Publication - Corporate report

Scottish Budget 2019-2020

Published: 12 Dec 2018
Directorate:
Financial Management Directorate
Part of:
Economy, Scottish Budget
ISBN:
9781787813960

The Scottish Government's proposed spending and tax plans for 2019 to 2020.

241 page PDF

5.1 MB

241 page PDF

5.1 MB

Contents
Scottish Budget 2019-2020
Chapter 8 - Education and Skills

241 page PDF

5.1 MB

Chapter 8 - Education and Skills

Portfolio Responsibilities

Education continues to be this Government’s defining mission and we remain determined to improve the life chances of the children and young people of Scotland and change lives for the better. The Education and Skills portfolio includes support for early learning and childcare; children and families, with specific focus on those in greatest need; school education; further and higher education; university research; knowledge exchange and innovation; science; promoting Gaelic; community and adult learning and development; expanding opportunities to move into sustained employment; and developing the skills of our current and future workforce. 

Portfolio Priorities

The Education and Skills portfolio aims to create excellent, life and work-relevant education for Scotland’s young people, giving them the best start in life and aspiring to create the best opportunities for them to flourish as adults. 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 continues to lie at the heart of this Government’s agenda and spending plans. 

Our activities in the Education and Skills portfolio underpin the Government’s purpose of sustainable economic growth through creating opportunities for all and support our national outcomes – ‘We grow up loved safe and respected so that we realise our full potential’ and ‘We are well educated, skilled and able to contribute to society’.

Our top priorities are to raise attainment and close the attainment gap; promote health and wellbeing; and improve skills and employability for all our citizens. Our transformative investment to almost double children’s entitlement to high quality early learning and childcare to 1,140 hours a year from August 2020 will support improved children’s outcomes and help close the attainment gap. Ensuring the best start in life for every child is key to delivering each of these priorities, and is therefore a clear focus for our policies and spending plans. Similarly, we want to ensure that the role that the further and higher education and community learning sectors play in supporting inclusive economic growth is maximised.

This budget will therefore include: 

  • investment to raise attainment and close the attainment gap, and support our preventative actions to reduce child poverty;
  • substantial expansion of early learning and childcare (ELC) to improve children’s developmental outcomes, regardless of their background, from the beginning of their time in nurseries or with childminders; 
  • continued investment in further and higher education, with a focus on enabling equal access to learning and skills opportunities; and

delivering continued increased investment in training and work based learning to provide an educated and skilled workforce, based on strong links with the business community and recognising skills shortages in the labour market, to deliver a powerful driver for long-term economic growth. 

Learning Priorities 

The majority of expenditure on school education in Scotland is provided through local authorities from budgets outlined in the Communities and Local Government Chapter. The Learning budget will deliver excellence and equity in Scottish education through targeted national programmes and related support. 

The Scottish Attainment Challenge, which is focused on improving numeracy, literacy, and health and wellbeing, will continue to push forward the Government’s defining mission of improving the life chances of all our children. Investment through the £750 million Attainment Scotland Fund, including Pupil Equity Funding, is vital in helping schools address the poverty-related attainment gap and helping children overcome barriers, often linked to poverty, so that no child is left behind. This funding targets an area where there is a relatively higher rate of return to investment compared to the general population and supports a social need that also delivers high economic value. 

In 2019-20 we will: 

  • continue to reform school governance and work with local government to help empower schools to deliver a teacher-led education system;
  • work with partners to deliver the Headteachers’ Charter; 
  • enhance support and expertise through the Regional Improvement Collaboratives; 
  • pilot a new national survey for parents and carers as part of delivering actions in our plan for parental engagement;
  • continue to provide funding to local government partners to provide School Clothing Grants to eligible families;
  • continue to invest in the quality of our teaching profession and support teacher recruitment through new routes into the profession; 
  • continue to take forward actions through our Science, Technology, Engineering and Mathematics (STEM) education and training strategy to improve the supply of STEM and strengthen partnerships between schools, colleges, universities, science centres and employees; and
  • through Education Scotland, promote improvement in education and throughout the learner journey, from the early years to adult and continuing education.

