Scottish Budget Spending Review 2007

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CHAPTER 22: EDUCATION AND LIFELONG LEARNING

Table 22.01 Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Schools

136.1

133.2

136.1

140.8

Children, Young People and Social Care

115.6

103.4

105.5

102.8

Student Awards Agency for Scotland ( SAAS)

539.1

509.1

507.7

533.8

Scottish Further and Higher Education Funding Council

1,633.9

1,673.3

1,755.1

1,812.8

Other Lifelong Learning

94.0

113.0

104.4

108.8

Total

2,518.7

2,532.0

2,608.8

2,699.0

Student Loans Subsidy to Banks (outside TME)

13.2

4.5

4.5

4.5

SCHOOLS

Table 22.02 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Teachers 1

28.0

27.9

30.5

37.8

Schools 1

17.1

17.5

16.1

11.5

Support for Learning 2

17.2

16.1

15.4

15.2

Qualifications, Assessment and Skills 2, 3

29.3

32.1

32.5

35.6

Curriculum 3

29.4

23.8

25.8

24.7

HM Inspectorate of Education

15.1

15.8

15.8

16.0

Total

136.1

133.2

136.1

140.8

Notes:
1. This budget has been reduced by transferring all local authority funding for Schools to local government (chapters 17 and 27).
2. These figures take account of restructuring within the portfolio, whereby Pupil Support and Inclusion funding was distributed between Support for Learning and Qualifications and Skills.
3. These figures take account of restructuring within the portfolio, whereby New Educational Developments and Curriculum combined to form Curriculum.

What the budget does

The budget supports policy and workforce development relating to all aspects of education in schools. This involves working with and through local authorities and others. It also supports the inspection programme of HM Inspectorate of Education and the activities of other public bodies such as Learning and Teaching Scotland and the Scottish Qualifications Authority.

The budget represents only a fraction of total public sector spend on education, with the main spend being channelled through local authorities.

Budget changes

Significant new or increased expenditure includes an extra £0.0m/£3.0m/£11.0m to fund further teacher training and facilitate the reduction of class sizes in P1, P2 and P3, as well as an additional £2.0m/£5.0m/£8.0m for the new National Qualifications Framework.

CHILDREN, YOUNG PEOPLE AND SOCIAL CARE

Table 22.03 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Workforce and Capacity 1

70.9

58.7

63.5

61.0

Care and Justice 1

14.4

9.8

9.7

9.8

Prevention 1

10.0

15.9

13.8

12.9

Positive Futures 1

3.8

3.0

3.0

3.3

Organisation 1

8.6

8.5

7.9

7.7

Information and Analytical Services 1

3.6

3.2

3.2

3.5

Social Work Inspection Agency

4.3

4.3

4.4

4.6

Total 1

115.6

103.4

105.5

102.8

Note:
1. This budget has been reduced by transferring all local authority funding for Children and Young People to local government (chapters 17 and 27).

What the budget does

The budget supports workforce development and broader improvement in social services and the policy development and provision of a range of services for children, young people and families, particularly the most vulnerable. This involves working with and through local authorities and health boards as well as the voluntary and independent sectors. It also funds the Scottish Social Services Council and the Scottish Children's Reporters' Administration, provides grants to voluntary organisations and funds research initiatives. The budget also supports the inspection programme of the Social Work Inspection Agency.

This represents only a fraction of total public sector spend on services for children, young people and families, with the main spend being channelled through local authorities and health boards.

Budget changes

From 2008, the total budget has been reduced as projects come to an end. Significant new or increased expenditure includes £0.2m/£0.4m/£0.7m for the development and implementation of a flexible early years development teaching degree. £5.0m/£3.0m/£2.0m will also be allocated towards work on the response to and prevention of domestic abuse and the development of a National Action Plan.

The Prevention budget is boosted by an additional £1.4m/£4.4m/£4.4m which will be used to develop and support interventions to ensure that all young people (especially those at risk) have positive opportunities. The profile of investment in Scottish Children's Reporters' Administration capital projects (£2.5m/£7.5m/£4.6m) contributes to the uneven expenditure pattern set out above.

