Call for views – European Structural and Investment Funds Inquiry
Economy, Jobs and Fair Work Committee
Response from the Scottish Funding Council
Introduction
The Scottish Funding Council (SFC) invests around £1.8bn each year enabling
Scotland’s colleges and universities to provide life-changing opportunities to over a
half a million people. Through our funding we support high-quality learning and
teaching, world-leading research, and greater innovation in the economy.
SFC uses European Structural Funds (ESF), mainly to provide additional student
places and to support skills development, primarily through colleges. Colleges and
universities can receive other forms of European funding directly; this response
focusses on the funding managed by SFC.
Current spending
In this current year (2017-18), SFC will spend £24 million on ESF activity. Of this
£24m, £14 million will come from ESF income (assuming SFC is successful in re-
claiming these funds) and £10m from SFC’s own resources (referred to as ‘match-
funding’).
SFC is a Lead Partner under the current 2014-20 programme, providing funding
primarily to Scotland’s colleges to deliver two ESF projects: the ‘Youth Employment
Initiative’ and ‘Developing Scotland’s Workforce’.
Youth Employment Initiative
In 2012, the youth unemployment rate in South-West Scotland was over 25% and
therefore that region qualified for the Youth Employment Initiative (YEI), a
programme established specifically to deal with high levels of youth unemployment
across the EU.
The YEI programme supports young people not in employment, education or training
(NEET) to get:
• into employment (through mentoring, recruitment incentives, work-related
training, etc.); or
• into formal education leading to a qualification (through additional college
places).
Under the YEI, colleges in South-West Scotland (Ayrshire College, Glasgow Region,
Lanarkshire Region and West College Scotland) receive annual ESF/SFC funding to
SFC ref: 249088162
deliver additional college places. The YEI programme runs for three years, from
2015-16 to 2017-18.
Developing Scotland’s Workforce
Colleges in other regions of Scotland (outwith the South-West) participate and
deliver activity under the Developing Scotland’s Workforce (DSW) programme, which
aims to address regional skill gaps and shortages associated with key employment
sectors, providing higher level skills to support the development of emerging growth
areas. ESF/SFC funding is provided annually to allow the provision of additional
further and higher education activity across Lowlands & Uplands Scotland (LUPS) and
the Highlands & Islands (H&I). The first phase of the DSW programme runs for three
years, from 2015-16 to 2017-18.
Under both YEI and DSW, the vast majority of programme funding is being spent on
providing additional student places across Scotland.
In the H&I, in addition to additional student places (from FE level right up to
taught/research postgraduate level), some programme funding is being used to
recruit staff for sectoral development/employer engagement and curriculum
development.
Over the three year period 2015-18, the following activity has been funded through
ESF/SFC:
• 185,000 college credits (which equates to around 11,000 students)
• 370 university funded student places
Both the YEI and DSW programmes have been running since 2015-16. Whilst the YEI
programme will end as planned at the end of 2017-18, the Scottish Government has
provisionally agreed to extend the DSW programme to 2022-23.
Match-funding arrangements
As Lead Partner, SFC provides a substantial amount of match-funding for the two ESF
programmes. The funding intervention rates are:
SFC ESF
YEI
33% 67%
DSW LUPS 60% 40%
DSW H&I
50% 50%
SFC pays 100% of the required funding to colleges/universities at the time of delivery
in order for them to run the programmes. SFC subsequently submits annual claims
for the ESF portion. The claim process is very detailed and prescriptive, and
therefore there is a risk that SFC is unable to claim back all of the ESF portion.
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The evaluation process
Since 2010-11 SFC has built-up considerable experience in running ESF projects and
ensuring that there are robust systems for compliance, monitoring and securing the
outcomes from these projects. We have also been subject to several compliance
checks/audits under Article 60(b)/Article 62 1(b) by the Scottish Government, which
have not highlighted any significant issues and confirmed that, in the main, the
conditions have been met and expenditure declared in line with programme rules.
SFC will undertake evaluations of the current programmes after the end of academic
year 2017-18, when the first phase of DSW will be complete and YEI will be finished.
Future programmes
SFC is the national strategic body for funding teaching, learning and research in
colleges and universities. We have a clear set of priorities which reflect Ministerial
guidance. The most recent Ministerial guidance (4 April 2018) set out the Scottish
Government’s “ambition to align our enterprise and skills agencies behind a common
purpose and vision which secures improved outcomes for all our learners, drives
inclusive economic growth and improves productivity”. This will be implemented by
SFC aligning its operational and strategic planning in line with the new Strategic
Board.
Beyond the extended 2023 funding horizon, SFC, in alignment with the Strategic
Board and working in partnership with the other enterprise and skills agencies,
would be in a position to deliver for Scotland what is needed in a post-Brexit
landscape using existing SFC mechanisms. With the experience we have gained from
being Lead Partner for ESIF programmes, we are well-placed to continue to deliver
effective skills development activities across Scotland, to monitor and evaluate them,
and to do so with a minimum amount of burden on institutions.
Further Information
Dr Dee Bird
Assistant Director / Head of Policy (Brexit, and Student Experience)
Scottish Funding Council
xxxxx@xxx.xx.xx
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