Is this a SPAM thread??

[Andy_RS2113]

just trying to find out.... that is all...

[bpspa]

could be how will you tell?

[lofty]

should be a sticky

[MAD-FRS]

SPAM

[Miker1]

don't know,, could be a spam thread lol

[Sebspring]

[indycos]

Originally Posted by Sebspring

now its an official spam thread, got the trade mark quoted right there

[lofty]

indycos your vote aint nice!haha...

[indycos]

Originally Posted by lofty

indycos your vote aint nice!haha...

its the only fair option and the only one worth of getting out the wooden spoon out for!!!

[Sebspring]

Andy can i have special permission to edit your poll please i wanna add another option just for me

i won't mess with the rest of it

[indycos]

looks like you're a knobhead then

[Andy_RS2113]

Originally Posted by Sebspring

Andy can i have special permission to edit your poll please i wanna add another option just for me

i won't mess with the rest of it

no probs mate - go for it

[Andy_RS2113]

Originally Posted by indycos

looks like you're a knobhead then

we'll see mate - 10 days to run

[Sebspring]

you wanna see some REAL spam? ....

[-Jill-]

I don't see any spam here


JILL

[Sebspring]

Lecture 1 - Introduction
Reading: SLP Ch. 1, Introduction


Natural Language Processing - the dream


Here is a dialogue from the film 2001: A Space Odyssey: Hal the computer and Frank the astronaut are playing chess. If you were programming Hal, what do you think would be the hard problems in making him able to have a conversation like this?


Frank: Anyway, queen takes pawn.


Hal: Bishop takes knight's pawn.


Frank: Rook to King 1.


Hal: I'm sorry, Frank. I think you missed it. Queen to Bishop 3, bishop takes queen, knight takes bishop, mate.


Frank: Yeah, looks like you're right. I resign.


Hal: Thank you for an enjoyable game.


Frank: Thank you.


The problems (theory)


Phonology: sounds and how they combine to make meaningful units
Morphology: meaningful units and how they combine to make words
Syntax: how words combine in structures to make sentences
Semantics: the meanings of words and sentences
Pragmatics: language in use
Discourse: larger chunks of language
World knowledge: language by itself is not enough


The problems (practice)


Speech Recognition
Natural Language Understanding
Natural Language Generation
Speech Synthesis
Information Retrieval (IR)
Information Extraction (IE)
Inference


Natural Language Engineering - achievements


Text manipulation: the Dialectizer
http://www.rinkworks.com/dialect/


Electronic dictionaries: Wordnet
http://www.cogsci.princeton.edu/ wn/
The ``Getty Vocabularies''
http://www.getty.edu/research/institute/vocabulary/


Information Retrieval: Google
http://www.google.com/


Machine Translation: Babelfish
http://world.altavista.com/




Lecture 2 - Techniques I: Probability

Reading:
SLP Ch. 5, Probabilistic Models of Pronunciation and Spelling (not sections 7 and 10)
James Allen, Natural Language Understanding Ch. 7, Ambiguity Resolution: Statistical Methods (sections 1-3)


Then: rule-based NLP


Rules written individually by hand
Usually in LISP or Prolog
Based on linguistic theory and intuition
Small
Often not very useful


Now: corpus-based NLE


Rules learned automatically
Implemented in C, Java, ...
Based on statistical analysis of lots of real language
Large
Increasingly practical and useful


Ntran: English-to-Japanese machine translation
Centre for Computational Linguistics, UMIST, 1984-1987



%------------------- noun phrase ---------------------------
noun_phrase(F) -->
quan(F),
prep(OF),
noun_phrase(F),
{OF/pred=of,F/bar = 3}.

noun_phrase(F) -->
det(F),
number3(F),
prep_phrase(OF),
{
OF/pred=of,
F/nounmod=OF,
OF/slashsubj=yes,
F/enum=alone,
F/bar = 3}.

noun_phrase(F) -->
number3(F),
prep_phrase(OF),
{
OF/pred=of,
F/numbdet=no, % to prevent overgeneration with above
F/nounmod=OF,
OF/slashsubj=yes,
F/enum=alone,
F/bar = 3}.

(26 of these for noun phrases)


%------------------- verb phrase ---------------------------

verb_phrase(F) -->
neg(F),
verb_phrase(V),
{F/vcomp=V,
F/bar = 2}.

verb_phrase(F) -->
to(F),
verb_phrase_x(F),
{F/bar = 2}.

verb_phrase(F) -->
verb_phrase_x(F),
{F/to=no}.

(15 of these for verb phrases)


And so on.

Basic probability theory


``Intuitively, the probability of an event is the likelihood that it will occur." (Allen)


A random variable represents an event, or the outcome of an event:


Tossing a coin: H = heads, T = Tails
A race: W = win, L = lose
The word ``light": N = noun, V = verb, A = adjective
A probability function between 0 and 1 represents the probability of each possible value of a random variable. In many cases this is calculated by counting the outcomes of previous events of the same type: if a horse has won 20 of his 100 races, the probabilities are


PROB(R=Win) = .2

PROB(R=Lose) = .8


This is called the maximum likelihood estimator.

Maximum likelihood estimators can be useful, as we'll see. But real examples often have many different factors (represented by different random variables) affecting each other.


Conditional probability is the likelihood of an event occurring, given a certain condition. Consider our racehorse, and a random variable representing the weather, with possible values Rain and Sun. Overall he has 20 wins from 100 races, However, when it's been raining, he has 15 wins from 30. Intuitively, his chance of winning in the rain - the probability of the event Win given the event Rain - is .5.


Sun Rain
Win 5 15
Lose 65 15



We write this


PROB(Win Rain)


and it is defined by the formula


PROB(e e') = PROB(e & e') / PROB(e')


where PROB(e & e') is the probability of the two events occurring simultaneously. Go back to our racehorse:


PROB(Win Rain) = PROB(Win & Rain) / PROB(Rain)

= .15 / .30

= .5


That's fine for nice toy examples with clean complete data, but the real world isn't often like that, and conditional probabilities can be difficult to estimate directly. To estimate the probability of an event given a condition, we may need to know about an indefinitely large number of occurrences of the condition.


Bayes' rule makes the problem easier by turning it around. Instead of estimating for the event given the condition, we look at the frequency of the condition given the event, for example PROB(Rain Win). The equivalence is


PROB(A B) =( PROB(B A) * PROB(A) ) / PROB(B)


thus


PROB(Rain Win) = ( PROB(Win Rain) * PROB(Rain) / PROB(Win)

= (.5 * .3) / .2

= .75


compare (to demonstrate the equivalence)


PROB(Rain Win) = PROB(Rain & Win) / PROB(Win)

= .15 / .20

= .75


You still need lots of examples to get a useable estimate of the numbers to plug in, but it's easier than the original version of the problem.


Bayes' rule is sometimes referred to as a classifier - given a thing, it helps you decide what class it's a member of.


There are lots of real-world uses for Bayes rule. Here are three from language engineering:


Correcting spelling errors
(see SLP Ch. 5.1): Given a mis-spelt form, what are the relative probabilities of the possible intended words, ie what is the most likely correction?

Recognising pronounciation variants
in speech recognition (see SLP Ch. 5.8): Given an ambiguous sequence of phones, what is the most likely word for it to be a pronounciation of?

Part-of-speech tagging
(Lecture 5): Given a word which could belong to any of several syntactic categories, which is most likely to be correct?
The examples you need come from analysing corpora (singular corpus - large collections of naturally occurring text (or speech), typically millions of words. I'll say more about the significance of scale for statistical ananlysis next time. Lecture 14 (Resources 1) will be about corpora.

Advanced Algorithms


These examples are all static, they are concerned with things co-ocurring - they have no time dimension, no concept of sequence. But language is inherently sequential - much of nlp is really various types of sequence analysis. You can bodge some of the simple cases into Bayes' rule: the chances of ``light'' being a verb go down to almost nothing given the condition that the preceding word is ``the". But we need a notation and some algorithms which can represent sequential order and reason with it.


Sequences (usually of phones, letters, or words) are represented as weighted automata (SLP 5.9) finite state transition networks in which each arc is labelled with a probability representing how likely that path is to be followed. SLP pp 170, 171 gives some good examples.


The number of possible paths through these things gets intractably large very quickly. An efficient way to deal with them is dynamic programming, a class of algorithms which solve large problems by combining the solutions to sub-problems. A table is used to store the partial results.


Speech recognition has the task, given a string of sounds or observation sequence, of deciding what underlying word it represents - the decoding problem. The forward algorithm is a classic dynamic programming algorithm used to compute PROB(O w), the likelihood of a particular observation sequence O, given the weighted automaton for each candidate word w. Informally, it moves stepwise through the automaton, calculating the probability of the path so far at each new state by multiplying together:



the previous path probability
at the previous state;

the transition probability
from the previous to the new state; and

the observation likelihood
that the current state in the automaton matches the corresponding symbol in the observation sequence.
The forward algorithm runs once for each candidate word and compares the final results. The Viterbi algorithm (Allen 7.3, SLP 5.9) is much more efficient: it follows all paths through the automaton in parallel, storing partial results to avoid re-calculating them. We'll look at some examples in detail when we get to Part-of-Speech tagging and probabilistic parsing.

Lecture 3 - N-grams
Reading:
SLP Ch. 6, N-grams (sections 1 & 2)


An N-gram is a sequence of length N. We'll be looking at sequences of words within texts, but the idea is much more general.

Concordances


Concordances are a very old, traditional tool for studying important religious or literary texts. A concordance gives a list of every word in a text with all the contexts it appears in. The first concordances were compiled by hand for the Christian Bible, later for other heavily studied texts like the works of Shakespeare.


Doing this by hand is slow and labour-intensive, and could only be justified for important texts of moderate size. (The complete works of Shakespeare come to well under a million words (tokens) with a vocabulary of under 30,000 (types), a lifetime's effort by hand but trivial by the scale of current corpora.) Concordance software is now easily available and makes the technique easily applicable to any text.


An example of ``Key word in context", using the ``Concordance" package,
http://www.rjcw.freeserve.co.uk


MAINE..............7
Everything about the Maine Coon points to its adaptation to a harsh
climate. Its glossy 2
Maine Coons develop slowly, and don't achieve their full size until they
are three to 15
cajoling their people into playing with them. (Maine Coons love to play,
and many 19
While Maine Coons are highly people-oriented cats, they are not
overly-dependent. 23
trait there are a few Maine Coons that prefer laps. Most Maine Coons
will stay close 27
trait there are a few Maine Coons that prefer laps. Most Maine Coons
will stay close 27
room to room and wait outside a closed door for you to emerge. A Maine
Coon will 29

Collocations:

2 LEFT 1 LEFT
A 1 A 1
About 1 Few 1
Emerge 1 Most 1
Laps 1 The 1
With 1 Them 1
While 1


1 RIGHT 2 RIGHT
Coons 5 Will 2
Coon 2 Are 1
Develop 1
Love 1
Points 1
That 1

Concordance techniques are still widely used in stylistic analysis and in sociolinguistics. There is also recent research on using them to ``mine" some of the information content of very large and/or highly technical text corpora. Patel (2002; 3rd year project) looked at complex technical terminology in radiology reports. Lunn (2002; 3rd year project) and O'Connor (in progress; MSc) use concordance tools on the free text comment fields in the SwissProt molecular biology database. New and promising stuff.

N-grams


An N-gram is like a moving window over a text, where N is the number of words in the window.

igrams: two consecutive words

Trigrams: three consecutive words

Quadrigrams: four consecutive words
And so on.


N-gram analysis calculates the probability of a given sequence of words occurring: if you know what the first word of a pair is, how confidently can you predict the next one, using the conditional bigram probability
More generally, can you predict a word from the N-1 words before it? A statistical model of word sequences in a text corpus is sometimes (especially in speech recognition) called a language model.


Applications:


POS tagging - can you figure out the category of an ambiguous word from the one before it?

word prediction - can you figure out what the current word is from the one before it? Important for speech recognition, augmentative communication, and context-sensitive error correction.
Training


Divide the corpus into a training set and a test set (typically 90% training / 10% test). Calculate the language model from the training set, then evaluate its performance on the test set. Repeat with different divisions into training and test sets, to reduce the risk that the model will be biased by some accident of the exact division (cross-validation). This is, of course, the same as for lots of applications of machine learning.


Training: count all the bigrams in the training set, and normalise the result (divide all by a common divisor so that all the resulting probabilities are between 0 and 1). Count a particular bigram, and divide this count by the count of all the bigrams that share the same first word. This gives you the relative frequency or Maximum Likelihood Estimator for the original bigram. See the ``Berkeley Restaurant" example, SLP pp 201-2.


Notice that there are lots of zeros, not just for doubtful sequences (``I Chinese", ``eat want") but also for grammatical ones (``to want", ``Chinese eat"), because the counts, and therefore the probabilities, are based entirely on what's actually there in the corpus, and any corpus is finite.



Digression: the sparse data problem


The scale of these things is important. There is a general theorem of statistics - the ``law of large numbers" - which says that estimates can be indefinitely accurate if based on an indefinitely large data set. (Note that the ability to build and handle corpora of this size in turn depends on having computing resources on a scale which has only recently been generally available - one reason for the very recent mushrooming of statistical nlp.) Even so, one of the greatest problems for statistical nlp is that of sparse data - it is in the nature of natural language that a small number of words make up the bulk of the text, while a much larger number of words occur too seldom for their behaviour to be reliably analysed. For example, the Brown corpus contains about one million words (tokens) of text, made up of 49,000 different words (types). Of those, over 40,000 occur five times or less. Obviously it will be difficult to make predictions about these with any great confidence.


Zero is not a legal probability value. It is also not an accurate description of the language - it would predict that you could never hear or say anything you hadn't heard or said before, but natural language is Not Like That!


So smoothing - techniques are used to assign some nominal non- zero value to the zero or very low probabilities. The simplest is Add-One smoothing, which just adds one to all of them, but this turns out to be too much and distorts the values significantly (more so the smaller the data set).


More sophisticated algorithms, Witten-Bell Discounting and Good- Turing Discounting, are explained in the book. Key insight: the probability of seeing a zero-frequency N-gram can be modelled by the probability of seeing an N-gram for the first time. ``Use the count of things you've seen once to help estimate the count of things you've never seen." This can be specific to each first (or second) word of a bigram, encoding the fact that some words combine more freely than others.


I'm not concerned with the detail of these algorithms. The important thing to understand is the sparseness of even very large corpora, and roughly how we can compensate for it.


Validation


How good a fit is your model to the corpus?


How do you measure ``fit"?


How often would the system have to guess the value of the next word (or letter, or phone) in a sequence before getting it right?


Entropy - ``a lower bound on the number of bits it would take to encode a certain decision or piece of information in the optimal coding scheme".


Perplexity - ``the weighted average number of choices a random variable has to make". For entropy , perplexity is .


Eight equally likely alternatives can be encoded in three bits: choosing anmong them, the perplexity is . If the alternatives are weighted, the perplexity will probably go down, and the system will make more accurate predictions. See SLP Ch.6.7 for a detailed example.


A footnote on text-types


Because we are recording the observed behaviours of individual words, this stuff is highly specific to a particular style or text-type. For any sort of corpus-based statistical analysis to be accurate, the training corpus must be appropriate - homogeneous with the data to be analysed. Here is what can happen when you train a language model on WSJ and apply it to a text in botany:


``Achenes in a subglobose head..."


922 semantics 414 442 (qlf:[achene(e24),
number(e24, plural),
realisation(e24, offsets(414, 421)),
in(e24, e25),
title(e25, head),
civilian(e25),
subglobose(e26),
qual(e25, e26),
number(e26, sing),
realisation(e26, offsets(427, 437)),
det(e25, a),
realisation(e25, offsets(425, 442))])

Lecture 5 - Components of an NLP system
In the first lecture we looked at how the problem space of natural language breaks down in a theoretical approach:


Phonology: sounds and how they combine to make meaningful units
Morphology: meaningful units and how they combine to make words
Syntax: how words combine in structures to make sentences
Semantics: the meanings of words and sentences
Pragmatics: language in use
Discourse: larger chunks of language
World knowledge: language by itself is not enough


This does not map straightforwardly to the components in an implemented system:



it assumes clean text with clear word and sentence boundaries,

it aspires to dealing with deep syntax, detailed semantics, and human-like general world-knowledge, and

it has no practicalities to worry about.

Implemented systems dealing with real text:



need to identify word and sentence boundaries,

need to make the most of ``chunking'' or ``shallow parsing'',

need simple, efficient ways to encode specific domain knowledge, and

eed to deal with software engineering issues such as speed, modularity, consistency, compatibility, version control, ...

The list of ``Sections'' at http://registry.dfki.de/ will give you some idea of the range of tasks and sub-tasks involved.


The NLP system we'll use as much as possible in the course is the GATE (General Architecture for Text Engineering) system, developed by the Computer Science department at Sheffield University - see their excellent web pages (linked from the CS3421 home page) for details. To quote the GATE documentation, it:

Manages textual data storage and exchange;
Supports visual assembly and execution of modular NLP systems plus visualisation of data structures associated with text;
Provides plug-in modularity of text processing components.
GATE 1 (1995 - 2001) has a configurable modular structure: core modules include


Tokenizer
identifies token (ie word or punctuation mark) boundaries ;
Sentence Splitter
identifies sentence boundaries;
Brill Tagger
assigns part-of-speech tags;
Gazetteer Lookup
matches names of people, locations, &c using domain-specific lists;
Morphology
identifies roots and affixes of nouns, verbs, & adjectives;
SemanTag Tagger
assigns semantic category tags;
buchart Parser
makes two passes, first with a special ``named entity grammar'', then with a general phrasal grammar, and constructs a ``quasi-logical form'' (QLF);
Name Matcher
identifies variant names for the same thing throughout the text;
Discourse Interpreter
uses the QLF, a semantic net, and loads of inference to derive a full discourse model;
Template Writer
extracts the information wanted and writes it into a ``template''.
GATE 2 (2002 )


From their web pages, http://gate.ac.uk/documentation.html:


GATE is made up of three elements:


An architecture describing how language processing systems are made up of components.
A framework (or class library, or SDK), written in Java and tested on Linux, Windoze and Solaris.
A graphical development environment built on the framework.
GATE 2 is a pure Java implementation, with more limited functionaltiy than GATE 1. Core elements now include:


Document resetter
initialises the system;
Gazetteer
matches names of people, locations, &c using domain-specific lists;
Tokeniser
identifies separate word tokens;
Abbreviations
recognises abbreviations;
Sentence Splitter
identifies sentence boundaries;
POS Tagger
assigns part-of-speech tags;
Morphology
identifies roots and affixes of nouns, verbs, & adjectives;
JAPE processor
does shallow syntactic parsing.



Lecture 8 - Stemming
Reading:
SLP Ch. 3, Morphology and Finite-State Transducers
see also the demo and description at http://snowball.tartarus.org/porter/stemmer.html


Sometimes we want to recognise specific forms of words (singular or plural nouns, present or past tense verbs, &c). For other purposes it would be better to group together different forms of ``the same'' word.


Morphology
is the study of the internal stucture of words.

A wordform
is a complete inflected form as it appears in the corpus.

A lemma
is a set of lexical forms having the same stem (except for irregular forms), the same major part-of-speech, and the same word-sense - a set of realisations of a single underlying ``abstract word''.

A stem
is the morphological base of a lemma, without affixes .

An affix
is a bit that gets stuck onto a stem to make a complete wordform. A prefix goes before the stem and a suffix after it.
Thus

wordform cats, being

lemma {cat, cats}, {be, being, was, were}

stem [cat], [be]

affix -s, -ing


This is fine for English, and many other languages, but not for all languages. In the Semitic languages (such as Arabic and Hebrew), each word stem or ``root'' consists of three consonants, and the different inflections are formed by inserting different vowels between them:

*ktb = write, kaatib = writer, ki'taab = book


Turkish, on the other hand, is an extreme example of multiple affixation:

çöplüklerimizdekilerdenmiydi

Was it from those which were in our garbage cans?

uygarlastiramadiklarimizdanmissinizcasina

(behaving) as if you are among those whom we could not cause to become civilised


The space of possible wordforms:



is very very large;

changes rapidly;

has a lot of internal regularity.
So we can't list all possible forms: we have to do some sort of analysis, or parsing.


Morphological analysis used to be done with hand-built rules - here is a sample of the Ntran code for English morphology (the full file is 145 lines long):


% --------------------------- morphology ----------------------------
% this file contains the procedures
% morph, addmorph, form, vowel, consonant, doubleable
% obv, numsyll, syllables, removevowels

% morph(Form,Feature,Inflform)

genmorph(Form,Feature,Inflform) :-
unless(form(Feature,Morph),Feature=Morph),
name(Form,Chform),
addmorph1(Morph,Chform,Chinflform),
name(Inflform,Chinflform).

analmorph(Form,Morph,Inflform) :-
name(Inflform,Chinflform),
addmorph0(Morph,Chform,Chinflform),
name(Form,Chform).
analmorph(Form,nil,Form).

form(comp,er).
form(sup,est).
form(adv,ly).
form(plural,es).
form(thirdsing,es).
form(past,ed).
form(past_part,ed).
form(pres_part,ing).

addmorph(es,"s","ses").
addmorph(es,"o","oes").
addmorph(es,"us","i").
/*the above isnt adequate as it allows incorrect spellings for eg
pianos, tomatoes, potatoes, - you really need to say for each
particular word of this odd type that it has this sort of pl or
that sort of pl. */
addmorph(es,[C|"y"],[C|"ies"]) :-
consonant(C).
addmorph(ed,"e","ed").
addmorph(ed,[C,V,C1],[C,V,C1,C1|"ed"]) :-
vowel(V),
consonant(C),
doubleable(C1),
not(obv([V],[C1])).
addmorph(th,"ve","fth").
addmorph(th,"i","ieth").
<lots more>
addmorph(Morph,[H|T],[H|T1]) :-
addmorph(Morph,T,T1).

% addmorph0 2nd level added jjc to allow for compound morphs
<13 lines of code>

vowel(V) :-
member(V,"aeiouy").

consonant(C) :-
not(vowel(C)).

doubleable(D) :-
member(D,"bdfgklmnprst").

obv("e","r").
obv("e","n").
obv("u","s").
obv("o","n").

numsyll(Form,N) :-
name(Form,List),
syllables(List,N).

syllables([],0).
syllables([V|T],N) :-
vowel(V),
removevowels(T,T1),
syllables(T1,N1),
N is N1 + 1.
syllables([C|T],N) :-
consonant(C),
syllables(T,N).

% spot that removevowels also removes the first non-vowel (bjc)
removevowels([],[]).
removevowels([C|T],T) :-
consonant(C).
removevowels([V|T],T1) :-
vowel(V),
removevowels(T,T1).

Morphological analysis requires:



A lexicon listing stems and affixes;

Morphotactics, the grammar of what things can occur together, and in what order;

Spelling rules for the changes which can happen when things are stuck together.

Morphotactics can be represented by finite state automata.


Morphological parsing can use finite state transducers to map between the lexical level of a word - the underlying string of constituent morphemes - and the surface level, the actual wordform.


These techniques work well, but they depend on a large and accurate lexicon, and they can be slow. The first fast, simple stemming technique to work without a lexicon was devised by Martin Porter in 1980 and is still widely used.


The Porter stemming algorithm (or 'Porter stemmer') is a process for removing the commoner morphological and inflexional endings from words in English. Its main use is as part of a term normalisation process that is usually done when setting up Information Retrieval systems. (Martin Porter, 1980)
It consists of seven sets of simple rewrite rules, of the form

(condition) S1 S2

which strip down



1. Plural nouns and third person singular verbs, eg ies i

2a. Verbal past tense and progressive forms, eg (*v*) ING

b. Cleanup

3. Y I

4. Derivational morphology I: Multiple suffixes

5. Derivational morphology II: More multiple suffixes

6. Derivational morphology III: Single suffixes

7a, b. Cleanup
The full details are given in Appendix B of SLP.


A warning is in place: It is hard to do stemming without using a lexicon. If you are a linguist, the output from a Porter stemmer could easily make you upset. A stemmer such as this could still be useful, however. (Anon.)
Here is a sample of English vocabulary (clearly taken from a corpus, and an odd one at that), with the stems given by a Porter stemmer. Look for examples of under-stemming, taking off too little, and over-stemming, taking off too much; this can be mis- stemming, taking off something which looks like a suffix but is really part of the stem, or over-stemming proper, taking off a true ending which conflates words of different meanings.


a a
aaron aaron
aback aback
abaissiez abaissiez
abandon abandon
abandoned abandon
abase abas
abash abash
abashed abash
abate abat
abated abat
abatement abat
abatements abat
abates abat
abattement abatt
abbe abb
abbess abbess
abbey abbei
abbeys abbei
abbominable abbomin
abbot abbot
abbots abbot
abbreviated abbrevi
abdication abdic
abduction abduct
abed ab
abel abel
aberga aberga
abergavenny abergavenni
abet abet
abetting abet
abhominable abhomin
abhor abhor
abhorr abhorr
abhorred abhor
abhorrence abhorr
abhorring abhor
abhors abhor
abhorson abhorson
abide abid
abides abid
abilities abil
ability abil
abingdon abingdon
abject abject
abjectly abjectli
abjects abject
abjur abjur
abjure abjur
able abl
abler abler
ablest ablest

And here is a bit of my text:

the -> the
relatively -> relat
long -> long
square -> squar
muzzle -> muzzl
facilitates -> facilit
grasping -> grasp
prey -> prey
and -> and
lapping -> lap
water -> water
from -> from
streams -> stream
and -> and
puddles -> puddl

their -> their
dispositions -> disposit
remain -> remain
kittenish -> kittenish
throughout -> throughout
their -> their
lives -> live
they -> they
are -> are
big -> big
gentle -> gentl
goodnatured -> goodnatur
goofs -> goof

``Historically, stemmers have often been thought of as either dictionary-based or algorithmic... But the two approaches are not really distinct. An algorithmic stemmer can include long exception lists that are effectively mini-dictionaries, and a dictionary-based stemmer usually needs a process for removing at least i[nflectional] suffixes to make the look-up in the dictionary possible.''


``... purely algorithmic [stemmers] are, or ought to be, inferior to the performance of well-constructed dictionary-based stemmers. But they are still very useful, for the following reasons:

1) Algorithmic stemmers are (or can be made) very lean and very fast...

2) Despite the errors they can be seen to make, algorithmic stemmers still give good practical results...

3) Dictionary-based stemmers require dictionary maintenance, to keep up with an ever-changing language, and this is actually quite a problem.'' (Martin Porter, 2001)


So - as so often in NLE -

the best way forward seems to be a hybrid, and

something grubby seems to work better than something elegant.

