Scottish Budget: draft budget 2018-2019

Chapter 7: Education and Skills

Portfolio Responsibilities

Education is our Government’s defining mission and we are determined to improve the life chances of our children. The Education and Skills portfolio includes early years provision; support for children and families, with specific focus on those in greatest need; school education; further and higher education; university research, knowledge exchange and innovation; science; the promotion of Gaelic; community and adult learning and development; expanding the opportunities to move into sustained employment and develop the skills of our current and future workforce.

2018 is the Year of Young People. This presents an opportunity to celebrate the achievements and potential of all young people, champion their rights and embed this in all that we do.

Our Priorities

All children and young people, whatever their background or circumstances, deserve the same chance to reach their full potential. That is why improving outcomes for children, young people and their families is at the heart of this Government’s agenda and spending plans. Our top priorities are to raise attainment and close the attainment gap; promote health and wellbeing; and improve skills and employability.

Ensuring the best start in life for every child contributes to each of these four high-level priorities. Everyone will benefit in future if we invest in our young people now. Focusing on the early years, embedding an approach rooted in prevention and early intervention, supports those children and families who will benefit most.

This budget will therefore include:

• £243 million of investment in expanding free early learning and childcare;
• £179 million in raising attainment and closing the attainment gap; and
• real-terms increase in both college and higher education budgets.

Learning Priorities

As set out in the Programme for Government, we will continue with our reform agenda, driving higher standards and closing the attainment gap through our National Improvement Framework. This will include the introduction of an Education Bill to empower parents, teachers and children to make the key decisions in the life of their school. This significant legislation will be backed with greater financial control for headteachers and greater support to teachers in the classroom.

We will continue to invest resources through our Attainment Scotland Fund to close the attainment gap, targeting funding at schools and local authorities in need including significant additional resource through the Pupil Equity Funding programme. For improvement purposes, we will continue to gather, publish and analyse data on the achievement of Curriculum for Excellence (CfE) levels, informed for the first time this year by national standardised assessments.

We will align the current functions of key national education bodies to ensure that inspection, curriculum development, improvement, professional learning and leadership are supported in a coherent way which is relevant and useful to teachers, children and parents.

We will also continue to invest in Scotland’s school estate, bringing forward new proposals to build on the success of the Scotland’s Schools for the Future Programme.

In 2018-19 we will:

• allocate £179 million to the Scottish Attainment Fund for 2018-19 including £120 million in Pupil Equity Funding to be spent at the discretion of headteachers on closing the attainment gap, enabling headteachers to secure the additional staffing or resources they need to support pupils affected by poverty and boost attainment levels;
• implement a range of education reforms to empower our teachers, parents and communities to deliver excellence and equity for our children;
• strengthen the role of parents in their child’s education through the Education Bill;
• work to establish a Headteachers’ Charter that defines their responsibilities as leaders of learning in schools and sets out the support they can expect;
• ensure that we develop the right number of skilled new teachers whilst maintaining teacher numbers and continue to invest in the quality of our teaching profession, through strengthening initial teacher education and investing in new routes to teaching and high quality professional learning, and creating a specific recruitment campaign for headteachers;
• provide support for developing the curriculum, including through implementing the targeted actions set out in the STEM Education and Training Strategy;
• continue to implement the Doran review through £10 million of funding to organisations which provide support to children and young people with complex additional support needs, and implement the extension of children’s rights under the Additional Support for Learning Act; and
• support our commitments to grow Gaelic education and increase the numbers speaking, learning and using Gaelic.

Children and Families Priorities

The Children and Families budget supports our work to give every child the best possible start in life through the Getting it Right for Every Child approach. Drawing on our learning about the impact that Adverse Childhood Experiences can play in inhibiting healthy development and attainment, we will continue to focus on embedding early intervention and preventative approaches.

We will also address the issue of children’s rights, as enshrined in the UN Convention of the Rights of the Child, a fitting priority for the Year of Young People.

The significant expansion of early learning and childcare remains fundamental to the ambition of best start for every child, increasing access to high quality early learning for the under-5s.

