The Scottish Government has announced an additional £10 million in funding to support universities facing financial difficulties, with the University of Dundee set to benefit from the extra support.
Education Secretary Jenny Gilruth confirmed on Friday that the funding, allocated through the Scottish Funding Council (SFC), will help institutions struggling with immediate financial pressures. This latest package brings the total additional support for the sector to £25 million, alongside the £1.1 billion already earmarked for university teaching and research in the 2025-2026 budget.
Government steps in to support higher education
Speaking about the announcement, Ms Gilruth stated:
*”The Scottish Government is providing an additional £10 million support package to assist universities such as Dundee with navigating immediate financial challenges.
“This is on top of the £15 million of extra support previously announced for the sector in February.”*
The funding comes amid growing concerns over financial sustainability across Scotland’s higher education sector, with several institutions struggling due to declining income and increased costs.
The University of Dundee has been at the centre of discussions after warning of potential job losses as part of its financial recovery plan. Ministers have been in talks with university leaders, trade unions, and the SFC to find ways to mitigate the crisis.
Concerns over job losses
Ms Gilruth acknowledged the difficult circumstances at Dundee, saying:
*”Ministers have held further meetings with the University of Dundee, unions, and the Scottish Funding Council this week, building on the extensive engagement that has already taken place since financial issues came to light.
“Both the higher education minister and I have conveyed our deep concern at the level of job losses currently being discussed at the university.
“While the university is an autonomous institution, it is our clear expectation that its leadership works with us and engages fully with staff and trade unions to explore all options to protect jobs.”*
The Scottish Government has pledged to bring together experts from across government, the university sector, and the wider Dundee city region to support the institution as it develops its financial recovery strategy.
Ms Gilruth emphasised the wider importance of Scotland’s universities, stating:
*”Scotland’s universities play a pivotal role in the economy and wider society, and they must be supported to thrive into the future.
“This support package is another clear sign of the Scottish Government’s commitment to assisting the sector with financial challenges, challenges which have been compounded by UK Government policies on migration and employer national insurance contributions.”*
Scottish funding council and university leaders welcome support
Francesca Osowska, chief executive of the SFC, welcomed the additional funding and praised the government’s continued backing for Scotland’s higher education institutions.
*”We welcome Scottish ministers’ continued commitment to the tertiary sector and confirmation of this additional funding.
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“Recognising the particular challenges facing the University of Dundee, we look forward to engaging with a wide range of partners to secure its continued success as a world-renowned university delivering excellent outcomes for learners and researchers and contributing to economic growth and social wellbeing.”*
Professor Shane O’Neill, interim principal and vice-chancellor of the University of Dundee, expressed his gratitude for the funding, describing it as vital for the university’s sustainability.
*”We are extremely grateful to the Scottish Government and the Scottish Funding Council, as this funding is vital in ensuring our ongoing sustainability.
“We will continue to work with the SFC and a wide range of partners towards ensuring a successful and resilient future for our university, which is vital to the economic, social, and cultural wellbeing of the city, our region, and beyond.”*
A crucial lifeline for Scottish universities
The additional £10 million support package provides much-needed relief to universities struggling with financial uncertainty. However, the sector continues to face long-term challenges, including fluctuating student numbers, funding constraints, and broader economic pressures.
As discussions continue, the Scottish Government has reaffirmed its commitment to working closely with universities to ensure their sustainability and their ability to continue providing world-class education and research opportunities.