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 (GIRFEC) approach. We want every child to grow up loved, safe and respected so they reach their full potential and we will continue to embed early intervention and preventative approaches. We also work across portfolios to support action before birth to improve outcomes for children and families – from transforming maternity care and Scotland’s Baby Box offer, to establishing a National Hub for the Prevention of Child Deaths. 

In 2019-20 we will: 

  • change the way children and young people experience their rights by working towards incorporating the principles of the United Nations Convention on the Rights of the Child (UNCRC) into domestic law, improving accessibility of services for disabled children and young people, and by taking forward legislation to increase the age of criminal responsibility to 12 years old;
  • support the most vulnerable children in our society through delivery of our ‘Child Protection Improvement Programme’, improved support for looked after children and their families, and the development of a national advocacy scheme for those supported by the children’s hearing system;
  • improve outcomes for children and young people through the Scottish Adverse Childhood Experience (ACE) Hub, the Children and Young People’s Improvement Collaborative, and the Children, Young People and Families Early Intervention and Adult Learning and Empowering Communities Fund;
  • continue to meet the costs of the Scottish Child Abuse Inquiry, develop a statutory financial redress scheme for survivors of child abuse in care and make advanced payments to elderly and ill survivors; and 
  • support regulation and development of the social service workforce.

Early Learning and Childcare Priorities

We are committed to almost doubling entitlement to funded early learning and childcare to 1,140 hours for all 3 and 4 year olds and for eligible 2 year olds from August 2020. The expansion will help close the poverty-related attainment gap and contribute to National Outcomes relating to children and education. In April 2018, we reached agreement with the Convention of Scottish Local Authorities (COSLA) on a multi-year revenue and capital funding package to fully fund this expansion. This year we will increase revenue funding for early learning and childcare by £210 million and provide £175 million capital funding to support the building, refurbishment and extension of around 750 nurseries and family centres. This funding is shown within the Local Government settlement.

We will progress the expansion in 2019-20 by:

  • supporting local authorities and funded providers to work towards implementation of our new National Standard which will ensure high quality early learning and childcare and offer greater choice to families;
  • continuing to support early learning and childcare providers, including childminders, through the transition to the expanded entitlement;
  • working with local authorities and funded providers to ensure families understand what the expansion means for them and how they can access their child’s entitlement;
  • investing in additional capacity in relevant courses in Scotland’s colleges and universities and in apprenticeship programmes to expand the workforce; 
  • supporting local authorities and providers to improve uptake of the funded entitlement by eligible 2 year olds; and
  • continuing to promote outdoor learning as a core part of children’s early learning and childcare experience.

Advanced Learning and Science Priorities

This budget principally supports policy development and delivery relating to qualification accreditation and international mobility opportunities to enhance employability for students. It enables the Scottish Government to make best use of science advice and knowledge and is used to promote Scotland as a science and innovation nation, supporting world-leading research and innovation. 

In 2019-20 we will:

  • continue to provide support for science engagement and promotion across Scotland, including through our science centres and science festivals; 
  • support the internationalisation of our universities and colleges including access for Scottish students to take part in international exchanges and to attract talented students to study in Scotland; and
  • continue to support the work of the Scottish Qualifications Authority (SQA) Accreditation Unit and support work to promote the Scottish Credit and Qualifications Framework. 

Scottish Funding Council Priorities

The Scottish Funding Council (SFC) budget invests in Scotland’s colleges and universities, to develop well-educated, highly skilled people and drive inclusive economic growth through skills, research and innovation. 