In 2018-19 we will:

• invest a total of £243 million in 2018-19 to progress our ambitious goal of 1,140 hours of fully funded early learning and childcare from 2020. This includes guaranteeing funding for local authorities (shown in Table 7.09) supporting the recruitment and training of staff, the delivery of new premises, and ensuring that some communities begin to benefit from the increase to 1,140 hours ahead of 2020;
• listen to the voices of our most vulnerable children and young people expressed through the independent Care Review and begin to implement the recommendations as they emerge;
• take forward legislation to increase the Minimum Age of Criminal Responsibility and to support the introduction of the Named Person service;
• sustain a strong focus on delivering our Child Protection Improvement Programme, including implementation of the recommendations from the Child Protection Systems Review;
• develop a framework to support disabled children, young people and their families around information and rights, accessibility of services and transitions;
• explore further the introduction of a Young Carer’s Allowance to provide extra support for young people with significant caring responsibilities;
• continue to deliver a Baby Box offering essential items for a child’s first weeks to the families of all newborn babies in Scotland;
• establish the Best Start Grant which will provide financial support at key points in the early years of a child’s life for those who need it;
• continue to meet the full costs of the Scottish Child Abuse Inquiry;
• contribute to delivery of upskilling and raising the quality of the social service workforce; and
• promote participation of children and young people as part of the Year of Young People 2018, including in discussions about Brexit. The Year will aim to inspire Scotland through its young people, celebrating their achievements, valuing their contribution to our communities and creating new opportunities for them to shine locally, nationally and globally.

Advanced Learning and Science Priorities

This budget principally supports policy and development relating to qualification accreditation and promotion of Scottish Credit and Qualifications Framework ( SCQF); and international mobility opportunities to enhance employability for students and promote Scotland as a destination to study.

It also supports work to promote Scotland as a science and innovation nation, and enables the best use to be made of science advice and knowledge. This includes support for science engagement and promotion across Scotland, such as that delivered through our science centres and science festivals.

In 2018-19 we will:

• support the work of the Chief Scientific Adviser and the Scottish Science Advisory Council to ensure we make best use of science advice, knowledge and techniques;
• maintain funding for access for Scottish students to take part in international exchanges and to attract talented students to study in Scotland; and
• take account of the findings from the 15-24 Learner Journey Review including the detailed consideration of policy propositions.

Scottish Funding Council Priorities

The Scottish Funding Council ( SFC) budget invests in Scotland’s further and higher education sectors. Scottish Government funding combines with other sources of complementary investment secured by colleges and universities to achieve excellence and equity in education for learners through the delivery of teaching, research and innovation activities that will drive Scotland’s productivity and sustainable economic growth.

In 2018-19 we will:

• deliver a real-terms increase in SFC funding, including a real-terms increase in both college and higher education budgets;
• work in partnership with our colleges and universities to provide high quality learning and teaching; improve Scotland’s skills base; enhance knowledge exchange; and maximise the impact of research, innovation and internationalisation in line with the recommendations of the Enterprise and Skills Review;
• contribute to the ambitions of the Strategic Board for Enterprise and Skills, and drive improved skills alignment and investment, alongside Skills Development Scotland;
• work with the college and university sectors to address gender equality at all levels from course choices to senior staff and boards;
• contribute to the implementation of the STEM strategy, in particular increasing participation in STEM study and research at colleges and universities;
• support the expansion of the Early Learning and Childcare ( ELC) workforce;
• provide additional investment of over £5 million for initial implementation of the findings of the Independent Review of Student Support;
• work with colleges and universities to deliver our ambition for equal access to higher education by 2030, including ensuring that every care-experienced young person who meets the entry requirements is offered a place at a Scottish university; developing our evidence base on access-related issues; and supporting the work of the Commissioner for Fair Access;
• maintain at least 116,000 full-time equivalent college places, meeting the needs of learners and the economy, raise attainment levels and increase the numbers of students successfully completing courses and achieving qualifications;
• continue to develop the Flexible Workforce Development Fund to promote partnership working between colleges and employers to deliver high quality training opportunities to up-skill and re-skill the workforce; and
• work with the higher education sector to use financial transactions funding to invest in low carbon energy saving projects, estates development and innovation.

Higher Education Student Support Priorities

In 2018-19 we will:

• guarantee that higher education will remain free of tuition fees for all eligible Scottish or EU domiciled undergraduate students;
• ensure every care-experienced student under 26 will receive a full £7,625
  non-repayable bursary to finance their studies;
• expand the postgraduate support package to ensure that financial support is available for those who undertake courses by distance and digital learning; and
• raise the repayment threshold for student loans so that, by the end of the Parliament, graduates will not start to repay their loan until they are earning £22,000; and the maximum repayment period is reduced to 30 years.
• In 2018-19 the Student Awards Agency Scotland will:
• help support the education sector to increase the number of students in Higher Education from the 20 per cent most deprived communities; and
• continue to improve the safety and security of our IT operating environment and keep abreast of technology changes to reflect service delivery in a digital age.
  