[Sebspring]

Originally Posted by -Jill-

I don't see any spam here


JILL

i do now

[Sebspring]

Originally Posted by Andy_RS2113

no probs mate - go for it

Originally Posted by indycos

its the only fair option and the only one worth of getting out the wooden spoon out for!!!

like my new one indy

[Sebspring]

right i am going to spam attack this thread now

[Sebspring]

[Sebspring]

[Sebspring]

[Andy_RS2113]

OPERATIONAL PROGRAMME
EUROPEAN SOCIAL FUND:
2007-2013
LOWLANDS & UPLANDS SCOTLAND
FINAL
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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CONTENTS
1 INTRODUCTION
2 SOCIO-ECONOMIC BACKGROUND
2.1 General background
2.2 Employment and employability
2.3 Workforce skills
2.4 Lifelong learning
2.5 Summary of key challenges
3 POLICY BACKGROUND
3.1 Policy context
3.2 Lessons from 2000-06 programming
4 STRATEGY AND PRIORITIES
4.1 Programme vision
4.2 Programme Objectives
4.3 Priority 1: Progressing into employment
4.4 Priority 2: Progressing through employment
4.5 Priority 3: Improving access to lifelong learning
4.6 Technical assistance
4.7 Categories of assistance
5 FINANCIAL ALLOCATIONS
6 CO-ORDINATION WITH OTHER FUNDS
6.1 European Regional Development Fund
6.2 Territorial Co-operation Objective
6.3 The European Agricultural Fund for Rural Development
6.4 The European Fisheries Fund
6.5 EU research funding
6.6 The European Investment Bank
7 IMPLEMENTING PROVISIONS
7.1 Roles and responsibilities
7.2 Financial flows and payments
7.3 Partnership and committee structure
7.4 Award decisions
7.5 Transnational activity
7.6 Publicity
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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7.7 Aid schemes
7.8 Exchange of computerised information
8 CROSS-CUTTING THEMES
8.1 Equal opportunities
8.2 Environmental sustainability
8.3 Social inclusion
9 EVALUATION, MONITORING AND REPORTING
9.1 Evaluation
9.2 Monitoring
9.3 Reporting
9.4 Indicators and baselines
ANNEXES
A. Glossary of acronyms
B. References
C. Programme drafting
D. Summary of ex-ante report
E. Equal Opportunities Impact Assessment
F. Indicative breakdown of activities
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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1 INTRODUCTION
The European Social Fund (ESF) seeks to address social inequalities within and
across regions by improving the general performance of the labour market and, in
particular in relation to marginalised groups. It is intended to help regions increase
their competitiveness by increasing employment rates, preventing people from
dropping out of the labour market, and increasing productivity through improved skill
levels.
In March 2000, the EU leaders agreed the Lisbon strategy, which committed the EU
to become by 2010:
“The most dynamic and competitive knowledge-based economy in the world
capable of sustainable economic growth with more and better jobs and
greater social cohesion, and respect for the environment.”
The achievement of this goal is seen as essential if Europe is to respond to the
challenges of globalisation and competition from other parts of the world. Scotland is
no less ambitious in its goals aimed at ensuring that the Scottish Executive and its
partners work together to make a real difference to the lives of all the people living
and working here to ensure they fulfil their potential and contribute to and benefit
from a high-earning, knowledge-based economy.
In working together to achieve these goals it is important to be aware that for each
person who moves into sustained employment, the effect is more widespread than
just getting a job – it affects their health, their family, their friends, their
neighbourhood and brings about economic benefits, with less dependency on
welfare benefits and contributing to the economic growth and competitiveness of
Scotland. This is not just or even mainly about numbers – it is about improving the
lives of individuals, families and communities.
The following Operational Programme provides the framework for the spending of
the European Social Fund (ESF) for the Regional Competitiveness & Employment
Programme for Scotland for 2007-13. The Programme covers the ‘Lowlands &
Uplands Scotland’ area, defined as the whole of the NUTS 2 areas for Eastern
Scotland, North-East Scotland and South-Western Scotland (that is, all of Scotland
apart from the Highlands & Islands, which are covered by programmes under the
Convergence Objective). It will complement the European Regional Development
Fund Programme under the Regional Competitiveness & Employment Objective for
the same area.
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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The Operational Programme is divided into several sections following this
Introduction:
• Socio-economic background: A summary of the key strengths, weaknesses,
challenges and opportunities for the eligible area within the context of the
Structural Funds contribution to achieving the Lisbon Agenda goals, setting
out the main issues for the Programme to address.
• Policy background: A summary of the policy context for addressing the issues
identified in the socio-economic analysis and the contribution of lessons from
earlier Structural Funds programmes to the 2007-13 Programme and
identification of where Structural Funds can provide added value in
contributing to these different objectives.
• Strategy, Objectives and priorities: A detailed description of the Programme’s
overall vision, its objectives and the three priorities through which it will tackle
the issues identified in the socio-economic analysis within the policy context
set out above as well as the use of Programme technical assistance and the
categorisation of activities in line with Lisbon ‘earmarking’.
• Financial arrangements: The financial allocation tables for the Programme.
• Co-ordination with other funds: A description of how the European Social
Fund will complement other key EU funding in the region, particularly the
European Regional Development Fund, the European Agricultural Fund for
Rural Development and the European Fisheries Fund.
• Implementing provisions: A description of key aspects of managing and
delivering the Programme, including the roles and responsibilities of the
Managing, Paying and Audit Authorities, key intermediary bodies and the
Programme Monitoring Committee.
• Cross-cutting themes: A description of how Equal Opportunities, Sustainable
Development and Social Inclusion will be mainstreamed as underpinning
horizontal themes throughout the Programme.
• Evaluation, monitoring and reporting: The evaluation strategy for the
Programme, setting out how the Programme will be monitored and the
processes for reporting and evaluation.
In addition, there are a number of Annexes covering:
• acronyms and references;
• summary of the drafting of the Programme and engagement with partners;
• summary of the ex-ante evaluation report for the Programme; and
• summary of the Equal Opportunities Impact Assessment for the Programme.
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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2 SOCIO-ECONOMIC BACKGROUND
This section provides an evidence base to educate the development of the new ESF
Programme in Lowlands & Uplands Scotland for the period 2007 to 2013. It contains:
• analysis of the main relevant features – and trends – of the region;
• identification of the region’s main needs with particular emphasis on key
spatial variations within the region; and
• a summary SWOT analysis – this will identify a series of clear
challenges/needs that will feed directly into Chapters 3 and 4.
The analysis begins with general background context-setting for the region’s key
demographic, economic and other relevant trends. It then provides more detailed
analysis under several headings:
• employment and employability, focusing on the size of the workforce (and the
barriers to different groups being able to participate in the labour market);
• workforce skills, covering the skills issues relating to different groups in the
workforce; and
• lifelong learning, covering the region’s capacity for addressing the
employment and skills development challenges through training and lifelong
learning.
An assessment was done by the ex-ante evaluator as to whether the ESF
programme required a Strategic Environmental Assessment. The evaluator
concluded that this was required for the ERDF programme for this region, but not for
the ESF Convergence Programme. Consequently, an analysis of the environmental
situation of the region is not contained in this document.
The analysis is not meant to be a comprehensive review of the Scottish economy,
but a focus on a specific set of market failures which Structural Funds can help to
address within the framework of the Lisbon goals on growth and jobs. Some
important elements of wider economic development have not been examined in
detail because Structural Funds under this Objective cannot provide significant
support to address the issues adequately. The role of the Lisbon Agenda as the key
driver in the development of the Programme should be emphasised – the Structural
Funds have to make clear, value-added contributions to the EU’s goals of improving
economic growth and jobs within challenging timescales. Moreover, the analysis
focuses on aspects of socio-economic development where limited Structural Funds
support can make significant differences.
The analysis also covers both Scotland as a whole and at a regional level. Using
Scottish figures is unavoidable in many cases because of the level at which figures
are collected – however, as the Lowlands & Uplands region includes the bulk of
population and economic activity, it remains a strong indicator of the issues facing
the region. Regional statistics are given at NUTS 2 and NUTS 3 level. It is worth
noting that the NUTS 2 regions are:
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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• North-East Scotland (including: Aberdeenshire, City of Aberdeen and North-
East Moray);
• Eastern Scotland (including: Angus and Dundee City, City of Edinburgh,
Clackmannanshire, East Lothian, Falkirk, Fife, Midlothian, Perth and Kinross,
Scottish Borders, Stirling and West Lothian); and
• South-Western Scotland (including: parts of Argyll & Bute, City of Glasgow,
Dumfries and Galloway, East Ayrshire, East Dunbartonshire, East
Renfrewshire, Inverclyde, parts of North Ayrshire, North Lanarkshire,
Renfrewshire, South Ayrshire, South Lanarkshire and West Dunbartonshire).
Where specialised sources of data/research are used, these are cited in the text with
the full references listed in the annex. General sources of statistics used in the
analysis include: the Scottish Economic Statistics series, the Scottish Economic
Report and the General Register Office for Scotland (GROS).
2.1 General Background
Population
Before providing a detailed analysis of the region’s main economic and social
features, background statistics are provided here. In 2004, the population of the
LUPs region was 4.711 million people, or 93% of the population of Scotland as a
whole, an upward trend on previous years. Nevertheless, in terms of population
change, there has been considerable variation: areas that have shown significant
population growth since 1995 include West Lothian (10%), East Lothian (6%) and
Stirling (5.5%), while those showing contraction include Aberdeen City (8%),
Inverclyde (7.3%) and Dundee City (6.7%). The majority of the population are
concentrated in the so-called Central Belt area around and between Glasgow and
Edinburgh.
According to the General Register Office for Scotland, the population for Scotland as
a whole is set to continue to rise to a peak of over 5.1 million in 2019 before slowly
declining. At present, children aged 15 and under accounted for 19% of the
population, as do people of retirement age. However, the number of children aged
under 16 is projected to decrease by 15% from just under a million in 2004 to
790,000 by 2031 for Scotland as a whole. This is contributing to the number of
working-age people falling by 7% from 3.18 million in 2004 to 2.96 million in 2031. At
the same time, the number of people of pensionable age will increase by 35% from
0.97 million to 1.31 million over the same time period. The combined trends will
increase labour demand pressures in the regional economy and suggest that policy
will need to focus on how the labour market can be expanded.
One counter trend to population decline has been migration. Again, according to
General Register Office statistics from mid-2005 population estimates for Scotland
as a whole, in the year to mid-2005, there was a net migration gain of around
19,000, reflecting a net gain of around 12,500 people from the rest of the UK, a net
gain of around 7,300 from overseas (including asylum seekers). The latter gain has
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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represented a new trend in recent years with significant numbers of migrants coming
from new Central and Eastern European Member States of the EU, particularly
Poland. Migrants tend to be much younger than the general population with 69 %
(overseas) of in-migrants aged 16-34 as compared to 24% of the Scottish resident
population. Although potentially representing an injection of new skills into the
regional labour market, many of the overseas migrants have substantial skills
challenges relating to English language and ‘converting’ overseas skills qualifications
into recognisable qualifications for Scottish employers (an issue relating as much to
employer attitudes as to the nature of the qualifications themselves).
GDP
GDP at basic prices for the LUPS region in 2003 was £74,298 million. The main
contributing regions to GDP have been the major metropole areas, particularly the
cities of Aberdeen, Edinburgh and Glasgow. In recent years, GDP growth has been
improving, but the economy as a whole continues to perform less well than the wider
UK economy.
Productivity performance lies at the heart of regional competitiveness. As Chapter 3
will show, it has also been identified as the key challenge for economic development
by the Scottish Executive. If Lowlands & Uplands Scotland is to be able to contribute
to Lisbon Agenda targets, productivity growth will be a key aspect of economic
development actions.
Productivity in Scotland is low and declining relative to the UK. In 2003, for Scotland
as a whole, gross value added per head of population was 96% of the UK average,
having fallen from 101% in 1995. Within the LUPS region, there is considerable
variation in gross value added, ranging from 160% of the UK average in the City of
Edinburgh, reflecting a concentration of high-value economic activities, especially
financial services, to 62% in East and West Dunbartonshire and the eastern parts of
Argyll & Bute. Other areas with low figures include Clackmannanshire/Fife, East and
North Ayrshire, East Lothian/Midlothian, and the Scottish Borders – all are areas
whose performance relative to the UK average had decreased since 1995. The worst
performing regions share similar traits. These are regions that have lost more
employment in manufacturing and agriculture than the rest of the Scottish economy;
and manufacturing and services in those regions have systematically underperformed
the Scottish average in terms of GVA per employee over the past decade.
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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Table 1: Gross value added relative to the UK average (%, 2003)
1995 2003
Scotland 101 96
Aberdeen City/Aberdeenshire/North East Moray 140 131
Angus/Dundee City 97 86
City of Edinburgh 152 160
Clackmannanshire/Fife 78 70
East Ayrshire/North Ayrshire mainland 80 68
East & West Dunbartonshire/eastern Argyll & Bute 65 62
East Lothian/Midlothian 70 64
Dumfries & Galloway 85 75
Falkirk 101 84
Glasgow City 123 138
Inverclyde/East Renfrewshire/Renfrewshire 100 88
North Lanarkshire 73 75
Perth & Kinross/Stirling 96 83
Scottish Borders 86 68
South Ayrshire 93 86
South Lanarkshire 80 80
West Lothian 119 91
Source: Scottish Economic Statistics 2006.
Labour market
The region's labour market has been performing well in recent years, with more
individuals in employment than ever before. Employment rates are, and will remain
partly dependent on broader global economic cycles and UK macro-economic
factors. Both the employment rate and the economic activity rate (those in
employment or seeking employment) for the region are at historically high levels.
The employment rate for the period March-May 2006 stood at 75.3%, with the
economic activity rate at 79.9%. The employment rate has increased by around four
percentage points since 1999 with over 180,000 more people in employment than in
1999. Currently Scotland is fifth highest out of the 12 UK regions in terms of
employment rates and also fifth in terms of economic activity rates. Moreover,
Scotland has higher economic activity and employment rates than England, Wales,
Northern Ireland and the UK as a whole. All employment growth over the last two
decades has been in non-rural Scotland.
The region has seen a very significant structural change across industries in the last
two decades. The transfer of jobs from the primary and manufacturing sectors to
services has been highly significant, and will continue. Similarly, employment in
professional and personal sector services has grown substantially and more than
outweighs the fall in manufacturing and in skilled trades. These trends are expected
to continue with the numbers of higher skilled and professional jobs rising and lower
skilled jobs falling. Estimates suggested there will be half a million job openings
expected between 2003 and 2008. Of these 36,000 will arise due to economic
growth (an increase of 1.4%). The remaining 464,000 will arise to replace existing
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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workers who leave the workforce or change their industry or occupation (Futureskills
Scotland, 2005a).
Skills and education
Higher skills levels are linked to higher employment rates. The share of more highlyskilled
jobs within this region’s economy will increase most quickly. Two decades
ago managerial, professional and technical occupations accounted for only 26% of
jobs in the region. By 2003, they accounted for 38%, and are projected to account for
40% by 2008. This is matched by the increasing proportion of economically-active
Scots educated to Scottish Vocational Qualification (SVQ) level 4 or above: 26% in
1998, 32% in 2003, and a predicted 35% by 2008 if rising education participation
rates continue. There is also a trend for increasing emphasis on generic and ‘soft’
skills. The most pressing need will be for more effective communication, problem
solving, numeracy, planning, organisational, team working, and computing skills,
together with an increased emphasis on attitude and self-presentation. (Futureskills
Scotland, 2005b).
Diversity and equal opportunities
With an ageing and potentially declining population in the region, employers are
hoping to use more technology to improve productivity as well looking to nontraditional
groups to enter the workforce. To maintain flow into the labour market this
diversity will have to continue apace to enable the region to be productive in world
markets. Organisations will have to respond to changing demographics to enable
more individuals with direct caring responsibilities for children and for elderly
relatives to be accommodated in the workforce. On the supply side, there is
evidence that more women, more older people and more people from abroad are
entering and staying in the labour market. European integration and expansion of the
EU has increased the supply of cheaper labour into the UK, and this is likely to
continue. 32,135 Eastern Europeans registered in Scotland in 2004 under the
Government’s Worker Registration Scheme according to Home Office figures. More
complex family relationships, more solo households, relatively smaller state pensions
resulting in more older people staying in the labour force, will all have an effect on
the nature of the work, the skills and training required, and the flexibilities and
equality of opportunities which will have to be taken into account to ensure that
people are not excluded from the workplace.
Key messages
• Long-term population decline represents a potentially significant labour market
challenge to the region.
• Inward migration, particularly from overseas, could bring new skills and
dynamism into the regional economy.
• Overall, the region’s level of economic activity and growth remain relatively
low, though there have been notable improvements in recent years.
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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• Similarly, the region’s productivity performance is also comparatively limited,
but with significant variations at sub-regional level.
2.2 Employment and Employability
Employment
With the labour market tightening in recent years, employment levels in the region
are high. The region has an employment rate of 75% compared with 63% and 65%
in the EU-25 and EU-15 respectively. The region has already met the EU Lisbon
employment target of 70%. Since 2001, the region’s employment rate has grown at
nearly twice the rate of the EU-25. It also has a higher economic activity rate, at
76%, than the EU-25 and EU-15, both 75%. Between 2001 and 2004, the Scottish
economic activity rate has seen a 1% increase. In contrast the EU-25 rate has fallen
in the same time frame.
According to Eurostat, the region’s unemployment rate (5.7%), is below the EU-25
level of 9.2%. While unemployment across the EU increased between 2001 and
2004, it decreased in Scotland. Scotland also out-performs the EU-25 in terms of
unemployment amongst 15-24 year olds and long-term unemployment. Between
2001 and 2004, Lowlands & Uplands Scotland’s 15-24 year old unemployment rate
has fallen to 14.2% in contrast to the increase across the EU-25 to 18.5%. The rate
for those unemployed for more than 12 months as a proportion of the unemployed
total in the region fell to 21.9% compared to that for the EU-25 of 45.1%.
In terms of the older groups of working-age people, the LUPS region has higher
employment rates for both 45-54 and 55-64 year olds than the EU-25. According to
Eurostat, the difference is most marked for the 55-64 age group with a figure of 54%
relative to the EU-wide figure of 42%. The Scottish percentage increase has also
been above the EU level for both age groups.
Working-Age Population Activity
The number of working-age people in employment, education or training (EET) in
Scotland as a whole was estimated in the Annual Population Survey to be 2.49
million in 2005 (Scottish Executive, 2006). That was 79.7% of the working-age
people, an increase of 0.3 percentage points on 2004. However, this varies
considerably between the different Local Authorities at NUTS 3 level. Glasgow and
East Ayrshire had the lowest EET proportions in 2005, at 72.2% and 74.1%
respectively. Whereas, at the upper end, four areas had EET proportions above
84.0% in 2005: East Dunbartonshire (86.1%); Aberdeenshire (84.4%); City of
Edinburgh (84.6%); and East Renfrewshire (84.4%).
Although Scotland’s employment rates are at historically high levels, again this
masks big variations by locality. Within the region, employment rates vary
significantly as Table 2 shows. Above-average rates have been recorded in rural
areas such as Aberdeenshire, Dumfries & Galloway, Midlothian, Perth & Kinross and
Scottish Borders as well as Aberdeen City, East Dunbartonshire and East
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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Renfrewshire, although the figures for rural areas do not take full account of levels of
under-employment in these areas. The lowest rates of employment tend to be
concentrated in urban areas such as Dundee City, East Ayrshire, Glasgow City,
Inverclyde, North Ayrshire, North Lanarkshire and West Dunbartonshire, suggesting
that the key cities of the region are not acting fully as economic drivers for labour
market growth.
Table 2: Employment rates at Local Authority level
Local Authority Employment rate (2006, %)
Aberdeen City 78
Aberdeenshire 80
Angus 77
Argyll & Bute (whole area) 77
City of Edinburgh 77
Clackmannanshire 73
Dumfries & Galloway 78
Dundee City 72
East Ayrshire 70
East Dunbartonshire 80
East Lothian 78
East Renfrewshire 79
Falkirk 76
Fife 77
Glasgow City 60
Inverclyde 71
Midlothian 79
Moray (whole area) 76
North Ayrshire (whole area) 72
North Lanarkshire 71
Perth & Kinross 78
Renfrewshire 74
Scottish Borders 78
South Ayrshire 74
South Lanarkshire 74
Stirling 76
West Dunbartonshire 71
West Lothian 76
Scotland average 75
Unemployment Rates
The variation in unemployment rates mirrors the pattern for employment rates. Using
the Annual Population Survey, Scotland’s 2004-05 official unemployment rate was
5.4%, with 132,700 people of working-age unemployed. The highest unemployment
rates are in Scotland’s larger cities with 8% in Glasgow, 7% in Dundee and 6% in
Edinburgh.
On long-term (over 12 months) unemployment rates, South-Western Scotland has
the highest rate in Lowlands & Uplands Scotland at 24% while North-Eastern
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
12
Scotland’s rate is below 15%. Unemployment rates amongst 15 to 24 year olds
varies from 13% in Eastern Scotland to 15% in South-Western Scotland.
Under-employment
Under-employment is a particular problem in rural areas. It can take a variety of
forms, including taking on a job for which a lower qualification is required, or working
for less time than one would like to. A measure of under-employment that captures
the latter is the amount of people in work that would like to work more hours for the
same pay. According the Annual Population Survey, when individuals were asked if
they would want to work longer hours for the same pay, the Local Authorities with the
highest share of respondents were those most characterised as ‘rural’ using the sixfold
classification. This lends support to the idea that there is more underemployment
in rural areas.
Labour Market in Deprived Areas
Within this regional labour market, there are worrying geographical variations,
particularly between the 15% most deprived areas in the region and the rest of
Scotland in terms of economic activity and qualification attainment, marginalising
these individuals from the labour market. People living in the 15% most deprived
areas were less likely to be in employment in 2005. 56.7% of working age people
living in the 15% most deprived areas were estimated to be in employment
compared to 77.9% for those living in the rest of Scotland.
People living in the 15% most deprived areas were also more likely to be
unemployed in 2005. 13.3% of economically-active people living in these areas were
estimated to be unemployed compared to 4.3% in the rest of Scotland. Relative to
the average, unemployment rates have remained constant over time in relative
terms.
This concentration of individuals marginalised from the labour market is very evident
at both NUTS 3 area level. An analysis of the Scottish Index of Multiple Deprivation
(SIMD) is useful in this regard. The SIMD is a combination of six stand-alone
indicators: current income; employment; education, skills and training; health;
housing; and access to local services. The employment, education and health
indicators are more relevant in identifying disadvantaged urban areas.
Not surprisingly, given the nature of the measures, urban areas are more likely to
display the worst concentrations of social exclusion and poverty as defined here.
Other measures can capture problems which are more endemic to rural areas. For
example, the access to services indicator measures drive times to key services and
is a proxy for rural disadvantage, including variations in access to local services,
such as General Practitioners, primary school and supermarkets, across Scotland.
However, it remains the most robust measure of social exclusion, particularly in an
urban context.
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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Table 3: Concentrations of Scotland’s 15% most-deprived data zones by LUPS Local
Authority area (2006)
Local Authority % of total Scottish datazones
% of total Local Authority
data-zones
Aberdeen City 2.8 10.1
Aberdeenshire 0.6 2.0
Angus 0.8 5.6
Argyll & Bute (whole area) 1.0 8.2
City of Edinburgh 6.5 11.5
Clackmannanshire 1.5 23.4
Dumfries & Galloway 1.1 5.7
Dundee City 5.4 29.6
East Ayrshire 2.9 18.2
East Dunbartonshire 0.3 2.4
East Lothian 0.1 0.8
East Renfrewshire 0.3 2.5
Falkirk 1.9 9.6
Fife 4.8 10.4
Glasgow City 33.8 47.6
Inverclyde 4.3 38.2
Midlothian 0.5 4.5
Moray (whole area) 0.0 0.0
North Ayrshire (whole area) 3.4 18.4
North Lanarkshire 8.6 20.1
Perth & Kinross 0.9 5.1
Renfrewshire 3.7 16.8
Scottish Borders 0.3 2.3
South Ayrshire 1.3 13.6
South Lanarkshire 5.7 22.1
Stirling 0.7 7.3
West Dunbartonshire 3.4 28.0
West Lothian 1.4 13.3
Scotland 100.0 15.0
Source: Scottish Index of Multiple Deprivation.
Table 3 gives an overview of the concentrations of social exclusion in Scotland using
the SIMD (ie. the combination of all six indicators) at NUTS 3 level for the region’s
Local Authority areas. Concentrations are the areas where the different processes
measured by the indicators combine to create particularly persistent areas of
economic and social poverty – so, for example, poor educational performance, bad
housing, low levels of health and limited access to key services (such as childcare
and transport) can result in high rates of worklessness and manifested in relatively
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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large numbers of claimants of state benefits. Because the factors tend to work
together, areas that ‘score’ highly on several if not all indicators are likely to be those
most resistant to initiatives to raise economic activity, whether in terms of the
creation of wealth within the area itself or the ability of individuals/organisations
within the communities to access neighbouring areas of opportunity.
The table concentrates on the worst concentrations of deprivation as measured at
the 15% level, examining the incidence in terms of shares of data-zones relative to
Scotland as a whole and relative to the Local Authority in question. From the table,
deprivation has been concentrated in some parts of the region. Glasgow City shows
a particularly high concentration – whether measured in national or local terms – and
there are similar above-average concentrations in surrounding areas such as
Inverclyde, North and East Ayrshire, North and South Lanarkshire, Renfrewshire and
West Dunbartonshire. In the eastern part of the region, Clackmannanshire and
Dundee City have relatively high concentrations as well as the City of Edinburgh,
despite its relative overall prosperity.
Despite the continuing severity of the problem, there has been some positive change
in recent years. To measure change over time, the Jobseeker Allowance claimant
count rate for Scotland’s 10% worst wards has been tracked against Scotland’s rate.
Between 2000 and 2004, the JobSeeker Allowance (JSA) claimant count in
Scotland’s 10% poorest wards fell from 15.1% to 12.2%. For Scotland as a whole,
the rate decreased from 4.5% to 3.5%. The gap in unemployment rates has also
fallen in this period from 10.6 to 8.7 percentage points. Measured in proportionate
terms, however, the rate in the high unemployment wards has risen from 3.4 to 3.5
times the Scottish average.
From an area perspective, the Social Exclusion Unit’s (2004) Jobs and Enterprise in
Deprived Areas report found that many people living in these areas have:
• multiple barriers to employment;
• low aspirations for work and study;
• extremely low travel horizons (limiting the extent to which they can gain
employment outside of these geographical areas);
• two or three generations out of work in the same family and neighbourhoods;
and
• less contact with people in work and so do not benefit from informal routes
into employment.
Concentrations of disadvantaged households take hold for different reasons in
different places, but there are three main explanations put forward by the Social
Exclusion Unit:
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• Changes in the nature and location of jobs
- A key local employer or industry closes down.
- Lack of accessible jobs.
- The informal economy can provide income opportunities which make
formal work less attractive, especially when combined with benefits.
• Residential sorting
- The housing market ‘groups’ the most disadvantaged people together.
- Residents with sufficient financial resources can choose to move out of
poorer neighbourhoods.
- Housing policy can unintentionally exacerbate residential sorting.
- Over half of all people moving into Scotland’s 10% most deprived data
zones were previously living in the 10% most deprived.
• Area effects. Residents’ chances of finding work can be reduced simply
because of where they live.
- Place effects – these include location, poor infrastructure, lack of
transport, competition for limited number of job or training opportunities,
and variation in the quality and quantity of local services – these can
combine to making such areas unattractive to businesses moving to
these communities as well as stifling indigenous enterprise
development.
- People effects – these relate to the damaging effect of living with many
other jobless people – for example, residents receive little information
about jobs or encounter area-based discrimination by some employers.
In turn, these three explanations can lead to a:
• skills mismatch – an imbalance between the characteristics of potential
workers and the attributes required by local employers; and
• spatial mismatch – a geographical mismatch between residences and
potential workplaces.
The Social Exclusion Unit, in reviewing UK and international studies, argued that it
matters if jobless people are concentrated in the same areas.
• Living in these areas can damage a person’s life chances – especially those
of children and young people.
- Individuals living in deprived areas are significantly more likely to be out
of work than similar people living elsewhere.
- Children’s educational attainment is closely linked to the level of
neighbourhood poverty. For example, only 46% of pupils living in
Scotland’s 15% most deprived data zones attained expected standards
in writing at the end of primary school. The Scottish average is 61%.
• Residents have lower expectations of finding a job and a lower probability of
actually starting a business.
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• A significant number of children are in danger of growing up in families and
neighbourhoods with little contact with the world of work and a lack of positive
role models.
In addressing these barriers and constraints, research undertaken by the CEEDR
(ODPM, 2003) on the evidence for successful enterprise-led regeneration in
deprived areas looked at the contributions of different types of enterprises. Economic
growth for these areas is dependent on a combination of indigenous enterprise
development, the attraction of outside businesses to the areas to act as significant
local employers and the ability of residents to access good employment opportunities
outside of the region. The latter activity is more appropriate to interventions through
the ESF Programme for the region. However, with respect to the first two activities,
the benefits can be summarised as follows.
• Enterprises provide employment opportunities to local residents. Their
earnings can then be spent in the local economy which increases demand.
• Enterprises can boost the local economy by purchasing their requirements for
materials, components and services locally.
Employability
Inactive and Unemployed Target Groups
Individuals make up the raw figures on unemployment, economic inactivity and
employment deprivation. However, as with the geographic areas which contribute
unevenly to these figures, certain client groups are more likely to be excluded from
the labour force than others. Every individual within a client group will not necessarily
experience the same barriers. For example, one lone parent may only face childcare
availability as a barrier, whereas another lone parent may have poor qualifications,
no work experience and no access to affordable childcare. The workless client group
work-stream for the Employability Framework has also identified that a large
proportion of workless individuals fall into multiple client groups. Low skills or
qualifications, lack of self-confidence and work experience are personal barriers
common to many of the workless client groups. The benefits system and stigma are
also common to many of the client groups
The problems arising from worklessness are particularly acute among young people
who are workless. The number of 16-19 year olds “not in employment, education or
training” (or ‘NEET’) was approximately 36,000 in 2005 which equates to 14% of the
total 16-19 year old population. The NEET group is of particular concern as they
represent a part of the population where worklessness can become entrenched
through an absence of any history of employment. The proportion of NEET in the
region has not significantly changed in any year since 1996 with the proportion
fluctuating between 13% and 15%. Males generally have a higher proportion of
NEET than females.
In terms of scale, the most substantial workless group is the 346,000 sick and
disabled benefit claimants, which equates to 67% of all claimants and 11% of the
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total region’s working population. The client group effectively consists of two groups
– sickness and disability are distinct – but from a policy perspective, it can be useful
to consider them together. Between 2000 and 2005, the client group increased by
