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Chamber and committees

Education and Culture Committee

Meeting date: Tuesday, September 24, 2013


Contents


Draft Budget Scrutiny 2014-15

The Convener

Our second agenda item is evidence on the Scottish Government’s 2014-15 draft budget. The committee has agreed to focus its scrutiny on the Scottish Government’s youth employability commitments, on their funding and on how the policy focus on younger learners is impacting on lifelong learning.

Before I go straight to questions, I apologise to the witnesses for the delay in starting this evidence session because of the rather long earlier evidence session. I hope that you do not mind. As you will have seen, we had to take some very detailed and important evidence on the Children and Young People (Scotland) Bill.

Liam McArthur

Good afternoon. There has been a focus on trying to address employability issues, in particular youth unemployment. We have seen in a recent Audit Scotland report some of the implications of that for older and adult learners. Professor Gallacher referred to that in written evidence. What do you regard as being the current trade-offs and impact of the policy on employability generally among older and adult learners?

Professor Jim Gallacher (Glasgow Caledonian University)

Before I start, convener, I point out for the record that although I am here in my capacity as an independent academic, I am also a member of the board of the City of Glasgow College.

I thank Liam McArthur for his question. An important role for colleges over the years has been to provide a wide range of education opportunities for the post-school population up to older learners.

I do not think that the greater emphasis on providing places for young people is having a huge impact on actual student numbers. As you know, there are complex ways of measuring student numbers, including looking at the number of enrolments, the number of full-time equivalents and the number of weighted student units of measurement. You get different answers depending on which measurement you look at.

12:30

An important point is that there has been a steady move away from part-time provision to a greater emphasis on full-time provision. That has had a significant impact because, traditionally, many older learners were part-time learners. In the college sector there has, over quite a long period, been a move towards greater emphasis on full-time provision. That is associated with a decline in student numbers because, as colleges place more emphasis on having full-time students, they will have fewer actual students. In higher education, that has also been a significant feature, as HE has increasingly moved away from part-time provision. In my written submission, I quote evidence that shows that the number of part-time HNCs has declined very significantly over quite a long period. Increasingly, a lot of HN provision is for full-time HNDs and full-time HNCs.

Therefore, the role of the colleges in providing part-time work-related education has changed significantly. That is an issue that we should really try to address, as I say in my submission. In that respect, modern apprenticeships are also important, given that a lot of emphasis has been placed on the development of advanced apprenticeships, although in some respects not an awful lot is happening in that area. We have a complex situation in which a number of different factors are driving change in the college sector. However, we should consider the underlying question about how we try to ensure that there is good-quality, part-time provision—as well as full-time provision—for the wider age range.

Liam McArthur

Your written submission suggests that the number of part-time HNC courses has declined from around 14,800 back in 2001-02 to 5,380 in 2011-12. Obviously, there will be a variety of reasons for that—the reasons why people take up part-time courses go well beyond employability—but is there potentially a weakness in our overall employability strategy in having too dramatic a shift away from part-time provision, particularly given the needs, as we have heard in previous budget processes, of female learners and older learners? Is that an accurate representation?

Professor Gallacher

Certainly, the college sector as a whole should be very cognisant of those figures. Significant questions should be asked about how we can ensure that there is more high-quality part-time work-based provision than there is at present, and we should look at ways of addressing that trend. As you said, those figures are but part of the overall picture, although they are significant.

Liam McArthur

The focus on full-time course provision has been a clearly stated objective of the Scottish Government. What latitude is there for individual colleges or colleges within regions to take a view about provision that would allow them to address potential weaknesses—for example, a shortfall of part-time provision?

Professor Gallacher

That relates to the point that I made in the final section of my written submission, to which you have drawn attention. We need to consider the range of qualifications that we currently provide and whether that range provides the most appropriate courses for the needs of the Scottish economy at the present time.

We have, for a variety of reasons, seen the kind of changes to which I have pointed. We need to ask how we will begin to address those issues and encourage the college sector. That will involve co-operation with the Scottish Qualifications Authority and employers. Obviously, I have looked at this subject in greater detail, but just recently I happened to hear a piece on the radio about the strength of the German economy. The comment was made that a major strength of the German economy is the number of relatively small employers who place a lot of emphasis on apprenticeship training. We do not have enough of that. We must build up a wide set of links involving colleges, employers and a range of agencies such as the SQA and Skills Development Scotland.

