50.This section of the Act inserts two new sections into the 2005 Act, relating to the funding of Scottish apprenticeships and work-based learning.
51.New section 12I(1) gives the Scottish Ministers a power to make grants to the Council for the purpose of securing the delivery of Scottish apprenticeships and work-based learning, subject to such terms and conditions as Ministers consider it appropriate to impose. Section 12I(2) and (3) define the terms “work-based learning” and “work-based learning agreement”, with section 12I(5) giving Ministers a regulation-making power to supplement the meaning of “work-based learning”.
52.New section 12J(1) places responsibility on the Council for administering all grants made to it under section 12I for the purpose of securing the delivery of Scottish apprenticeships and work-based learning, and section 12J(2) gives the Council a corresponding power to make grants, loans or other payments to training providers to deliver apprenticeships or work-based learning. Such funding may be subject to such terms and conditions as the Council considers it appropriate to impose. Section 12J(3) defines a “training provider” for the purposes of the section, giving Ministers a regulation-making power, subject to the negative procedure, to set out criteria for a provider to satisfy in order to meet this definition.
53.Section 12J(5) requires the Council must impose conditions on a payment made under section 12J(2) that any person who is contracted by a training provider to deliver the learning or training must also be a training provider within the meaning of section 12J(3); and further that no training provider may retain more than a reasonable percentage of the payment, to be determined by the Council, as a fee for managing the delivery of the learning or training. The purpose of this requirement is to limit the portion of public funding retained by professional managing agents in the delivery of tertiary education and skills training.
54.Section 12(2) of this Act adjusts the existing duty of the Council in the 2005 Act to administer funds received so that it does not apply to these new functions.
55.Transitional measures
Commentary on Provisions Part 2 – Functions of the Scottish Further and Higher Education Funding Council Section 12: Funding for Scottish apprenticeships and work-based learning