The Scottish Government has announced a further £10 million for the Scottish Funding Council (SFC) to support the country’s higher education sector and provide a bulwark for those universities facing financial challenges.

The Scottish education secretary, Jenny Gilruth, said the additional £10 million will be provided to the SFC to support higher education institutions as they navigate financial difficulties.

According to the government, the new funding brings the total additional support for the sector up to £25 million, on top of the £1.1 billion in the 2025-26 budget for university teaching and research, and adds to work already underway by the SFC, which engages closely with universities on financial sustainability.

“Scotland’s universities play a pivotal role in the economy and wider society, and they must be supported to thrive into the future,” said Gilruth.

“This support package is another clear sign of the Scottish Government’s commitment to support the sector with financial challenges – challenges which have been compounded by UK Government policies on migration and employer National Insurance contributions.”

In announcing the new funding, the Scottish Government made it clear that focus will be given to supporting the University of Dundee while it develops its Financial Recovery Plan. 

In November, Dundee University warned staff that job cuts were incoming as the institution faced up to a £30 million deficit in the coming financial year, with then principal and vice-chancellor, Iain Gillespie, sending an email to the university’s 3,000 staff stating that job losses were ‘inevitable’.

In the months following, Gillespie has since resigned however interim principal Shane O’Neill has continued to be forthright about the current situation, confirming last week that 632 jobs will be axed in what the University and College Union described as a ‘hammer-blow’ to staff.

“Both the Higher Education Minister and I have conveyed our deep concern at the level of job losses currently being discussed at the University,” continued Gilruth.

“While the University is an autonomous institution, it is our clear expectation that the University’s leadership works with us, and engages fully with staff and trade unions, to explore all options to protect jobs.”

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For its part, Dundee University said that it welcomed the news of additional sustainability support for the Scottish higher education sector.

“We are extremely grateful to the Scottish Government and the Scottish Funding Council as the funding is vital in ensuring our ongoing sustainability,” said O’Neill.

“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.”