I am conscious of time. I do not want to inhibit questions or answers, but we really have to try to be as snappy as possible. Joan, do you have a quick supplementary?

Joan McAlpine

I have a very quick one. Professor Gallacher’s submission helpfully examines the age profiles of students in colleges from 2009-10 to 2011-12. As you rightly say, the 16 to 24-year-old age group profile goes up. What is interesting is that the 25-59 group—the lifelong learners—stays exactly the same and the only group that has experienced a significant fall is the 60 and over group, which is people of retirement age. Given that the cake is only so big—the Scottish Government is living off a fixed grant—if you had to set priorities, would you say that it is probably correct that the priority is to maintain training for people of employment age? We do not want to cut back on anything, but do you agree that if we have to cut back on something, courses for people who are retired might have to go?

Professor Gallacher

As you suggest, we face difficult choices in everything. It is important to bear in mind the role of the colleges in providing a wide range of education opportunities. In that respect, the colleges have been extremely good at providing opportunities for adult learners to come back into the system. The 25-59 age group has remained relatively stable, which is good. In my paper I quote the number of enrolments; if you were to look at the number of full-time equivalents, you would see a rather different picture in which young people are a much higher percentage of FTEs—the picture turns round.

There has not been a marked decline in the 25-59 age group, no matter how one looks at it, which is very good. At a time of significant change in the economy, although trying to provide opportunities for young people is a priority, it is important that we do not lose sight of the fact that adult students can return to education and gain opportunities. In the past, colleges have in that respect been particularly important for women returners; that is the way in which many have got back into the system. On one level, it is good that there does not seem to have been a marked decline.

We should remember that the impact of the changes in the budget will continue to be significant for some time because of the projected savings that are associated with regionalisation; there will be continuing staff cuts within the college sector. In that situation, we have to be conscious and ensure that we do not significantly skew the role of the colleges.

Liz Smith

I have one very quick question. Your evidence mentions the reclassification of colleges and the implications for their reserves. What discussions have you had with the Scottish Government and the Scottish Further and Higher Education Funding Council between 2010 and now, and what stage you are at?

Professor Gallacher

Do you mean with regard to the Office for National Statistics, in particular?

Yes, because the matter was flagged up in 2010 and it will happen next year.

Professor Gallacher

Obviously the issue is not just for me, but for the whole college sector; I have colleagues in the college sector that are much more involved. The crucial thing now—I have referred to it—is the implications for college reserves. Many colleges have significant reserves and continue to generate significant surplus income at the end of each year. The crucial question will be about how those reserves can be safeguarded.

You will be aware that the current plan is that arm’s-length trusts will be established into which existing reserves and new additional income will be transferred. One of the issues for the colleges is the fact that they will lose control of the trusts; once an independent trust is established, it is an independent trust. The extent to which the colleges will continue to control their reserves could become a significant question to which we do not know the answer.

I would like the panel to comment on the flexibility of the different employability initiatives and any difficulties that have occurred as a result of employability and training being split between the UK and Scottish Governments.

Would Ken Wimbor like to respond to that question?

Ken Wimbor (Educational Institute of Scotland)

First, we have only just had our second meeting with Sir Ian Wood, who is looking at improved employment prospects for our young people. You will be aware that his interim report makes particular recommendations about the role of further education in that process.

The second part of his report, which he is moving on to now, will examine the relationship with employers and how we encourage employers to offer apprenticeships and to link with colleges and schools in order to deliver improvement. That is the particular area in which the complexity that has been referred to comes up. It is no accident that Sir Ian has made recommendations about further education at this stage, but is having to take longer to look at how to encourage employers to be part of the process and how to encourage uptake of modern apprenticeships, in particular.

Shirley Sephton (Unison Scotland)

I work in a college as well as being the vice-chair of the Unison FE committee. I believe that you are asking people to start monitoring students’ progress once they have left college and gone on to employment. With the funding cuts that we have had, it is difficult for colleges to do that. We do get monetary funding from SDS to monitor how students progress after they leave, but if you are asking colleges to do that in the normal financial environment, I do not believe that we have the necessary support staff.