Skills and Training Priorities

Scotland’s skills system is strong and makes a crucial contribution to our labour market and economy. We continue to enhance and diversify the routes through which we provide skills support. Our successes include fulfilling our commitment to reduce youth unemployment by 40 per cent, four years ahead of schedule. Our focus will be on enhancing the skills development opportunities required to meet Scotland’s future economic needs and opportunities.

In 2018-19 we will:

• further expand Modern Apprenticeship starts to 30,000 a year by 2020; including new graduate level opportunities;
• continue to support the Developing the Young Workforce ( DYW) strategy and to fund growth in Foundation Apprenticeships for school pupils and the network of regional industry-led DYW Regional Groups;
• continue to invest £10 million in the Flexible Workforce Development Fund ( FWDF), to provide inform future skills support for our existing workforce;
• begin to use £12 million of European Structural Funds to address regional skills inequality, in line with emerging industries and markets, and to encourage inward investment in our communities;
• enhance skills alignment across the Scottish Funding Council and Skills Development Scotland to ensure that employer demand is systematically built into investment in skills;
• deliver more work-relevant learning to young people in school, giving them appropriate skills for the current and future jobs market, including creating new vocational learning options in our colleges; enabling young people to learn in a range of settings in their senior phase of school; and embedding employer engagement in education; and
• continue to deliver Education Maintenance Allowance ( EMA) to young people aged 16-19 from low income households. EMA is available to young people in post-compulsory education at school, non-advanced college course and on Activity Agreements.

Spending Plans

Table 7.01: Education and Skills Spending Plans (Level 2)

Level 2	2016-17 Budget £m	2017-18 Budget £m	2018-19 Draft Budget £m
Learning	201.5	217.0	237.7
Children and Families	117.2	167.2	151.5
Advanced Learning and Science	6.7	6.2	6.2
Scottish Funding Council	1,682.1	1,734.8	1,838.0
Higher Education Student Support	876.3	940.0	946.4
Skills and Training	232.6	223.7	232.8
Total Level 2 Education and Skills	3,116.4	3,288.9	3,412.6
of which:
Fiscal Resource	2,425.0	2462.2	2,577.8
Non-cash	212.6	212.3	235.8
Capital	85.5	157.4	131.0
Financial Transactions	14.0	14.0	40.0
AME	379.3	443.0	428.0
Central Government Grants to Local Authorities	4.5	124.5	326.7

Table 7.02: Education and Skills Spending Plans (Level 2 real terms) at 2017-18 prices

Level 2	2016-17 Budget £m	2017-18 Budget £m	2018-19 Draft Budget £m
Learning	204.6	217.0	234.2
Children and Families	119.0	167.2	149.3
Advanced Learning and Science	6.8	6.2	6.1
Scottish Funding Council	1,707.7	1,734.8	1,811.2
Higher Education Student Support	889.6	940.0	932.6
Skills and Training	236.1	223.7	229.4
Total Level 2 Education and Skills	3,163.9	3,288.9	3,362.8
of which:
Fiscal Resource	2,461.9	2,462.2	2540.2
Non-cash	215.8	212.3	232.4
Capital	86.8	157.4	129.1
Financial Transactions	14.2	14.0	39.4
AME	385.1	443.0	421.8
Central Government Grants to Local Authorities	4.6	124.5	321.9

Table 7.03: Learning Spending Plans (Level 3)

Level 3	2016-17 Budget £m	2017-18 Budget £m	2018-19 Draft Budget £m
Education Scotland	23.3	21.5	20.5
Gaelic	23.2	23.2	23.2
Learning and Support	36.7	27.1	35.8
People and Infrastructure	67.5	76.8	81.2
Education Analytical Services	2.7	2.7	2.2
Strategy and Performance	48.1	65.7	74.8
Total Learning	201.5	217.0	237.7
of which:
Fiscal Resource	168.0	188.2	232.5
Non-cash	2.8	2.4	1.6
Capital	26.7	22.4	3.6
Financial Transactions	4.0	4.0	-

What the Learning budget does

The majority of expenditure on school education in Scotland is funded by local authorities from budgets outlined in the Local Government chapter. The Learning budget will deliver targeted national programmes and related support to Scottish education. This budget includes implementation of the priorities set out in the National Improvement Plan for Scottish Education and will also continue to support the Attainment Scotland Fund. It will also facilitate the delivery of programmes, such as Read, Write, Count and support delivery of National Qualifications.

