Finance Committee

FIN(3)-09-R04 - Hypothecated Education Grants Inquiry

Written Response to the Finance Committee’s Report on Specific Education Grants by Jane Hutt, Minister for Children, Education, Lifelong Learning and Skills

14 September 2009

I would like to welcome the Finance Committee’s report from their inquiry into Specific Education Grants. The importance of securing the best value use of our funding and reducing bureaucracy is more apparent today than ever.  The recommendations contained in the report are very close to our current policy direction and I am very pleased to be able to accept those for the Welsh Assembly Government and to give my commitment to ensuring that those for local authorities to consider are discussed with the WLGA.  

I have set out below my detailed responses to the Report’s individual recommendations.

The Committee recommends that:

1. The Minister for Children, Education, Learning and Life Long Skills should compile a list of all specific grants that are available for schools and colleges. This should include all assembly government grants whether from her department or from other assembly government departments. It should be published on the internet in a format that allows schools and colleges to see what is available and for which grants they might be eligible. It should indicate how much funding is available and from where a school or college can obtain information about making an application.

Response : Accept

There is already a database and list of all hypothecated grants made available annually as part of the papers on the Local Government Revenue settlement (for example : http://wales.gov.uk/docs/dsjlg/publications/localgov/081210finalsettablee.xls)  However that does not enable schools and colleges to establish whether there is funding available for specific activities or how they might access it.  Accordingly the Welsh Assembly Government will investigate extending the existing list to contain the additional information that allows schools and colleges to see what is available and for which grants they might be eligible and make that list available on the internet.  

Financial Implications: The costs of producing and publishing electronically the list will be met within existing resources.  

2. The local education authority should similarly publish on the internet a list of all grants available to a school or college within its area and where they can obtain information about making an application.

Response

This recommendation is for Local Authorities to take forward.  However I will ensure that it is brought to their attention.

3. In order to allay fears about local authorities unreasonably taking a ‘cut’ of grants awarded local authorities should also publish the amount and values of grants received in a year and the amounts of each of these that had gone to each school or college. They should also publish the amounts that had been retained within the authority and the purposes for which this had been done.

Response

This recommendation is for Local Authorities to take forward.  However I will ensure that it is brought to their attention.  It may be helpful to note however that information on local authority education expenditure by local authority including specific grants and showing the “delegation rate” to schools overall is published annually by the Welsh Assembly Government. [latest report July 2008 http://wales.gov.uk/topics/statistics/theme/loc-gov/educa/?lang=en]

4. As a grant comes to its end, every effort should be made to meet the grant objective by using existing funding streams. The aim should be to make the process more efficient and less burdensome by moving to the use of fewer, larger, grants.

Response : Accept

A review of the existing grants to local government is currently being undertaken as part of the process of developing outcome agreements with local government. This review is considering the number, size and exit strategies for these grants.  Further details will be available with the publication of the Welsh Assembly Government’s draft budget for 2010-11 in October.

Financial Implications : administrative costs of rationalisation will be met within existing running costs.

5. The Government introduces a ‘small’ grant scheme, to apply to grants of under £10,000, as a matter of urgency.

Response : Reject

The Assembly Government shares the views of the Committee that administrative savings must be sought in the administration of grant systems. It is difficult to reconcile this position with the introduction of a new scheme, especially where grants would be of a small scale. In line with the Committee's thinking, however, the Assembly Government will continue to focus on developing agreements on outcomes, rather than funding streams, while retaining the ability to retain small grants where, exceptionally, there is compelling evidence for doing so.

Financial Implications : none

6. The Government introduces an approach in which at the introduction of a specific grant they make it clear what will happen when the grant ends and if, for example, it will transfer to revenue Support Grant they give indications of individual allocations at that time. This should apply to local education authorities, schools and both the further education and higher education sector.

Response : Accept

The current exercise to refresh the Essex/Jones Agreement includes a review of the Grants Protocol. This will address the issue of the extent to which the Protocol is revised to ensure  that it is clear  what will happen when the grant ends.

Financial Implications : none

7. The Protocol on Hypothecated Grants, which will need revising slightly in the light of these changes, should be strengthened as above and adhered to by the government and local authorities.

Response : Accept

As mentioned in response to Recommendation 6, the current exercise to refresh the Essex/Jones Agreement includes a review of the Grants Protocol.

Financial Implications : none