The Scottish Government has announced an ambitious Fairer Funding pilot aimed at eradicating child poverty by delivering over £60 million in multi-year grants to organisations across Scotland.
This initiative underscores the government's commitment to tackling socio-economic challenges and fostering inclusive growth.
The Fairer Funding pilot, subject to budget approval, is set to provide 45 grants to a range of organisations working in critical areas such as health, education, poverty alleviation, and culture. The funding is expected to total £61.7 million for the 2025-26 fiscal year, with an increase to £63.2 million in 2026-27. This substantial financial boost is designed to support long-term projects that address essential services and contribute to the overarching goal of reducing child poverty.
The Scottish Government's top priority remains the eradication of child poverty, and this pilot project is a significant step towards achieving that goal. By investing in essential services, the Fairer Funding pilot aims to empower communities, improve the quality of life for children and families, and create a more equitable society.
Social Justice Secretary, Shirley-Anne-Somerville, said:
“I know many charities, faced with rising costs and falling donations, need more security and stability to enable them to plan and develop. Child poverty, in particular, requires longer-term interventions to help achieve the solutions we want to see. For that, the third sector needs financial stability and certainty. That’s why I have prioritised delivering on our commitment to provide more multi-year funding where we can to support the vital work of the third sector in Scotland, as part of our fairer funding approach.
“The pilot is the first step in mainstreaming multi-year funding agreements more widely across the third sector. It will give organisations the ability to plan for the future and make the most of their resources. The pilot’s focus on grants connected to tackling child poverty and the delivery of frontline services to our communities will maximise the impact of longer term funding and support the delivery of our number one priority, eradicating child poverty.”

Health, education, poverty alleviation, and culture are the key focus areas of this initiative. Projects funded under this pilot will be instrumental in providing comprehensive support to vulnerable populations, ensuring that children have access to the resources they need to thrive. This strategic investment is expected to drive positive outcomes in health and well-being, educational attainment, and cultural enrichment.
The success of the Fairer Funding pilot hinges on collaboration between the government, organisations, and communities. By working together, stakeholders can develop innovative solutions to address the complex issue of child poverty. The multi-year nature of the funding ensures that projects have the stability and resources necessary to make a lasting impact.
Organisations receiving grants will be accountable for demonstrating measurable outcomes and progress in their respective areas. This approach promotes transparency and accountability, ensuring that the funds are used effectively to create meaningful change.
As the Fairer Funding pilot rolls out, the Scottish Government remains steadfast in its commitment to eradicating child poverty. This initiative represents a bold step towards creating a fairer, more inclusive Scotland where every child has the opportunity to succeed.
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