In 2019-20 we will work with the SFC to:

  • play a leading role in improving Scotland’s skills base by aligning our investment and activities with public sector partners and ensuring that provision in colleges and universities supports employability and productivity in line with the vision set out in the Enterprise and Skills Strategic Plan and our Economic Action Plan;
  • enable learners to move through education into fair work through continuous improvement in learner outcomes; and progressing the ambitions of our Developing the Young Workforce and Learner Journey programmes;
  • deliver key commitments in the STEM Education and Training Strategy to ensure further and higher education provision meets the needs of employers in Scotland; 
  • maximise the impact of our investment in research, innovation and internationalisation to support a thriving, outward-looking Scotland;
  • work with colleges to develop initiatives that will work towards reducing child poverty rates;
  • champion diversity at all levels, from course choices to the make up of senior staff and boards;
  • support all learners to achieve their full potential in education by continuing to make progress towards equal access to higher education by 2030; fund improvements to further education bursary support; support the sector to tackle gender-based violence through Equally Safe; and support students’ mental health and wellbeing, including providing additional counsellors across the sector; 
  • provide up to £22.7 million to complete the construction of Forth Valley College’s new campus in Falkirk; 
  • continue funding to support the college sector in maintaining the college estate;
  • deploy Financial Transactions to support further universities estate projects; and 
  • maintain at least 116,000 full-time equivalent college places.

Higher Education and Student Support Priorities

The Higher Education Student Support (HESS) budget provides financial support to Scottish-domiciled and EU students undertaking higher education (HE) 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).

In 2019-20 we will:

  • guarantee that higher education will remain free of tuition fees for all eligible Scottish- or EU-domiciled undergraduate students studying in Scotland;
  • ensure every eligible care-experienced student receives a full £8,100 non-repayable bursary to finance their studies; and
  • ensure that the poorest HE students receive increased bursary support and increased access to bursaries through improvements to the HE bursary threshold. 

In 2019-20 the Student Awards Agency Scotland will:

  • help support the education sector to increase the number of students accessing university 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

Our priorities for Skills and Training are to meet the needs of a modern, successful economy based on fair and equal opportunities, and to provide the skills that allow individuals to fulfil their potential in the labour market. 

In 2019-20 we will: 

  • through Skills Development Scotland, invest over £214 million in apprenticeships and skills, an increase of £22 million. This investment supports the ongoing expansion of apprenticeships in Scotland as we progress towards 30,000 starts per year by 2020; pre-employment training opportunities; the national careers service; and implementation of Developing the Young Workforce (DYW);
  • in line with the skills alignment workstream of the Strategic Board for Enterprise and Skills, look to maximise the collective capacity of our skills system as we continue to deliver our commitment to the expansion of apprenticeships in 2019-20;
  • continue to develop a new Careers Information Advice and Guidance Strategy, encompassing all-age career needs to ensure Scotland’s careers services are flexible and accessible to the needs of a modern workforce and responsive to changes in the labour market and wider economy. The Strategy will be published in autumn 2019, with the development of an action plan on implementation thereafter; and
  • remain committed to the continued availability of the Education Maintenance Allowance (EMA) in Scotland which allows even more school pupils and college students to continue their studies and enables young people to make learning decisions based, not on their financial circumstances, but on their ability and aspirations.

Spending Plans

Table 8.01: Spending Plans (Level 2)

Level 2 2017-18
Budget
 £m
2018-19
Budget
£m
2019-20
Budget
£m
Learning 217.0 237.7 257.8
Children and Families 167.2 151.5 123.9
Early Learning and Childcare Programme 40.5
Advanced Learning and Science 6.2 6.2 10.0
Scottish Funding Council 1,734.8 1,838.0 1,839.3
HESS 940.0 946.4 922.5
Skills and Training 223.7 232.8 254.0
Total Education and Skills 3,288.9 3,412.6 3,448.0
of which:       
Total Fiscal Resource 2,462.2 2,577.8 2,657.1
  of which Operating Costs* 37.3
Non-cash 212.3 235.8 243.4
Capital 157.4 131.0 94.5
Financial Transactions 14.0 40.0 55.5
UK Funded AME  443.0 428.0 397.5

* In 2019-20, there is a change to the way that Scottish Government staffing budgets are presented and total operating costs are now included within portfolio budgets. This is set out in more detail in the Annex on operating costs.

