

Graeme Dey MSP, Minister for Higher and Further Education, has written to the Scottish Parliament Education, Children and Young People Committee with an update on various issues discussed at the evidence session held on 28 May 2025 in relation to the Tertiary Education and Training (Funding and Governance) Bill.
Staff transfer
Mr Dey has confirmed that SFC was estimated to have 190 FTE staff in 2024 and the number of SDS staff that might transfer was estimated to be between 148.4 and 176.6 FTE staff in the financial memorandum. Accordingly, the number of staff to be transferred is estimated to be less than the number of staff in the SFC.
Transitional costs
The letter seeks to clarify the current position in relation to transitional costs:
‘The financial memorandum estimates the transition costs to be in the range from £2.7 million to £5.3 million over 2025-26 and 2026-27 combined. These figures do not include the pension shortfall payment as there is currently large uncertainty on the number of staff that may transfer from SDS to the SFC.
There is significant work to do to determine who might be transferring, the terms and conditions of transfer and the associated costs. My officials are engaging with the SFC and SDS with a view to narrowing down the range of cost estimates as quickly as possible. As I have committed to the Committee, I will provide as much information as I can on costs before the Stage 1 debate in September 2025.’
Other issues
The letter also provides an update on other issues, including:
- SFC Board Recruitment
- Power to direct funding
- SDS director liabilities
- Stage 2 amendments
- Stakeholder engagement.
Correspondence from SDS and SFC
The Committee has also received update correspondence from Skills Development Scotland and the Scottish Funding Council. These can be downloaded via the links below.