Cash-strapped universities have been handed additional funding to help them through their current financial difficulties.

Education Secretary Jenny Gilruth said an additional £10 million will be provided to the Scottish Funding Council to support higher education institutions such as the University of Dundee which last week announced 632 job cuts.

It brings total additional support for the sector from the Scottish Government to £25 million, on top of the £1.1 billion in the 2025-26 budget for university teaching and research.

The Scottish Government will convene a range of expertise from across the higher education sector, government, and Dundee City Region to support the University of Dundee while it develops its Financial Recovery Plan.

This is in addition to work already underway by the SFC, which engages closely with universities on financial sustainability.

Ms Gilruth said the latest funding, taken from within the education portfolio, is on top of £15 million of extra support announced for the sector in February.

“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 with the institution since financial issues came to light,” she said.

“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 the University’s leadership works with us, and engages fully with staff and trade unions, to explore all options to protect jobs.

“Work will continue in the coming days to convene the right range of expertise from across government, the sector, and the wider city region to support the institution as it continues to develop its Financial Recovery Plan.

“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 support the sector with financial challenges – challenges which have been compounded by UK Government policies on migration and employer National Insurance contributions.” 

Chief Executive of Scottish Funding Council Francesca Osowska said: “We welcome Scottish Ministers’ continued commitment to the tertiary sector and confirmation of this additional funding.

“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, said, “We are extremely grateful to the Scottish Government and the Scottish Funding Council as the 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.”