There is very little interaction between colleges and small employers. We work closely with the people who have contracts for power lines and for green energy projects such as wind turbines, but smaller employers do not have time to work with us and help us with educating students in the way that employers wish.

12:45

Gordon Maloney (National Union of Students Scotland)

I am reluctant to pre-empt the Wood report. Ken Wimbor made a point about how we encourage apprenticeships. We are interested in the quality of apprenticeships, to which no equivalent of a quality-assurance process is applied. It is important for us to look at that, and we do not need to wait for the Wood commission’s report to do that.

Professor Gallacher

I echo, in some measure, what Ken Wimbor said. The Wood commission is providing us with a valuable opportunity to address such questions. Some extremely important issues emerged in the interim report. To go back to my response to Mr McArthur’s questions, we in Scotland need to think much more carefully about how we address vocational education and training issues.

In my submission, I referred to the opportunities that are associated with the senior phase of the curriculum for excellence, which are noted in Sir Ian Wood’s interim report. Big opportunities are available, but we must focus on such questions for the future.

Clare Adamson

The panel might be aware that the committee has done work on the educational attainment of and outcomes for looked-after children. Does the current range of employability initiatives adequately address concerns about reaching harder-to-reach groups in society—those who were previously described as NEETS, or not in education, employment or training?

Ken Wimbor

I echo to an extent what I said about the Wood commission. One outcome of the difficult financial position that FE has been in is that school-college partnership programmes, which have been on the go for a considerable time, have diminished. I hesitate to mention his name again, but Wood indicates in his interim report that he wants school-college partnerships to be reinvigorated. That relates directly to the youngsters whom you refer to and would improve the service that could be provided for that group.

Professor Gallacher

As the committee is probably aware, the funding council has focused in recent years on the issue. Continuing recognition of and support for such work is important.

Gordon Maloney

One issue is the support during education that is available to care leavers. Funding is available for higher education students who have left care, but we know anecdotally that take-up is much below even the abysmally low number of care leavers who make it into higher education.

Increasing take-up is a particular challenge. Questions arise about stigma and about institutions’ understanding of the challenges that care leavers face with accommodation, for example, such as where they go in the summer holiday or the Christmas break. A lot of work has still to be done on that. The issue is important and it is right to focus on it.

Shirley Sephton

Another problem for such students relates to the merged colleges. We will stop running certain courses at certain locations, so some students will have to travel an awful long way for the course that they want to take. We have problems with young men who face a fear of violence when they travel away from their communities. Some young people lack the confidence to take up education; if it is provided in their communities, they might take it up, but if we ask them to travel 20 or 30 miles to another community, they might not do that.

Another issue is tiredness. We are asking some children to travel up to 75 miles, so they might get up at 5.30 in the morning and not get home until 8 at night. That is difficult for any young person, but especially for a looked-after young person. They cannot cope with that sort of thing and they have not experienced it in their lives previously. We need to start teaching those people in their communities. We need to make courses available to them within their own little communities, because otherwise we will deprive them of further education.

Are not a number of initiatives already in place in which colleges provide outreach services in communities?

Shirley Sephton

Yes, but those are being cut. I work at the college in Stranraer, which is a remote college, and we had another resource at Newton Stewart, but the campus there has been cut. There are initiatives, but we no longer have the funding to be able to provide the outreach services that we used to provide. The situation is becoming more and more difficult.

Professor Gallacher

There is a good point here. I do not think that regionalisation in itself is the problem, but community-based provision is a soft area. I have done quite a lot of research on the role of community-based education in the college sector, which is extremely important in providing opportunities, but it is a soft area, and when colleges look for cuts, there is a danger that that is how they will see community-based education.

Skills Development Scotland is responsible for a range of initiatives, including employability initiatives, and its funding comes from SFC budget allocations. How successful has SDS been at delivering college-based employability initiatives?