2%. However, that still leaves 189,000 claimants in the area, 55% of Scotland’s total.
Breaking this down further by NUTS 3 area, the highest rates have been found in
Glasgow (18%), and in both North and South Lanarkshire at over 12%.
In 2001 it was estimated that in Scotland only 30-40% of disabled people are in
work, compared to 51% in the UK as a whole. This figure reduces to only 28% of
people with a mental health condition and 24% of people with a learning disability
(DRC, 2005). Statistical evidence is not readily available on benefit claimants with
mental ill health. However, data from the research work-streams for the development
of the Employability Framework suggests that approximately 119,100 people claimed
Incapacity Benefit in Scotland due to mental and behavioural disorders in May 2004.
It has been estimated that only 8,250 opportunities on training and employment
programmes exist for the working-age people in Scotland with mental health issues.
It is very difficult to find reasonably accurate figures for individuals with chaotic life
styles, homeless, abusing drugs or alcohol, or ex-offenders. These individuals tend
to be concentrated in the most deprived areas, with 60% of Scotland’s declared
homeless are in Glasgow. Some idea of the scale of the problem can be
extrapolated from specific figures. For example, by applying the overall prevalence
rate of drug misuse to the Scottish population, it can be estimated that there are
approximately 58,000 working-age people with drug problems, and data suggests
that nearly 73% are either long term unemployed or have never worked. Scotland
had a prison population of 6,569 in 2003, the equivalent of 129 per 100,000 of the
total population, and again high proportions of these individuals find it particularly
difficult to enter work on release from prison.
Gender
The working-age employment rate in Scotland was higher for males than females in
2005. The rate for males was estimated at 77.6% compared to an estimate of 72.1%
for females. The total number of working-age males in employment, in 2005, was
estimated at 1.235 million with a further 24,000 over working age in employment.
The total number of working-age females in employment was estimated at 1.104
million with a significantly larger number of 52,000 over working age in employment.
The NUTS 3 area which had the highest male employment rate estimates in 2005
was Aberdeenshire (84.6%).
Lone parents also make up a significant group. There were 66,400 lone parents
claiming state benefits in 2005, which is a 17% decrease from 2000. However, this
still represents 2.1% of the working-age population, and lone parents are
concentrated in areas of deprivation. Lone parents living in deprived areas are much
more likely to be unemployed or inactive and face important barriers to their
participation in the labour market, particularly with respect to their caring
responsibilities. At NUTS 3 level, every area has a rate below 3% except East and
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North Ayrshire, with 4%. East Lothian and Midlothian have the lowest rate at just
under 1%.
The balance between employment and home-life caring responsibilities continues to
be a significant problem for many women. Although around 110,000 economicallyinactive
women in Scotland would like a job, approximately 36% of these were
prevented from returning to work because they had to look after their family. Issues
around caring responsibilities for elderly and ill relatives are now becoming a
common problem for more and more people in the 45-to-64 year age group.
Ethnic Minorities and Asylum Seekers/Refugees
Ethnic group and asylum seekers/refugees have distinctive issues relating to their
participation in the labour market, arising from lack of qualifications (or recognition of
the qualifications they have) and in some cases, lack of key skills such as English
language. The region’s ethnic minority employment rate was 56.4% in 2004 – this
had shown only an increase of 1% since 1999. Indeed the gap between the total
employment rate and the ethnic minorities relies on a small sample size, it indicates
that the group’s employment rate had widened marginally in that period. In addition,
in the most recent data from the Annual Population Survey, the employment rate
amongst non-white females in Scotland is 48% – well below the rates for non-white
males (59%) and white females (72%). The economic inactivity rate is higher for
each ethnic minority group than the ‘White’ rate of 20%. The ‘other’ and ‘Pakistani/
Bangladeshi’ groups have the highest rates with both over 38%. Of the 29,700 ethnic
minority population who are economically inactive, 18,700 live in Glasgow or
Edinburgh.
The largest number of asylum seekers are resident in Glasgow with a report for the
COSLA Refugee and Asylum Seekers Consortium stating that there were 5,798
asylum seekers living in the city in 2005. A recent skills and aspirations audit by the
Scottish Executive (2004) found that only 5.7% of the refugees and asylum seekers
in Scotland who responded to the audit indicated that they were in employment.
Many referred to their lack of language skills, and a lack of language courses for
them. Others noted employer discrimination and lack of cultural awareness among
support staff as barriers to their participation in the labour market.
Key messages
• The region has shown an overall good employment performance in recent
years. Employment rate of 72% exceeds EU Lisbon target of 70% and is at a
historical high, driven by an expanding employment base and linked to low
unemployment rates. Indeed, employment rates have risen for the major
groups of the population, including the more disadvantaged groups such as
lone parents.
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• There is still a substantial gap between the employment rates for the more
disadvantaged groups and the workforce as a whole. Worklessness is a more
acute problem than unemployment in many cases. The NEET Group
constitutes a particularly difficult problem, as well as those working-age
jobless people described by their benefit status as ‘sick and disabled’.
• Relative to the average, unemployment rates for people living in the most
deprived areas have remained constant over time in relative terms. Areas with
concentrations of worklessness often present a greater policy challenge
because there are a number of environmental factors reinforcing the lack of
employability characterising some communities.
• Ethnic minority employment rate at 56.4% increased only marginally (1%) and
the gap has actually widened. Employment rate for non-white females in
Scotland is 48% – well below the rates for non-white men (59%) or white
females (72%).
2.3 Workforce Skills
To improve the region’s relatively poor productivity performance, one important
component is the skills profile of the workforce. In examining the skills of the
workforce, there are several broad areas that need examination: the composition of
the workforce; their skills level; and the ability of the workforce to improve those
skills. Headline features of these different issues are presented here against EU
averages.
Examining the composition of the workforce in Scotland as a whole, there are
608,000 part-time employees, an increase in absolute and in percentage terms since
2001. The proportion of part-time employees in Scotland (25%) is much higher than
the EU-25 average of 18%. Part-time employment is not in itself an issue that needs
to be addressed by Structural Funds intervention, but can be concerning in the
context of low income and skills levels associated with some part-time jobs,
especially under-employment in rural areas.
If the region is to make a full contribution to the Lisbon Growth and Jobs Agenda, the
number and skills level of potential and actual entrepreneurs in the economy is
another important consideration. If the region is to have a enterprise base that is
regularly replenished and generates innovative ideas for high-growth economic
activity, the stock of entrepreneurs needs to be monitored. The evidence suggests
that Scotland has a clear challenge with creating and sustaining entrepreneurs.
There are around 240,000 self-employed people in all of Scotland, 10% of all
employment – a rate well below the EU-15 and EU-25 averages of 15%. There are
significant variations here: the highest proportion of self-employed is in North-
Eastern Scotland, while the lowest is in South-Western Scotland. One measure of
entrepreneurship is given by the Total Entrepreneurial Activity (TEA), which is the
percentage of adults either actively starting an enterprise or running a new enterprise
(less than 3.5 years old). In 2004, the Scottish TEA figure was 5.1%, up from 4% in
2000, but still in the bottom half of a ‘league table’ of those EU countries participating
in the survey. The number of business start-ups per 10,000 population, one of the
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main indicators of entrepreneurship in an economy, was 28 in Scotland in 2005,
which was significantly lower than the UK average of 38 (Small Business Service,
2006).
With the accelerating developments in internet technology and e-commerce
applications of that technology, it is essential that enterprises are able to make full
use of the nearly universal broadband coverage in the region (to which investment
infrastructure by past Structural Funds programmes have made significant
contributions). Enterprises are making increasing use of broadband in Scotland – the
share of business activity transacted through e-business rose from 17% in 2001 to
20% in 2004, higher than the UK average (DTI, 2004). However, Scotland continues
to lag behind key competitor countries in other parts of the EU and North America,
with continuing challenges in enterprises recognising the potential of e-commerce
and having the skills to make full use of the technology. This challenge is particularly
relevant for new enterprises, especially in non-ICT sectors, where enterprise growth
and survival could be improved through a better use of e-skills and opportunities.
Similarly, in looking at the overall skills level of the workforce, the region shows a
mixed picture. Reliable international comparisons on low/no skills are difficult
because of the problems of comparing different education and qualification systems,
and it is not possible to calculate EU averages because data are not available for all
countries. However, for those countries where comparison is possible, Scotland as a
whole appears to perform well. On the proportion of the 15-plus population whose
highest qualification is ISCED level 2 or below (equivalent to lower secondary
education), the Scottish figure is amongst the lowest, at just 10.7%, above only the
UK, Lithuania, Estonia, the Czech Republic and Slovakia. However, as the sections
below show, there are still significant issues for the region in the numbers of those
with low or limited skills entering into sustainable employment.
Finally, as a measure of the region’s capacity to improve the skills level of its
workforce, Scottish participation in training is well above the average involvement in
the EU-25 with 15.3% of adults aged 25 to 64 years undertaking education or
training in the previous four weeks. However, according to Eurostat, the average for
the Scandinavian EU economies was 25.7% in 2004, and the Scottish percentage
has dropped 2% over the last four years.
Overall skills performance
One measure of the need to improve the skills of the workforce is the concept of
‘skills gaps’. Skills gaps exist within organisations when a current employee is judged
to be not fully proficient at his or her job. Results from Futureskills Scotland (2005b)
skills survey reveal employer perceptions of three areas in which inadequately skilled
staff are deficient. Planning and organisation, customer handling, problem solving
and team working are all identified as weaknesses in over 50% of staff that are less
than fully proficient; then written communication is deficient in almost 35%; and
finally, numeracy and literacy, although among the least common skills deficiencies,
are both still identified as a problem amongst almost one in five employees with skills
gaps.
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Evidence from Futureskills Scotland’s employer survey also shows employer
perceptions of the skills gap varies by broad industrial groups. They see skills gaps
as most common in the hotel and restaurant sector, with 14% of employees judged
to be less than fully proficient. This is significant as these industries are
characterised by short-term and part-time employment. Other services, public
administration and transport all report skills gaps over 10%. However, the largest
number of employees with skills deficiencies – nearly 25,000 – are in the
manufacturing sector where the survey suggests that employers perceive 10% of
employees as not fully proficient. In terms of employers addressing these issues,
people employed in the public sector are more likely to receive in-work training than
those in the private sector. The agriculture & fishing, distribution, hotels &
restaurants and transport & communications sectors have considerably lower levels
of training.
Another important measure of skills is basic skills such as literacy and numeracy. On
the available evidence, while few adults have a complete lack of reading and writing
ability, many more may have very low literacy or numeracy skills. The International
Adult Literacy Survey (IALS) estimated that 800,000 – or 23% – Scottish adults have
low literacy or numeracy skills, while another 30% may have inadequate skills to
meet employers demands. The Scottish IALS identified the characteristics likely to
be associated with an individual having low skills in this area as those who left
education at 16 or earlier, are on a low income, in a manual social class group, living
in a disadvantaged area, and/or over 55.
Lastly, it is useful to consider low skills more widely. In the absence of reliable data
on skills levels, the highest level of qualification held is often used as a proxy. The
report of the Employability Framework, Workforce Plus low paid/low skilled research
work-stream considered the low skilled group as people with qualifications below
SVQ Level 2. In 2004, there were almost 580,000 working-age people, or 18.5% of
the working population, whose highest qualification was below SVQ level 2. At NUTS
2 level, the highest number and concentration of this group was in South-Western
Scotland, with over 300,000 people, or 22% of the working-age population, with
another particularly high proportion (27.5%) in North Lanarkshire.
Groups with specific skills issues
Within the workforce, different groups face different skills issues and challenges in
securing sustainable employment. The groups facing the most distinctive
disadvantages are the following:
• low paid workers and workers with low skills levels;
• those facing acute gender issues;
• ethnic minorities and asylum seekers/refugees; and
• older workers.
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Low Pay/Low Skill
Low pay is defined by the OECD as earnings below two-thirds of the median level.
Data from the Annual Survey of Hours and Earnings shows that around 486,000
people, or 22% of all employees in Scotland, earn below the low-pay threshold. It
also shows that the highest concentrations of low paid jobs are in distribution, hotels
and restaurants and agriculture and fishing, and that the majority of low paid
employees are in either sales and customer service, or elementary occupations.
The Institute for Employment Studies (2003) found that there was no UK research
into the opportunities for progression amongst low-paid, low-status employees.
However, because of the limited training on offer, people in these jobs are unlikely to
gain any formal qualifications. As a result, there are two possible paths for career
progression, either promotion opportunities that do not require additional formal
applications and are not likely to be taken by better qualified external applicants, or
similar but slightly better jobs with other employers. It is considered that there are
likely to be few opportunities in the first category, although as a result of the current
buoyant labour market and the premium placed on work experience and references
by employers, there will be more ‘horizontal’ movement.
Low pay is often associated with part-time working, and evidence from the
Employability Framework’s low-paid/low-skilled research work-stream indicated that
both female and male part-time workers receive 40% less training than their full-time
counterparts.
Gender
Data from the Annual Population Survey show that around 110,000 economicallyinactive
women in Scotland would like a job. Approximately 36% of these were
prevented from returning to work because they had to look after their family. It is
estimated that women returners to the labour market make up around a quarter of
the female labour force at the UK level. Around 35% of mothers are employed parttime,
compared to 21% full-time. Women returning to work part-time are
concentrated in low-status jobs, particularly in administration, sales and customer
services, and caring and personal services. Hourly rates of pay for women are only
84% of the male figure, and for full time jobs female weekly pay is only 82% of the
male average.
Women returners tend not to have the opportunity to make full use of their past
training and experience when returning to work in less-skilled jobs, often because of
the absence of a recent work record. Full-time returners average a loss of wages
(per hour) of 12%, correcting for their characteristics, while the penalty for part-time
returners was 22%. There is evidence to suggest that women tend to return to lowerskilled
part-time work because of the inflexibility of full-time employment. This is not
helped by persistent gender differentials in Scotland’s labour market. Gender
segregation in sectors persists with only 11% of workers in the construction industry
who are female and only 27% in manufacturing, transport and communications.
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Approximately 277,000 Scottish women aged between 16 and 64 are ‘would-be’
entrepreneurs. Of these 34,000 have a current active interest in setting up an
enterprise. In general, however, Scottish women have lower growth ambitions for
their enterprise than their male counterparts. There are 67,100 self-employed
women which is 27% of total self-employment. Taken as a whole, women set up
around 30% of Scotland’s enterprises. These firms continue to be concentrated in
‘traditional’ women’s sectors.
Gender imbalance does not simply apply to women entering male-dominated
sectors. To address the perception that there are gender-specific occupations, it is
important that men are encouraged to enter into jobs and sectors traditionally
associated with women, such as the caring profession.
Ethnic Minorities/Asylum Seekers/Refugees
The 2001 Census provides data on people from ethnic minorities with low
qualifications. 32,000 people from ethnic minorities lack qualifications at SVQ Level 2
or above. The greatest number of non-white people with low qualifications are
concentrated in Glasgow and Edinburgh. The proportion of non-white people with
low qualifications is higher in Glasgow, Falkirk and Ayrshire.
The availability of earnings and employment data on ethnic minorities in Scotland is
hampered by small sample sizes. At a UK level, both men and women in certain
ethnic minorities, particularly Pakistanis, tend to earn less and are more likely to
have no qualifications than their white counterparts. Amongst ethnic minorities, the
rate of female self-employment is much lower than that of men (12% compared to
24%). However, it is worth noting that this is still much higher than the rate of female
self-employment for Scotland as a whole.
Older Workers
Data from the Labour Force Survey show that people aged over 50 are much more
likely to have low skills than other age groups. The number of economically-active
people in this age group with no qualifications is 106,500, around 20% of the age
group. There are variations across Scotland in the percentage of this age group with
no qualifications – ranging from 17% in Eastern Scotland and North-Eastern
Scotland to 23% in the South-Western Scotland.
As noted earlier, using qualifications as a proxy for skills means that that some
people will be classified as being ‘low skilled’ because they lack accredited
qualifications, even though they may have high levels of unaccredited skills. This is
likely to be especially true for people aged over 50.
Skills in SMEs
The number of small enterprises employing less than 200 in Scotland overall is
166,600 with particular concentrations in Glasgow and Edinburgh. SMEs face a
range of quite specific barriers to increasing skills in their workforce or managers
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such as the cost of losing staff time off the job while they undertake training. The
cost of course fees and the need to pay for staff cover are major issues for around
one in five employers. There is often limited money set aside for training within the
organisation, a lack of perceived relevance of external training, and a fear that staff
might be ‘poached’ when they gain qualifications. The smaller the workplace size,
the less likely it is that training will be provided.
The most widely perceived constraint to setting up an enterprise is finance. Beyond
finance, no single constraint affects the majority of ‘would-be’ entrepreneurs and
most face more than one constraint. However a major constraint for them all is a
shortage of skills – specific skill shortages vary between individuals, but cover a wide
range of issues such as accounting, marketing, e-skills, and purchasing expertise.
Self-employed males are less likely to have undertaken adult learning than male
employees. The opposite is true for women.
Social Enterprise Skills
The skills of the social economy is another important issue to consider, not least as
social enterprises and voluntary sector organisations are often the bodies addressing
the employability issues identified in the Labour Market Analysis above. Studies
conducted by McGregor et al. (2003), Glass et al. (2002) and Futureskills Scotland
(2005b) highlight some of the main support needs of social economy organisations.
Around a third of organisations see the need to develop the skills of the workforce,
employed or volunteering. Strengthening the skills of managers was the main
support needed for over one in five of the largest organisations. Smaller
organisations are much more concerned to tackle long standing issues of board or
management committee capacity, but this is reported as main support need by only
10% of large organisations. There are increasing needs for financial skills and
marketing and enterprise training to help staff become more entrepreneurial.
Key messages
• It is estimated that 23% of Scottish adults have low literacy or numeracy skills,
while another 30% may have inadequate skills to meet employers’ demands.
• There are almost 580,000 working-age people considered to be low skilled.
• 22% of all employees earn below the low pay threshold, with the majority of
these employees in either sales and customer service, or elementary
occupations.
• Around 110,000 economically-inactive women would like to work, with 36% of
these women prevented from returning to work because they had to care for
their family.
• Only 10% of all those employed in Scotland are self-employed, compared to a
EU-25 average of 15%. Entrepreneurial activity is increasing in Scotland, but
is still lower than many other EU countries.
• Social economy organisations report that their key needs are developing the
skills of their employees and volunteers, and the capacities of their managers.
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2.4 Lifelong Learning
Although Scottish adult participation has fallen marginally between 2000 and 2004 to
15.3% undertaking education and training in the previous four weeks, and 20% in the
previous 13 weeks, this rate remains significantly higher than the EU average. In the
EU-25, only 8.6% of adults had participated in education or training in the previous
four weeks, and only 9% for the EU-15 in the previous 13 weeks, although the EU
figures are increasing.
In 2003, the region’s percentage of population in further education (FE) had
increased to 11.1%, more than double that of the EU-15 and EU-25 at 5.2%.
Participation in higher education (HE) was 5% of the total population in the region by
2003, again significantly higher than the rate of 3.7% in both the EU-25 and EU-15.
According to Eurostat, at 20%, Scottish participation in workforce training was more
than double the 9% figure in the EU-15 in 2002. Scotland, although starting from a
higher base, has seen a similar slight increase in these participation rates over time
to that in the EU.
Geographical variations
Within Scotland, DTZ Pieda’s (2005) Supply and Demand of Further Education in
Scotland report found substantial variations in participation rates at FE colleges in
different areas across Scotland. Scotland’s average participation rate was 153 per
1,000 of the working-age population. However, the rate was significantly higher in
Glasgow, Fife and Clackmannanshire, Dundee City and Angus, and significantly
lower in Edinburgh, the Lothians and Lanarkshire.
The Scottish Index of Multiple Deprivation Education Indicator shows concentrations
of education deprivation in Scotland using both the proportion of the working-age
population with no qualifications and school-age performance. Within Lowlands &
Uplands Scotland, South-Western Scotland has the highest concentration with 22%
of its data zones in Scotland’s 15% worst areas of education deprivation. Eastern
Scotland has 12% of its data zones in Scotland’s 15% worst, while North-Eastern
Scotland performs well with only 6% of its data zones. The NUTS 3 breakdown
shows that urban areas perform significantly worse on this measure than rural areas.
Glasgow has the most severe problems with 30.5% in the worst 5%, 43.1% in the
worst 10% and 48.8% in the worst 15% areas. Three NUTS 3 areas in Eastern
Scotland have over 15% of their data zones in Scotland’s 15% most-deprived areas
– Edinburgh, Falkirk, and Angus and Dundee City.
The SFEFC/SHEFC (2005) Learning for All report found participation at higher
education level by people from the most deprived areas has grown but very
gradually. People from the least deprived areas were still about twice as likely to be
participating in higher education as people from the most deprived areas.
Low participation neighbourhoods for entrants to First Degree Courses in HE
institutions are defined as areas where the participation rate among 18-19 year olds
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is less than two-thirds the UK average rate. Scottish HE institutions have increased
the proportion of their young entrants who are from low participation neighbourhoods
to 19%. This is significantly above the UK average. However, there has been a drop
in the proportion of mature entrants, those aged 25 years or over, from these
neighbourhoods. (Scottish Executive, 2005c).
Participation in different forms of lifelong learning
Post-Compulsory School-Age Lifelong Learning
The Labour Force Survey estimated that in the academic year 2003-04 there were
2.3 million people of working age (74%) in Scotland involved in some form of
learning activities. This included 700,000 undertaking courses in educational
institutions; 34,000 taking courses outside of Scotland; 750,000 receiving work
based training; and a further 750,000 engaged in more informal learning activities.
On reaching school-leaving age, many young people continue in education and
training at school, college or with an employer. Staying-on rates, that is the number
of pupils who continue into post-compulsory education, divided by the total number
of pupils in the entire cohort, is an important lifelong learning indicator. In 2004-05,
about 76% of those entering S3 in 2002 stayed on until S5. The figure drops to 67%
after Christmas, when education becomes voluntary for all S4 pupils. Only 44% of
those entering S3 in 2002 stayed on until S6. Females have higher staying on rates
than males. The staying-on rates have remained fairly steady over the last five
years.
Half of school leavers went on into Further or Higher Education in 2003/04, which
represents a 2% fall since 2002-03 for those going into HE and no change for those
going into FE. In 2003/04 there were a total of 467,170 enrolments in Scotland’s 46
FE Colleges. Of these, 84% were part-time; 352,290 were vocational enrolments;
59,270 were for non-vocational classes; and 55,160 were in higher education
courses.
In terms of the demographic breakdown of vocational enrolments, 57% are female,
43% male; 40% of vocational enrolments are aged 24 years old or under; 43% are
aged between 25 and 49 years old; and 18% are aged 50 or over.
In 2003/04, there were 172,875 first degree or postgraduate students who were
domiciled in Scotland and studying in UK HE institutions. That equates to 6% of
Scotland’s working-age population. 126,605 were enrolled on first degree courses.
46,270 enrolled on postgraduate courses. 71% of the total 172,875 students
attended Scottish HE institutions.
The Age Participation Index measures the proportion of Scots under 21 years old
who entered higher education anywhere in the UK for the first time in a given year. In
2003/04, 48.9% of young Scots entered a full-time higher education course for the
first time. This has fallen slightly since its peak of 51.5% between 2000 and 2002.
However, over a longer time period, the figure has doubled since 1990. 30% of
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young Scots enter at degree level, with 19% entering at sub-degree level, 78% of
whom were aged under 24 years old. In contrast, 71% of postgraduate entrants were
mature students aged over 25 years of age.
Students with disabilities participate broadly in proportion to their numbers in the total
population. 5.3% of students at Scottish HE institutions declared a disability in
2003/04. In 2000/01, this figure was 3.8%, though this increase can partly be put
down to refinements in data collation.
Taken from HESA (2001) Statistics Focus, 6% of Scottish-domiciled first-year higher
education entrants in 2000/01 were non-white, which compares favourably with the
proportion of non-white individuals living in Scotland, which is 2%.
Other Post-School Lifelong Learning
14,855 people aged 16 to 24 years of age entered Modern Apprenticeships in
2004/05. The majority of participants are male, reflecting the fact that more females
stay on at school or enter further FE. 7,333 achieved an MA.
Of the 8,469 people aged 16 to 18 years of age participating participants in the
Skillseekers programme in 2004/05, 5,556 achieved a vocational qualification. The
numbers of male and female participants in the Skillseekers programme are about
even.
During the period April 1998 to December 2004, 13.5% of the 144,350 18 to 24 year
olds in Scotland starting on to New Deal for Young People (NDYP) chose to move
onto a course of full-time education or training. About 74% of the participants in the
NDYP programme are male (Lifelong Learning Statistics, 2005).
8,543 young people joined the Get Ready for Work (GRfW) programme in 2004/05.
Of these, 3,011 participants achieved Positive Outcomes. GRfW is dominated by
males with only around 35% of participants achieving positive outcomes being
female.
The Scottish Executive’s (2005) Lifelong Learning Statistics define adult learning as
all types of learning excluding that undertaken by full-time students of school,
university or college. Adult learning includes all individual learning, in-work training
and training programmes that improve the chances of employment or progression.
Using these statistics and Annual Scottish Labour Force Survey (ASLFS) data
shows that for women aged 16-54, the proportion undertaking training in the last
three months is around 34-35%. Whereas for men, the proportion undertaking
training varies between 37% for 16-24 year olds and 25% for 45-54 year olds. There
is a definite downward correlation between age and the proportion of people
undertaking training, with older people less likely to undertake training. Older people
are less likely than younger people to have undertaken some sort of adult learning in
the past year.
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Economically-inactive people who are sick, disabled or are looking after the home
are the least likely to have undertaken any adult learning.
Qualification level is positively correlated with the likelihood of undertaking adult
learning. Over 90% of people with qualifications above SVQ Level 4 have
undertaken adult learning compared to 69% and 38% of people with SVQ Level 2
qualifications and no qualifications, respectively.
The numbers participating in the Training For Work programme have been falling
over time, experiencing a significant fall since 1998 when the New Deal for 25+ was
introduced. Of the 9,589 participating, 46% of all leavers achieved a positive
outcome in 2004/05, with 44% of male leavers and 50% of female leavers achieving
a positive outcome.
The people aged 25 or over joining the Adult Modern Apprenticeship programme are
predominantly female, in contrast with the 16-24 Apprenticeship age group. Over
60% of MAs achieved are by females for this age group. This compares to only
around 40% of female participants aged 16-24.
In-Work Training
In-work training can be both on-the-job and off-the-job training. On-the-job training
includes supervised training at the workplace; while off-the-job training includes
training away from the workplace at the employer’s premises or at an educational
establishment or other training provider (Lifelong Learning Statistics, 2005). Using
data from the Annual Scottish Labour Force Survey (2004) it is estimated that in the
last three months, 687,000 (31%) of working-age people in employment have
undertaken job-related training. A greater proportion of female than male employees
have undertaken job-related training in the last week, month and three-month period.
Further evidence on work related training is obtained from surveys of employers,
including the Scottish Employer Skills Survey which shows that 64% of
establishments in Scotland provided some training in the previous year, in the survey
for 2003 and again for 2004. The proportion of establishments giving some off the
job training has decreased slightly, but remains at over 50% while the proportion
offering no training of any sort remained at 36%. The 2004 Annual Scottish Labour
Force Survey shows that in the previous three months, 687,000 (31%) of workingage
people in employment had undertaken job-related training.
The incidence of training increases significantly with workplace size. 96% of
establishments with 250 or more employees provided training in the previous 12
months. Less than half the establishments with less than five employees provided
training.
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Key messages
• Scotland’s participation in education and training at 15.3% is well above the
EU-25 average.
• Over one-quarter of the working-age population is not involved in some form
of learning activities.
• People from the most-deprived areas are about two times less likely to
participate in higher education as people from the least-deprived areas.
• Economically-inactive people who are sick, disabled or have caring
responsibilities are the least likely to access adult learning.
2.5 Summary of Key Challenges
In this final section of the socio-economic analysis, on the basis of the statistical
evidence presented above, a summary of the key issues to be addressed in the
Programme is presented: first, an analysis of the main strengths, weaknesses,
opportunities and threats for the region’s labour market; and second, a more detailed
identification of the key challenges for the Programme under the employability,
workforce skills and lifelong learning headings.
SWOT analysis
Regional Strengths
• The region has shown an overall good employment performance in recent
years. Employment rate of 72% exceeds EU Lisbon target of 70% and is at a
historical high, driven by an expanding employment base and linked to low
unemployment rates.
• Employment rates have risen for the major groups of the population, including
the more disadvantaged groups such as lone parents.
• The proportion of economically-active Scots educated to SVQ level 4 or
above is rising as is participation rates in education.
• Scotland’s participation in education and training at 15.3% is well above the
EU-25 average. Overall, there is a high percentage of young people in higher
education.
Regional Weaknesses
• There is still a substantial gap between the employment rates for the more
disadvantaged groups and the workforce as a whole. Worklessness is a more
acute problem than unemployment in many cases.
• There are big geographical variations in employment rates with, for example,
Glasgow’s employment rate is only around 65% compared to 76% in
Edinburgh and 78% in Aberdeen.
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• The NEET Group constitutes a particularly difficult problem. There are around
33,400 16-19s in this group, the majority in South-Western Scotland with high
concentrations in the Glasgow area. The group represents a particular policy
challenge given the entrenched nature of worklessness among the
individuals.
• The numbers of working-age jobless people described by their benefit status
as ‘sick and disabled’ have fallen by only 2% – and at 346,000 people now
make up 67% of all working-age jobless people. Around 119,000 people
claiming Incapacity Benefit have mental ill health and behavioural problems.
• Relative to the average, unemployment rates for people living in the most
deprived areas have remained constant over time in relative terms. Areas with