Table 7.04: Children and Families Spending Plans (Level 3)

Level 3	2016-17 Budget £m	2017-18 Budget £m	2018-19 Draft Budget £m
Care and Justice	32.6	37.4	38.5
Care and Protection	23.3	12.5	14.1
Disclosure Scotland Expenditure	0.8	5.3	14.8
Office of the Chief Social Work Adviser	16.8	19.2	19.2
Creating Positive Futures 1	43.7	92.8	64.9
Total Children and Families	117.2	167.2	151.5
of which:
Fiscal Resource	110.3	124.8	138.3
Non-cash	2.8	2.3	5.3
Capital	4.1	40.1	7.9

¹ 2018-19 Budget figure has been amended to reflect the repositioning of £150 million indirect capital and £52.2 million resource from the Creating Positive Futures line into the Central Government Grants to Local Authorities Table 7.09 where it is now identified as Local Government Early Learning and Childcare Expansion Grant.

What the Children and Families budget does

The Children and Families budget supports a broad range of activity to improve outcomes for children, young people and families, in pursuit of Getting it Right for Every Child. The most significant component of our expenditure in the period until 2020 is dedicated to the expansion of Early Learning and Childcare, included within the Creating Positive Futures budget line, along with additional £202.2 million specific resource and capital grant to local authorities shown separately in Table 7.09.

The Children and Families budget also includes the costs of Disclosure Scotland, expenditure on the Scottish Children’s Reporters Administration and Children’s Hearings Scotland (Care and Justice) along with the Scottish Social Services Council (Office of the Chief Social Work Adviser).

Table 7.05: Advanced Learning and Science Spending Plans (Level 3)

Level 3	2016-17 Budget £m	2017-18 Budget £m	2018-19 Draft Budget £m
Higher Education	1.5	1.5	1.5
Qualifications and Accreditation	2.2	1.7	1.7
Science Engagement and Advice 2	3.0	3.0	3.0
Total Advanced Learning and Science	6.7	6.2	6.2
of which:
Fiscal Resource	6.7	6.2	6.2
Non-cash	-	-	-
Capital	-	-	-

² Budget line formerly ‘Office of the Chief Scientific Adviser’

What the Advanced Learning and Science budget does

The Advanced Learning and Science budget supports policies relating to qualification accreditation; international student mobility activity; and promotion of studying in Scotland. Science engagement, including support of Scotland’s science centres and festivals, as well as promoting Scotland as an innovative and scientific nation, is also funded by this budget.

Table 7.06: Scottish Funding Council Spending Plans (Level 3)

Level 3	2016-17 Budget £m	2017-18 Budget £m	2018-19 Draft Budget £m
Scottish Funding Council Administration	7.5	7.5	7.5
College Operational Expenditure	745.1	741.3	778.2
College Operational Income	(184.8)	(190.0)	(190.0)
Net College Resource	560.3	551.3	588.2
College NPD Expenditure	24.4	29.1	29.3
College Depreciation Costs	-	30.1	30.1
Higher Education Resource	1,027.2	1,013.9	1,024.9
College Capital Expenditure	50.0	70.4	78.7
College Capital Receipts	(23.0)	(23.0)	(2.0)
Net College Capital	27.0	47.4	76.7
Higher Education Capital	25.7	45.5	41.3
Higher Education Financial Transactions	10.0	10.0	40.0
Total Scottish Funding Council	1,682.1	1,734.8	1,838.0
of which:
Fiscal Resource	1,589.1	1,601.5	1,649.7
Non-cash	30.3	30.4	30.4
Capital	52.7	92.9	117.9
Financial Transactions	10.0	10.0	40.0

What the Scottish Funding Council budget does

The Scottish Funding Council ( SFC) budget invests in Scotland’s further and higher education sectors. Scottish Government funding combines with other sources of complementary investment secured by colleges and universities to deliver teaching, research and innovation activities that can accelerate Scotland’s productivity and sustainable economic growth. The budget will also support the implementation of Developing the Young Workforce and our ambitions for fair access to higher education.

