CSR savings proposals in respect of demographic changes

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WRITTEN QUESTION TO THE MINISTER FOR EDUCATION, SPORT AND CULTURE BY DEPUTY G.P. SOUTHERN OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 10th JULY 2012

Question

"Further to the CSR savings and user pays proposals listed in a press release on 25th June 2012, will the Minister state –

1. how he can make additional savings of £1,086,000 from demographic changes when both primary and tertiary numbers are increasing;
2. what data will enable savings of £1.5 million (17%) on tuition fees and how confident is he that these will be delivered by 2016;
3. how will the increase in grant assessment savings be calculated and staged?
4. how will the introduction of an out of school placement for key stage 4 (already achieved by Trident) produce a £250,000 saving?
5. how will the additional £90,000 charges be delivered, how will it be staged over the period and what will the average cost of instrumental music lessons now be?
6. what cost/benefit analysis has been performed on the loss of a trainee librarian?
7. what additional posts will be lost in restructuring the youth service and sports management, will these involve redundancies and, if so, how many?
8. how the £320,000 saving on property charges for provided schools and £312,000 grant to independent schools will be achieved and how it is to be staged?
9. what "consistent application of funding formula to fee-paying schools" means?"

Answer

1. This saving relates to secondary school demographics. Numbers are going up in primary schools and tertiary education but they are currently going down in secondary schools. The dip in the number of secondary age students is predicted to reach the lowest point at 2016, which is when there will be the smallest year groups. After that the numbers will start to rise again. Schools are funded per student' so the effect of lower pupil numbers is that there will automatically be less money going into schools. In future the picture will change. As the large number of children now in primary schools move up to secondary, the trend will be reversed and growth bids will have to be submitted.
2. In 2010 the ESC Department received notice of a major change in the UK government's policy regarding university tuition fees. This change was expected to result in a significant increase in higher education costs for Jersey and a successful growth bid for £1.5 million was submitted at the time in preparation. Subsequently, the UK government delayed implementation of the new tuition fee structure for a year. In addition, officers negotiated a

6% reduction in fees for students who started in September 2010. These two factors meant the £1.5m was not required and could be returned. However, negotiations are still underway for September 2013 and beyond, and there is still considerable uncertainty about the fee levels for the future and provision for this may have to be made in the Medium Term Financial Plan.

3. I am considering the introduction of a new form of means-testing based on household income. The savings which have been identified are based on the experience in other jurisdictions who adopted this method of assessment. If this is implemented it will only affect new students from 2013. The full saving will be realised by 2016 when all Jersey students are under the new system.
4. This is not connected to Trident, which is a work placement scheme. It relates to the reorganisation of special needs at the Alternative Curriculum. A new model will be developed that offers greater opportunities for these students to access vocational options for their education.
5. Details are being finalised but the charges will be kept as low as possible. This is a new user-pays charge and will be the subject of a report and proposition.
6. The Library Service is fully staffed and trained at the moment and succession planning is not an issue in the next few years. This saving will have no impact on frontline services.
7. One administration post will be lost when the incumbent retires. There will be no redundancies. Other savings will be generated by reorganisation but all frontline services will be maintained.
8. The property charges have been agreed with the States fee-paying schools. Payments commenced in 2011 and will be gradually increased over a five year period to 2016. The £312,000 grant reduction for independent schools relates to St Michael's School, whose grant is being phased out over five years to 2016.
9. Fee-paying secondary schools receive a grant equivalent to 50% of the cost of funding a student in a non fee-paying States school. Similarly, most fee-paying primary schools receive a grant equal to 25% of the cost of a States non fee-paying primary school place. The existing policy also allows for funding of up to 40% of the cost of education a pupil in a provided primary school when the school is only providing for the primary phase of education and can demonstrate financial difficulty'. This assistance was given to one primary school when numbers were low. The school is now in a much stronger position and the grant will revert to the normal level.