A scheme providing free iPads and laptops to people who are “digitally excluded” will be suspended to help fund council pay deals.

In a letter seen by BBC Scotland News, Finance Secretary Shona Robison said £10m would be saved by pausing funding for Connecting Scotland’s digital devices programme in 2024/25.

The project, which was set up to help people get online during the Covid pandemic, has delivered free internet access and more than 61,000 devices since 2020.

Scottish government funding for other projects including flood defences and the expansion of free school meals will also be diverted to fund council wage settlements.

The Connecting Scotland project has been managed by the Scottish Council for Voluntary Organisations (SCVO).

It mainly issued Chromebooks and iPads to people from vulnerable and low income groups who have no access to a digital device.

While the SCVO delivered previous project phases, it said it had not been involved in planning the future programme linked to the £10m saving.

The finance secretary said diverting the funding was “not a decision we have taken lightly”.

Ms Robison also proposes that £2m is released from the funding for extending free school meals to pupils in P6 and P7 whose families receive the Scottish Child Payment.

The government allocated £43m for free meals in 2024/25, and said the £2m saving could be achieved without “substantively delaying” the expansion.

In addition, Ms Robison proposes diverting £26m from the Flood Risk Management Programme, on the basis the money is not needed by councils this year.

The move comes after environmental charities expressed disappointment over cash set aside for restoring nature also being released to pay for the wage settlements.

An extra £34.5m of funding will be provided by the Scottish government towards the pay offer.

Earlier this month, ministers put an improved deal to council workers to try to avert strikes, with a further £77.5m on the table.

Unions are still considering the offer.

The finance secretary has announced spending controls across government departments.

She said this was due to public sector pay deals, and uncertainty over this year’s budget as a result of the chancellor’s announcement of a spending audit.

She is due to make a statement setting out further details when MSPs return to Holyrood next week.

A spokesperson for local government body Cosla said: “Intense but constructive discussions between Cosla, Trade Unions and Scottish government resulted in additional funding for pay.

“It would not be appropriate to comment on the decisions made by government to enable additional funding for public sector pay settlements.”

The Scottish government said it was taking on “significant additional financial pressure” to fund the council pay rise.

Funding for digital devices and the other programmes is expected to be replaced in 2025/26.

A spokesperson added: “The Cabinet Secretary for Finance has been clear that painful choices have had to be made.

“These decisions will be set out fully in due course.”