concentrations of worklessness often present a greater policy challenge
because there are a number of environmental factors reinforcing the lack of
employability characterising some communities.
• Ethnic minority employment rate at 56.4% increased only marginally (1%) and
the gap has actually widened. Employment rate for non-white females in
Scotland is 48% – well below the rates for non-white men (59%) or white
females (72%).
Regional Opportunities
• The region benefits from macroeconomic stability providing a foundation for
further employment growth.
• There is a regulatory framework that sets clear standards, such as the
national minimum wage, anti-discrimination and equal opportunities
legislation.
• The Scottish Executive is committed to new strategies on employment,
regeneration and tackling the NEET group.
• A significant part of the working-age population in the region is willing to work
if they can overcome barriers such as affordable available care for relative,
health issues, or discrimination.
• Although the measure of entrepreneurship in Scotland is in the bottom half of
the EU, in 2004 it was up from 4% to 5.1%, showing signs of improvement.
• Although there are demographic concerns to the long-term labour market, the
influx of migrants into the region provides new opportunities for employment
and productivity growth.
• Because a number of areas within the region have a combination of economic
problems acting to reinforce problems of poverty and social inclusion, spatial
and co-ordinated targeting of additional resources could provide an effective
means of intervention.
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Regional Threats
• Macroeconomic instability or a change in interest rates might affect the
economic climate and the employment levels.
• Increased migration from new accession EU members might make employers
less prepared to work with the local workless population trying to enter or
progress in the labour market. The challenge will be to turn migration into an
opportunity for the Scottish economy to gain from new skills sets and a
potentially larger pool of entrepreneurs.
• The population is ageing and older workers tend to have less recognised
qualifications and are less prepared to undertake training. There is a need to
retain older workers in the workforce, but also to increase their productivity.
At present there is a market failure as employers will not provide this training
as the private costs to either the employer or the individual are likely to
exceed the benefits to them personally.
• Social attitudes still need to be tackled to overcome gender segregation,
recruitment and progression for some groups within the working population.
Key Programme challenges
The SWOT analysis – and the key messages highlighted above – suggest that there
are a number of key strategic challenges which the Programme should address.
1. Reducing the acute levels of worklessness in certain groups and areas.
Significant efforts are still required to reduce the 520,000 working-age people
who are on state benefits. Although pathways to work should not be the
preferred solutions in all cases, securing sustainable employment can be
critical in helping individuals out of poverty. Efforts are needed to provide
individuals with the opportunity and skills for entering/re-entering the labour
market. At the same time, there are parts of the region where worklessness is
at acute levels, resulting in self-reinforcing poverty cycles that can hinder the
employment prospects of individuals located in particular communities.
2. Improving employment rates in those groups which are the ‘hardest-tohelp’.
Linked to the above issue, there is a case for support to concentrate on
those individuals and groups which face multiple and severe barriers to their
participation in the workforce. Domestic support is more available for those
‘close’ to the labour market. As the ‘hardest-to-help’ require more intensive
forms of assistance, resources should be targeted to allow them to access the
full set of services they require to enter the labour market. While sustainable
employment may not be the right solution for all individuals in these groups,
there is scope for helping those who want to enter the labour market. This
may mean focusing on improving ‘soft’, basic skills in entering the labour
market and aim to further their progress towards achieving sustainable
employment, rather than focus exclusively on supporting individuals to get
jobs immediately. At the same time, employer attitudes need to be addressed
to ensure that employment opportunities will be extended to this group.
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3. Increasing the ability of the low-waged and low-skilled to progress
through the labour market. Only a small proportion of low-waged/low-skilled
employees appear to progress in the labour market. For some groups though,
the issue is not simply one of supply but demand as well, particularly with
respect to employer attitudes to certain groups (such as ethnic minorities,
migrants and older workers).
4. Tackling representation in key occupations and sectors of underrepresented
groups. Persistent gender earnings gaps and strong gendering
in specific occupations and industries need to be addressed more effectively,
both to widen opportunities for women and increase the labour supply to
occupations and industries dominated by particular genders. Similar issues
apply to ethnic minorities. At the same time, there is a need to encourage
greater retention and retraining of groups such as older workers and migrants
to ensure a thriving, growing supply of labour. As a market failure in the
region, the issue relates to both labour supply needs (such as training) as well
as demand (such as employer attitudes).
5. Increasing the skills levels of entrepreneurs and new enterprise
managers. Entrepreneurialism is less common in the region’s labour market
relative to the rest of the UK and the EU. General skills/training support is
needed to help raise the new firm formation rate, but there is also a strong
case for specific measures to help move under-represented groups into selfemployment,
including the currently employed. At the same time, new
enterprise managers often lack sufficient management, e-business and
knowledge economy skills.
6. Providing social enterprise managers and workers with greater skills to
sustain their organisations. The capacity of the social economy to deliver
services more effectively to vulnerable groups and develop the skills to
achieve long-term enterprise survival is important.
7. Increasing lifelong learning participation rates among the most
disadvantaged groups. In terms of headline figures, the region compares
favourably for overall participation rates in lifelong learning, but they vary
considerably by group. This underlines the need to focus on the most
disadvantaged. It also confirms that working intensively to address these
disparities is essential to make in-roads into closing the opportunity gap that
currently exists.
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3 POLICY BACKGROUND
3.1 Policy Context
The ESF Programme must address the challenges set out in the analysis of the
socio-economic background section in the context of a range of policy actions in
order to maximise the value added of the Structural Funds. This context must be
established at different levels to ensure funding not only complements but builds on
existing policy. Specifically, the ESF Programme should fit within and alongside:
• the EU policy context: the Community Strategic Guidelines, which sets the
indicative framework for the Cohesion Policy in support of the EU’s growth
and jobs commitments, the UK’s National Strategic Reference Framework, as
specified in Article 25 of the General Regulation, in which the chapter on
Scottish Structural Funds goals provides the overall framework for Structural
Funds spending in a Scottish context, the Integrated Guidelines on Growth
and Jobs, as approved by the European Council in June 2005, and the
European Employment Strategy recommendations;
• the UK policy context: the UK’s National Reform Programme, detailing how
the UK as a whole is addressing the challenges and targets developed as part
of the wider Lisbon agenda, to which the Structural Funds are intended to
contribute; and, lastly,
• the domestic policy context in the region.
Figure 1 illustrates how these different policy tiers should combine in the
Programme.
Figure 1: Hierarchy of strategic objectives
Community Strategic Guidelines
National Strategic Reference Framework
LUPS ESF Programme UK National Reform Programme
Scottish domestic policy initiatives
European Employment strategy
recommendations
Integrated Guidelines on Growth and Jobs
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The following section presents the key links between the challenges identified in the
socio-economic background with these different tiers of policy guidelines and
actions. By showing the consistency between what the ESF programme has
identified as a key area for action and the priorities identified by other policies, it will
help to highlight where Structural Funds can provide added value in addressing the
key challenges. This will form the basis for the strategy and priorities for action set
out in the following chapter. In addition, there are three cross-cutting strategic
themes which will inform all aspects of the Programme – equal opportunities,
environmental sustainability and social inclusion. These are treated in Chapter 8.
EU policy context
Community Strategic Guidelines
Article 23 of the Structural Fund Regulations provides for the Council to establish
Community Strategic Guidelines to provide an indicative framework for Structural
and Cohesion Fund programmes. Based on the Commission’s 2005 Communication,
three main Guidelines for future spending have been identified:
• improving the attractiveness of Member States, regions and cities by
improving accessibility, ensuring adequate quality and level of services, and
preserving their environmental potential;
• encouraging innovation, entrepreneurship and the growth of the knowledge
economy by research and innovation capacities, including new information
and communication technologies; and
• creating more and better jobs by attracting more people into employment,
entrepreneurial activity, improving the adaptability of workers and enterprises
and increasing investment in human capital.
Given its focus, the key challenges of the Programme identified in Chapter 2
principally fit within the third Guideline, although there are notable links with the
Guidelines on innovation, entrepreneurship and the knowledge economy. The third
Guideline (‘more and better jobs’) has several areas of focus, which map onto the
key Programme challenges set out at the end of Chapter 2:
• attract and retain more people in employment and modernise social protection
systems: the Programme could raise employment rates across the region
under:
- Key challenge 1 by addressing the acute problems of worklessness of
specific groups and in particular areas
- Key challenge 2 by targeting those individuals who are furthest from the
labour market and require more intensive assistance;
• improve adaptability of workers and enterprises and the flexibility of the labour
market: the Programme could contribute to more sustainable employment and
a more flexible workforce under:
- Key challenge 3 by improving the ability of the low-waged and lowskilled
workers to retain employment and progress through the labour
market
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- Key challenge 4 by tackling gender earnings gaps and underrepresentation
in the labour market
- Key challenge 5 by improving the entrepreneurial skills base of the
region
- Key challenge 6 by giving social enterprises the business skills they
require to contribute to both this Guideline and the previous one;
• increase investment in human capital through better education and skills: the
Programme could make a lasting contribution to lifelong learning goals by
improving the region’s training systems under:
- Key challenge 7 through increasing access to the infrastructure and
services for the most vulnerable groups in the region; and
• administrative capacity: technical assistance will partly be used to improve the
administrative capacity of Structural Funds delivery, particularly with respect
to the Intermediate Administration Body, as described in Chapter 7 below.
The Guideline also allows for support to maintain a healthy labour force, though the
Programme is only likely to make indirect contributions to this goal, as there is no
direct focus on health-related activities. Lastly, the Programme could address the
second Guideline on entrepreneurship and the knowledge economy, particularly
through targeted action on key challenge 5 above in line with the promotion of
entrepreneurship. The key links between the Guidelines and the key Programme
challenges are summarised in Figure 2.
Figure 2: Programme challenges and the Community Strategic Guidelines
PROGRAMME CHALLENGES CSG GUIDELINES
1:Targeting particular groups and areas
2: Helping those furthest from labour market
3: Targeting low-waged/low-skilled
4: Addressing under-representation
5: Increasing skills for entrepreneurs/new managers
6: Improving skill sets in social enterprises
7: Targeting lifelong learning access for most
vulnerable groups
Attract and retain more people in
employment
Improve adaptability of workers and
enterprises and the flexibility of the
labour market
Increase investment in human
capital through better education and
skills
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The Guidelines also discuss the territorial dimension of cohesion policy. For
example, the need to address urban regeneration acts as cross-cutting themes
across all the Guidelines. It is explicitly noted that within the Structural Funds,
“actions supported [should] include measures to promote entrepreneurship, local
employment and community development”. The Guidelines also point to the
importance of contributing to plans for urban regeneration within the designated
areas.
The issues identified in the Programme are for the most part common across the
region as a whole. However, targeting will be applied in Priority 1 of the Programme,
which will address the need for an urban dimension in the Programme, as issues of
worklessness are particularly acute in some of the region’s urban areas. This is in
line with the Guidelines focus on the contribution of cities to growth and jobs and is
outlined in greater detail in Chapter 4.
UK National Strategic Reference Framework
The UK National Strategic Reference Framework (as required by the General
Structural Fund Regulation, Article 25) provides a reference instrument for drawing
up Programmes to ensure that Structural Funds spending is consistent both with the
Community Strategic Guidelines and the Member State’s National Reform
Programme for delivering the Lisbon Agenda. In the UK NSRF, there is a dedicated
chapter to Scotland.
Overall, the UK Framework sets out the Government's central economic objective to
raise the rate of sustainable growth and achieve rising prosperity and a better quality
of life, with economic and employment opportunities for all. In Scotland, the primary
aim is to contribute to the sustainable economic growth of the region through
improvements in productivity while addressing social inclusion and environmental
sustainability needs. The European Social Fund will contribute to these strategies to
increase employment and raise skill levels.
The Scottish chapter sets out three sets of priority actions for the ESF Programme
under the Competitiveness Objective. These embody the key Programme challenges
set out above and will match to the priorities presented in Chapter 4. Figure 3 shows
the links between the NSRF priority actions and the challenges.
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Figure 3: Programme challenges and the National Strategic Reference Framework
Integrated Guidelines for Growth and Jobs
The June 2005 European Council approved the Integrated Guidelines for Growth
and Jobs for the period 2005-2008. There are now 24 Guidelines incorporating the
previously separate Broad Economic Policy Guidelines and Employment Guidelines.
These Guidelines fit into the Programme challenges as follows:
17. Implement employment policies aiming at achieving full employment,
improving quality and productivity at work, and strengthening social and
territorial cohesion
- Programme challenges 1-6
18. Promote a lifecycle approach to work
- All Programme challenges
19. Ensure inclusive labour markets, enhance work attractiveness, and make
work pay for job-seekers, including disadvantaged people and the inactive.
- Programme challenges 1-6
20. Improve matching of labour market needs.
- Programme challenges 1-6
PROGRAMME CHALLENGES NSRF PRIORITY ACTIONS
1:Targeting worklessness in particular groups and
areas
2: Helping those furthest from labour market
3: Targeting low-waged/low-skilled
4: Addressing under-representation
5: Increasing skills for entrepreneurs/new managers
6: Improving skill sets in social enterprises
7: Targeting lifelong learning access for most
vulnerable groups
Progressing into sustainable
employment
Progress through sustainable
employment
Improving access to
lifelong learning
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23. Expand and improve investment in human capital.
- Programme challenges 7
24. Adapt education and training systems in response to new competence
requirements.
- Programme challenges 3-7
European Employment Strategy Recommendations
The European Employment Strategy determines how the Lisbon Growth and Jobs
Agenda can be achieved in the areas of employment, employability and social
inclusion policy. In reviewing the positions of the labour markets in the different
Member States, the 2004 Recommendations noted the following about the UK:
The UK exceeds all the employment rate targets, including those for women and for
older workers. However, concentrations of economic inactivity, and to a lesser extent
unemployment, persist in certain communities and amongst particular groups.
Productivity levels, especially as expressed per hour worked, remain comparatively
low. This is in part due to the prevalence of low skills amongst the workforce,
including insufficient basic skills. The gender pay gap remains one of the widest in
the EU. The United Kingdom should give immediate priority to:
• ensuring that wage trends do not exceed productivity gains:
- this is not relevant to the Structural Funds activity in this context;
• ensuring that active labour market policies and benefit systems prevent deskilling
and promote quality in work, by improving incentives to work and
supporting sustainable integration and progress in the labour market of
inactive and unemployed people; addressing the rising number of people
claiming sickness or disability benefits, and giving particular attention to lone
parents and people living in deprived areas:
- This is particularly relevant to Programme challenges 1-3 by assisting
those with particular difficulties in achieving sustainable employment;
• improving the access to and affordability of childcare and care for other
dependants, increasing access to training for low paid women in part-time
work, and taking urgent action to tackle the causes of the gender pay gap:
- This is particularly relevant to key Programme challenges 1-7, not least
by recognising the need to provide support to beneficiaries with caring
responsibilities – gender pay and representation issues are explicitly
acknowledged in Programme challenge 5;
• implementing national and regional skills strategies, with particular emphasis
on improving literacy and numeracy of the workforce, the participation and
achievement of 16-19 year olds, and low-skilled workers in poorly paid jobs:
- This is particularly relevant to all the Programme challenges.
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UK policy context
The UK National Reform Programme details the challenges currently facing the UK
economy, and sets out the Government’s strategy for delivering long term
sustainable growth, high employment and a fair and inclusive society. As explained
in the UK’s National Reform Programme, the Government’s overall approach to
increasing growth in the UK economy is based on maintaining macroeconomic
stability and driving forward lasting improvements focused on employment and the
five drivers of productivity: competition, enterprise, innovation, investment and skills.
The Government believes that radical labour market reform aimed at getting more
people into employment is key to delivering economic growth and ensuring the longterm
fiscal sustainability of the economy. A flexible and job-creating labour market is
especially important for competing in today’s increasingly global markets. By
boosting productivity and employment, it helps ensure that the gains of economic
growth go to the many rather than the few.
The National Reform Programme sets out the Government's aim of employment
opportunity for all and its aspiration of an 80% employment rate and the need to help
a further 2.5 million people into work. Getting more people into employment is key
both to delivering economic growth and to building a more inclusive society. Policies
to promote employment include the New Deals (focusing on long-term
unemployment) and Pathways to Work (offering a range of support). Any Structural
Funds activity addressing Programme challenges 1-2 in particular will add value to
the employment strategy set out in the National Reform Programme.
With regards to productivity, the evidence for focusing on the five drivers was set out
in Productivity in the UK: The Evidence and the Government’s Approach, which was
published alongside the Government’s Pre-Budget Report in 2002. The National
Reform Programme sets out the UK Government’s strategy to:
• raise skills levels in the workforce by: increasing participation in education at
age 17 from 75% to 90% over the next ten years;
• ensure 2.25 million adults improve their basic skills over the period 2001 to
2010; and
• reduce the number of adults in the workforce without a level 2 (upper
secondary) qualification by at least 40%.
Again, activity in support of key Programme challenges 4-9 will add value to the skills
strategy in Scotland, through additionality enabling the targets to be exceeded or met
earlier.
In this context, it is worth drawing attention to the Leitch Review of Skills. Published
in 2006, the Review argued that the UK needed to raise urgently achievements at all
levels of skills and recommended that it commit to becoming a world leader in skills
by 2020, benchmarked against the upper quartile of the OECD. This means doubling
attainment at most levels of skill. The Review echoes nearly all the key challenges
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set out in the socio-economic analysis – implementing its recommendations is
something to which the Structural Funds could make significant contributions.
Scottish policy context
The Framework for Economic Development in Scotland
FEDS, refreshed in 2004, sets the overall strategy for developing the Scottish
economy. Its vision is:
to raise the quality of life of the Scottish people through increasing the
economic opportunities for all on a socially and environmentally sustainable
basis.
To achieve this, FEDS has a set of enabling as well as principal outcome objectives.
The latter are:
• economic growth: with growth accelerated and sustained through greater
competitiveness in the global economy;
• regional development: with economic growth a pre-requisite for all regions to
enjoy the same economic opportunities, and with regional development itself
contributing to national economic prosperity;
• closing the opportunity gap: with economic growth a pre-requisite for all in
society to enjoy enhanced economic opportunities, and with social
development in turn contributing to national economic prosperity; and
• sustainable development: in economic, social and environmental terms.
Central to these four outcomes is a long-term strategy to improve the productivity of
the Scottish economy. As in the wider UK strategy, one of the key factors in this is
the generation and full economic use of knowledge; FEDS acknowledges that
Scotland needs to adapt to knowledge-intensive global markets rather than the
labour-intensive markets in which it has successfully competed in the past. In
addition, FEDS recognises the importance of lifelong learning as an underpinning
factor in achieving this.
The key challenges faced by the region all fall within this broad framework of the
Scottish economic development challenges set out by FEDS. Within this Framework,
specific issues are covered by the respective strategies discussed below. In addition,
the partnership approach espoused by the Framework in terms of policy delivery
closely mirrors the approach in the ESF Programme.
Workforce Plus – An Employability Framework for Scotland
Published in 2006, the Employability Framework complements UK Government
activity to promote economic growth and sustainable development, reduce
disadvantage and inequality and to end child poverty. The Framework sets a target
of assisting 66,000 individuals in seven local government areas of particular
deprivation to move off benefits and into employment. The Framework identified six
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themes where more co-ordinated and targeted policy can achieve this:
• interventions at an early stage;
• more client-focused interventions;
• employer engagement;
• support towards sustaining as well as progressing employment;
• more joined-up planning and delivery of services within the public sector; and
• a focus on better outcomes.
The analysis fits with the socio-economic analysis in Chapter 2. Under Programme
challenge 1, Chapter 2 recognised that the problems of worklessness were
particularly acute among particular groups and in certain areas. Under Programme
challenge 2, the need to help those furthest from the labour market was identified as
a key need, a conclusion also drawn in Workforce Plus, which drew attention to the
existing focus of domestic policy on those closest to gaining employment. The
Structural Funds can provide added value within this strategic framework by
supporting activity that will target more client-focused interventions as well employer
engagement. Through the partnership approach set out in Chapter 7, the
Programme will encourage more joined-up planning, both because the EU funding
will need to be match-funded with domestic funding and because project decisions
will be made through the Programme Monitoring Committee which will bring together
the main resource providers and delivery groups for these services. Moreover, the
Framework further acknowledges that local employment partnerships are the more
effective delivery channel for such employability activity. This approach is reflected in
the ESF Programme and the use of partnerships in project delivery, also as set out
in Chapter 7.
Closing the Opportunity Gap
Closing the Opportunity Gap is the Scottish Executive strategy aiming to prevent
individuals and families from falling into and to provide routes out of poverty. It sets
two relevant targets to tackle poverty and disadvantage:
• to promote community regeneration of the most deprived neighbourhoods,
through improvements in employability, education, health, access to local
services and quality of the local environment; and
• to improve service delivery in rural areas so that agreed improvements to
accessibility and quality are achieved for key services in remote and
disadvantaged communities.
In 2004, this was translated into a set of six objectives with a particular focus on
areas of particular deprivation:
1. to increase the chances of sustained employment for vulnerable and
disadvantaged groups – in order to lift them permanently out of poverty;
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2. to improve the confidence and skills of the most disadvantaged children and
young people – in order to provide them with the greatest chance of avoiding
poverty when they leave school;
3. to reduce the vulnerability of low income families to financial exclusion and
multiple debts – in order to prevent them becoming over-indebted and/or to lift
them out of poverty;
4. to regenerate the most disadvantaged neighbourhoods – in order that people
living there can take advantage of job opportunities and improve their quality
of life;
5. to increase the rate of improvement of the health status of people living in the
most deprived communities – in order to improve their quality of life, including
their employability prospects; and
6. to improve access to high quality services for the most disadvantaged groups
and individuals in rural communities – in order to improve their quality of life
and enhance their access to opportunity.
The ESF Programme embodies – directly as well as indirectly – these Closing the
Opportunity Gap objectives. The strongest links are through the first and fourth of
these objectives and Programme challenge 1, with the focus on particular client
groups and areas.
Regeneration Policy Statement
In 2006, Closing the Opportunity Gap was supplemented by the Scottish Executive’s
People and Place: Regeneration Policy Statement, which states that regeneration is
central to achieving the main goal of sustainable economic development. The
Regeneration Policy Statement integrates public, private, voluntary and community
sector activities to sustainable regeneration. It defines the regeneration challenge for
Scotland:
Regeneration is a crucial part of growing the economy and improving the
fabric of Scotland… Our aim is to turn disadvantaged neighbourhoods into
places where people are proud to live. To turn places that have been left
behind into places connected with the opportunities around them. To create
areas of choice and areas of connection, rather than inward-looking places
excluded from the wider successful Scotland around them. To build mixed
and vibrant communities that sustain themselves.
The Regeneration Policy Statement recognises that this can only be achieved
through an integrated policy approach that goes beyond investment in the physical
infrastructure of these areas: the economic, social, physical and environmental
aspects of regeneration requires an integrated approach which ‘joins up’ planning
and delivery across these aspects, so that change is mutually reinforcing. At the
same time, it must be an approach based on partnership, as no single organisation
can deliver all of these outcomes.
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One key instrument to take forward this and other strategies are the Community
Planning Partnerships (CPPs). The CPPs, one for each Local Authority area, set out
how the relevant partners at local level intend to combine their activities to achieve
regeneration outcomes. The CPPs consist of partnerships of the key partners
involved in local regeneration including the Local Authority, voluntary sector
organisations, local Health Boards and other relevant bodies.
Structural Funds can be an important instrument for integrating funding in support of
the social inclusion and employability aspects of the regeneration agenda,
particularly with respect to the Programme challenges 1-2. As noted above, the
Funds role as a match-funder and the partnership-based approach underlying its
delivery through the Programme Monitoring Committee. As described in Chapter 7,
there is scope in the Programme for using partnerships to deliver funding in support
of these objectives.
NEET Strategy – More Choices, More Chances
One of the most difficult-to-reach groups of individuals outside the labour market are
young people who are ‘not in education, employment or training’ (NEET). These are
concentrated in seven areas in Scotland which require particular policy interventions,
complementing the work being taken forward as part of the Employability Framework
and Closing the Opportunity Gap. The NEET Strategy – launched in 2006 – has a
set of objectives:
• to stem the flows into NEET (ie. prevention rather than cure);
• to have a system-wide (pre and post 16) focus on, ambitions for, ownership of
– and accountability for – the NEET group;
• to prioritise education and training outcomes for the NEET group as a step
towards lifelong employability, given their low attainment profile; and
• to position NEET reduction as one of the key indicators for measuring the preand
post-16 systems' success.
It aims to achieve this through five priority areas of intervention: opportunities for
young people of school age; post-compulsory education and training; financial
incentives for employment, education and training; removing the barriers to
accessing opportunities; and co-ordination of national and local leadership in
delivery.
Under Programme challenge 1, one of the key groups identified for support targeted
in the socio-economic analysis was the NEET group. It also recognised the
concentrations of this group in particular parts of the region. Structural Funds can
complement the NEET strategy, particularly through assistance for removing the
barriers to accessing opportunities, both through giving the appropriate skills and
support to those in the NEET group as well as in employer engagement activity.
A number of other policies are being taken forward for the school sector which will
have an impact on young people’s employment prospects on leaving school. These
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are: Curriculum for Excellence; with its focus on the four capacities of the individual;
Determined to Succeed, which increases awareness of, and enthusiasm for
enterprise and entrepreneurship; and the School – College Review; which is aimed
at increasing the range of opportunities open to young people of school age.
Smart Successful Scotland
Scottish Executive policy for developing the enterprise sector has been set out in
Smart Successful Scotland, which was refreshed in 2004. The strategy not only lays
out the goals of the Scottish Enterprise – the key economic and skills development
agency in the Lowlands & Uplands Scotland region – but acts as a framework for coordinating
enterprise development policy more widely. It has a vision consisting of
three outcomes:
• growing businesses: a fast learning, high earning Scotland;
• global connections; and
• learning and skills.
Under the last outcome, a set of priorities have been defined:
• improving the operation of the Scottish labour market by improving the
adaptability of the Scottish labour force and the labour market mechanisms
contributing to that adaptability (especially in lifelong learning);
• the best start for all young people through good training support and
opportunities;
• narrowing the gap in unemployment; and
• improved demand for high quality in-work training.
Under the second of these goals (‘developing skills’), the strategy links strongly with
several Programme challenges:
3. targeting low-waged/low-skilled workers: ensuring that support is
concentrated on those groups which have most difficulty in achieving
sustainable employment;
4. addressing the gender pay gap and representation: providing specific support
to redress the remaining gender imbalances in the labour market;
5. increasing entrepreneurial skills: targeting the skills needed by entrepreneurs
to develop sustainable enterprises; and
6. improving social enterprise skills: recognising that social enterprises have
particular skills needs to ensure that they can contribute to addressing all
Programme challenges.
Through the strategy, Scottish Enterprise delivers a number of training programmes.
Get Ready for Work supports 16-to-18 year olds in identifying their training needs
and their employment aspirations and provides a training allowance and
opportunities for ‘work tasters’. Skillseekers targets young people who have left work
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and are seeking basic qualification levels to enable them to enter employment.
Modern Apprenticeships is also focused on young people by helping them into paid
employment with a view to gaining job-related skills.
Lifelong Learning Strategy
Life Through Learning, Learning Through Life sets out the Executive’s strategy for
Lifelong Learning to 2008. It is concerned with post-compulsory education, training
and learning and recognizes the need to address the:
• opportunity gap between those who achieve their potential and those who do
not;
• skills gap between those in work and those who are not; and
• productivity gap between Scotland and the world’s leading economies.
To achieve these strategic aims there is a need to promote work based learning as
part of the overall lifelong learning agenda through a two-pronged approach that both
encourages individual learners to participate in lifelong learning and employers to
support lifelong learning both in and beyond the workplace. The strategy has five
goals, creating:
• a Scotland where people have the confidence, enterprise, knowledge,
creativity and skills they need to participate in economic, social and civic life;
• a Scotland where a high quality learning experience is delivered;
• a Scotland where people's knowledge and skills are recognised, used and
developed to best effect in their workplace;
• a Scotland where people are given the information, guidance and support
they need to make effective learning decisions and transitions; and
• a Scotland where people have the chance to learn, irrespective of their
background or current personal circumstances.
The strategy underpins the approach needed in support access to lifelong learning in
Programme challenges 7 and 8, which identify needs in the access and quality of
training provision in the region.
In addition, there are specific learning needs for part of the workforce. For migrant
workers, the Adult ESOL (English for Speakers of Other Languages) Strategy is
particularly relevant. This aims to improve the quality and quantity of provision for all
