Opportunity Scotland: A Paper on Lifelong Learning |
| 15. Funding Learning |
| 15.1 Resources from the taxpayer are limited and must be carefully targeted. We are committed to targeting those resources at areas of greatest need; to supporting the overall system and learning frameworks; and to funding initial development of initiatives such as the Scottish University for Industry and National Grid for Learning which will transform learning opportunities for the future. |
| 15.2 In moving towards the goal of a society where learning through life is the norm for the vast majority of citizens we must recognise that Government will not be in a position to pay for all these learning opportunities. Individuals will need to invest more in their own learning where possible. Employers will need to recognise the business benefits of a skilled and learning workforce and be willing to offer financial and other support to employees to take up learning opportunities. There is also an important role for Government and other partners in ensuring that funding systems are a means of supporting learners in achieving their goals and not a barrier to opportunity. |
| 15.3 The Government has through its Compre-hensive Spending Review, assessed and announced its spending plans and objectives for the medium and long-term. The main focus will be investment in an agenda of modernisation and reform. Underlying these priorities is the desire to widen opportunity, to achieve a fairer society, to tackle social exclusion and to secure and enhance employment opportunities, investment and growth. Lifelong learning will increasingly contribute in various ways to the attainment of these goals and the funding of further education colleges is critical to this. In other areas too policies are being developed, for example |
| under the New Deal and in relation to tackling social exclusion, which will overlap with and take forward our aims for lifelong learning. We will ensure that the policies set out in this paper for lifelong learning are at the heart of decisions regarding the distribution of future funds announced in the context of the Comprehensive Spending Review. |
| FE College funding |
| 15.4 We are determined to raise standards in, and improve access to, the further education sector. The funding methodology for distributing Government grant to the FE colleges has in recent years delivered significant benefits in the form of improved efficiency and a real leap in student numbers. But there has also been a downside. There has been a climate of intense competition between colleges in which they have tended to see each other as rivals rather than partners in providing further education. This has had an effect on the range and pattern of courses offered. Last year we instituted a thorough review of the way colleges are funded and made a start on implementing changes. |
| 15.5 The objective is to move away from a methodology which produced extreme volatility of growth in student activity and hence grant from one year to the next, towards a situation where growth is managed and there is much greater stability year on year. This will assist colleges in sensible planning for the future. Students will benefit from that. We are also introducing links between funding and measures of quality or student achievement. That is definitely a step in the right direction. £1.7 million is also being used this year to promote a series of college specific widening access initiatives and to encourage colleges to consider further co-operative and collaborative ventures which will have visible benefits to students, such as access to wider opportunities and support services. We will also be embarking on a review of the way the colleges use the £44 million which is available this year for bursary support for students. Our intention will be to ensure that bursary resources are put to best use to widen access to further education by helping those who, without some assistance, would be excluded from participation in the lifelong learning experience. |
| 15.6 Further and higher education students will benefit from the Government's decision to double the amount of the Access Funds given to universities and colleges. In 1998/99 the total amount of funds distributed to publicly funded universities and colleges will be £8.7 million. The Access Funds are intended to offer assistance to students who, for whatever reason, may face financial difficulties or whose access to further or higher education might be inhibited by financial considerations. Part-time students will be eligible for assistance from the Access Funds for the first time from 1998/99. Universities and colleges are responsible for deciding which students should receive payments and how much each payment should be. |
| Funding of Higher Education in Scotland |
| 15.7 The Government spends almost £1 billion per year on higher education in Scotland. In per capita terms Scotland spends considerably more on HE than other UK countries. However, as elsewhere in the UK, the expansion in student numbers under the previous administration was not matched by sufficiently increased funding. |
| 15.8 The Government and the Dearing Committee recognised that higher education must have the funding it needs to sustain teaching standards, and to allow more students to go into higher education. Dearing proposed that full-time students in higher education should pay some of the cost of their tuition. The Government agreed and decided to ask future graduates - those who benefit most from higher education - to share a part of the costs by contributing to their tuition fees. However, students from lower income families (about 40% of Scottish students) will not pay tuition fees and their parents will not be asked to contribute to their living costs. Others will find that their parents will not have to contribute more towards tuition fees and living costs combined than under the previous system. |
| 15.9 As part of the Comprehensive Spending Review, the Government announced on 15 July an additional £230 million for higher education institutions (and £214 million for F E colleges ) over the next 3 years. This will keep annual efficiency gains by H E institutions to 1% as recommended by the Dearing Committee. |
| 15.10 Students with dependants and those who are lone parents will continue to receive additional assistance through grant, in recognition of the responsibilities carried by them. From 1999/2000, eligibility for loans will be extended to those aged 50-54 who are planning to return to employment. This will enable those in this age group who wish to improve their employability by retraining, for example after redundancy, to benefit from the Government's new arrangements for loans. |
| Finance for training |
| 15.11 The Government allocates resourcing to Scottish Enterprise (SE) and Highlands and Islands Enterprise (HIE) each year - about £180 million - for training and employment creation measures. This substantial investment within Scotland helps many individuals to realise ambitions in lifelong learning. All concerned - the Government, SE, HIE, LECs, training providers, employers, colleges and others - are working together to maximise the opportunities and to ensure value for money. |
| 15.12 The main resource allocation to adult training is that for Training for Work. Training for Work provision in Scotland in 1998-99 is £64 million, a reduction of 11% over the previous year, reflecting the decline in long-term unemployment and new eligibility criteria, due to the New Deal, which has removed 18-24 year olds from the client group. Provision for Skillseekers, the main programme for young people, in 1998-99 will be £90.6 million, a similar level to the previous year. |
| Objective 4 |
| 15.13 The European Regional Development Fund and the European Social Fund provide extensive assistance towards the creation of training facilities and the provision of training activity. Many of the initiatives already mentioned receive support from the funds. These include FE Colleges, Scottish Enterprise, University for Industry, University of the Highlands and Islands Project, National Training Organisations and the New Deal. For example, European funding has been secured to add to funds already made available by a range of local partners in Grampian to set up a network of study centres which will be housed in a variety of different locations e.g. colleges, employers' premises, community centres etc. The two-year programme will address ways of ensuring access to learning in remote areas and from sections of the community who have not previously been attracted to learning. |