£16.2m to increase college places

However, principals described it as "disappointing" that not all colleges would benefit, and student leaders warned that more financial support would also be needed as a result.

Unemployed youngsters aged 16-24 must be the focus of the additional places, under conditions attached to the cash from the Scottish Funding Council (SFC).

Of the total, 6.7m has come from the European Social Fund (ESF), specifically to target areas hit by the recession.

Motherwell College and Stevenson in Edinburgh are to receive the most, being the only institutions to receive more than 1m.

Motherwell has been allocated nearly 1.5m and Stevenson just over 1m. A spokeswoman for Motherwell said the college was experiencing an increase in applications.

She said: "This additional funding is welcomed to enable the college to play a key role in helping individuals, particularly young unemployed, to deal with the impact of the economic downturn by offering training in the skills needed to work in business and industry."

In total, 29 of Scotland's 43 colleges are to benefit from the additional finance.

Liam Burns, president of the National Union of Students in Scotland, said the additional places were welcome given the huge increase in applications expected next year. However, he feared there was not enough money for student support.

"Financial hardship and debt levels are through the roof for the poorest students at the moment," Mr Burns said.

"We need additional funding to ensure bursary funds can meet demand, but we also need a fundamental look at the way students are supported at Scotland's colleges to ensure that funds don't run out halfway through courses again."

College principals said it was disappointing that not all colleges had benefited.

Linda McTavish, convener of Scotland's Colleges' Principals' Convention, said she was pleased the funds were being targeted at those who need it most – in areas of high unemployment.

But she went on: "It is disappointing, however, that additional funding is not being allocated to all colleges in Scotland to cope with the increasing demand for college places."

Earlier this month, the SFC announced a real-terms decrease in funding for colleges overall. Last year, colleges warned they would have to reject a record number of applications as lack of jobs created huge demand.

Mark Batho, SFC chief executive said: "We welcome the additional resources from the ESF which has allowed us to provide a good package for colleges to open up new learning opportunities to young people."