We have taken the unprecedented step of increasing our 2025/26 budget ask of the Scottish Government.
Since we submitted this in September, there have been two significant changes in our funding environment. Firstly, the announcement in the UK Government’s autumn budget that there would be an increase in employer National Insurance Contributions (ENIC) 2025/26. We have estimated that the increase in ENIC would cost the sector an additional £45 million within the next full financial year.
Secondly, the announcement by Secretary of State for Education, Bridget Phillipson that tuition fees in England would rise to £9,535 (in line with inflation, RPIX) in academic year 2025/26. Effectively, this action covers the cost of the ENICs for English institutions in 2025/26 (estimated to be £372 million)
In addition to our previous asks of the Scottish Government, we now have also asked for, due to the increase in financial pressures;
- An additional 3% real terms uplift (using GDP deflator at 2.39%) to the SFC Resource Budget (a £41m uplift).
- The GDP deflator was also revised at the autumn budget which sees the cost of our original 1% real terms request on the teaching grant rise. This brings the total increased bid for funding to £49 million more than our original bid.
It is important to contextualise our increased budget ask. A settlement of this scale for 2025/26 would still leave the SFC’s HE resource budget substantially (£20m) below the level it would be if it had been maintained in real terms since 2023/24.
You can read our full budget case here.