COLLEGES have attacked the Scottish Government over claims funding for the sector is on the increase despite cuts to the money spent on teaching students.

The row follows revelations in The Herald on Monday that thousands of Scots are being turned away from colleges at a time when there are growing concerns over youth unemployment.

As part of its response to the significant waiting lists being reported by colleges, the Scottish Government argued that overall funding has increased – including money for student bursaries and capital spending.

However, John Henderson, chief executive of Scotland's Colleges, has now written to The Herald arguing the Government is ignoring the significant cuts to the amount of money provided for teaching.

The Educational Institute of Scotland (EIS) teaching union has also accused the Government of "sleight of hand" over the figures and warned the 1800 job losses already recorded could get worse.

Mr Henderson said the core teaching grant for colleges fell in cash terms by 8% in the last budget – a £33.5 million drop – and just over 10% the previous year. And he said last year's cut would also have amounted to 10% had £8m of teaching grant from the coming 2013/14 budget not been brought forward by the Scottish Funding Council.

"At a time when considerable attention is being placed on the issue of training and skills, particularly for our young people, the fact that demand for places is outstripping supply needs to be addressed," said Mr Henderson.

"The success of colleges in attracting these applications does highlight just how big a challenge it will be for the Scottish Government to deliver on its Opportunities for All pledge of a guaranteed place in education or training for all young people, particularly when funding for teaching is reducing year on year.

"We hope frontline teaching funds for colleges will be given priority in the Scottish Government's coming budget, as a skilled and educated workforce is essential if Scotland is to make a full economic recovery."

Larry Flanagan, general secretary of the EIS, added: "It is clear there has been a reduction in funding to colleges and no amount of sleight of hand on the part of the Government can alter that.

"Opportunities for students in terms of course choice are decreasing and we are concerned about the future for full-time lecturing jobs."

However, the Scottish Government again stressed overall funding to colleges will see an investment of almost £5 billion in the sector between 2007 and 2015.

Education Secretary Michael Russell said college funding has risen to a total of £546m this year and that college numbers for 2012/13 would be maintained at 116,000.

"We have an unshakeable commitment to ensuring our young people get the best chance to fulfil their potential.

"We have funded the same level of college learning as last year and every 16 to 19-year-old in Scotland is guaranteed an offer of a place in education or training through Opportunities for All," he said.

"Thousands of young people have taken up a college place or are in the process of doing so. Furthermore, there are still hundreds of places available for our talented and motivated young people to take up.

"Despite our budget being significantly cut by the UK Government, we are investing in the future of our young people."

Earlier this week, The Herald revealed that at least 10,000 students are on waiting lists, with the final total likely to be significantly higher.