for removal of curriculum charges and instrumental music tuition charges in schools.

Table 6.04: Education Scotland Spending Plans (Level 3)
Level 3 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Education Scotland 46.3 36.3 20.0
Total Education Scotland of which 46.3 36.3 20.0
Fiscal Resource 43.6 33.6 17.3
Non-cash 2.3 2.7 2.7
Capital - - -
FTs - - -
UK Funded AME 0.4 - -
Table 6:05: Children and Families Spending Plans (Level 3)
Level 3 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Children's Rights, Protection & Justice 79.1 84.8 61.2
Creating Positive Futures 29.7 28.9 29.2
Disclosure Scotland Expenditure 30.5 29.8 21.7
Office of the Chief Social Work Adviser 24.2 27.3 62.9
Care Experience - Whole Family Wellbeing* 23.5 24.0 83.0
Early Learning and Childcare 17.9 34.8 101.2
Total Children & Families of which: 205.0 229.6 359.3
Fiscal Resource 181.2 192.8 336.3
Non-cash 11.5 11.4 12.5
Capital 12.4 24.3 9.5
FTs - - -
UK Funded AME - 1.1 0.9

* This line transfers funding in-year to Local Government relating to The Promise and for Children’s Services Planning Partnerships, removal of curriculum charges and instrumental music tuition charges in schools.

Table 6.06: Higher Education Student Support Spending Plans (Level 3)
Level 3 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Student Support & Tuition Fee Payments 318.3 310.1 287.8
Student Loans Company Administration Costs 4.3 5.4 5.4
Student Loan Interest Subsidy to Bank 3.1 3.3 1.7
Cost of Providing Student Loans (RAB Charge) (Non-Cash)* (190.1) (396.7) 375.0
Student Awards Agency for Scotland Operating Costs 16.5 18.6 14.9
SAAS Capital 5.5 6.9 6.9
Net Student Loans Advanced 1,010.2 975.0 1,020.0
Capitalised Interest (440.3) (360.0) (374.0)
Student Loan Fair Value Adjustment 330.4 285.6 246.0
Student Loan Sale Subsidy Impairment Adjustment (2.8) (3.3) (1.7)
Total Higher Education Student Support of which 1,055.1 844.9 1,582.0
Fiscal Resource 340.0 333.8 306.2
Non-cash (187.9) (393.1) 378.6
Capital 5.5 6.9 6.9
FTs - - -
UK Funded AME 897.5 897.3 890.3

* This is a technical adjustment to the valuation of student loans and does not affect discretionary spending.

Table 6.07: Scottish Funding Council Spending Plans (Level 3)
Level 3 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Scottish Funding Council Administration 28.4 13.6 8.0
College Operational Expenditure 860.2 852.1 911.1
College Operational Income (182.6) (190.0) (190.0)
Net College Resource 677.7 662.1 721.1
Colleges - Public Private Partnerships – Infrastructure Investment 31.0 31.6 32.6
College Depreciation Costs 34.9 35.6 35.6
Higher Education Resource* 838.5 828.8 818.6
College Capital Expenditure 89.0 49.9 43.8
College Capital Receipts - - -
Net College Capital 89.0 49.9 43.8
Higher Education Capital 339.4 378.3 398.6
Higher Education Financial Transactions - - -
Higher Education Financial Transactions Income (8.9) (12.2) (11.5)
Total Scottish Funding Council of which 2,029.9 1,987.7 2,046.7
Fiscal Resource 1,561.3 1,534.8 1,579.8
Non-cash 35.4 36.1 36.1
Capital 428.3 429.0 442.4
FTs (8.9) (12.2) (11.5)
UK Funded AME 13.8 - -

* Higher Education received in-year funding for specific programmes. This means the figures for the ABR 2025-26 and 2026-27 budget are not directly comparable.

Table 6.08: Lifelong Learning and Skills Spending Plans (Level 3)
Level 3 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Lifelong Learning 11.1 16.1 20.6
Skills 33.7 37.9 34.3
Skills Development Scotland 206.5 204.8 201.5
Total Lifelong Learning of which 251.3 258.7 256.4
Fiscal Resource 241.3 254.8 253.0
Non-cash 2.9 2.9 2.4
Capital 1.6 1.0 1.0
FTs - - -
UK Funded AME 5.5 - -
Table 6.09: Central Government Grants to Local Authorities Spending Plans (Level 3)
Level 3 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Local Government Attainment Grant* 130.7 130.7 120.0
Education and Skills Total Central Government Grants to Local Authorities of which 130.7 130.7 120.0
Fiscal Resource 130.7 130.7 120.0
Non-cash - - -
Capital - - -
FTs - - -
UK Funded AME - - -

* As in previous years, a portion of the raising attainment budget line will be used to top-up Pupil Equity funding above £120m, to meet the increasing costs of the programme.

Contact

Email: Fiscalprogrammemailbox@gov.scot

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