those who need help in this area with a particular focus on asylum seekers and
refugees, people from settled minority communities, and migrant workers. The
definition of eligible activities in Priority 1 has taken special attention of the issue. In
this context, the role of the Executive’s Fresh Talent Initiative is important in
encouraging people coming to live and work in Scotland - it echoes the challenges in
the Programme in helping migrant workers in the region.
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Other Key Strategies
In addition to these overarching strategies, there are a number of other related policy
areas, where Scottish Executive strategies will inform and complement activity in the
ESF Programme.
On the specific issues facing individuals with mental health problems, the Scottish
Programme for Improving Mental Health and Well-being aims to improve the mental
health and well-being of everyone living in Scotland, and improve the quality of life
for people experiencing mental health problems and mental illness. The publication –
‘With Work in Mind: The Evidence Base for Change’ – sets out the size and nature of
the workless client group with experience of mental health problems. This forms
another key group that should be addressed through Programme challenge 1.
Similarly, the Scottish Executive’s Healthy Working Lives action plan links the
importance of health and employability, particularly for individuals with health-related
problems or disabilities, and has a series of actions that overlap with the first
Programme challenge.
Effective and confident literacy and numeracy skills contribute to closing the
opportunity gap in Scotland, including equipping people to fulfil their employability.
These have been identified as a critical area for intervention in the Adult Literacy and
Numeracy Strategy. By 2008, £65 million will have been invested through community
learning and development strategies. From 2001 to 2005, over 100,000 new
literacies learners have been supported across Scotland. The Big Plus awareness
raising campaign, and the Big Plus for Business toolkit to raise employer awareness
of workplace literacies, has been launched to encourage their staff in developing
these skills, a set of activities that fit with the literacy/numeracy skills issues set out in
Priority 2. It has also been recognised that skills in using a computer are standard for
all – that is why the universal offer for Individual Learning Accounts targets ICT skills.
Lack of such skills are a common feature of many of the groups identified in
Programme challenge 1 in the socio-economic analysis.
The Scottish Childcare Strategy will aim to provide affordable, accessible, good
quality childcare in every neighbourhood, supported by Childcare strategy funding
from the Executive to local authorities. Childcare has an important role to play in
labour market growth and family prosperity by helping people back into work or
training as well as supporting childcare enterprises. The Working for Families
programme supplements these with further support for parents in disadvantaged
areas and groups, supplemented by the childcare element of working tax credit for
those on a low income, to get the affordable and flexible childcare they require. Lack
of childcare has been seen as a barrier to individuals being able to participate more
sustainably in the labour market and is recognised as a key issue in Programme
challenge 4 (addressing the gender pay gap and workforce representation).
The social economy sector is already delivering a number of employment and
training opportunities for the long-term unemployed. The success of the sector in this
area rests with the experience such organisations have of working with their clients,
the confidence that they inspire in their clients and the one-to-one support that they
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are frequently able to offer. The Scottish Social Enterprise Strategy will set out the
social economy as a key area is creating employment and development
opportunities for those furthest from employment through helping to make social
enterprises more sustainable and competitive. Priorities for supporting the sector in
the strategy will complement the focus on the social economy within the ESF
Programme. The importance of this goal is explicitly recognised in Programme
challenge 6.
3.2 Lessons from 2000-06 Programming
Structural Funds programming in Scotland has always built on the experience of
earlier programmes, maintaining the good practice while adapting to new
circumstances. In developing the ESF Programme for the LUPS region for 2007-13,
the lessons of the 2000-06 use of European Social Fund in Scotland were examined
from a number of different perspectives. This section summarises the key studies
drawing on those lessons:
• the mid-term evaluation update of the Objective 3 programme;
• the study of social inclusion activity supported by ESF for the mid-term
updates, conducted by EKOS;
• the 2005 beneficiaries survey conducted by MORI;
• the 2005 report of an internal Value Added Group on how to increase the
value added of future Structural Funds programmes;
• the 2006 Hall Aitken report on options for delivering Structural Funds
programmes.
Mid-term evaluation update of the Objective 3 Programme
In 2005, the 2000-06 Scottish Objective 3 Programme was assessed as part of the
mid-term evaluation update of Structural Funds. The update set out a number of
conclusions and recommendations that informed the development of the 2007-13
ESF Programme for Lowlands & Uplands Scotland, particularly with respect to the
focus of assistance on certain groups and activities.
• Individuals who remain outside the workforce often face multiple barriers to
progressing into sustainable employment. Considering these groups by length
of time unemployed, age, sex, etc has tended to lead to less effective
interventions. There is a need to address the person’s needs as a whole and
employers’ perceptions, and to be as flexible as possible in accepting a range
of interventions as eligible activities.
- The 2007-13 Operational Programme will give greater weight to
projects that link together support for the totality of challenges facing
key client groups. This will be reflected in the eligibility criteria under
Priority 1, as set out in Chapter 4.
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• For those groups which are farthest from sustainable employment, there is a
need to acknowledge that progress can be slow and soft outcomes and
movement towards the labour market must be encouraged, rewarded and
sustained over a considerable period. There are few short-term interventions
for these client groups.
- The 2007-13 Programme gives emphasis to supporting these groups
as seen in the Priority 1 description in Chapter 4 and to measuring
outcomes and impacts through a greater use of ‘soft’ indicators, as
described in Chapter 9.
• Local variations and labour market needs have to be better catered for.
Strategic fit has to be not just at national level, but also has to be based on
local partnership plans.
- Delivery of Priority 1 on sustainable employment will include supporting
partnership action plans, especially through the Community Planning
Partnerships described in Chapter 6.
• Projects which encouraged and supported a network involving a range of
partners, including economic development bodies, local and national
government policy makers, front line delivery bodies such as health and social
services tended to be innovative and focused on their clients’ needs. They
were more likely to leave a lasting legacy, and to work together again. The
Development Partnerships established in the 2000-06 Equal Initiative in
Scotland were good models of this.
- The Equal thematic partnership approach has been used as the model
for the partnership approach to delivery, as envisaged for the CPPs
under Priority 1 and described in Chapter 6.
• Access to post-school education for those not participating could be highly
effective where there was a high degree of innovation and flexibility in the
approach on offer. Tasters of a non-academic nature, or outside the normal
further or higher education buildings were often more welcome (eg. learning
centres in Housing Association offices or youth clubs).
- This activity continues to be encouraged through Priority 3 of the new
Programme, as described in Chapter 4.
EKOS social inclusion study
As part of the mid-term evaluation update, a specialist study was commissioned of
EKOS Consultants in 2005 to review the effectiveness of social inclusion Measures
within the Objective 3, Objective 2 West of Scotland, as well as the Highlands &
Islands Special Transitional Programme in the 2000-06 programming period. It made
the following recommendations, which have taken into account in developing the
current Programme as follows:
• The categorisations of key client groups should be linked to standard
statistical sources to enable quantification of the number of individuals being
reached by the Programme.
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- This recommendation has informed the development of the monitoring
and evaluation indicator framework for the new Programme, set out in
Chapter 9.
• Project administration requirements should be looked at again in relation to
key match-funding programmes, seeking to streamline and complement
where possible.
- This recommendation is being pursued as part of the simplification and
streamlining of administrative procedures in the new Programme and
will be reflected in the new Guidance.
• There continues to be a requirement for improved strategic co-ordination of
ERDF and ESF funding streams. It may be appropriate to use structures such
as Community Planning Partnerships to facilitate this discussion at a local
level.
- A recommendation which lies behind the delivery arrangements for
Priority 1 in the new Programme, as set out in Chapter 7.
• Longer-term tracking of individuals would be desirable in order to provide a
more realistic time frame for job seekers to achieve results, as well as to
demonstrate sustainability of outcomes.
- Again, the new evaluation and monitoring framework is giving greater
weight to tracking outcomes in this way.
MORI beneficiaries survey
In 2005, a GB-wide beneficiaries survey was also commissioned, to follow up
individual beneficiaries of projects supported under the ESF programme, who took
part in the different EU programmes in 2004. For this research, separate surveys
were conducted in England, Wales and Scotland, building on similar work conducted
in earlier years and carried out by MORI. It has the most relevance for the
development of Priority 1, as set out in Chapter 4.
The findings showed that in general, expectations beneficiaries had on joining a
course were met and often exceeded, with most people reporting that they had
developed both ‘hard’ and ‘soft’ work-related skills. Indeed, four in five beneficiaries
attained a qualification on completion of their course. It is also instructive to note that
gains and improvements appeared to be relatively well-focused on key groups of
beneficiaries. Non-working entrants – whether they are actively seeking work or are
inactive – clearly benefited not only from targeted, skills-based training but also from
the development of ‘soft’ skills relating to their self-confidence. As a result, eligibility
under Priority 1 will continue to include such ‘soft’ skills, not least as this is
particularly critical for the targeted client groups identified in Programme challenge 1.
Furthermore, there was evidence of upskilling among beneficiaries who were
employed on entry. This group cited a wide range of skills development, in particular
improving practical skills relating to a particular job, as well developing IT and study
skills. A key outcome, however, for any ESF-funded training was whether
beneficiaries improved their labour market status. From the two-stage survey
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process, it was possible to see a clear and positive move from unemployment to
employment for many beneficiaries. The proportion of beneficiaries in the second
wave of research who were employed rose from 32% on entry to 50% at the time of
the survey. This represented a 56% increase in employment. While this research
was not set up as an empirical evaluation to establish a causal link between
attendance on the ESF course and subsequent labour market activity, the majority of
those who moved into a new job felt that participation in the course had helped them
to do so.
Moreover, even if they were not moving directly into work, inactive entrants were
moving in the direction of work: a third of those who were unemployed at the time of
the survey (30%) and nearly half of those in education (47%) had been inactive on
entry. This is a major finding of this research – that inactivity is being directly
addressed by the ESF in Scotland. It should also be noted, however, that
unemployment levels are affected by this move. Rather than falling, unemployment
actually rises from entry to leaving a course (from 18% to 29%) and is still higher
than at the beginning of the process by the time of the survey (24%). While this rise
may be seen as a disappointment, it should be recognised that the ‘direction of
travel’ is a positive one. This is reflected in the 2007-13 Programme through
Programme challenge 2, which identified the need to target funding on those furthest
from the labour market and in need of the most assistance.
The survey concluded that the challenge for the ESF in Scotland was to maintain the
increase in employment so that inactive and unemployed beneficiaries were able to
make that final transition. This underpins the focus of Priority 1 in the 2007-13 ESF
Programme.
Value Added Group: ‘Adding Value, Keeping Value’
As part of the preparations by the Scottish Executive for developing Structural Funds
programmes for the 2007-13 period, a short-life internal working group was set up in
2005 to draw lessons on the ‘value added’ of the Structural Funds for the 2007-13
Scottish programmes. The specific objectives of the Group were the following:
• to identify the types of projects that have provided the highest added value in
the 2000-06 programmes;
• to consider the characteristics of those projects which have made them
particularly successful;
• to define added value in the context of Structural Funds programmes; and
• to assess how best to encourage development of such projects within the
regulations governing future Structural Funds.
The Group was drawn from the European Structural Funds Division and the
Programme Management Executives for the 2000-06 programmes. It concluded the
following of relevance to the current Programme.
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• In future, a greater premium should be placed on qualitative value added in
project selection. This was not to suggest that value added should not have a
strong quantitative dimension, but that qualitative value added should be a
priority. In practice, this meant that Structural Funds could usefully support
pilot, innovative projects.
- The importance of an innovative approach to projects is reinforced in
the Programme, as discussed under each of the Objectives in more
detail in Chapter 7.
• Consideration should be given to providing a greater time limit on project
funding in future. If the focus is on supporting qualitative projects, Structural
Funds should have the role as a major lever for the early stages of a project’s
development. ‘Repeat’ projects or longer-term continuations should be
discouraged unless there are strong operational reasons for doing so. As a
result, project awards would be for a minimum of two years, though with
annually-set targets and reviews.
- This conclusion will be reflected in the new guidance to be issued to
applicants and in the section on innovation in Chapter 4.
• Partnership has been a critical factor in supporting value added, particularly
when applied in particular ways. Partnership at a local/regional level in project
development is important, often acting as ‘brokers’ for development activity (a
role that has been supported through Structural Funds support). Where
projects and activities have been developed through a networked, interagency
approach, project quality appears to have been driven up.
- Chapter 7 sets out the role of partnership in delivering parts of the
Programme.
• The continuing promotion of key shared policy goals should continue,
particularly the horizontal themes. The Structural Funds have played a pivotal
role in promoting equal opportunities and sustainable development as wider
policy goals and should continue to do so.
- This is reflected on the continuing emphasis on the mainstreaming of
these three horizontal themes, as set out in more detail in Chapter 8.
Value added has also been apparent where funding has been co-ordinated through
a series of activities targeting a common goal. Whether the co-ordination is of
different types of funds (ERDF, ESF and other sources of EU funding) or different
types of projects (through project clusters), their impact is strongest when geared
towards a specific development goal. In Structural Funds, these goals have been
most readily achieved when defined in terms of local geography (especially through
community economic development) or niche sectors (particularly through targeted
enterprise development activities). The focused approach is reflected in the targeted
nature of the priorities described in Chapter 4.
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Hall Aitken: ‘Making Every Euro Count’
As part of the preparations for developing the 2007-13 programmes, the Scottish
Executive commissioned a report of Hall Aitken Consultants in 2006 with several
objectives:
• to identify a series of delivery options for single-stream funding of Structural
Funds and other domestic policy resources, based on 2000-06 practice
elsewhere in the EU;
• to draw out comparative lessons with a view to setting out options for Scottish
delivery; and
• to set out options for Scotland.
On this basis, the report concluded that any approach should achieve as many of the
following criteria as possible:
• minimise the administrative costs of operating projects;
• direct funds to where they will make the most difference in terms of economic
need, opportunity and delivery capacity and quality;
• build on existing structures, partnerships and systems where possible and be
developed with the support of stakeholders;
• shift the focus of effort from project selection to effective delivery and
monitoring;
• integrate Structural Funds actions more closely with related domestic policy
actions;
• retain sufficient flexibility to respond to changes in need and opportunity
during the programme lifetime and ensure that projects address both issues;
• promote the horizontal themes; and
• spread learning and good practice.
The delivery mechanisms for the programmes – set out in detail in Chapter 7 – were
developed with these conclusions in mind. They have also been designed to make
use of the following range of elements, set out by Hall Aitken as mechanisms that
could be used in delivering the programmes:
• area and local outcome agreements: the partnership-based approach to
delivery for parts of the Programme set out in the Priority 1 description in
Chapter 4 reflects this mechanism;
• competition between single-stream funding bodies: again, as the Priority 1
description details, competition is anticipated between partnerships for the
delivery of parts of the Programme; and
• thematic partnerships: in line with the above bullet points, the partnerships will
be expected to show thematic complementarity in the supported activity.
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4 STRATEGY AND PRIORITIES
4.1 Programme Vision
The strategy for the ESF Competitiveness Programme proceeds from the
identification of key challenges within the socio-economic analysis (in Chapter 2), the
need for actions to fit with EU, UK and Scottish policy frameworks and the
experience of previous programming (in Chapter 3). The socio-economic analysis
described how the region has clear strengths and opportunities on which it can build
– such as its achievement of the Lisbon employment rate goal– while recognising a
range of significant weaknesses and challenges – deriving from low productivity,
high rates of worklessness (particularly among certain groups and in certain areas)
and a range of skills deficiencies. Seven challenges have been identified:
1. Reducing the acute levels of worklessness in certain groups and areas.
2. Improving employment rates in those groups facing multiple barriers.
3. Increasing the ability of the low-waged and low-skilled to remain in, and
progress through the labour market to achieve financial security.
4. Tackling gender representation in key occupations and sectors of underrepresented
groups.
5. Increasing the skills of entrepreneurs and new managers
6. Providing social enterprise managers and workers with greater skills to
sustain their organisations.
7. Increasing lifelong learning participation rates among the most disadvantaged
groups.
Structural Funds in the Competitiveness Programme are limited. The EU resources
in the ESF programme are €269.921 million for 2007-13, resulting in a total
programme value of €598.526 million. In light of current developments in the EU, the
funding may be the last substantial funding of this scale for the region, and so it is
essential that the Programme aims to deliver lasting legacies to the region that will
extend beyond the programming period. Consequently, the strategy for the ESF
Programme for the Lowlands & Uplands Scotland area is set by its overall vision:
to contribute towards sustainable growth in the size and skills of the
Scottish workforce in line with the Lisbon Jobs and Growth Agenda, in a
climate which offers equality of opportunities to individuals to achieve
their full potential.
The Programme does not operate in isolation, but as Section 3.1 stressed, Structural
Funds are intended to complement key domestic policies, particularly the Workforce
Plus (Employability Framework), Closing the Opportunity Gap, the NEET Strategy,
Smart Successful Scotland and the Scottish Lifelong Learning Strategy. Sustainable
development, social inclusion and equal opportunities will remain key themes within
all ESF activities: how this will take place is described in detail in Chapter 8.
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The Programme will make its principal contributions by:
• acting as a lever to encourage domestic resources to focus on the key
development challenges outlined in the socio-economic analysis through its
role as a match-funder;
• encouraging partnership working to support beneficiaries on their pathway as
they move closer to labour market participation;
• supporting beneficiaries and employers at the critical period of entry into
employment or education;
• progressing supported beneficiaries into more sustainable, productive
employment;
• increasing the skills level of supported beneficiaries; and
• increasing access to lifelong learning among targeted groups so that they are
able to take responsibility for their future progress, reducing the inequalities
between the least advantaged and the rest of society .
If current trends continue, a stable or reducing working-age population sustaining a
larger elderly population in the region will not be possible. Although people will live
longer overall, many will do so in poor health, and in relative poverty depending on
the area in which they live, and their work experience. For individuals born into poor
households, the gap with the most affluent households in Scotland could widen even
further in terms of health, behaviour and employment outcomes unless the Scottish
Executive, UK Government, EU programmes and individual attitudes work together
to alter the current trends.
Better skills help improve individual life chances, increase the flexibility of the labour
force and increases the economy’s competitiveness. Scotland has to embrace the
knowledge economy and the reality of continual learning if it is to compete in the
global marketplace. What cannot be accepted is the opportunity gap between those
who achieve their full potential and those who do not; the skills gap between those in
work and those who are not; and the productivity gap between Scotland and the
leading economies of the world. Bridging these gaps is vital if Scottish enterprises
are to grow and become more globally competitive, and if this Programme is to help
the people of Scotland to help themselves in the future.
The Programme cannot support all activities that can contribute to the above vision,
but will concentrate support on those areas where additionality and added value can
be clearly demonstrated, in line with identified regional priorities. The strategic vision
of the Programme operates through three sets of interlocking Objectives, which are
described in the following section. The Chapter also contains: detailed priority
descriptions, including the use of technical assistance; and the categorisation of
assistance for the purpose of Lisbon ‘earmarking’.
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4.2 Programme Objectives
The strategic vision of the ESF Programme operates through three sets of
Objectives, addressing market failures in the following areas:
1. Progressing into Employment
2. Progressing through Employment
3. Improving access to Lifelong Learning
Objective 1: Progressing into employment
Increasing the size of the workforce is important if Scotland is to contribute to the
Lisbon Jobs and Growth Agenda. As the socio-economic background highlighted,
trends in Scotland’s population have emphasised the importance of ensuring that
there is a large enough labour force to drive Scotland’s economic growth. This not
only means joining up the various supports already available for individuals who face
multiple barriers to entering the workforce, but also ensuring that they gain the skills
on the way to ensure that they can remain in sustainable employment in the future.
At the same time, it also means that employers need to be encouraged to give equal
opportunities to individuals drawn from these disadvantaged groups.
Sustainability is crucial – the aim is not only to make sure that beneficiaries are
prepared to get jobs, but that they also acquire the skills and motivation to progress
in long-term employment. UK policy delivered by Jobcentre Plus concentrates on
those individuals who are unemployed, but close to ‘job ready’, or those who wish to
enter or return to the job market, and can do so with some help. The UK fiscal policy
works to provide a stable environment and offer incentives to individuals to ensure
that they are better off working than on benefits. The Scottish strategies in this area
address physical, social and economic barriers to work, as well as making the
connections with global markets to allow employers to grow their enterprises and
expand their workforce.
Consequently, the Objective has been set as follows:
to assist the co-ordinated progress of unemployed and inactive people
of all ages towards sustainable employment.
Structural Funds Value Added
As can be seen from Chapter 3, domestic funding to support social inclusion and
employability challenges is significant within Scotland. The total estimated figure of
the annual funding for employability services mainly based on the 2004-05 financial
year is £421 million, though this excludes welfare benefits, or housing benefits, paid
to eligible people. It also excludes substantial funding for lifelong learning, as
indicated under Objective 3, where it is difficult to separate out the specific activities
which fully support employability, for example the work in colleges. In addition, it is
not possible to quantify some other funding streams, such as that provided by the
voluntary sector.
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The main streams in this annual sum include:
• Jobcentre Plus, through the New Deal, Pathways to Work and other
programmes and support (£169 million);
• the Scottish Executive through a large number of programmes, such as Cities
Growth Fund, Homelessness, Adult Literacy and Numeracy, Working
Families, Individual Learning Account Scotland, Healthy Working Lives, Lone
Parent Mentoring, Full Employment Areas Initiative, Criminal Justice Social
Work Services, LEAD Scotland, NEET Funding and Scottish Skills Fund (£83
million);
• the Enterprise Networks, and Careers Scotland through Get Ready for Work,
Training for Work and guidance services (£51 million);
• Local Authorities, as increasingly important providers of employability services
from their core funds (£20 million); and
• Communities Scotland, through the Communities Regeneration Fund
(approximately £16 million).
Given the limited resources available in this Programme, it is crucial that within this
Objective, funds target those groups where they will make a particularly significant
difference, notably those facing multiple or acute barriers or discrimination who are
not already well supported through other existing initiatives. It also needs to address
the special problems associated with Scotland’s high proportion of workless, who are
typically concentrated in particular urban locations which tend to reinforce the factors
that result in exclusion from the labour market with the inevitable economic and
social consequences.
Moreover, the evidence is that more traditional ‘training’ activities for jobless people
are well-resourced – but initial engagement and aftercare once in employment are
under-resourced, particularly for those groups which are further away from entering
the labour market. Consequently, more resources could be devoted to:
• initial positive activity to help workless individuals and more vulnerable
groups, who often require more customised and intensive support; and
• aftercare and support for employee and employer to help sustain employment
once individuals enter the labour market.
While these are often presented as labour ‘supply’ interventions, resources and
support also needs to go to the labour ‘demand’ side as well, particularly to changing
employer attitudes to hiring individuals in disadvantaged groups and to in-work
support services.
Funding will go towards significant projects aimed at building capacity at local level
to meet the challenges set out in the policies to address NEET and economic
inactivity. Such projects will build capacity around those beneficiaries facing multiple
barriers including those with health and mental health barriers often related to
addictions, those with learning disabilities, and the over-50s. This capacity-building
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approach will ensure that projects are not short-term interventions for a small
number of participants, but rather that they are sustainable in the longer term.
Resources for tackling these issues are provided across the region, but the
Programme can have a particularly added-value effect by targeting its limited
resources on specific areas. Further, the role foreseen for the Community Planning
Partnerships described in Chapter 6 shows the value of the Funds in encouraging
partnership working at local level and an integrated action-plan approach to tackling
social exclusion issues.
As can be seen from the list above, the key match-funders supporting activity
through this Objective would come principally from the Scottish Executive (though
funding provided under the Workforce Plus and NEET Strategies as well as through
the City Strategies), Jobcentre Plus, Department of Work and Pensions (DWP), the
Local Authorities, further/higher education, the Scottish Trades Union Congress,
and the voluntary sector.
It will encourage an innovative approach to funding in this Objective through:
• making new connections with the hardest-to-reach workless groups;
• combining activity under Priority 1 with complementary activity under Priority
3 of the ERDF Programme, as described in more detail in the priority
description;
• where appropriate, supporting linked bids with activity in projects to support
the workless when they get jobs as part of the scope of Priority 2’s activity, as
described in more detail in the priority description; and
• encouraging partnership working, capacity building and integrated action
plans to address the issues here, as described in more detail in section 6.1.
Objective 2: Progressing through employment
Improving the quality of the Scottish skill base can contribute directly to the
productivity increases necessary to raise Scottish economic activity and employment
rates and enable Scotland to be integrated into rapidly growing global markets. This
objective has several dimensions. Chapter 2 analysed the trends in skill
requirements against those which were available in the workforce. Higher skills
levels are linked to higher employment rates across Europe. This has meant that the
issue of education and levels of qualifications is an important one for Scotland.
Similarly the rise in the perceived importance of soft skills means that assurance is
needed that young people and other workers are being equipped with the right skills.
Again, it means that the additional European funding should be concentrated where
it can make a significant difference outside the mainstream education and skills
funding streams.
This will mean firstly concentrating on those sections of the workforce that are most
vulnerable, particularly to those at risk of losing their jobs or dropping out of
employment – in other words, providing the skills necessary for sustainable
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employment. This would include ensuring low-skilled, low-paid workers have the
required skills to take advantage of opportunities for higher-quality, better-paid and
more sustainable employment. It also includes special support for groups facing
large scale redundancy, or whose skills need upgraded or renewed, or those who
acquire a disability.
Secondly, European funding would also tackle the need to target the skills of
particular groups within the labour market. The need to reduce the gender gap in
participation and incomes remains an important issue for the LUPS region. Similarly,
support is needed where upgrading skills or learning new skills can contribute to
other economic development objectives co-ordinated with those under the ERDF
programme – such as financial management and enterprise training for new
entrepreneurs and managers.
Consequently, the Objective has been set as follows:
to improve the skills of the workforce to enhance employability,
productivity, adaptability, inclusion and entrepreneurial expertise
Structural Funds Value Added
Skills support is already extensive in the region. It is difficult to estimate fully the
scale of domestic support, but the principal provider in the region is Scottish
Enterprise’s annual skills-related budget of approximately £160 million, supporting
workforce training, vocational skills and career guidance and information. In addition,
the higher and further education institutions of the region are provided significant
funding for supporting training – the Scottish Funding Council has an annual budget
of approximately £1,650 million for the whole of Scotland.
In light of the significant difference in the scale of funding, EU support would have
most value added targeting particular skills issues which continue to present
significant challenges to the Scottish labour market. These challenges involve
addressing those groups which are on the borderline between employment and nonemployment
and experience low pay and low skills. There is also a need to focus on
groups with special issues of participation and progression in the labour market,
such as women returners, those who have a health problem and those from ethnic
minority communities. Lastly, there is a significant role in supporting the key
challenges for enterprise development within the economy, again focusing on the
distinctive challenges facing entrepreneurs and new managers of SMEs.
The key match-funders supporting activity through this Objective are likely to be
Scottish Enterprise (in its skills training capacity), the higher and further education
sector, the Scottish Executive (again though funding provided under the Workforce
Plus and NEET Strategies), the Local Authorities, the Scottish Funding Council, the
Scottish Qualifications Authority, the Scottish Trades Union Congress, and the
voluntary and social enterprise sector.
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It will encourage an innovative approach to funding in this Objective through:
• fully complementing the work of Priority 1 in supporting groups which have
moved from inactivity into jobs by ensuring that they have a pathway open to
them to develop the skill sets needed for sustainable employment – where
appropriate, supporting linked bids for projects whose activity straddles both
Priority 1 and 2, as described in more detail in the priority description; and
• supporting holistic and integrated approaches to increasing underrepresentation
and more diversity in the workforce.
Objective 3: Improving access to lifelong learning
The knowledge, skills, competencies and other attributes acquired through learning,
contribute to economic activity. Accumulating knowledge and skills enables
individuals to improve their position in the labour market, increases productivity and
earnings, and collectively enhances the society in which they live. Underpinning the
efforts to increase the size and skills levels of the workforce is the lifelong learning
and training environment.
This Objective recognises that support for individuals must be made in parallel with
improvements to the systems that will enable them to access the training and
support needed to enter, stay and progress in the labour market. That not only
means enabling those within the lifelong learning and training sector to improve their
ability to reach out to all groups, but also allowing them to work collaboratively with
