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Scottish Budget 2026-27: Post-budget Statement

20 January 2026

MCR Pathways welcomes positive steps announced in the Scottish Government’s 2026-27 budget statement to support young people, notably increased college funding and the Scottish Child Payments. 

However, many anti-poverty initiatives still lack clarity, ambition and urgency. This must be addressed to eradicate child poverty and drive real equality of outcomes for young people in Scotland.

Child Poverty 

MCR Pathways, alongside other third-sector partners, called for an increase to the Scottish Child Payment. We welcome the rise to £40 per week for families with a child under one year old, which will make a real difference for those who need it most. However, the delay in implementation shows a lack of urgency, and the increased payment should be extended to all families with children under sixteen.

Further anti-poverty measures announced lacked clarity, urgency or transparency. Minimal detail was provided on how extra funding, like the extra £126 million released from the eradication of the two-child limit by the UK Government, will be reallocated. Further announcements regarding funding must be detailed in the upcoming Tackling Child Poverty Development Plan 26-31. 

MCR Pathways led consultations with young people to inform the Scottish Government’s upcoming Tackling Child Poverty Delivery Plan 2026–31. Young people called for universal anti-poverty measures to promote equity, with affordable school uniforms and free, accessible extracurricular activities among the top priorities.

It is encouraging that the Scottish Government has expanded family support packages, introducing universal breakfast clubs, increased funding for wraparound care, wider access to free sports activities and additional support for families over the summer holidays.

Having received this welcoming news, many children and young people continue to feel the weight of poverty right now. It’s imperative that the new Government that comes into place later this year reaffirms its commitment to these measures and in doing everything it can to eradicate child poverty.

Widening Access

As we highlighted in our pre-budget statement, Scotland’s colleges have experienced significant funding challenges. This impacts young people, their hopes and ambitions for the future. 

The Scottish Government’s new commitment of £70 million is essential to the country’s excellent college sector. This investment should not only provide the much needed monetary support needed by our further education institutions, but galvanise them to become institutions for the future. 

It is also encouraging that the Government has announced a crucial £30 million investment into Scotland’s university sector. Furthermore, the continued commitment to apprenticeships provides the vital opportunity for young Scots to pave a path towards a sustainable, ‘well paid job’ in the future. 

Providing this meaningful support to all transitional routes out of secondary education is allowing Scotland’s young people to make informed decisions about their future; choosing the right path for them and their future career goals, rather than which route they feel is the most ‘secure’ long term. 

We are pleased that the additional funding will be given to Local Authorities to address the attainment gap. The poverty-related attainment gap may have reduced in academic year 24/25, but not radically or quickly enough. If the Scottish Government is committed to reaching its 2030 child poverty targets, significant funding in education and education reform is needed to achieve this. 

If we truly want Scotland to have a world class education system, significant investment and radical change is required. 

Trusted Adult Guarantee

In our pre-budget statement, we called on the Government to implement a Trusted Adult Guarantee

A Trusted Adult is a consistent, reliable person who holds a vital place in the wider support network of a young person. They are a person who truly believes in the power of a young person’s ability to ignite their own potential and make informed decisions about their futures. 

At MCR Pathways, our dedicated volunteer mentors act as a Trusted Adult by ensuring a young person has someone in their corner to spark potential, awaken ambition, and provide confidence and guidance. 

By supporting young people to overcome barriers to breaking cycles of poverty and helping them to choose a career pathway that’s right for them, a Trusted Adult can provide a high-impact and cost-effective model for Scotland’s economy. This approach can directly address skills shortages and employment gaps. However, this cannot be done alone. For a Trusted Adult Guarantee to work, the Scottish Government must support a whole systems change to truly ensure that young people are supported throughout society and across all sectors.

“As a young person who has been a mentee in MCR Pathway’s mentoring programme, I believe the Scottish Government providing support to the Trusted Adult Guarantee would be a significant contribution in helping young people, like me, who were empowered by their mentors to follow paths that suited them as individuals and achieve milestones towards reaching them. 

“In my personal experience, having mentoring encouraged me to pursue academia and develop a passion for policy on a wider level whilst gradually improving my self-confidence. Many young people would tremendously benefit from this” – Nabia, Young National Advisory Board Member

Scotland must continue to address the disparities faced by young people and their families living in, or on the brink of, poverty. 

We welcome the investment for young people that has been laid out, particularly the increased funding towards colleges, universities and apprenticeships. These are vital in supporting young people towards sustainable career pathways and economic independence. Yet, delayed commitments and a lack of transparency means that many families are still not receiving the immediate action or reassurance they need to help relieve the impact of rising costs. We urge the Government to extend its ambitions with a clear, resourced path to eradicating child poverty in the longer-term.

MCR Pathways will continue to demonstrate the power of volunteer mentoring and the need for a Trusted Adult Guarantee to ensure every young person has the best possible start in life with someone to help them find their way.

You can find out more about our Policy and Public Affairs work here.

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