Scottish Finance Secretary Shona Robinson said in a letter that £10m would be saved by pausing funding for Connecting Scotland’s digital devices program.

In a letter first reported by BBC News Scotland, the finance secretary stated that diverting the funding was “not a decision we made lightly,” but was essential to finance the improved offer to council workers in an effort to prevent strikes, with an additional £77.5 million being offered to cover a 4.3% pay rise.

Another £26 million is set to be saved by rerouting funding from the Flood Risk Management Programme, while £2 million will be clawed back from plans to extend free school meals. Overall, an additional £34.5 million of funding will be provided by the Scottish Government for the pay offer to councils.

So far, the Connecting Scotland project has been managed by the Scottish Council for Voluntary Organisations (SCVO), and has issued over 61,000 devices since it began in May 2020 with the aim of providing internet connectivity and skills to up to 300,000 households. 

In 2023, a Full Business Case for the programme concluded that the ‘starter investment’ of £200 million may not be enough to fully cover the cost of new and replacement devices but that the scheme had successfully ‘contributed to bridging the digital divide and helping citizens in Scotland be more digitally included.’

However, earlier this month research from Citizens Advice Scotland showed that more than half of Scots are still unable to use essential digital services due to a lack of skills and online access, and a joint report from the Scottish Auditor General and Accounts Commission called on the government to increase its efforts to tackle digital exclusion as one in six adults lack the digital skills needed for everyday life.

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Ending the funding for free devices will have an impact on the already widening digital divide in Scotland, with those in lower-income households finding it increasingly difficult to access some essential services, such as banking, education services, and online health platforms which are fast becoming the norm, and are easily accessible for others.

A Scottish Government spokesperson said: “The Scottish Government is taking on significant additional financial pressure to fund this pay rise and the Cabinet Secretary for Finance has been clear that painful choices have had to be made. These decisions will be set out fully in due course.

“Ministers are committed to prioritising the reinstatement of funding in next year’s budget and remain focused on delivering on the priorities set out by the First Minister across all portfolios.”