Table 7.07: Higher Education Student Support ( HESS) Spending Plans (Level 3)

Level 3	2016-17 Budget £m	2017-18 Budget £m	2018-19 Draft Budget £m
Student Support and Tuition Fee Payments	301.6	301.6	301.6
Student Loans Company Administration Costs	4.5	4.2	4.2
Student Loan Interest Subsidy to Bank	3.0	2.0	2.0
Cost of Providing Student Loans ( RAB Charge – Non Cash)	175.6	175.6	196.9
Student Awards Agency for Scotland – Operating Costs – Resource	10.3	11.6	12.1
Student Awards Agency for Scotland – Operating Costs – Capital	2.0	2.0	1.6
HESS DEL Total	497.0	497.0	518.4
Net Student Loans Advanced	491.3	560.0	550.0
Capitalised interest	(55)	(60)	(65)
Student Loans Fair Value Adjustment	(60.5)	(57.5)	(57.5)
Student Loans Sale Subsidy impairement Adjustments	3.5	0.5	0.5
HESS AME Total	379.3	443.0	428.0
HESS Total	876.3	940.0	946.4
of which:
Total Fiscal Resource	318.3	318.3	318.8
Non-cash	176.7	176.7	198.0
Capital	2.0	2.0	1.6
Financial Transactions	–	–	–
AME	379.3	443.0	428.0

What the Higher Education Student Support budget does

The Higher Education Student Support ( HESS) budget provides financial support to Scottish domiciled and EU students undertaking higher education courses in Scotland, and Scottish domiciled students studying in the rest of the UK. This includes the provision of free tuition in higher education. The HESS budget is administered by the Student Awards Agency Scotland ( SAAS).

The Annually Managed Expenditure ( AME) figures are forecasts of the amount of funding anticipated for student loans.

Student loans are provided at a cost to the Scottish Government which is calculated using gross value of loans advanced in the year. The Student Loans Company administers the borrower’s loan accounts on behalf of the Scottish Government.

SAAS administers bursary schemes covering support for higher education students (at college and university).

The student loans Resource Accounting and Budgeting ( RAB) charge is non-cash ringfenced resource to cover the cost of providing student loans and cannot be used for any other purpose.

Table 7.08: Skills and Training Spending Plans (Level 3)

Level 3	2016-17 Budget £m	2017-18 Budget £m	2018-19 Draft Budget £m
Skills Development Scotland	176.1	179.6	193.3
Employment and Training Interventions	56.5	44.1	39.5
Total Skills and Training	232.6	223.7	232.8
of which:
Fiscal Resource	232.6	223.2	232.3
Non-cash	-	0.5	0.5
Capital	-	-	-

What the Skills and Training budget does

The budget includes: funding for the growth and development of the Modern Apprenticeship programme; the expansion of Foundation Apprenticeships in the senior phase; and other programmes aligned with the Developing the Young Workforce strategy – to support young people into employment education or training. It includes the Education Maintenance Allowance, which supports young people to overcome financial barriers to participate in appropriate school and college courses or an Activity Agreement. The budget also supports broader training activity including Inspiring Scotland, and the Flexible Workforce Development Fund.

Table 7.09: Central Government Grants to Local Authorities Spending Plans (Level 3)

Level 3	2016-17 Budget £m	2017-18 Budget £m	2018-19 Draft Budget £m
Local Government Gaelic Grant	4.5	4.5	4.5
Local Government Attainment Grant	-	120.0	120.0
Local Government Early Learning and Childcare Expansion Grant	-	-	202.2
Total Central Government Grants to Local Authorities	4.5	124.5	326.7
of which:
Fiscal Resource	4.5	124.5	176.7
Non-cash	-	-	-
Capital	-	-	150.0

What the Central Government Grants to Local Authorities budget does

This budget supports local authorities with any additional costs associated with the delivery of Gaelic education and Gaelic-medium education in Scotland. There are currently 23 authorities in receipt of grant from this fund for a wide range of Gaelic education programme and projects. It also provides specific resource and capital funding to all 32 local authorities to support the necessary infrastructure and workforce investment required to deliver our Early Learning and Childcare expansion to 1,140hrs by August 2020, and to provide an additional graduate to work in nurseries supporting our most deprived communities from August 2018.