other agencies to invest in new methods, technologies and models for accessing
lifelong learning. The Objective also needs to be targeted on those groups and
enterprises for whom lifelong learning access is the greatest challenge. Lastly, it
needs to take full account of issues of geographical access – for example, in areas
of urban deprivation where there is no acknowledgement of the value of learning, or
in rural areas which often lack the same level of training and lifelong learning
provisions available in other areas, giving rise to opportunities for developing more
innovative approaches to distance learning.
Consequently, the Objective has been set as follows:
to widen access to post-school lifelong learning, particularly for key
client groups.
Structural Funds Value Added
Lifelong learning support is principally driven by the support going to the higher and
further education sector. As was noted above, the funding to the Scottish Funding
Council for the whole of Scotland amounts to some £1.65 billion each year.
However, for this Objective, the key match-funders supporting activity would not just
be the higher and further education and training sector, but the voluntary sector, the
Scottish Qualifications Authority, the Scottish University for Industry, the Scottish
Trades Union Congress, the Local Authorities and Scottish Enterprise as well.
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In light of the strength of domestic support, the value added of the Funds in this
priority is in explicitly supporting more innovative and pilot approaches to improving
access to lifelong learning, especially for the target groups lacking soft and basic
skills identified in Priority 1, low paid/low skilled workers from Priority 2, and the
SMEs needing to access new skills to develop their workforce and remain
competitive. Not only would it encourage new projects and ideas to address the
issues, but it would fund mainstreaming of pilot approaches that had worked and
capacity building. It would also encourage strong partnership between different
actors in lifelong learning, especially between policy-makers and delivery bodies, to
ensure that the good practice and lessons arising from the approaches tested here
are mainstreamed into domestic policy.
The innovative approach of this Objective should be clear from the priority
description, with its focus on pilot, innovative ways of addressing access to lifelong
learning. This Objective will be key to reducing the divide between those who benefit
from access to services which enable them to contribute to a growing economy, and
those who feel excluded and threatened by technology changes and globalisation.
Access to learning and advice can enable individuals to engage, develop new skills,
and make the most of their talents. By encouraging partnership working and linking
pilot activity to mainstreaming within the same project, the Objective has drawn
significant lessons from the EQUAL Community Initiative under the 2000-06 period,
which successfully encouraged partnership-based, ‘life-cycle’ projects in lifelong
learning, that tested new products/services/systems and fed the lessons of the
piloting directly to policy-makers to shape future domestic policy.
Relationship between Programme challenges and Objectives
The Objectives have been derived from the seven key Programme challenges set
out in the socio-economic analysis, as Figure 4 displays. Each Objective is
addressed in the Programme by a single priority, as described in the following
sections. Each of these priority sections contains: a rationale for and description of
activity; targeting; eligible activity; and indicators and targets. In addition, the
priorities will be informed by the three cross-cutting themes for the Programme –
equal opportunities, environmental sustainability and social inclusion – as set out in
Chapter 8.
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Figure 4: Programme challenges and Programme Objectives
The Programme is not anticipated to make use of the global grants instrument or the
possibility of ESF funding for specific support of inter-regional and transnational
cooperation (beyond what is set out in Section 7.5 below).
The following sections set out the descriptions for each of the individual priorities
derived from the three Programme Objectives above. Eligible activity is set out under
each as well as geographical targeting for Priority 1. In addition, a common eligibility
criteria will be applied across the Programme with respect to project size. A minimum
project threshold of an annual average of £200,000 in total eligible project costs will
be put in place. The threshold has been introduced to:
• support the development of most strategic, legacy projects for the Programme
with more significant impacts;
• encourage smaller, complementary projects to come together into more
strategic partnerships;
• minimise the financial and audit risk of funding small projects; and
• promote linkages between small, pilot actions and activities to mainstream
and disseminate their results.
Employment and employability
1: Targeting particular groups and
areas
2: Helping those furthest from the
labour market
Skills
3: Targeting low-waged/low-skilled
4: Addressing under-representation
5: Increasing skills for entrepreneurs
and new managers
6: Improving skill sets in social
enterprises
Lifelong learning
7: Targeting access for most
vulnerable groups
Objective 1:
Progressing into
Employment
Objective 2:
Progressing through
Employment
Objective 3:
Improving Access to
Lifelong Learning
PROGRAMME CHALLENGES OBJECTIVES
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The threshold has been set to take account of the nature of the eligible activities in
the Programme and the financial and audit experience of the 2000-06 Programmes.
4.3 Priority 1: Progressing into Employment
Rationale and aim
There have been real achievements over the last ten years in helping people move
from welfare dependency into work. Employment rates in Scotland have risen to
historic highs, as the employment base has expanded – but there are still significant
challenges of economic inactivity, inequality and disadvantage in opportunities for
employment. Often this is particularly acute in the most deprived areas within the
Lowlands & Uplands area where the individuals marginalised from the labour market
are concentrated. For some of these more disadvantaged groups, and in some areas
of multiple deprivation, the gap has actually widened.
The issue of employability, or tackling inactivity, has emerged as Lowlands &
Uplands Scotland’s major challenge as registered unemployment has fallen.
Employers are now unable to fill vacancies from education leavers or by recruiting
from competitors, and this has exposed the scale and significance of those who are
on inactive benefits such as Income Support and Incapacity Benefit. Many of those
who are on these benefits would like to work if they were given the appropriate
support to help them overcome the barriers which prevent them making the transition
from inactivity to employment.
The challenge for Scotland in becoming more competitive is to help more of these
people take the opportunities available in a stable or growing economy for sustained
and well paid work, particularly those who have not traditionally been able to sustain
participation in the labour market. For most families, work is the best way out of
poverty: it increases independence from state benefits, encourages self-reliance and
builds confidence. That is why the first of the Closing the Opportunity Gap strategy’s
objectives is to increase the chances of sustained employment for vulnerable and
disadvantaged groups. Smart Successful Scotland also makes clear that tackling
poverty, disadvantage and economic growth go hand in hand.
Each workless individual faces a unique combination of barriers determined by their
own personal experience, characteristics and circumstances, that prevents them
from entering and sustaining employment. The support that workless individuals
receive on their transition to work must therefore be flexible enough to recognise and
adapt to the different stages on their journey and the barriers that face them at any
particular point. It must also be tailored to local circumstances and simply accessed
in a supportive local environment, even though it will inevitably be delivered by a
number of organisations. As the MORI 2005 beneficiaries study noted, this support
must be long term – from early engagement to progression in work – and must
provide a joined-up package of care to ensure that the appropriate local agencies
work together.
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The pathway into work can be a long one involving uncertainties and setbacks for
the individual who has to overcome barriers and build trust, confidence and selfesteem
along the way. The successful route will have to be individually tailored and
include a number of very different stepping stones from initial commitment to some
positive activity, through the various stages of work preparation, to a move into
supported employment, and eventually to progress beyond an entry level job into
sustained progression in employment.
Early engagement with a client-centred, locally-customised approach which meets
the needs of the workless individual has been clearly demonstrated through some of
the EQUAL Community Initiative partnerships as being effective in helping overcome
multiple and complex barriers. It is also an area which receives a relatively low level
of funding as little immediate return can be seen in terms of individuals getting into
employment or education. Specialist support services need to be available locally,
and over a lengthy period to sustain the momentum and motivation of those with the
greatest ‘distance to travel’ to gain and remain in employment.
Equally important is having in-work support available for those who need it, as this
would considerably increase the chances of an individual making a successful
transition from inactivity to sustained employment. Without more focus on the
sustainability, and also retention of a job, the cost and effort of getting an individual
into a job is wasted if they leave within weeks of obtaining work. The important
aspect of this in-work support is again that it must reflect the local conditions, in
terms of the client groups who require support and the needs of employers in the
area.
Support is also necessary to address employer perceptions of particular client
groups, recognising that the challenges facing certain individuals are not entirely
supply-side based. However, labour demand activities will principally be covered in
the parallel ERDF Programme for the region, whose focus will be on creating jobs
rather than ensuring the labour market can provide the required workers and skills.
Co-ordinating the two programmes will be essential to ensure that labour demand
and supply actions are integrated – this is discussed in more detail in Chapter 6.
Consequently, the overall aim of the priority is to achieve the first Objective:
to assist the co-ordinated progress of unemployed and inactive people
of all ages towards sustainable employment.
Targeting
The challenges discussed above are most acutely felt among particular groups and
in particular parts of the LUPS region.
Although the region now has a relatively high employment rate, rates for some
groups of individuals are significantly less than the rate for Scotland as a whole.
These specific groups of individuals experience multiple barriers to entering
employment and retaining jobs, causing high levels of unemployment and economic
inactivity in particular areas relative to the rest of the population. Low skills, poor or
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no qualifications, lack of self-confidence and work experience, are some of the main
personal barriers common to many of the workless clients. They also often face
barriers of employer perceptions and discrimination. As the socio-economic analysis
highlighted, the specific target groups could vary considerably depending on
particular concentrations of deprivation and the particular challenges facing the local
area. Priority will be given to the hardest-to-reach, workless groups, those
experiencing multiple challenges and those in the NEET group, but target groups
include the following.
• Long-term unemployed/inactive people, particularly those with no or low
qualifications and multiple barriers to entering employment or selfemployment,
and remaining in a job
• 16-19 year olds not in education, employment or training, particularly: young
people leaving care; carers; young offenders; young people with physical
and/or mental health problems and young people abusing drugs or alcohol
• Young people identified as being at risk of not entering education,
employment or training on leaving school, particularly low attainers and
persistent truants
• Unemployed/inactive lone parents and other carers
• Unemployed/inactive people with mental health problems, long-term illness,
disabilities or learning difficulties
• Older people seeking to re-enter the labour force or requiring re-skilling to
enable them to remain in the workforce
• Other disadvantaged unemployed/inactive groups such as prisoners prior to
release, ex-offenders, people with drug or alcohol problems, homeless people
and refugees
• Unemployed/inactive people from ethnic minority groups
• Individuals experiencing persistent part-time/seasonal employment
• Employers who recruit from the above groups and who need support in
retaining and developing these employees
At the same time, within the LUPS region, there are particular areas where these
problems are most acute. As the socio-economic analysis showed, the groups
identified above are most concentrated in certain urban areas. Such communities
which are particularly excluded from the benefits of economic growth and efforts to
bring about lasting regeneration are also a high priority for Scottish Ministers. Failure
to tackle the problems associated with exclusion is not only contrary to a
commitment to social justice but also represents a failure to make best use of all of
the economic resources at our disposal in order to drive growth.
By concentrating actions in this priority on particular urban areas, the best use is
being made of the limited funding available to make the greatest impacts on
exclusion and poverty and help provide additional fuel for a drive to contribute to the
Lisbon Agenda. Although the targeted areas are likely to change through the
programming period, the principles for their selection should remain constant.
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Support will be limited to those Local Authority areas that are:
• areas prioritised in key Scottish strategies, specifically Workforce Plus, the
NEET strategy and the Regeneration Policy Statement; and
• in addition, to reflect any changes in relative deprivation within the period
covered by these strategies, other Local Authority areas with the ten highest
shares of their population in the 15% most deprived data-zones, as measured
by the Scottish Index of Multiple Deprivation, will be considered eligible.
At present, these areas would account for approximately 60% of the region’s
population, but it is anticipated that the list of eligible areas will change through the
Programme, reflecting changes in the indicators on which they are based.
Consequently, the areas will be identified by the Managing Authority in advance of
each project selection round using the methodology above.
Projects will be supported which address the challenge of these areas, although
activity can be located elsewhere in the Local Authority area. Moreover, where
projects covered beneficiary groups that overlap with similarly deprived data-zones
in bordering Local Authorities, up to 10% of the project award could be in the
neighbouring data-zones.
Individual projects will be eligible for support through the priority. In addition, a share
of funding will be set aside to support projects that are part of integrated packages of
support put forward by Community Planning Partnerships. This may include a range
of small projects, linked together into a common aim of improving the sustainability of
communities within the list of eligible areas. The approach is described in more detail
in section 6.1 with respect to bringing together ERDF and ESF funding to support
integrated action plans. The 10% geographical flexibility described above would not
apply to the funding for Community Planning Partnerships.
Eligible activities
€121.195 million of EU funding has been allocated to the priority, or 45% of the
Programme, to support the following activities:
• Early engagement, identification of needs with action plans setting out
customised support, particularly for the hardest-to-reach groups
• Work preparation to build confidence and develop basic, life and coping skills ,
including ICT, literacy, numeracy and English for speakers of other languages
• Vocational training, developing care skills, supported volunteering, job search
advice, job tasters and work experience, again for the hardest-to-reach groups
• Initiatives to help raise awareness of the world of work, enterprise and
entrepreneurship among young people, including work experience
placements, particularly among the NEET group
• Initiatives to encourage employers to understand the needs of vulnerable
groups in entering and remaining in the workforce
• Intermediate labour market activity
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• Innovative approaches to job brokerage/matching
• Assistance with childcare and care for dependent persons, where caring
responsibilities are a barrier to progressing into the labour market
• Developing support for employees and employers to help employee retention
and progress in the early months of employment, included supported and
subsidised employment
Preference will also be given to projects which can demonstrate an innovative
approach to the activity or represent the mainstreaming or rolling-out of a pilot
approach which has tested successfully.
The distinction between beneficiaries in different priorities is not always clearcut.
This is true of ESF Priority 2. Some of the most successful projects recognise that
there is a continuum of support for workless individuals going into sustainable
employment, often requiring aftercare to avoid the ‘revolving door’ of individuals
going in and out of employment. Under ESF Priority 3, support for the development
of new lifelong learning approaches may also entail support for training workless
beneficiaries. It is also true of ERDF Priority 3 (Urban Regeneration), which covers
complementary area-based regeneration activity in the same eligible areas.
Consequently, Priority 1 project bids will be able to put in parallel applications under
these different priorities and decisions on the bids will be co-ordinated.
This is in addition to the flexibility facility, which can allow up to 10% of the funding in
this priority to be used for related ERDF-type activity. The flexibility could be applied
in cases where the supported activity would not warrant a full-scale application to the
ERDF Programme as the support to be provided would be limited.
Indicators and targets
The indicators reflect the priority’s targeting of key groups experiencing acute
problems of worklessness, including those with multiple deprivations (which will be
set out as part of guidance to applicants). Targets have been set with reference to
previous programme experience and the MORI Beneficiaries Survey, as discussed
in Chapter 3. The data on these indicators will be collected from individual participant
data on a quarterly basis, as described in more detail in Chapter 9. For all these
indicators, data will be collected on key beneficiary characteristics, such as gender,
in line with Annex XXIII of the Implementing Regulation.
In addition, there are a number of indicators which will be measured through
specially-commissioned data-gathering exercises. The ‘sustainability’ of employment
will be measured through follow-up surveys on the number of participants who
remain in work six months after leaving – data on these beneficiaries surveys will be
collected in 2011 and 2013. While the main results are those entering employment or
gaining a partial/full qualification and those entering into education or training, the
impact indicators reflect that not all participants will gain sustainable employment. In
particular, as part of the evaluation work of the new Programme, a ‘soft’ indicator will
be measured to reflect the progress of individuals towards employment (a measure
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of ‘distance travelled’ by individuals who are furthest from sustainable employment)
as well as the net effect of those entering employment. Data on these will be
gathered through a specifically-commissioned evaluation to be conducted in the
latter half of the programming period.
Baselines for the priority are set in Chapter 9, which also discusses in more detail
how the data will be used for evaluation and reporting purposes.
Indicator Type Target
Number of participants receiving support Output 17,600
Number of participants with multiple deprivations Output 6,600
Number of participants in the NEET group Output 3,400
Number of participants in ethnic minority groups Output 800
Number of participants who are aged 50 or over Output 2,100
Number of participants entering into employment Result 5,800
Number of participants entering education or
training
Result 5,800
Number of participants completing a partial or full
qualification
Result 8,800
Number of participants in work six months after
leaving
Result
Number of participants who progress towards
employment
Impact
Net number of participants entering employment Impact
4.4 Priority 2: Progressing through Employment
Rationale and aim
The level of investment in training varies considerably in the region. Training is not
always sufficiently well aligned with business objectives to generate real benefits.
One measure of the need to improve the skills of the workforce is the concept of
‘skills gaps’ when a current employee is judged not to be fully proficient at his or her
job. Results from Futureskills Scotland’s employer survey revealed employer
perceptions of significant areas in which staff are viewed as inadequately skilled. In
particular, over 50% of staff identified as having skills gaps are considered less than
fully proficient in planning and organisation, customer handling, problem solving and
team working. Written communication is deficient in almost 35%, and numeracy and
literacy, although among the least common skills deficiencies, are both still identified
as a problem amongst almost one in five employees with skills gaps.
Consequently, investing in the skills of the workforce has several benefits for the
region, all of which can contribute to addressing Scotland’s relatively poor
productivity performance. First, such investment complements the efforts to
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encourage workless individuals into the labour market by providing those who have
low skills with the additional training they require to achieve sustainable employment
and move into better-paid employment. Second, it can encourage fuller
representation in the workforce, particularly from a gender, age and ethnic minority
perspective and for senior posts such as enterprise managers. Lastly, there is a
need to improve a range of enterprise skills within the region, particularly for
entrepreneurs and new managers of small companies, to enable them to adapt
better to globalisation and the knowledge economy.
There is evidence from a range of sources of the effectiveness of promoting workbased
learning, particularly to deliver core skills to employees within SMEs. It is
important for skills improvement and progression through employment to be
encouraged by increasing employer awareness of the benefits. Employers are not
sufficiently aware of the benefits of work-based learning for all groups of staff, even
those undertaking basic level jobs. This can be tackled by reducing the direct cost of
training or the productive time lost. There is the danger that employers will focus on
training that will offer them a financial incentive, therefore skewing the process of
skills development. So, early work with employers to help them identify their own
enterprise and training needs before choosing from a selection of training products,
combined with longer monitoring of results, should ensure the broader quality and
qualification training focus is retained.
It is also possible to intervene more effectively by developing a more co-ordinated
approach to the delivery of training services. This can be done by partnerships
identifying and prioritising the sectors and skills needs where intervention can make
the most difference in their area. This will require more effective working together for
enterprise agencies, local authorities, and employers who can then make their
enterprises grow and become more competitive, and trade unions and employees
who can become more committed to improving their skills and using these skills
productively. The system to provide these skills will have to be flexible, nurturing,
and innovative to facilitate progression and to be responsive both to the short-term
demands of employers and the long-term needs of the economy. As employers
become more engaged in the education and training system which delivers on their
needs, those who need to will continue to invest in training and thereby increase the
productive use of their workforce’s skills.
The second priority addresses the skills of those in the workforce by aiming to
achieve the second Objective:
to improve the skills of the workforce to enhance employability,
productivity, adaptability, inclusion and entrepreneurial expertise.
In light of the limited resources, the priority will focus on four key goals, which are
elaborated further in the sub-sections below:
• improving the ability of key groups to progress from low skill/low paid jobs into
sustainable employment offering financial security;
• increasing participation in occupations traditionally under-represented from an
equal opportunities, diversity perspective;
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• underpinning support for entrepreneurship and the managerial skills training
required to make a success of new enterprise formation and growth; and
• providing the social enterprise and voluntary sector with the required skills to
make their organisations sustainable.
Reinforcing Sustainable Employment
The link between limited qualifications and lack of career progression or improved
wages is discussed in the analysis in Chapter 2. It is estimated that 23% of adults in
Scotland have low levels of literacy and numeracy skills and 22% of all workers are
in low paid employment. Motivated, high-quality and appropriately-skilled people are
a fundamental requirement in delivering innovation, increased productivity and
growth. Scotland’s record in getting people into apprenticeships, college and
university is amongst the best in the world but there is still a challenge in getting
people to continue developing their skills and improving their productivity once in
work. The challenge is particularly difficult for the more vulnerable groups identified
in Priority 1. Supporting vulnerable or highly-disadvantaged individuals in obtaining
sustained employment needs to be part of a continuing, co-ordinated range of
support for ensuring that they not only remain in jobs but progress through the labour
market.
Addressing Under-Representation in the Workforce
As the socio-economic analysis indicated, the LUPS region continues to have
significant under-representation in occupational and sectoral participation and a pay
gap from both a gender and an ethnic perspective. The Programme should
contribute to addressing the problems by supporting participation by women and
ethnic minority groups in the workforce, particularly in activities that encourage
returners, allow skills upgrading or conversion, and assets in retaining in – and
progressing through – work those requiring special assistance to balance caring
responsibilities. It should also support initiatives to address employer attitudes to
training these groups and other workplace barriers that may continue to exist. The
issue of representation also relates to male participation in sectors traditionally
dominated by women, such as caring professions. At the same time, there is scope
for ensuring the retention and up-skilling of older workers in the workforce and
encouraging the integration and progression of migrant workers in the labour market,
all of which will contribute to increasing the size of the workforce and improving
productivity.
Improving Entrepreneurial and Managerial Skills
Given the vision that Scotland must become a high earning, high skills-based
economy to improve its competitive future, this second priority also addresses the
workforce skills issues around giving high quality financial, marketing and e-skills to
entrepreneurs and new managers in new and existing SMEs, partly complementary
to the ERDF priority to commercialise research in Scottish higher and further
education, and encourage spin-out of new and growing companies. The objectives of
the priority therefore include fostering entrepreneurial skills of entrepreneurs and
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new managers across the region, the development of leadership skills in enterprise
(specifically, for those under-represented among new managers, such as women
and ethnic minorities) and addressing lack of ICT and e-commerce skills and
business and financial planning. This partly reflects the need to improve skills
development among potential and new SME managers, and the need for measures
to encourage entrepreneurs to grow and globalise their companies.
Increasing Social Enterprise Skills
Training needs vary significantly among different organisations. In the case of the
social economy and voluntary sector – which will carry out some of the activity
supported under Priority 1 – these needs have been recognised as a training priority
by the Scottish Executive. To enable these organisations to continue their critical
work in engaging with the most vulnerable groups outside the labour market, it is
important that they are helped in developing a longer-term capacity for sustainable
development. Consequently, support is needed to tackle the specific needs of social
enterprises in gaining the commercial and entrepreneurial skills required for future
survival. The pump-priming and demonstration projects which ESF funding can
support will enable these and other social enterprises to understand better their
needs and how to address them to become more self-sustaining while offering
worthwhile employment to their workforce.
Targeting
To raise the skills of the workforce and Scotland’s global competitiveness there
needs to be substantial investment in the training of employees. The key groups that
this priority is seeking to assist therefore include the following.
• Employees who lack basic core skills, including those having low levels of
literacy or numeracy, and those for whom English is not their first language
• Employees without qualifications at SCQF level 5 and 6 (SVQ level 2 or level
3)
• Specific groups, such as women returners, ethnic minority and migrant
workers, and workers with disabilities
• Older workers who need to update their skills to remain or return to the
workforce
• Potential and new entrepreneurs and new managers of (both new and
existing) SMEs
• Key staff in social enterprises
Eligible activities
Four groups of activities are envisaged in this priority: support for the low-paid/lowskilled;
improving under-representation in the workforce by women, particularly for
higher-skilled jobs; addressing the managerial and entrepreneurial skills gap in the
region; and supporting skills upgrading in social enterprises. Consequently, €99.601
million of EU funding has been allocated to the priority, or 37% of the Programme, to
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support eligible activities such as:
Reinforcing sustainable employment
• Initiatives to encourage the development of vocational skills among low-skilled
and low-waged individuals
• Activities enabling disadvantaged young people and adults to enter
apprenticeships, particularly those from groups not traditionally taking up this
form of training
• Training/education in basic literacy, numeracy, basic ICT skills and English for
speakers of other languages including migrant workers
• Activities to support the progression in employment of disadvantaged young
people and adults with low level skills from foundation level up to SVQ level 3
• Training for workers leading to SVQ level 2 and 3 qualifications – ESF funding
will support activities additional to those funded domestically under the SVQ
level 2 entitlement
Addressing under-representation in the workforce
• Training, mentoring and supporting men and women who want to enter
occupations or sectors where their gender is under-represented, in order to
tackle gender segregation and the pay gap
Improving entrepreneurial and managerial skills
• Training to provide entrepreneurial, business planning, financial, marketing,
and e-skills for those in self-employment and new managers in new and
existing SMEs
• Initiatives to provide training for those wishing to start up or manage a
business, particularly from groups under-represented at managerial levels
such as women or individuals from ethnic minority backgrounds
Increasing social enterprise skills
• Business skills required by workers in social enterprises to improve the
sustainability of their organisations
As with Priority 1, preference will be given to projects which can demonstrate an
innovative approach to the activity or represent the mainstreaming or rolling-out of a
pilot approach which has tested successfully. Also project bids for support under
ESF Priorities 1 and 3 will be co-ordinated. This is in addition to the flexibility facility,
which can allow up to 10% of the funding in this priority to be used for related ERDFtype
activity. The flexibility could be applied in cases where the supported activity
would not warrant a full-scale application to the ERDF Programme as the support to
be provided would be limited,
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Indicators and targets
Indicator Type Target
Number of participants receiving support Output 64,600
Number of participants gaining partial or full
qualification
Output 42,600
Reinforcing sustainable employment
Number of male participants without level 2 or below
skills
Output 7,800
Number of female participants without level 2 or
below skills
Output 7,800
Number of male participants without level 3 skills Output 6,300
Number of female participants without level 3 skills Output 6,300
Number of male participants gaining level 2 skills Result 3,200
Number of female participants gaining level 2 skills Result 3,200
Number of male participants gaining level 3 or above
skills
Result 2,600
Number of female participants gaining level 3 or
above skills
Result 2,600
Number of participants who progress into more
secure or better-skilled employment
Impact
Addressing under-representation in the workforce
Number of women (in projects addressing better
gender balance)
Output 9,400
Number of men (in projects addressing better gender
balance)
Output 4,700
Number of women going into gender-imbalanced
sectors
Result 6,200
Number of men going into gender-imbalanced
sectors
Result 3,100
Improving entrepreneurial and managerial skills
Number of participants (in projects addressing
entrepreneurial and managerial skills)
Output 7,500
Number of entrepreneurs and new managers
completing a partial or full qualification
Result 4,900
Number of companies benefiting from improved skills
training
Impact
Increasing social enterprise skills
Number of participants from social enterprises Output 5,200
Number of participants from social enterprises
completing a partial or full qualification
Result 3,400
Number of social enterprises benefiting from
improved skills training
Impact
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A single output indicator has been set for the priority as a whole – the number of
participants and those gaining partial or full qualifications. However, the output and
results indicators also reflect the individual sub-activities in the priority:
• targeting the low-skilled and low-paid and reinforcing sustainable employment
(participants trained to level 2 or 3 skills levels);
• encouraging participation in gender-imbalanced sectors (participants in
projects targeting gender balance);
• promoting entrepreneurial skills (participants in projects gaining partial/full
qualifications); and
• support for social enterprise skills sets (participants from social enterprises
gaining partial/full qualifications).
Targets have been set with reference to previous programme experience. The data
on these indicators will be collected from individual participant data on a quarterly
basis, as described in more detail in Chapter 9. Guidance will be provided to define
‘gender balance’ and ‘entrepreneurial and managerial skills’ projects and tagging
such projects will be the responsibility of the Managing Authority.
Impact indicators differ for the different sub-activities:
• low-skilled and low-paid participants moving onto more secure or better-paid
employment, to be defined in discussion with the impact evaluators;
• positive benefits to companies resulting from the entrepreneurial/managerial
training, as measured by directly-attributable turnover or productivity changes;
and
• positive benefits to social enterprises resulting from the training, as measured
by directly-attributable changes to the longer-term security/sustainability of the
enterprises.
An impact indicator has not been set for gender imbalance, as the long-term effect of
the Programme on the gender imbalance of different sectors will be difficult to