STUDENT AWARDS AGENCY FOR SCOTLAND

Table 22.04 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

SAAS Running Costs

6.5

6.7

6.4

6.6

SAAS Capital Charges

1.2

1.2

1.2

1.3

Fees, Grants and Bursaries

274.7

281.2

279.5

305.2

Student Loans Company Administration

5.2

5.3

5.5

5.6

Unwinding of Debt Sale Subsidy Provision

7.0

4.0

4.0

4.0

Cost of Student Loans

74.4

74.4

74.4

74.4

Unwinding of Discounts on Write-off Provision

9.0

12.0

12.0

12.0

Student Loans New Lending ( AME) 1

161.1

124.3

124.7

124.7

Total

539.1

509.1

507.7

533.8

Student Loan Interest Subsidy to Banks (outside TME)

13.2

4.5

4.5

4.5

Notes:
1. The reduction between 2007-08 and 2008-09 onwards is due to three factors: the abolition of the Graduate Endowment means that Graduate Endowment loans of £14 million are no longer required from 2008-09 onwards; from 2007-08 student loans will be paid each month rather than each term, increasing figures on a one-off basis in 2007-08 and a reduction in subsequent years of £12 million; and an increase in anticipated student loan repayment income in 2008-09 onwards of £10 million due to new cohorts of students paying student loans.

What the budget does

The agency provides financial support and advice to Scottish domiciled students undertaking courses of higher education in the UK and abroad and to EU students studying in Scotland. Levels of spending are demand-led but capped by the overall control maintained on the numbers of students for which Scottish Further and Higher Education Funding Council funds institutions (see below).

The agency administers schemes covering undergraduate and postgraduate students, and has administered the Graduate Endowment scheme (due to be abolished in 2008). The agency also deals with bursaries for nursing and midwifery students and runs the Individual Learning Accounts Scotland scheme in partnership with learndirect scotland.

Budget changes

The total package for student support reform is valued at £29.0m/£30.0m/£60.0m. This will resource the first step of a phased transition from student loans to grants, starting with part-time students.

The settlement also includes new support for part-time students to be introduced from autumn enrolment 2008 at a cost of £12.0m/£13.0m/£13.0m. Research shows that fee costs can be a financial barrier for many students considering part-time study and this new funding will be a major boost for large numbers of part-time students in higher education. This will help relieve pressures on existing part-time students on low incomes and will reduce barriers and open up new opportunities for people contemplating part-time study to retrain. Consultation on student support and graduate debt proposals will be undertaken in 2008.

SCOTTISH FURTHER AND HIGHER EDUCATION FUNDING COUNCIL ( SFHEFC)

Table 22.05 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Current Funding for Further Education Colleges

526.6

539.5

567.5

580.0

Capital Grants for Further Education Colleges

87.9

89.3

96.9

97.5

Current Funding for Higher Education Institutions

925.1

948.3

987.1

1,030.9

Capital Grants for Higher Education Institutions

85.0

87.4

94.7

95.2

SFHEFC Administration

9.3

8.8

8.9

9.2

Total

1,633.9

1,673.3

1,755.1

1,812.8

What the budget does

The Funding Council budget supports the teaching and learning, research and wider technology transfer activities of 19 higher education institutions (including the Open University) and Scotland's 43 colleges.

Budget changes

The Spending Review settlement provides an increase to the tertiary education system from £1.63 billion in 2007-08 to £1.81 billion in 2010-11. The investment in further and higher education fits clearly with the wider economic strategy of delivering skills for Scotland's people and an economy with a competitive edge. It will support enhanced teaching and learning, research, vocational learning and skills, and
school-college partnerships.