Presentational Adjustments for Scottish Parliament Approval

Level 2 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Learning (NDPB Non-cash) (1.9) (1.2) (2.8)
Children and Families (NDPB Non-cash) (2.1) (2.1) (1.8 )
SFC (NDPB Non-cash) (30.4) (30.5) (30.4) 
Skills and Training (NDPB Non-cash) (0.5) (0.5) – 
Central Government Grants to Local Authorities 124.5 326.7 561.7
Total Education and Skills 3,378.5 3,705.0 3,974.7
Total Limit on Income (accruing resources) 350.0

What the Learning budget does

This budget funds the Scottish Attainment Challenge; grant aid to schools for pupils with additional support needs; Gaelic bodies and projects to increase the numbers using Gaelic; it supports the SQA to deliver the National Qualifications; funds delivery of Curriculum for Excellence and educational reforms and supports Education Scotland in its enhanced remit for system-wide improvement in learning, teaching, assessment and educational leadership. We also invest in initial teacher education, and provide analytical services throughout government.

Table 8.02: Learning Spending Plans (Level 3)

Level 3 2017-18 Budget
 £m
2018-19 Budget

 £m
2019-20 Budget

 £m
Education Scotland 21.5 20.5 23.0
Gaelic 23.2 23.2 23.5
Learning and Support 27.1 35.8 39.3
Workforce, Infrastructure and Reform 76.8 81.2 83.4
Education Analytical Services 2.7 2.2 4.5
Strategy and Performance 65.7 74.8 84.1
Total Learning 217.0 237.7 257.8
of which:       
Fiscal Resource  188.2 232.5 251.0
Non-cash 2.4 1.6 3.2
Capital  22.4 3.6 3.6
Financial Transactions 4.0
UK Funded AME

See footnote on operating costs in Table 8.01.

What the Children and Families budget does

This budget funds the Scottish Children’s Reporter Administration; Children’s Hearings Scotland; Scottish Child Abuse Inquiry; financial redress for survivors of child abuse in care; Scottish Social Services Council; and Disclosure Scotland. It supports implementation of GIRFEC; children’s rights; child protection programmes; the Independent Care Review and social services workforce development. It provides the Family Fund Trust; the Children, Young People and Families Early Intervention Fund and the Adult Learning and Empowering Communities Fund.

Table 8.03: Children and Families Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Care and Justice 37.4 38.5 39.1
Care and Protection 12.5 14.1 26.8
Disclosure Scotland  5.3 14.8 11.4
Office of the Chief Social Work Adviser 19.2 19.2 19.9
Creating Positive Futures 92.8 64.9 26.7
Total Children and Families 167.2 151.5 123.9
of which:       
Fiscal Resource  124.8 138.3 114.5
Non-cash 2.3 5.3 5.5
Capital  40.1 7.9 3.9
Financial Transactions
UK Funded AME

See footnote on operating costs in Table 8.01.
*In 2019-20 Early Learning and Childcare budget moved out of Creating Positive Futures and into its own directorate budget (see Table 8.04)

What the Early Learning and Childcare Programme budget does

This budget supports initiatives to enable the expansion of early learning and childcare; including investment in training and education programmes such as additional graduate level places; support for funded providers; investment in outdoor learning approaches and parental engagement. 

Table 8.04: Early Learning and Childcare Programme Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Early Learning and Childcare Programme 40.5
of which:      
Fiscal Resource  40.5
Non-cash
Capital
Financial Transactions
UK Funded AME

See footnote on operating costs in Table 8.01.

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 the 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 8.05: Advanced Learning and Science Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Higher Education 1.5 1.5 5.3
Qualifications and Accreditation 1.7 1.7 1.7
Science, Engagement and Advice 3.0 3.0 3.0
Total Advanced Learning and Science 6.2 6.2 10.0
of which:      
Fiscal Resource  6.2 6.2 10.0
Non-cash
Capital
Financial Transactions
UK Funded AME

See footnote on operating costs in Table 8.01.

What the Scottish Funding Council budget does

The Scottish Funding Council budget invests in colleges and universities, to develop well-educated, highly skilled people and drive inclusive economic growth through skills, research and innovation. 