measure within the timescales of the programming period. For all impact indicators,
data will be gathered through a specifically-commissioned evaluation to be
conducted in the latter half of the programming period.
Baselines for the priority are set in Chapter 9, which also discusses in more detail
how the data will be used for evaluation and reporting purposes.
4.5 Priority 3: Improving Access to Lifelong Learning
Rationale and aim
Underpinning the ability to improve the job market opportunities of particular groups
outside of the workforce under Priority 1 and to allow individuals to progress to
higher-quality, more sustainable employment under Priority 2, is the quality and
accessibility of the post-school learning infrastructure. Investment in knowledge and
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skills brings direct economic returns to individuals and collective economic returns to
society. Investment in quality-assured learning offers benefits not only to the
individual, but also to the programme’s central goal of contributing to the
competitiveness of the economy, while closing the opportunity gap and reducing
inequalities in the wider society. As economies which compete in the global
marketplace have to ensure their workforce continually updates its skills and
learning, an important element to Scotland’s achievement of Lisbon Agenda goals is
upgrading this infrastructure and widening and deepening access. Investment in
knowledge and skills brings direct economic returns to individuals and collective
economic returns to society, and provides the potential for social gains through
increased participation, improved health outcomes and greater social cohesion.
Lifelong learning is delivered in Scotland through a number of different bodies.
Learndirect Scotland and Careers Scotland have central roles in providing
information, advice and guidance to learners and enterprises, while Futureskills
Scotland analyses and provides the labour market intelligence that has shaped
policy in this area. In addition, a wide range of professional organisations deliver
learning activities to different groups, including the HE and FE sector, while the
Scottish Trades Union Congress has a valuable role to play in bringing learning into
the workplace, just as voluntary organisations have in bringing learning into
communities through community learning and development programmes. EU funding
can bring real value added by enabling these organisations to widen this access
develop and mainstream new approaches to delivering lifelong learning to those who
have not benefited so far.
This priority has to be focused on delivering what the people who have to be drawn
into learning and training need, where and when they can most easily access it. To
do this, learning providers must work out new ways to design, deliver and evaluate
learning which meets the needs of these people who have so far felt excluded,
alienated or threatened by learning. Outreach to engage individuals who have no or
poor experience of learning will be an essential feature. Projects will have to ensure
that all learners are given the information, guidance and support they need not just at
the point of initial engagement, but also at transition points to make an informed
decision about their next move; and to ensure that the right kind of assistance is
available to support their continued learning.
This priority will therefore be one where flexibility and innovation are key. For those
who have not engaged with learning for a long period, or who feel themselves
excluded from learning, attracting them back will be a gradual process which may be
through informal learning in a community or work setting, or through outreach
centres which they attend for social reasons.
The encouragement of the reform of current methods of entry into particular training
courses or recruitment onto apprenticeships can also be assisted. The aim would be
to ensure that a more diverse group of people are able to take advantage of early
opportunities to progress and gain recognised sectoral and professional
qualifications. Installing new networks, systems and support in work places, and links
between groups of employers or employees to enable a wider spectrum of people to
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access learning opportunities from their workplace would also be encouraged
through this priority. In some cases, partnership working will be essential to ensure
that access to lifelong learning for more disadvantaged groups can not just be
offered, but also fully supported until the individuals are comfortable within the more
established learning services.
Consequently, to support the activity of improving lifelong learning access, this
priority aims to implement the third Objective:
to widen access to post-school lifelong learning, particularly for key
client groups.
Targeting
Target groups are different for this priority from the eventual beneficiaries. It aims to
assist the design and introduction of innovative products to reform education and
training systems or provide access to existing provision of learning products, as well
as funding the piloting/dissemination of these new products/systems. Consequently,
ESF funds will be available from this priority for those offering new, innovative ways
of attracting into learning people who have been disillusioned by early educational
experience or who have been unable to access the opportunities to fulfil their
learning aspirations because of a variety of barriers to be overcome, social, cultural,
caring or financial.
There is no spatial targeting in this Priority. However, issues of access differ in
different parts of the region – in particular, areas of urban deprivation may lack
services or security for individuals wishing to access learning and training, just as
rural areas may experience problems with geographical distance and access to
provision. Support will be available for projects that recognise the area-based lifelong
learning challenges of different parts of the region.
Individuals, employers and those providing learning opportunities are all critically
important in relation to the employability and lifelong learning agendas. Individuals
and employers create the demand for skills, which are then facilitated and/or
delivered by a range of private, public and third sector organisations within the
learning market. Equally, workers in small businesses may find it impractical to get
training provided at their workplace during the working day, while low paid workers in
larger organisations may simply find employers unwilling to invest in portable
qualifications in case this risks higher staff turnover. Consequently, activities will be
supported for the following groups.
• Personnel in public and private training/education bodies providing access to
lifelong learning and support services to key client groups
• Voluntary sector/social economy organisations
• Agencies working with employers, particularly SMEs, including learndirect
Scotland/Scottish University for Industry
• The Scottish Qualifications Authority, schools, HE institutions, FE institutions
and the Scottish Funding Council
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• Community learning and development centres and local and community
organisations
• Professional bodies
• Employers, their representative bodies, the Scottish Trades Union Congress,
trade unions, and workers organisations
Eligible activities
€42.648 million of EU funding has been allocated to the priority, or 16% of the
Programme to support eligible activities including:
• Projects that develop and mainstream successfully tested innovative
approaches to learning, particularly for the target groups listed under Priority 1
• Development of new training materials or course content to accommodate
different cultural and skills backgrounds
• Creation and distribution of new online learning materials
• Projects that develop distance learning and make innovative use of ICT in
training
• Skills training for personnel requiring specialist skills to address the
employability needs of target groups listed under Priority 1
• Initiatives that support local learning access points
• Innovative workplace initiatives, particularly those linking learning and training
for groups of companies or employees which would otherwise not participate
in training activities
Project bids for which some activity would be eligible under ESF Priorities 1,2 and 3
will be co-ordinated. For the rural areas eligible under ERDF Priority 4, where the
provision of higher and further education services is an eligible activity, projects
bringing together activities to enable access to these services to more
disadvantaged groups would be encouraged. This is in addition to the flexibility
facility, which can allow up to 10% of the funding in this priority to be used for related
ERDF-type activity. The flexibility could be applied in cases where the supported
activity would not warrant a full-scale application to the ERDF Programme as the
support to be provided would be limited.
Indicators and targets
The output indicators for the priority reflect the number of participants supported
through projects, but more importantly, the number of materials (by type rather than
volume) and courses introduced, both those which are wholly new or those which
have been adapted. In addition, to measure the priority’s impact, the number of
trainers trained will be measured as an indication of the priority’s goal of improving
lifelong learning capacity in the region.
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Targets have been set with reference to previous programme experience. The data
on these indicators will be collected from individual participant data on a quarterly
basis, as described in more detail in Chapter 9. Clear and specific guidance will be
provided by the Managing Authority to define what is meant by new ‘courses’ and
‘materials’, but the focus will not be on the volume of such activities, but the number
of new types of these activities. Such definitions have been a significant issue in the
efforts of previous programmes to measure lifelong learning activity.
The key impact indicator for the priority will be the effect of the supported projects on
longer-term changes in the number of participants with access to lifelong learning, as
measured by participation in training. This data will be gathered through a
specifically-commissioned evaluation to be conducted in the latter half of the
programming period.
Baselines for the priority are set in Chapter 9, which also discusses in more detail
how the data will be used for evaluation and reporting purposes.
Indicator Type Target
Number of participants receiving support Output 7,900
Number of projects supporting the development of
new courses/materials or innovative approaches to
learning
Output 100
Number of new courses/materials developed Result 1,900
Number of trainers trained Result 1,600
Number of participants completing a partial or full
qualification as a result of supported projects
Impact
4.6 Technical Assistance
Technical assistance support will be provided to assist the management and
administration of the programme. This will include activities in support of the various
selection, appraisal, management and committee groups, the monitoring of financial
and performance progress, Programme publicity and communication, and facilitating
the exchange of best practice. Technical assistance will be used to support the work
of the Intermediate Administration Body, which is described in Chapter 7.
Eligible activities
€6.478 million of EU funding has been allocated for technical assistance, or 2% of
the Programme to support eligible activities including:
• Servicing Programme groups and committees
• Communicating decisions and policy to partners
• Implementation of a common monitoring and evaluation framework and
provision of regular monitoring reports
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• Provision of advice to applicants
• Compliance work required under the implementing regulations and national
rules for the programme, including on the spot visits, claims processing, and
subsequent follow up of eligibility and compliance issues with beneficiaries
• Publicity including awareness-raising of the Programme among all
beneficiaries and applicants in line with the activities set out in the publicity
section in Chapter 7
• Annual reporting on the Programme
• Development of ICT systems to assist the application, monitoring and
financial control of the Programme
• Evaluation studies in line with the strategy set out in Chapter 9
4.7 Categories of Assistance
As set out in Article 9 of the General Regulation, Programmes under the
Competitiveness Objective must meet an target of 75% for expenditure on activities
contributing directly to the objectives of the Integrated Guidelines for Growth and
Jobs (2005-08). The relevant categories of assistance are listed in Annex IV of the
General Regulation.
While this target will be met, the ESF Programme for Lowlands & Uplands Scotland
has set itself an ambition of achieving 97% of expenditure.
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5 FINANCIAL ALLOCATIONS
The financial allocations for each year of the programme are shown in the table
below. €269.921 million of Community funding will contribute to a Programme of
€598.626 million in total, resulting in a target Programme intervention rate of 45% (as
calculated with respect to total public expenditure).
Table 3: Year by source of funding for the Programme (in €)
Year Community
Funding
(a)
National Public
Funding
(b)
Total Funding
(c) = (a) + (b)
Co-financing
Rate
(e) = (a)/(c)
2007 36,307,594 44,182,308 80,489,902 45%
2008 37,033,746 45,065,954 82,099,700 45%
2009 37,774,421 45,967,273 83,741,694 45%
2010 38,529,909 46,886,618 85,416,527 45%
2011 39,300,507 47,824,350 87,124,857 45%
2012 40,086,517 48,780,837 88,867,354 45%
2013 40,888,248 49,756,455 90,644,703 45%
2007-13 total 269,920,942 328,463,795 598,384,737 45%
For the three key priorities of the Programme, resources have distributed with the
following rationale.
• Priority 1 has received the highest share of funding, reflecting the priority
placed on the challenge of worklessness in domestic policy. With an economy
that has already achieved the Lisbon employment rate targets, the key issue
for the Programme is to reduce persistent worklessness, especially in parts of
the region where it is particularly entrenched.
• Priority 2 also has a high share of funding because it covers a range of
important, inter-related factors influencing skills development in the region.
• Priority 3 has the smallest share of funding in recognition of the smaller-scale,
pilot nature of the activity and its aim of leveraging in partnership funding from
a range of domestic partners.
Table 4: Priorities by source of funding (in €)
Community National Total Co-financing EIB Other
Funding Public Funding Rate Contributions Funding
Funding
(a) (b) (c)= (a)+(b) (d) = (a)/(c)
Priority Axis 1 121,194,503 148,126,615 269,321,118 45% 0 0
Priority Axis 2 99,600,827 121,734,344 221,335,171 45% 0 0
Priority Axis 3 42,647,509 52,124,733 94,772,242 45% 0 0
Priority Axis 4 6,478,103 6,478,103 12,956,206 50% 0 0
Total 269,920,942 328,463,795 598,384,737 45% 0 0
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The intervention rates have been set to reflect previous ESF experience and to
ensure that the minimum required EU funding would be provided to match-fund
projects.
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6 CO-ORDINATION WITH OTHER FUNDS
Co-ordination of the Structural Funds with other relevant funding streams is a
regulatory requirement, but it is given greater importance in the 2007-13
programming period. Compared to previous funding rounds, the scale of funding in
the eligible LUPS area is significantly reduced, making it more critical that the value
of the 2007-13 Structural Funds are enhanced by ensuring they work closely with
other sources of funding. Similarly, the scope of eligibility in the 2007-13
programming round is more targeted than in earlier rounds, giving greater
opportunities for Structural Funds to work in combination with other, similarly
targeted policies.
In this context, there are several relevant funding streams. This chapter discusses
how the ESF Programme will work closely with:
• the European Regional Development Fund;
• the European Territorial Co-operation Objective;
• EU support for agriculture and fisheries;
• EU research funding; and
• European Investment Bank support.
6.1 European Regional Development Fund
As the other major funding stream within EU cohesion policy, it is essential that ESF
works closely with the European Regional Development Fund, while recognising the
distinctive objectives of the two Funds. In parallel with this ESF programme, there
will be a European Regional Development Fund programme for the Regional
Competitiveness and Employment Objective of the Structural Funds, covering the
same eligible area. This is an important change from the 2000-06 programming
period, where ESF (through Objective 3) was not only available in much wider
territorial area than ERDF funding (through Objective 2), but it was available in two
programmes (not only the Objective 3 programme, but also in the Western Scotland
Objective 2 programme). The geographical contiguity between both the ESF and
ERDF programmes and their mono-fund nature should enable strong co-ordination
between the two funding streams to take place.
The experience of the 2000-06 programming period in co-ordinating ESF and ERDF
funding (as discussed in Section 3.2 above) has fed into developing the approach for
the 2007-13 programming period. As the mid-term evaluations of the 2000-06
programmes attested, ESF and ERDF co-ordination was broadly successful but
there have been lessons to be learnt. Foremost among these has been the need to
build in greater complementarity at the start of the programme, not least with respect
to setting up formal mechanisms to ensure that not only co-ordination takes places
systematically, but that it is monitored and assessed on a regular basis.
The main co-ordination mechanism will be through a single Programme Monitoring
Committee overseeing both the ESF and the ERDF programmes for the whole LUPS
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area. The arrangements for the Programme Monitoring Committee (PMC) are
discussed in detail in Chapter 7.
On an annual basis, the use of the funding flexibility allowed by the General
Regulation will be reviewed. Under the Article, up to 10% of total ESF Programme
resources can be spent on ERDF-related activities. This will enable projects to avoid
unnecessary applications on projects where such activities are likely to be a small
proportion of total project funding. At the start of the programming period, the
Managing Authority will set out detailed guidelines on the types of activities that
could be covered by the flexibility rule. The Managing Authority will monitor spending
on ‘ERDF’ activities and provide the information as part of the annual report on ESFERDF
co-ordination.
One of the ESF Programme priorities will be delivered jointly with one of the priorities
in the ERDF programme for the LUPS region. Joint awards of funding under Priority
1 of the ESF Programme and Priority 3 (Urban Regeneration) of the ERDF
Programme will be made to bidding projects. Priority 1 of the ESF Programme
concentrates on supporting those outside the workforce to secure employment,
particularly among the most disadvantaged groups, and has a clear strategic fit with
the community economic development focus of Priority 3 in the ERDF Programme.
Projects will not be required, but will be encouraged to put forward action plans that
will show how ERDF and ESF funding can be used in tandem within the same
project, although projects will not be required to apply for both Funds. While
applications need to be made separately to each Programme, appraisal and project
selection between both programmes will be co-ordinated through advisory groups
(as described in the Implementing Provisions chapter below). Applications will need
to be specific in allocating distinct activities, expenditure and outcomes to each
Fund. Projects will also be required to report on the co-ordination between both sets
of Funds on an annual basis.
Use of Community Planning Partnerships
For the first years of the period, the Programme will make limited use of the
Community Planning Partnerships model for delivering some funding. As set out in
Chapter 3 above, the Partnerships are local networks of key community regeneration
and social inclusion actors which are charged with setting out their collective goals
and spend on tackling regeneration/inclusion within Scottish-wide policy through
Regeneration Outcome Agreements. They have been allocated Community
Regeneration Fund support to take forward new activities within these Agreements.
The partnership-based approach and the use of co-ordinated public funding offers
clear opportunities to the Programme to extend the value added of the Funds. An
example of such an integrated bid could include: funding the rolling-out of an e-skills
learning project for target groups under the ESF Programme with the development of
e-learning facilities under the ERDF Programme.
A small number of Community Planning Partnerships will be selected to deliver
funding under Priority 3 of the Programme in conjunction with ESF Priority 1 at the
start of the programming period. A minority share of the allocation under the priorities
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will be available to support these Partnerships on a competitive basis and using the
eligibility criteria of both priorities for selection (notably the geographical criteria).
Selection will be on the basis of the eligibility criteria set out in the priority description
above as well as the capacity of the Community Planning Partnerships to administer
the Funds successfully. Detailed criteria – as well as further examples of integrated
action plans – will be provided by the Managing Authority in advance of the bidding
round.
The approach will encourage a more co-ordinated, area-based approach to
addressing areas with the most severe social inclusion and employability problems.
It is distinct from the Intermediate Delivery Body mechanism, which is described in
detail in the Implementing Provisions chapter. Awards will be made on a competitive
basis for a share of the joint ESF Priority 1-ERDF Priority 3 allocation. Funding will
be provided for two years to support eligible activities as set out in the priority
descriptions – this will act as a pilot for the approach to funding delivery. At the end
of the two-year period, the Partnerships will be evaluated for the effectiveness and
value added in their use of the funding, after which, decisions would be taken on
whether the funding initiative would be continued.
Funding would be delivered through specified accountable bodies to be used in
activities set out in line with key local strategies. Activity would be set out in annual
Structural Funds Outcome Agreements. The Agreements would identify the specific
activities to be funded by the ESF contribution, how the funding would be used in
conjunction with the ERDF contribution (and identifying clear ESF outcomes for the
funding), make clear the additionality of activity and set financial and performance
targets in line with the priority targets. The Agreements would be monitored regularly
by the Managing Authority, which would report to the PMC on the performance of the
selected Community Planning Partnerships on an annual basis.
Other Co-ordinated Activity
Less formally, Priority 2 of the ESF Programme has also been designed to
complement Priority 2 (Enterprise Growth) of the ERDF Programme. The focus of
Priority 2 on the skills needs of entrepreneurs and SME managers will complement
the support of Priority 1 in the ERDF programme on the enterprise development
needs of SMEs, new enterprises and entrepreneurs. In addition, Priority 3 of the ESF
Programme will also complement the support for higher and further education
service provision eligible through ERDF Priority 4 (Rural Development). Where
complementary activities fall into these priorities within the same project, coordinated
joint applications will be invited to ensure that EU funding for projects is as
integrated and strategic as possible. Such activity will be distinct from the
Community Planning Partnership and the Intermediate Delivery Body activity, as it
will be taken forward on a case-by-case basis with individual projects that are in a
position to deliver high value-added through activity linking together two different
priorities.
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6.2 Territorial Co-operation Objective
As well as the ERDF and ESF programmes under the Regional Competitiveness and
Employment Objective, there are a number of programmes in the different strands of
the Territorial Co-operation Objective which cover part of the LUPS area. In the
transnational co-operation strand, there are two relevant programmes. The Northern
Periphery programme, which principally covers the Highlands & Islands, allows some
eligibility in the LUPS area. The area is also eligible under the North Sea
programme, whose priorities – not finalised at the time of the final drafting of the
Operational Programme – most closely relate to Priorities 1 and 3. Lastly, under the
cross-border co-operation strand, the LUPS area will be eligible for support from a
programme with partners in Northern Ireland and Ireland.
Activity supported under these Co-operation programmes will be co-ordinated, where
appropriate, with the ESF Programme through the Managing Authority. However, the
scope for overlap is limited. There is also an option for inter-regional co-operation to
be pursued as a strand of the ESF programme. Given the limited funding and the
greater effectiveness of keeping co-operation activities under a single banner, the
option is not currently envisaged for the LUPS area in the 2007-13 programming
period.
Transnational and interregional co-operation actions may also be supported within all
priority axes of the programme. Transnational arrangements will provide the
opportunity to recognise activities being addressed by programmes elsewhere in the
EU which can positively influence the delivery of the Programme in Scotland.
Transnational ties with other Member States will operate at a national level through
the Managing Authority. The Managing Authority will set out, in guidance, how
transnational and inter-regional actions will operate. The Managing Authority will
work with the Commission and appropriate national authorities to ensure that ESF
does not support operations being concurrently supported through the programmes
supported under the Co-operation Objective.
6.3 The European Agricultural Fund for Rural Development
Both the General and the ESF Regulations specify that the Operational Programmes
must set out how ESF and the European Agricultural Fund for Rural Development
(EAFRD) will complement each other. EAFRD in Scotland is governed by the
Scottish Rural Development Plan, which covers the whole of Scotland. The
Managing Authority for the Fund is the Scottish Executive Environment and Rural
Affairs Department.
The ESF Programme and the Scottish Rural Development Plan (SRDP) have been
developed in parallel by the Scottish Executive with particular attention given to the
areas where project eligibility could overlap. The consultations on the two sets of
documents made explicit reference to each other with responses solicited on the
relationship between the two.
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The main area where demarcation is important is with Axis 3 of the SRDP. Both
programmes have some common areas of scope, as set out by their respective
regulations. To ensure that there is no overlap in eligibility, but at the same time, that
there is full complementarity in the activities supported, the lists of eligible activities
of both the ESF Programme and the SRDP have been drawn up so that projects
receiving funding through one stream in one phase of their development could
receive follow-on support from the other stream in a new development phase. The
following table sets out the eligible activity areas where this is envisaged.
Table 5: Demarcation between SRDP and ERDF activities
Type of activity SRDP eligible activities ESF eligible activities
Training • Vocational training for
individuals in the agricultural,
food and forestry sectors
• Limited training for
individuals in the sectors
mentioned for SRDP
Complementarity will be regularly also be reviewed through an annual meeting of the
respective Managing Authorities. This will produce a report on joint implementation
of the different Funds which will be presented on an annual basis to the Programme
Monitoring Committee as part of annual reporting exercises. The PMC would then be
able to refine eligibility criteria and project recommendations to take account of
supported activity through the SRDP. As part of any mid-term evaluation, the
strategic and operational fit between the programmes will be part of formal
evaluation.
6.4 The European Fisheries Fund
The regulatory requirements applying to the EAFRD apply similarly to the European
Fisheries Fund (EFF). In Scotland, EFF strategic priorities are set out in the strategy
document and the Managing Authority is also the Scottish Executive Environment
and Rural Affairs Department. Demarcation issues are more limited in the case of
the EFF, because of the limited geographical overlap with the ESF programmes. The
main parts of the LUPS area where EFF support is available is in the coastal zones
of the Borders region.
The main areas where complementarity is evident are set out in the following table.
Table 6: Demarcation between EFF and ERDF activities
Type of activity EFF eligible activities ESF eligible activities
Training • Vocational training for
individuals in the fisheries
and aquaculture sectors
• Limited training for individuals in
the sectors mentioned for the
EFF strategy
As with the EAFRD, the two Managing Authorities will meet on an annual basis to
review strategic and operational co-ordination and report back to the Programme
Monitoring Committee.
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6.5 EU Research Funding
The 7th Framework Programme for Research, Technology Development and
Demonstration Activities has combined all research-related EU activity into a
common framework addressing how research can contribute to achieving the Lisbon
Agenda goals. The broad objectives of FP7 have been grouped into four categories:
cooperation; ideas; people; and capacities. For each type of objective, there is a
specific programme corresponding to the main areas of EU research policy though
all are designed to work together to promote and encourage the creation of
European poles of (scientific) excellence.
Similarly, the EU Competitiveness and Innovation Framework Programme also
highlights areas identified in the socio-economic analysis for the region, such as
competitiveness of enterprises, promotion of innovation and the promotion of energy
efficiency. One of the key blocks of activities is the Entrepreneurship and Innovation
Programme which fits with support under Priority 2 of the ESF Programme.
Complementarity between the different funding streams will be reviewed with the
following instruments:
• ESF project applications would be required to show strategic fit and clear
distinction from any relevant projects supported through FP and the CIP; and
• the Managing Authority will report annually to the Programme Monitoring
Committee on project activity supported under the research streams to allow
the PMC to make more informed decisions on eligibility criteria in the ESF
Programme and project recommendations.
6.6 The European Investment Bank
The General Regulation specifies the need for the Operational Programme to
discuss how the cohesion-policy funding initiatives of the European Investment Bank
will be co-ordinated with the use of Structural Funds. The principal funding stream to
which this applies are the JEREMIE and JESSICA Initiatives. JEREMIE provides a
mechanism for setting up revolving loan instruments for providing development
capital to enterprises while JESSICA provides repayable and recyclable assistance
to public-private partnerships for urban renewal and development. However, it is not
anticipated that this financing will be used in the ESF Programme.
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7 IMPLEMENTING PROVISIONS
7.1 Roles and Responsibilities
The following section sets out the roles and responsibilities for the management of
the programme. It covers the identity and duties of the following:
• Managing Authority
• Certifying Authority
• Audit Authority
• Compliance Body
Managing Authority
The Managing Authority of the Programme will be the Scottish Executive through the
European Structural Funds Division in the Enterprise & Lifelong Learning
Department:
Scottish Executive Enterprise & Lifelong Learning Department
European Structural Funds Division
Meridian Court
5 Cadogan Street
Glasgow G2 6AT
United Kingdom
In accordance with Article 60 of Regulation 1083/2006, the tasks of the Managing
Authority will consist of the following:
• ensuring that operations are selected for funding in accordance with the
criteria set out in the Operational Programme and with relevant Community
and national rules;
• verifying that co-financed activities have been delivered and permissible
expenditure defrayed in accordance with Community and national rules and
that beneficiaries and other bodies maintain appropriate arrangements for
accounting and maintenance of documents required for verification and audit;
• establishing and maintaining an effective monitoring system – including
financial management, verification, audit and evaluation – and that
beneficiaries can fulfil their monitoring obligations as well;
• providing the Certifying Authority with all appropriate information to allow it
fulfil its obligations as set out below;
• guiding the work of the Monitoring Committee and providing it with appropriate
monitoring information;
• ensuring the evaluations set out in Chapter 9 are made;
• overseeing the annual and final reports on implementation;
• ensuring compliance with the required publicity actions; and
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• providing the Commission with information to allow it to appraise major
projects as required.
Lastly, the Managing Authority will pay the beneficiaries on receipt of valid claims.
Intermediate Administration Body
In accordance with Article 59, the Scottish Executive has decided to delegate
selected Managing Authority tasks to an Intermediate Administration Body (IAB). A
single body will be responsible for managing and administering selected Managing
Authority tasks in the ESF Programme on behalf of the Scottish Executive for the
whole of the Lowlands & Uplands Scotland region. The principal tasks will be:
• publicity: to implement the relevant publicity requirements of the EU
regulations;
• project applications: to facilitate the process of publicising, overseeing the
application process, registering new organisations and provide advice and
support to prospective applicants and communicating decisions, key guidance
and programme/policy changes to partners;
• project selection: to undertake technical checks on applications and facilitate
the assessment of challenge-fund applications and recommendations of
awards to the Programme Monitoring Committee;
• project monitoring: to carry out monitoring visits on all projects in fulfilment of
programme obligations;
• reporting: to monitor progress towards programme financial targets and
contribute to programme requirements; and
• secretariat to the Programme Monitoring Committee.
The IAB will be accountable to the Managing Authority and act in accordance with
the formal contractual agreement. ESEP Ltd has been awarded the contract to carry
out these delegated functions will be reviewed by 31 December 2010:
ESEP Ltd
Suite 3
Forth House
Burnside Business Court
North Road
INVERKEITHING
Fife, KY11 1NZ
Certifying Authority
The Certifying Authority of the Programme will be the Scottish Executive through the
Enterprise & Lifelong Learning Department. Certification will be undertaken by a unit
within the Department that is functionally independent from the Managing Authority.
Its tasks, as set out in Article 61, will be to:
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• draw up and submit certified statements of expenditure and payment
applications to the Commission;
• certify that the statements of expenditure are accurate and verifiable, comply
with relevant Community and national rules and have been incurred in
accordance with the relevant Operational Programme criteria;
• ensure for the purposes of certification that the Managing Authority has
provided adequate information on procedures and verifications carried out in
relation to the expenditure detailed in the statements of expenditure;
• take account of all relevant audits for the purposes of certification; and
• maintain adequate records of expenditure declared to the Commission and of
amounts recoverable or withdrawn following cancellation of a contribution for
an operation.
Audit Authority
The Programme Audit Authority will be the Scottish Executive through the Finance &
Central Services Department.
Scottish Executive Finance & Central Services Department
Audit & Accountancy Services Division
Victoria Quay
Edinburgh EH6 6QQ
United Kingdom
As described in Article 62, the tasks of the Audit Authority will be to:
• ensure that audits are carried out to verify the effective functioning of the
management and control system of the programme, including audits on a
sample of operations to verify expenditure declared;
• submit to the Commission an audit strategy for the Programme within nine
months of the programme’s approval as well as an annual control report
detailing the audits carried out during the previous year, their result and any
