A minimum of £15.2million in additional funding is required for Scotland’s colleges to cover the upcoming increase in employer National Insurance Contributions, as announced by the Chancellor in her Autumn Budget. 

Analysis published today by Colleges Scotland shows that Scotland’s 24 colleges need a minimum of £15.2million to be in place by April 2025.

A spokesperson said: “The additional cost to colleges is likely to be £3.8 million between April and June 2025, and a minimum of £11.4 million for the academic year 2025/26.

“Scotland’s 24 colleges are unable to afford this very significant increase. Looking ahead, if the sector receives a ‘flat cash’ settlement in the Budget in December, there would be a serious shortfall unless additional funding is found for national insurance costs. We would welcome an urgent resolution, ideally before the draft Budget comes to the Scottish Parliament on 4 December, so that college leaders have a clear understanding of the funding available going forwards."

Colleges Scotland made the Scottish Government aware of the anticipated costs in increased employer National Insurance Contributions at the start of November.

“Funding for colleges has dropped by 17% in real terms since 2021/22 – resources are already diminished. The increase in National Insurance Contributions comes at a time when the skills of college graduates are very much needed to boost economic growth and productivity in vital sectors including construction, health and social care, and digital.”

In an earlier submission to the Scottish Government for the draft Budget, Colleges Scotland made a case for colleges to receive significant investment for 2025/26.

Colleges Scotland is also calling for the Scottish Government to consider the £300million announced in investment for colleges in England as part of the UK Autumn Statement and make the proportionate investment available to Scotland’s colleges.

The spokesperson said: “There was welcome investment announced for colleges in England who, like colleges in Scotland, have faced years of under-investment. It is vital that Ministers don’t let Scotland’s colleges fall behind – the Budget on 4 December will be critical.”

Colleges in Scotland employ 11,000 full-time equivalent staff and provide education and skills training to 248,900 students each year.