Shirley Sephton

The get ready for work initiative worked quite well. However, SDS has stopped that and is moving on to a new type of funding. Obviously, that has only just started, so we cannot say how well it will work. With get ready for work, young people went into something like an apprenticeship—they worked in companies, and there was very little work in the college. The college provided employability skills such as CV writing, but the young people also had the experience of going into the workplace. I believe that the new funding is more college based, and I am not too sure how that will work—only time will tell with that. However, some of the SDS funding works very well.

Some of it?

Shirley Sephton

Yes. Colleges also do a good job. Given the budget cuts, perhaps the money would be more wisely spent in further education colleges.

Professor Gallacher

Obviously, that is a big question. The crucial issues go back to something that we have said several times already and are to do with how we move forward on vocational education and training. We have already made several references to the report that Sir Ian Wood’s commission is producing. We have to consider how, in future, we get the various organisations—SDS, the colleges and the other significant stakeholders—to work together to provide a better-quality vocationally based education. Until now, quite a lot of it has not been sufficiently good and there has not been sufficient joined-up thinking. There is a real need to look critically at that question.

Neil Bibby

If 1,200 staff have already left colleges, how can the regionalisation agenda make the expected savings of £50 million each year? Can the further education sector absorb further teaching number losses? What will the impact be on teaching numbers in the coming years?

Ken Wimbor

On the regionalisation agenda, we support the principle of moving towards a more coherent strategic overview of the delivery of further education as opposed to the atomised system that we had through incorporation. It is unfortunate that that process of change, which is under way at the moment, coincides with a period of significant cutback in resource. That is a key issue. The 1,200 to 1,300 staff who have gone are split roughly evenly between teaching staff and support staff. It goes across the board.

There is an assumption that the savings that will come from rationalisation in 2015 or, perhaps, 2016 are not the ones that we are talking about because they are being imposed from the centre. There is also an assumption that any savings that come from rationalisation will, in some way, leave the service. It is important that, if savings come from the restructuring of FE throughout the country, they should be reinvested in the service to deliver what we hope the Wood report will recommend. If we do not do that, we are missing a trick on the delivery of vocational education, particularly at a time when the economy is supposed to be on the up.

Professor Gallacher

As Ken Wimbor said, there is quite a lot of scope for constructive restructuring of the college sector. We have a college sector that was developed many years ago for a different era and there is a real opportunity for significant restructuring, to make the colleges much more focused and to address questions such as those that we are talking about.

However, as I said in my submission, one of the dangers that we must bear in mind is the fact that many of the savings involve staff reductions, and if voluntary severance schemes are implemented we must be careful about how that is done and about their impact. There is a real danger that we could lose key staff in key areas and significantly weaken the college structure in the process.

A careful set of questions must be asked about how, in seeking to implement rationalisation, we maintain the key roles that we expect the colleges to have and to get better at doing. That relates to some of the earlier questions about some of the impact on the wider community and the adult community. There is a danger that the colleges could become skewed—we have already talked about the role of community-based provision.

On the one hand, there are very positive opportunities associated with regionalisation and rationalisation, but we must also acknowledge that there are potentially significant costs and dangers. Those should be kept firmly in view when we consider the impact.

Neil Bibby

There has been a reduction in the number of staff. The number of full-time equivalent students may have stayed the same, but there has been a reduction in head count. What will be the long-term general and economic impact of there being fewer staff and students in further education?

Shirley Sephton

It is having a huge impact. I do not know whether you have read some of the recent press reports. Coatbridge College already has a £430,000 shortfall in its childcare budget and other colleges report that they are unable to cope with the demand for bursaries and childcare. Because of the cuts, there are reduced staff numbers, so staff are unable to cope with all the demands on them.

One college reports that it has completed only 25 per cent of its applications this year. It does not believe that it will have them completed by the end of October—that is nine weeks into term. We have students who have no money. The councils are not providing students’ rent money because they believe that students will get bursaries for that. These students have no money to pay the rent and they face being evicted. They have no money for food. Front-line staff see the effect on the students. It stresses and upsets the staff, who know that they cannot cope with the workload.

There is another college that has 2,000 emails waiting to be answered, many of them about funding. In many cases, hardship grants are being withheld because colleges do not believe that there will be enough money for bursaries and for childcare and they want to save the discretionary funds in case they need to top up the funding for bursaries and childcare. It is a bit of a mess at the minute.