This settlement prioritises capital investment in Scotland's colleges and universities and in new buildings which are flexible, fit for purpose and attractive to students and staff. Over the period of the Spending Review, capital investment in colleges and universities will rise to £193 million by 2010-11. Taking account of Spending Review increases and the £100 million capital addition in 2007-08, the total of planned capital investment from 2007-08 to 2010-11 will increase by 20 per cent from £692 million (if the original 2007-08 budget of £172.9 million had continued) to £834 million (£272.9m/£176.8m/£191.5m/£192.7m).

OTHER LIFELONG LEARNING

Table 22.06 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Learning Connections 1

2.9

2.9

3.9

5.8

Education Maintenance Allowances

44.6

36.7

36.5

36.1

Fellowships administered by the Royal Society of Edinburgh

0.7

1.2

1.7

2.3

Individual Learning Accounts Scotland

19.3

10.5

11.5

12.0

Life Sciences

-

2.0

3.0

5.0

International Lifelong Learning Strategy

-

2.0

2.0

2.0

Scottish Qualification Authority, Vocational Qualification and Skills

1.5

1.7

1.7

1.8

Scottish Credit and Qualifications Framework

0.6

0.6

0.6

0.6

Union Learning

0.8

1.4

1.4

1.4

Skills for Business Network (formerly Sector Skills Council)

0.7

1.0

1.0

1.0

Skills Strategy

-

3.9

7.9

7.9

HQ and Training Grants (Adult learning)

0.7

0.7

0.7

0.7

Determined to Succeed 1

2.8

2.8

2.8

2.8

Young People Who Need More Choices and Chances

2.9

6.4

6.4

6.3

Activity Agreement and Learning Agreement Pilots

-

3.0

3.0

3.0

Research (Analytical Services)

1.3

1.4

1.3

1.1

Scottish University for Industry (formerly learndirect scotland)

9.5

9.5

9.5

9.5

Workforce Plus - National Development Work

-

1.9

1.9

1.7

Skills Development Scotland Ltd

-

16.0

-

-

Careers Scotland Support for Schools - Colleges

-

1.2

1.2

1.2

Science-related Programmes delivered by the Office of the Chief Scientific Adviser

4.3

4.9

5.1

5.3

Miscellaneous

1.4

1.3

1.3

1.3

Total 2

94.0

113.0

104.4

108.8

Notes:
1. Learning Connections has moved to Other Lifelong Learning from Communities Scotland (within the Health and Wellbeing portfolio).
2. Part of this budget has been transferred to local government but will continue to support the same policy objectives and front line activity. The resources local government has available to commit to delivering enterprise education (Determined to Succeed) features in the overall local government allocation in chapters 17 and 27.

What the budget does

This budget supports policy initiatives and development relating to all other aspects of lifelong learning, including science, skills, community and adult learning, Determined to Succeed , Educational Maintenance Allowances and grants for fellowships administered by the Royal Society of Edinburgh. This involves working with and through local authorities and other delivery partners, including the Scottish Science Centres. The budget also includes £2.8 million which the Scottish Government will continue to use to support strategic delivery of Determined to Succeed, adding value to local delivery. The remaining £19.2 million of Determined to Succeed resource has transferred to local government and is ring fenced for specific deployment on the same policy objectives and activities.

Budget changes

Significant new or additional expenditure includes:

  • £16 million in 2008-09 to support the establishment of a new skills body - Skills Development Scotland Ltd;
  • £3.9m/£7.9m/£7.9m linked to the developing skills strategy - this will provide additional support to low paid/low skilled workers through a combination of more money through Individual Learning Accounts Scotland and increased support through learndirect scotland;
  • £0.0m/£1.0m/£3.0m for developing the capacity of the community learning and development (including adult literacy and numeracy) workforce;
  • £2.0m/£2.0m/£2.0m for the implementation of the International Lifelong Learning Strategy, through greater input to UK-wide initiatives and development of new Scottish initiatives such as matched funding to support greater collaboration between institutions on international activities;
  • £3.0m/£3.0m/£3.0m to pilot activity to encourage young people to stay in formal or informal learning; and
  • £2.0m/£3.0m/£5.0m to enhance life sciences in Scotland.