|Learning And Skills Bill [H.L.] - continued||House of Lords|
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EFFECTS OF THE BILL ON PUBLIC SECTOR FINANCES
200. The proposals in the Bill for a new LSC will require it to assume many of the responsibilities conducted by the FEFC, which will be dissolved, and TECs, whose licences will be terminated. As a result of the changes, the Government expects to secure administrative savings of at least £50m per annum, although in the short term this saving will be abated by costs arising from winding-up existing arrangements and establishing new bodies. It is too early to provide an accurate assessment of these transitional costs.
201. Additionally, in future, LEAs will no longer receive funds for sixth forms and adult education through the Standard Spending Assessment, but from the new LSC. This is a change in the means by which public funding is allocated and the Government do not expect it to have any consequences for the level of public expenditure.
2027. It is proposed that the Secretary of State should be given new powers to provide services which support youth participation in education. However, it is not yet possible to provide details of the resources that could be made available for this provision.
203. The proposals in the Bill extend the duties upon the Office for Standards in Education (OFSTED), including inspection of provision in FE colleges for people up to the age of 19. Provisions in the Bill remove its duty to inspect further education made by LEAs for people under the age of 19. Overall this will lead to some additional expenditure by OFSTED. It is not yet possible to provide an accurate estimate.
204. It is proposed that ALIshould assess the quality of provision for adults and all work-based training, in place of inspection work currently managed through the FEFC and the Training Standards Council. It will also take on the duty to inspect further education provision made by LEAsfor people aged over 19 which will no longer rest with OFSTED. Overall the expenditure on inspection as a result of the provisions of this Bill is not expected to rise substantially.
205. The Bill also proposes that a new National Council for Education and Training is established in Wales. This will bring estimated accrued savings in public expenditure of £7.5m by 2003 to 2004. It is too early to provide an accurate estimate of the extent of the transitional costs of putting in place the new arrangements. New inspection arrangements are also proposed in Wales which will extend the functions of Estyn (the Welsh Inspectorate) and there will be some additional public expenditure on this service. It is too early to provide a firm estimate.
EFFECTS OF THE BILL ON PUBLIC SERVICE MANPOWER
206. The LSC and ALI will be non-departmental public bodies. Their staff will not be civil servants but will be paid out of public funds by the Secretary of State. The LSC and ALI are likely to employ a total of around 5000 staff. There will be an increase in the number of staff employed in the public service because some of the activities of the LSC and ALI were formerly conducted by TECs and the Training Standards Council which are private companies. Overall, however, it is likely that the new arrangements will lead to a reduction in the total number of staff, funded by public money, employed to administer post-16 education and training by between 15% and 20%.
207. The CETW will be an Assembly sponsored Public Body. Its staff will not be civil servants but will be paid out of public funds by the National Assembly for Wales. As in England there will be an increase in the number of staff employed in the public service, however, the new arrangements in Wales are likely to result in a reduction in the total number of staff funded by public money by between 15% and 20%.
SUMMARY OF REGULATORY APPRAISAL
208. The Regulatory Impact Unit (RIU) in the Cabinet Office has been consulted and are content that these proposals will not impose a significant new burden on business or voluntary groups. The RIU does not require a regulatory impact assessment or statement.
209. The Bill is to come into force in accordance with one or more commencement orders made by the Secretary of State. Provisions relating to Wales, Scotland and Northern Ireland will come into force in accordance with separate commencement orders. Current plans are that the LSC and the CETW will take up the majority of their functions from April 2001. However, both bodies must be able to make arrangements (such as employ staff and prepare plans) in advance of taking up their full functions. The LSC and ALI will therefore be established before they take on their full functions and the Secretary of State will confer on them by order of such powers on them as he thinks will help them to carry out their full functions before they acquire them. The National Assembly will likewise confer such powers on the CETW.
EUROPEAN CONVENTION ON HUMAN RIGHTS
210. Section 19 of the Human Rights Act 1998 requires the Minister in charge of the Bill in either House of Parliament to make a statement, before Second Reading, about the compatibility of the provisions of the Bill with the Convention rights (as defined by section 1 of that Act). Baroness Blackstone, the Minister of State for Education and Employment has made the following statement:
Bibliography of Relevant Documents
GLOSSARY OF TERMS AND ABBREVIATIONS
ACCAC Awdurdod Cymhwysterau, Cwricwlwm ac Asesu Cymru
(the Qualifications & Curriculum Authority for Wales)
ALC Adult Learning Committee
ALI Adult Learning Inspectorate
CCTEs Chambers of Commerce, Training and Enterprise
CETW National Council for Education and Training for Wales
(the equivalent of the LSC in Wales)
(Cyngor Addysg a Hyfforddiant Cenedlaethol I Gymru)
CIAL Chief Inspector of Adult Learning, also called the Chief Officer
DfEE Department for Education and Employment
ESTYN Her Majesty's Inspectorate for Education and Training
in Wales (Arolygiaeth Ei Mawrhydi Dros Addysg A Hyfforddiant yng Nghymru.)
FE Further Education
FEFCE Further Education Funding Council (for England)
(referred to as 'the old Council')
FEFCW Further Education Funding Council (for Wales)
FEFCs FEFCE and FEFCW collectively
FHE Further and Higher Education
HE Higher Education
HMCI Her Majesty's Chief Inspector of Schools in England
ISB Individual Schools Budget
LSC Learning and Skills Council (England)
LEA Local Education Authority
LLP Local Learning Partnership
LSB Local Schools Budget
NAW National Assembly for Wales
(referred to as 'the National Assembly')
OFSTED Office for Standards in Education
QCA Qualifications and Curriculum Authority
RDA Regional Development Agency
RIU Regulatory Impact Unit
RSG Revenue Support Grant
SEN Special Educational Needs
SEU Social Exclusion Unit
TECs Training and Enterprise Councils
TSC Training Standards Council
YPLC Young People's Learning Committee
Commentary on Schedules 1 to 6 can be found within the Commentary on Clauses at the clause number listed in the final column.
Commentary for Schedules 7 and 8 can be found at the end of Part V.
There is no commentary on Schedule 9.
|© Parliamentary copyright 1999||Prepared: 17 December 1999|