Table 8.06: Scottish Funding Council Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Scottish Funding Council Administration 7.5 7.5 7.5
College Operational Expenditure 741.3 778.2 796.5
College Operational Income (190.0) (190.0) (190.0)
Net College Resource 551.3 588.2 606.5
College NPD Expenditure 29.1 29.3 29.3
College Depreciation Costs 30.1 30.1 30.1
Higher Education Resource 1,013.9 1,024.9 1,025.3
College Capital Expenditure 70.4 78.7 49.6
College Capital Receipts (23.0) (2.0) (2.0)
Net College Capital 47.4 76.7 47.6
Higher Education Capital 45.5 41.3 37.5
Higher Education Financial Transactions  10.0 40.0 55.5
Total Scottish Funding Council 1,734.8 1,838.0 1,839.3
of which:      
Fiscal Resource  1,601.5 1,649.7 1,668.3
Non-cash 30.4 30.4 30.4
Capital  92.9 117.9 85.1
Financial Transactions 10.0 40.0 55.5
UK Funded AME

See footnote on operating costs in Table 8.01.

What the Higher Education Student Support budget does

The 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.

Table 8.07: Higher Education Student Support Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Student Support and Tuition Fee Payments 301.6 301.6 301.6
Student Loans Company Administration Costs 4.2 4.2 4.2
Student Loan Interest Subsidy to Bank 2.0 2.0 2.0
Cost of Providing Student Loans (RAB Charge) (Non-cash) 175.6 196.9 203.2
Student Awards Agency for Scotland Operating Costs – Resource 11.6 12.1 12.1
Student Awards Agency for Scotland Operating Costs – Capital 2.0 1.6 1.9
Net Student Loans Advanced 560.0 550.0 550.0
Capitalised Interest (60.0) (65.0) (70.0)
Student Loan Fair Value Adjustment (57.5) (57.5) (84.1)
Student Loan Sale Subsidy Impairment Adjustment 0.5 0.5 1.6
Total Higher Education Student Support 940.0 946.4 922.5
of which:      
Fiscal Resource 318.3 318.8 318.8
Non-cash 176.7 198.0 204.3
Capital  2.0 1.6 1.9
Financial Transactions
UK Funded AME 443.0 428.0 397.5

*The movement in the HESS budget from 2018-19 to 2019-20 is due to technical accounting adjustments to student loans. These non-cash budget lines do not affect the funding available to students. The Student Support and Tuition Fees and Net Student Loans Advanced budget lines have been maintained for 2019-20.

What the Skills and Training budget does

Providing the skills that allow individuals to fulfil their potential in the labour market: 

  • continue funding Skills Development Scotland;
  • delivering 30,000 apprenticeships by 2020, including developing the apprenticeship pathway through Foundation, Modern, and Graduate Apprenticeships;
  • develop a new Careers Information Advice and Guidance strategy; and 
  • continued availability of Education Maintenance Allowance.

Table 8.08: Skills and Training Spending Plans (Level 3) 

Level 3 2017-18 Budget
 £m
2018-19 Budget

 £m
2019-20 Budget

 £m
Skills Development Scotland 179.6 193.3 214.7
Employment and Training Interventions 44.1 39.5 39.3
Total Skills and Training 223.7 232.8 254.0
of which:      
Fiscal Resource  223.2 232.3 254.0
Non-cash 0.5 0.5
Capital
Financial Transactions
UK Funded AME

See footnote on operating costs in Table 8.01.

What the Central Government Grants to Local Authorities budget does

  • The Local Government Gaelic Grant supports local authorities with implementing the Gaelic provisions in the Education (Scotland) Act 2016.
  • The Local Government Attainment Grant goes directly to headteachers to use as they see fit to help reduce the poverty-related attainment gap. 
  • The Local Government ELC Grant provides local authorities with resource and capital to support delivery of the expansion of early learning and childcare to 1,140 hours.

Table 8.09: Central Government Grants to Local Authorities Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Local Government Gaelic Grant 4.5 4.5 4.5
Local Government Attainment Grant 120.0 120.0 120.0
Local Government Early Learning and Childcare Expansion Grant 202.2 437.2
Education and Skills Central Government Grants to Local Authorities 124.5 326.7 561.7
of which:      
Fiscal Resource  124.5 176.7 386.7
Non-cash
Capital  150.0 175.0
Financial Transactions
UK Funded AME

Contact

Email: Finance.co-ordination@gov.scot