13:00

I am conscious of the time and I want to make sure that everybody gets a chance to answer. Some members want to ask questions. Gordon, did you want to add anything to that point, or has it been covered?

Gordon Maloney

I think that that covers it. Obviously, there are big challenges in terms of regionalisation, which, as Ken Wimbor said, we support in principle. It is unfortunate that it is happening at a time of tight budgets. As Shirley Sephton said, we have heard lots of stories of students’ applications not being processed in time for them to receive their Student Awards Agency for Scotland loans. It is not clear whether that is due to the reorganisation of the colleges and processes not being put in place. We suspect that it is a capacity issue and that many of the staff who have left are not just teaching staff but administrative staff. They are people who perform crucial roles.

One of the big challenges is that the money that we put into colleges is in a sense wasted if the student support is not available and the students have to leave the course before it finishes, or cannot continue their studies. It appears that that may be the case in some situations.

George Adam

I would like to talk about some of the positive aspects of colleges. It is my nature—I cannot help myself.

Last year, most of the organisations in the sector welcomed the announcement that there would be £521.7 million for 2014 and £526 million for 2015-16. Colleges Scotland in particular said that that was the resource that it needed to continue with the work in hand. The Government is focused on young people to ensure that they have a future and use colleges in that way. Surely that is a good thing. We do not want to return to the past, like the dark days of Thatcherism, when there was a lost generation. The Government policy to push that forward is a positive move. The Scottish Government provided funding for 116,000 full-time equivalent places in 2011-12 but ended up with 119,448 full-time equivalents. Surely that is all good news and a move in the right direction.

I am very conscious of time. I apologise for asking for very short answers.

Professor Gallacher

Yes, there are very useful things there. On the question of education provision for young people, one of the crucial questions is what kind of education they get. This goes back to my earlier point that we must make sure that we have the right qualification structure in place. It is not enough just to bring people into college. We have to ensure that when they are in the college they get a high-quality educational experience. That is a crucial question on which we should all focus very carefully.

Gordon Maloney

I broadly agree. There are clearly good opportunities available and it would be a shame if other factors meant that those opportunities were not available to students and young people. The point about student support is important. It would be a huge shame if, for the sake of the relatively small sums of money that would give them adequate student support, students were pushed into payday lenders or into commercial debt, or were pushed out of their studies entirely and were not able to take up those opportunities.

Shirley Sephton

The Government has increased the weighted SUMs targets this year for all colleges. In order to meet them, the colleges are increasing class sizes. I do not believe that that gives the child a better education. I recently talked to a lecturer who had been in the college for many years. She used to teach one class for 27 hours a week; that class is now being taught for 15 hours a week with one hour of self-study. There is no way that the colleges can give children the education and qualifications that they used to get with such a reduced number of hours. The only way that we can teach the numbers that we are being asked to teach, with the weighted SUMs targets, is by not delivering as good an education. That is not down to the lecturer; the lecturers are trying as much as they can. It is not down to the support staff, who are trying to support them. It is because we do not have the resources to teach those children as we should.

Ken Wimbor

Unlike George Adam, I am a born pessimist—I am seldom disappointed.

You will balance each other up, Ken.

Ken Wimbor

I want to make a point about funding in FE. The 2013-14 and 2014-15 budgets are an improvement on what went before but, to put it in context, the sector has lost £30 million since 2011. That is just under a 6 per cent cut in money terms, which does not take inflation into account. Bearing in mind restructuring and the desire to grab hold of any signs of recovery, particularly any signs of increased employment in the economy, FE has an important role, which will not be fulfilled with the kind of financial regime that it is facing at the moment.

The Convener

Thank you all very much. I apologise yet again for the rather squeezed time that we had today. When I was busy apologising at the start for the squeezed time and the lateness of the start, I forget to mention your names. I thank very much Professor Jim Gallacher; Ken Wimbor, from the Educational Institute of Scotland; Shirley Sephton, from Unison; and Gordon Maloney, from the National Union of Students Scotland.

Meeting closed at 13:07.