Education (Scotland) Bill: business and regulatory impact assessment

Summary and Recommendation

New Qualifications Body

Option 1

Total benefit per annum: - economic, environmental, social

• No benefits

Total cost per annum: - economic, environmental, social - policy and administrative

• Reform budget and resources could be re-prioritised to other initiatives. The continuation of service delivery and no disruption to this as a result of reform activity. No costs other than the current allocation of SQA’s budget as no implementation required. For 25/26 the forecasted budget is £58,336,000. Cost of not replacing and reforming and addressing current concerns.

Option 2

Total benefit per annum: - economic, environmental, social

• Continuation of delivering the essential qualifications services to their diversity of users with less disruption to the system, including staff at SQA.
• Reform savings estimated between £525,000 - £858,000 as new costs associated with branding work, estate fit-out and costs associated with transferring staff to a new NDPB.
• The benefits of the proposed non-legislative changes could be realised more quickly.
• Retention of some positive reputation associated with SQA brand such as in international settings, and with awarding bodies.
• Lost opportunity to strengthen the body’s governance through robust legislation.

Total cost per annum: - economic, environmental, social - policy and administrative

• Lost opportunity to address reputational damage associated with SQA brand. Risk that reforms may still fail to address concerns around trust, service delivery and stakeholder engagement.
• Potential for a reliance on SQA reforming itself – a concern expressed by public and Parliament.

Option 3

Total benefit per annum: - economic, environmental, social

• Delivers on OECD recommendation for a single body.
• Provides a single voice for curriculum, qualifications and assessment.
• Potential for greater policy alignment between curriculum and the Senior Phase.

Total cost per annum: - economic, environmental, social - policy and administrative

• Costs were calculated as part of review of Professor Muir’s recommendation.
• Added complexity in the system that would not simplify the role and activity of institutions as the OECD’s report intended.
• Greater one-off programme costs and a longer lead in time required to create a brand new, and potentially entirely different body with different structures. This includes staff and property transfer, the development and design of products and services, creation of new shared services within a new body, creation of new and reformed governance processes.
• Depending on type of body, could see a change in relationship between the current operations and with Ministers for both SQA and Education Scotland. Questions regarding operational independence and need for a closer relationship with Ministers.

Option 4 (chosen)

Total benefit per annum: - economic, environmental, social

• Deliver on Programme for Government and Bute House commitments.
• Opportunity to support a new approach to culture for the qualifications body, aligned with wider education and skills reform.
• Opportunity to reset relationships with the new qualifications body and its stakeholders, to build trust and reputation.
• Stronger basis for quick and efficient implementation of the necessary changes once legislation is passed.
• Embeds a stronger legislative framework for the governance of Qualifications Scotland compared to SQA. This includes robust legislative measures for the separation of its awarding and accreditation functions; and strengthened stakeholder governance arrangements.
• Reform and replacement being driven by Ministers in collaboration with the education and skills system, rather than by SQA itself.

Total cost per annum: - economic, environmental, social - policy and administrative

• One-off costs on branding/website and staff costs such as transfer of staff via any potential mechanism, such as the Transfer of Undertakings Regulation 2006 (TUPE) estimated to be between £1,039,000 and £1,487,000.
• Slower realisation of some benefits that could be delivered without legislation.
• Positive perceptions of the SQA brand – particularly evident within the employer, industry, training providers and awarding body sectors –need to be carefully managed in the transition to the new organisation

New Inspectorate

Option 1

Total benefit per annum: - economic, environmental, social

• No benefits - the inspection function would remain part of same body charged with supporting improvement.

Total cost per annum: - economic, environmental, social - policy and administrative

• Costs associated with the current running and allocation of Education Scotland budget.

Option 2

Total benefit per annum: - economic, environmental, social

• Continuation of delivering inspection of education provision.
• Would have taken forward OECD recommendation to split the operating functions of Education Scotland.

Total cost per annum: - economic, environmental, social - policy and administrative

• Perception that Scottish Government making substantial financial investment to retain full legislative control of inspection, with Scottish Ministers.
• Perception that could in effect bring the Inspectorate closer to Scottish Ministers.
• Criticism that level of independence is not in line with that recommended by Professor Muir.

Option 3 (chosen)

Total benefit per annum: - economic, environmental, social

• Independent body established with new legislative foundations – as recommended by Professor Muir.
• Shift in legislative powers from Scottish Ministers to HM Chief Inspector – in that decisions and direction of inspection of education will now be taken forward by independent office-holder.

Total cost per annum: - economic, environmental, social - policy and administrative

• Seeking Parliamentarian time to consider new legal structures being sought.
• Criticism over time taken to establish through new legislation and become fully operational.