shortcomings consequently found in the management and control of the
programme;
• submit to the Commission an annual control report setting out audit findings in
the previous year (to the period ending 30 June of the year concerned);
• issue an annual opinion on the basis of the controls and audits that have been
carried out under the Audit Authority’s responsibility as to whether the
management and financial control systems function effectively and provide
assurances to the Commission with respect to the statements of expenditure;
• where appropriate, produce for the Commission a declaration for partial
closure assessing the legality and regularity of the expenditure concerned
(where appropriate) and, at the latest by 31 March 2017, a closure declaration
covered by the final statement of expenditure, which will be supported by a
final control report; and
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• ensure that audit work takes account of internationally accepted standards.
Compliance Body
Article 71 requires that an independent body is designated to give an opinion
whether the management and control systems are in compliance with the Articles
58-62, based on a description of the systems to be provided to the Commission
within twelve months of the programme’s approval. The ‘Article 71’ body for the
Programme will be the same as the Audit Authority: the Scottish Executive through
the Finance & Central Services Department.
7.2 Financial Flows and Payments
The Certifying Authority will make all payment claims to the European Commission,
derived from the declarations of expenditure submitted by final beneficiaries. The
Managing Authority will maintain systems to identify all Commission receipts as well
as all payments to final beneficiaries. Procedures to ensure that all relevant
regulations are complied with and appropriate financial controls will be in place.
Financial flows will operate as follows:
1. Final beneficiaries declare through interim claims expenditure defrayed to the
Managing Authority. The financial check obligations set out above are made
by the Intermediate Administration Body.
2. The Managing Authority verifies claim expenditure and ensures that the
financial management system contains correct information. The Intermediate
Administration Body will be responsible for checking claims in the first
instance before passing to the Managing Authority.
3. The Managing Authority certifies and authorises payments to final
beneficiaries and carries out any necessary recovery action.
4. The Certifying Authority submits payment requests to the European
Commission at Programme level.
5. The Commission makes payments to the Managing Authority’s dedicated
account.
6. When the Commission requests a refund, the Managing Authority will be
responsible for the necessary payments.
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Figure 5: Financial flows and payments
7.3 Partnership and Committee Structure
The Operational Programme will be implemented in partnership with the European
Commission and with appropriate regional authorities and bodies in accordance with
national rules and practice. At the consultation stage, the Programme was developed
in partnership with key stakeholders such as relevant Government departments,
social partners, equality commissions, the voluntary and community sector and
others with a positive contributory role to play. Partnership arrangements will
continue as programme activity is prepared, implemented, monitored and evaluated.
The Managing Authority will encourage the participation of social partners in
Programme activities. It will also encourage participation and access of nongovernmental
organisations, particularly in projects that will promote social inclusion,
gender equality and equal opportunities in the Programme.
At Programme level, partnership will be embodied in the Programme Monitoring
Committee, which will be responsible for monitoring implementation of the
programme. A single PMC is proposed to oversee both the ESF and the ERDF
Programmes for the Lowlands & Uplands Scotland area, ensuring greater strategic
overview in specific project decisions but also in the overall use of Structural Funds
for the region. The ESF and ERDF Programmes have been drawn up to complement
each other strategically so a single strategic oversight body is appropriate.
Reflecting the principle of partnership, the PMC’s membership will be drawn from
representatives reflecting the key sectoral interests in the programme, including the
economic, environmental and social partners, along with the Scottish Executive. As
the PMC will bring together both ESF and ERDF interests, membership will be
evenly and adequately drawn to ensure full representation of both interests. In
Projects
Managing Authority
Certifying Authority
European Commission
1
2
4
5 6
3
Intermediate Administration
Bodies
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addition, the PMC will be selected to provide representation of the key sub-regions in
the region and key local Structural Funds partner networks. The European
Commission will be represented in an advisory capacity.
The PMC will set its rules of procedures with the Managing Authority within the
institutional, legal and financial framework of the Member State. It is expected to
meet at least twice a year and will be chaired by a senior Scottish Executive
representative. The Intermediate Administration Body will provide the secretariat
function for the PMC and its meetings, under the guidance of the Scottish Executive.
The PMC tasks will be to:
• adjust the Operational Programme, when appropriate;
• approve the indicative annual financing plan for each priority;
• set the criteria for selecting operations eligible for financing under each priority
within six months of the Operational Programme approval to review the
specific objectives of each priority at periodic intervals;
• consider the annual implementation reports to be submitted for the
Programme before submission to the Commission and monitor progress
towards achieving the targets set for the programme, particularly at the midterm
point;
• approve adjustments to applicant guidance;
• monitor co-ordination of funding with European Regional Development Fund,
European Agricultural Fund for Regional Development and the European
Fisheries Fund in line with the arrangements set out in Chapter 6;
• consider the recommendations of advisory groups on other projects and set
out a list of recommended awards for Scottish Ministers;
• propose adjustments to assistance to the Managing Authority with respect to
the implementation of the Programme; and
• set up appropriate supporting committees
The Committee will aim to have balanced representation in line with the equal
opportunities vision set out in Chapter 8.
7.4 Award Decisions
The Programme is predicated on projects consistent with Programme objectives and
contributing to Programme targets being identified for funding either through IDB
arrangements or under direct competitive bidding into the priorities. Transparency
and peer/partnership appraisal are important aspects of both – these have been
traditionally used in Structural Funds appraisal and will continue to be so in the
current period. Bids will be invited into each priority on an annual basis (as shown in
Figure 5).
• Applications competing for funding will be exposed to technical/eligibility
checks by the IAB (1).
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• This is followed by peer and policy appraisal by the Scottish Executive and
advisory groups (2). Each priority would be covered by a single advisory
group, established by the Managing Authority though where joint appraisals
may be required – as in the case of Priority 3 of the ERDF Programme and
Priority 1 of the ESF Programme – joint sittings of the Groups and other
mechanisms of co-ordination will be used. Membership of the advisory groups
will reflect expert knowledge, key regional partners and Scottish Executive
policy officials and would be chaired by the Managing Authority.
• Proposals/recommendations are then considered by the Programme
Monitoring Committee or any sub-committees delegated to consider the
recommendations by the PMC (3).
• Formal offers of grant are made on behalf of Scottish Ministers (4).
Arrangements for deciding on IDB projects are discussed separately above.
Figure 9: Project appraisal and decisions
7.5 Transnational Activity
As part of all eligible activity under the Priorities listed in Chapter 4, projects will be
able to engage with one or more Member States to carry out research into
alternative methods of delivering the objectives specified in the project. Up to 10% of
the total ESF award can be used on such activity.
Projects will be expected to explain how they will carry out the transnational element
of their activities, though support will be limited to building on or extending existing
international networks rather than developing wholly new networks. The lessons
from the Equal Community Initiative suggest that this was the most effective
approach to transnational working.
The Managing Authority will work with the Commission and appropriate national
authorities to ensure that ESF does not support operations being concurrently
supported through Community transnational programmes in the field of education
and training.
Project bids
Project bids
Project bids
Project bids
Intermediate
Administration
Bodies
Advisory Group/
Scottish Exec
Advisory Group/
Scottish Exec
Advisory Group/
Scottish Exec
Programme
Monitoring
Committee
Minister
1 2 3 4
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7.6 Publicity
Article 69 of the General Regulation 1083/2006 stipulates that the Managing
Authority is responsible for setting out communication and publicity actions to ensure
the full visibility of the funds throughout the programming area. Publicity forms an
integral part of the programming strategy and the Managing Authority will ensure that
the benefits of the Funds are communicated to the wider public. The Managing
Authority will be the chief body with responsibility for making sure publicity
obligations are met.
Innovative publicity activities and campaigns using print, broadcast and creative
media as appropriate will be employed by the Managing Authority to clearly promote
and position the ERDF brand. These activities will be developed proactively and
implemented in collaboration with the European Commission in Brussels, the
Representation Office Edinburgh and Information relays and networks in the UK as
appropriate, which will ensure the visibility and transparency of the Funds at a local,
regional and national level.
Potential projects sponsors and final beneficiaries/recipients will be informed of
funding opportunities and also the publicity requirements linked to receiving ERDF
funding during the programming period. Responsibility for this will lie with the
Intermediate Administration Body on behalf of the Managing Authority, as set out
above.
Project sponsors will be required to respect the publicity elements of the general and
implementing regulations especially with regards to signage – including billboards,
plaques and promotional material. These requirements will be set out in detailed
guidance to be made available to potential applicants and project sponsors alike.
In conformity with the provisions set out in section 2 of the Implementing Regulation
provisions, the Managing Authority will present a communications plan to the
Commission no later than four months after the formal adoption of the Programme.
The Communication plan will set out the:
• objectives of the plan and the target groups;
• activities in support of publicity and information including events, seminars
and project launches, for potential applicants, partners and the wider public;
• bodies/persons responsible for the implementation of the plan;
• budget for implementing the plan; and
• evaluation frameworks for the plan.
The Managing Authority will report on progress in implementing the plan (including
examples of publicity activities) to the Programme Monitoring Committee and also in
the annual implementation report. The Communication plan will be easily accessible
and will be published on the Managing Authority's website. The use of electronic
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media – through the Managing Authority’s and the IAB’s websites – will be the key
channel of delivery for disseminating information about the Programme.
Funding for publicity and communications will be provided through the technical
assistance budget for the programme.
7.7 Aid Schemes
The Programme will comply with Community law on state aids and the Managing
Authority will notify relevant Programme activities under prevailing block exemption
regulations.
7.8 Exchange of Computerised Information
The Commission has set up a new computer system to permit the secure exchange
of data between the Commission and the Member State. The new system – SFC
2007 – will be used for the exclusive official exchange of all information about the
Operational Programme, in accordance with the Commission’s Implementing
Regulation.
The Commission and the Member State will ensure compliance with relevant EU and
national provisions on the protection of personal data. Information exchanged will be
covered by professional confidentiality and protected in the same way as set out for
similar information in national legislation. Information will not be used for any other
purpose than that agreed between the Commission and the Member State, unless
express consent is given by the Member State.
The system contains information of common interest to the Commission and the
Member State. An agreement has been reached with the Commission on the core
and categorisation data to be provided. The categories will not change during the
Programme lifetime.
The Scottish Executive has also put in place appropriate computer systems for the
collection, storage and security of information and documents relevant to the
Programme.
Exchange of data and transactions will be signed electronically in accordance with
the relevant EU Directive. The Commission will provide the arrangements for use of
electronic signatures.
The Commission will regard a document as having been sent once it has been
signed by the Member State in the system. The Commission acknowledges that the
date of receipt by the Commission will be the date on which the Member State sends
the documents.
In cases of force majeure, notably the malfunction of the computer system or the
failure of a lasting connection, the Member State may forward information and
documents to the Commission in hard copy.
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8 CROSS-CUTTING THEMES
In the 2000-06 programming period, cross-cutting themes were defined to act as
underpinning policy priorities and be applied across all programmes. These
horizontal themes were embedded at all stages of programming, from project design
and application, through project selection to implementation and, finally, to project
monitoring and evaluation. As the Adding Value, Keeping Value report discussed in
the section above on lessons of earlier programmes made clear, this commitment to
a series of overarching policy objectives running through the programmes should be
maintained into the 2007-13 period.
For the 2007-13 programmes, the intention is to build on the work of the horizontal
themes in 2000-06 programming and further mainstream them. The General
Regulation of the 2007-13 Structural Funds makes clear the need to address the
issue in Article 3.1 (and further set out in Article 17):
The action taken under the Funds shall incorporate, at national and regional
level, the Community's priorities in favour of sustainable development by
strengthening growth, competitiveness, employment and social inclusion and
by protecting and improving the quality of the environment.
As the Lowlands & Uplands Scotland ESF Programme has been developed with a
view to supporting sustainable development in Scotland, the horizontal themes to be
supported in the 2007-13 period reflect the commitment to achieving that goal.
Sustainable development consists of three key elements:
• the sustainable growth of the Scottish economy in a way that does not
compromise the environmental resources of future generations;
• the inclusion of as much as Scottish society as possible in the achievement
and benefits of that growth, through equal opportunities and social inclusions
actions; and
• the conservation of Scotland’s environmental assets in pursuing sustainable
development.
As the Programme already has as its central aim to contribute towards the
sustainable growth of the region’s economy by balancing support for underlying
sources of national as well as regional competitiveness, the economic growth strand
of sustainable development is already recognised. To ensure that the other two
elements are mainstreamed effectively in the programme, three horizontal themes
have been identified:
• equal opportunities;
• environmental sustainability; and
• social inclusion.
While they will be subject to common processes in the programme, they are
discussed in turn below.
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8.1 Equal Opportunities
A Structural Funds commitment to equal opportunities is clearly set out in the
General Regulation at Article 16:
The Member States and the Commission shall ensure that equality between
men and women and the integration of the gender perspective is promoted
during the various stages of implementation of the Funds. The Member States
and the Commission shall take appropriate steps to prevent any discrimination
based on sex, racial or ethnic origin, religion or belief, disability, age or sexual
orientation during the various stages of implementation of the Funds and, in
particular, in the access to them. In particular, accessibility for disabled
persons shall be one of the criteria to be observed in defining operations
co-financed by the Funds and to be taken into account during the various
stages of implementation
In Scotland, a wide view of equality has traditionally underpinned the design and
operation of Structural Funds programmes, encompassing not just the integration of
a gender perspective into all stages of programming, but ethnicity, disability, age and
sexual orientation perspectives as well. All these perspectives have been applied to
the design of the Programme and will permeate its delivery to ensure that no
discrimination on any of these bases will take place. The ‘mainstreaming’ approach
has been set out in the Scottish Executive’s Equality Strategy – Working Together
for Equality:
Mainstreaming equality is the systematic integration of an equality perspective
into the everyday work of government, involving policy makers across all
government departments, as well as equality specialists and external
partners.
The Equality Strategy has been fully integrated into the design of the Scottish
Structural Funds programmes. This can be seen in the Strategy’s Objectives and
how they apply to the programme:
• to make sure that an equality perspective is integrated into the Executive's
work and activity in policy and programme development, legislation and
spending plans, service design and delivery: in the Structural Funds
programme, this has been apparent in the use of specialist workshops and
‘equality’ proofing in the development of the programme;
• to follow policies and programmes that seek to address the inequalities and
exclusion which result from discrimination: the programmes have a range of
‘vertical’ and ‘horizontal’ measures designed to tackle discrimination, as
outlined below;
• to extend the ownership of and commitment to this strategy to all key public,
private and voluntary sector bodies, equality specialists, academics and trade
unions: the mainstreaming approach described below is intended to ensure
that all Structural Funds partners build the equality perspective into their
project design and delivery;
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• to promote the inclusion of under-represented groups in policymaking,
decision-making and public appointments: representation of the target
equality groups are included in the key decision-making and advisory bodies
of the Programme;
• to foster greater understanding of and respect for Scotland's different
communities: the publicity, good practice and training actions envisaged
under the Programme’s approach to equal opportunities have been developed
from this perspective; and
• to educate and raise awareness about discrimination and the need for it to be
challenged: the profiling of equal opportunities as a key horizontal theme in
the programmes shows this commitment to awareness-raising.
Scotland has a strong tradition in mainstreaming equal opportunities into Structural
Funds programming and past experience has formed the basis for the approach set
out for 2007-13 programmes. The experience was extensively examined in the midterm
evaluations of the 2000-06 programmes, which gave special attention to the
horizontal themes. In the case of equal opportunities, the common theme in the
evaluations was the strong embedding of a mainstreaming approach in the
management and administration of Structural Funds, but limits to pushing partners to
develop their existing approach to equality further in their projects. Responding to
these comments, the programmes developed a common Equal Opportunities Good
Practice Guide, Equality in Practice – Making It Work, which picked out the principles
and practical examples of mainstreaming equal opportunities into project design and
delivery. Similarly, the report of the Mainstreaming Equal Opportunities in the EU
Structural Funds Conference held in Glasgow in 2003 has also shaped the approach
taken for 2007-13.
The Equal Opportunities Impact Assessment took forward the equal opportunities
dimension in programme development, as summarised in an annex. As a result, the
aim of the 2007-13 Programmes for equal opportunities is to take forward the work
that has been done by earlier programmes. The vision is:
to increase the opportunities within the Programme for all groups and to
prioritise and adapt support for groups facing particular disadvantages
to participation.
The vision will be delivered through two objectives:
• to adjust the scope of the Programme to support the particular needs of
groups facing barriers to achieving sustainable employment and access
to lifelong learning; and
• to improve the approach to mainstreaming equal opportunities in
Scotland.
These objectives are part of a twofold approach to equal opportunities. The first
objective will be addressed through support for projects that explicitly aim to achieve
equal opportunities goals. The approach is integrated across all three priorities. This
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can be seen in examples of the types of activities in support of equal opportunities
eligible under the different priorities:
• Priority 1
- Explicit targeting of groups that often face discrimination and other
equal opportunities challenges in accessing the labour market.
- Customised support that recognises the key developmental needs and
most appropriate modes of skills learning for different groups.
• Priority 2
- Explicit support for projects that aim to reduce gender imbalance in the
Scottish labour market.
- Support for projects recognising the need to overcome discrimination
and inequality in workplace training.
• Priority 3
- Support for projects developing new, innovative approaches and
instruments to encouraging access to lifelong learning by underrepresented
groups.
The second objective of the Programme’s vision of equal opportunities will be
achieved through a wider mainstreaming of the horizontal theme into Programme
processes. This would mean that explicit consideration of the issues would be
required at every stage of Structural Funds-supported policy and project design: from
the initial development of the project/scheme through application for Structural Funds
support to actual project activity and finally, monitoring and evaluation. Structural
Funds cannot affect a cultural change alone, but through mainstreaming, help to set
up procedures that will inform policy-making and project design more generally.
The instruments for mainstreaming build on existing methods which have been
tested and assessed under 2000-06 programmes, not just in Scotland but elsewhere
in the UK.
• Administration and management: The equal opportunities perspective outlined
here will be applied throughout the different management and administration
arrangements of the Programme. The Programme Monitoring Committee will
aim for to have a balanced representation in line with the equal opportunities
vision set out above. Similar representation will be pursued for the roles and
responsibilities set out in Chapter 7 above, in line with the equal opportunities
policies set out for the Scottish Executive and the Intermediate Administration
Body.
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• Capacity. The experience of 2000-06 programmes has shown the importance
of having equal opportunities champions and expertise in different parts of
programme delivery. Champions will be designated for the different
committees, particularly the Programme Monitoring Committee and advisory
groups in the Programme, in many cases drawn from relevant Scottish
organisations. However, the Programme’s commitment to equal opportunities
will not be concentrated in individuals, but be a dimension to all delivery
activities. Consequently, short-term expertise will be used for training different
parts of the delivery system to mainstream equal opportunities on a continuing
basis through the Programme lifetime. There is also a need for expert advice
to be available to projects in terms of meeting their equal opportunities
obligations. This will be provided through the ‘delivery body’ and core
guidance and good practice material.
• Selection: To encourage projects to take full account of equal opportunities,
the principle will be embedded in the application and selection system for
projects. All projects will be required to demonstrate a commitment to equal
opportunities as a core programme criteria at each part in the application
form, showing – where relevant – how the issue has been taken fully into
account at all stages of project design, implementation and evaluation. A
minimum level of commitment needs to be demonstrated for project selection.
Where projects can demonstrate that they are exceeding regulatory norms in
their approach to equal opportunities, they will be given a higher score.
• Monitoring: To assess the equal opportunities impact of the Programme,
relevant indicators have been built into the project monitoring system. The
issue will be reviewed annually for the Programme Monitoring Committee and
independently assessed as part of a mid-term evaluation.
8.2 Environmental Sustainability
As defined by the World Commission on Environment and Development, sustainable
development entails “development that meets the needs of the present without
compromising the ability of future generations to meet their own needs” (WCED,
1987). Environmental sustainability is the component in a sustainable development
approach governing how the environmental resources of a region are used. While
usually referring to the treatment of the physical environment, environmental
sustainability has wider implications beyond natural resource usage, involving
cultural attitudes to environmental protection. Consequently, environmental
sustainability has several elements that should be addressed in programming:
• ensuring that economic and social development is fully in line with the
conservation of the surrounding environment and its biodiversity;
• making full economic and sustainable use of environmental assets so that
conservation and economic development goals reinforce each other rather
than work in opposition or require compromise; and
• raising awareness of the importance of environmental sustainability as a
fundamental consideration in project /policy-making more widely.
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This has been given higher profile in recent years with the EU’s commitment to the
principle through Gothenburg and in the UK, by the recently-published Stern Report.
Within Scotland, there is a strong tradition of environmental sustainability in domestic
policy, both in terms of giving it due policy prominence as an area in its own right as
well as promoting it as a key influence on all policy-making. As the Scottish chapter
of the National Strategic Reference Framework detailed, the Structural Funds
programmes in Scotland for 2007-13 would reflect both goals by being fully informed
by the key environmental sustainability statements of policy, particularly the Green
Jobs strategy, the Scottish Sustainable Development strategy and the Scottish
Biodiversity strategy. The strategies are discussed below.
The Scottish Sustainable Development Strategy, set out in 2005, shares with the UK
the common aspiration:
to enable all people throughout the world to satisfy their basic needs and
enjoy a better quality of life without compromising the quality of life of future
generations
The strategy has four sets of principles:
• sustainable consumption and production: achieving more with less by
reducing the inefficient use of resources, considering the impact of products
and materials across their whole lifecycle and encouraging people to take into
account the social and environmental consequences of their purchasing
choices;
• climate change and energy use: securing a profound change in the way in
which energy is generated and used and reducing greenhouse gas emissions.
• natural resource protection and environmental enhancement: protecting
natural resources by developing a better understanding of environmental
limits and actively improving the quality of the environment; and
• sustainable communities: creating communities that embody the principles of
sustainable development locally
The Scottish Green Jobs Strategy outlines how Scotland should seize the enterprise
opportunities and advantages arising from sustainable development with a view to
creating a vibrant, low-carbon economy with Scotland a centre for green enterprise.
This would be achieved through a combination of support for the economic
opportunities arising from a commitment to environment sustainability – such as
renewables technologies and economic efficiencies arising from waste-recycling – as
well as more general information-raising and skills improvements in mainstreaming
environmental issues into economic activity.
The Scottish biodiversity strategy – It’s in Your Hands – was published in 2004.
While Structural Funds are limited in their pro-active contributions to direct
conservation work, the principles of the strategy underpin the Programme with
respect to proofing all funded project activity so that there is a neutral, if not positive
impact of Structural Funds support on biodiversity within the region.
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There is also a strong tradition of environmental sustainability in Scottish Structural
Funds programming. It has been a key horizontal theme in earlier programmes,
particularly in the 2000-06 period, where the approach to sustainable development
was taken forward substantially. Structural Funds programming has developed a
‘missionary’ approach to environmental sustainability, viewing its embedding in wider
policy-making as one of the legacy aims of the Programmes. To a large extent, this
has been achieved through the development of an archive of good practice projects
and processes, which have informed the development of the approach taken in the
2007-13 programme. For example:
• The Scottish Natural Heritage good practice guide, Linking Sustainable
Development to Regional Development, has been an important source
document in programme development.
• The approach was also an important focus in mid-term evaluations in the
2000-06 programming period. The evaluations noted the success in
establishing a commitment to environmental sustainability across the different
programmes, while acknowledging that there remained significant challenges
to ensuring more than lip service at project level. Addressing these continuing
challenges has been a UK-wide goal.
• Lastly, the 2007-13 Programme has made use of UK research to tackle the
issue, particularly Leaving a Legacy, a report of the Environmental
Sustainability seminar for Structural Funds programme practitioners in
England.
Against this background, the environmental sustainability vision of the 2007-13
Programmes is as follows:
to ensure that Structural Funds programmes promote the sustainable
use and conservation of Scottish environmental assets by enhancing
the role of environmental sustainability in economic and social
development policy-making
This translates into two distinct objectives governing Programme activities:
• to strengthen the mutual contributions of environmental sustainability
and economic and social development in Structural Funds-supported
activities; and
• to raise awareness of the role of environmental sustainability in project
planning and policy development.
As with equal opportunities above, the two objectives embody a twofold approach to
horizontal themes. The first objective will be addressed through direct support for
projects that explicitly aim to achieve environmental sustainability goals. The
approach is integrated across all three priorities. This can be seen in the examples of
activities in support of environmental sustainability that would be eligible under the
different priorities:
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• Priority 1
- Requirement that projects meet recycling and environmental
sustainability standards as a condition of support.
• Priority 2
- Encouraging skills training projects for enterprises to include
environmental and resource sustainability as one of the skills to be
included.
• Priority 3
- Development of environmentally-friendly approaches to improving
lifelong learning access (eg. distance learning instruments that reduce
carbon emissions).
The second objective of the Programme’s vision of environmental sustainability will
be achieved through a wider mainstreaming of the horizontal theme into Programme
processes. Again, paralleling the approach under equal opportunities, this would
mean that environmental sustainability issues would be built into policy and project
design at each stage. The instruments for mainstreaming are the same as those for
equal opportunities. They build on existing methods which have been tested and
assessed under 2000-06 programmes, not just in Scotland but elsewhere in the UK.
Projects that exceed environmental regulatory standards will be given higher scores
in project scoring. More detailed criteria will be developed in advance of the first
round of programming.
It should be noted that this Programme did not have a Strategic Environmental
Assessment as the direct impacts of the programme on environmental issues were
not felt to warrant a formal exercise in the view of the SEA authorities.
8.3 Social Inclusion
The essential principle of the ‘European Social Model’ is to reconcile social inclusion,
competitiveness and economic performance. Structural Funds can act as a catalyst
to ensure a genuine interaction between social policies and economic policies. The
Lisbon Strategy centred on growth and employment, was taken up by the European
Council in a broader context so that it formed both a social agenda and a durable
development strategy. It is that broader context which is reflected in the Scottish
Structural Funds programmes.
Social inclusion is about reducing inequalities between the least advantaged
communities and the rest of society by closing the opportunity gap and ensuring that
support reaches those who need it most. It means actively promoting opportunities to
participate, whether in work, in learning or in society more generally. Having this as a
cross-cutting theme will help ensure that communities are strengthened and
regenerated, that young people get the best possible start in life and the opportunity
to fulfil their potential, and that older members of these communities are able to
contribute fully while also improving their skills, and their future financial security.
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An essential part of the commitment to the Lisbon and Nice strategies was to secure
greater social inclusion and to make a decisive impact on poverty. The UK’s National
Action Plan on Social Inclusion describes the current position in the UK and the
action that the UK Government will take in the years 2006 to 2008 to tackle poverty
and increase social inclusion. This plan reflects an in-depth engagement with a wide
range of stakeholders, including people experiencing poverty, the voluntary and
community sector, and devolved and local government.
Through work people can lift themselves and their children out of poverty by
raising their income and expectations. That is why employment is at the heart
of our approach to inclusion, while ensuring security and support for those
who cannot work.
Strong links must be made between the Closing the Opportunity Gap approach to
social inclusion (as set out in Chapter 3) and structural funds policy and
implementation in the new programme, so that the Structural Funds can be used to
enhance Scotland’s social inclusion agenda. Social inclusion cannot be a secondary
aim, or a product of the state of the economy. It has a fundamental value in its own
right that contributes to the durable development of an ‘economic and social model’,
which combines a social objective and an economic objective forming an integrated
strategy where the social policy is designed as an investment in the human capital
and is therefore a productive factor.
Against this background, the vision of the 2007 – 2013 Programme for social
inclusion is:
to ensure that economic growth and tackling exclusion go hand in hand
to help people overcome multiple barriers to employment and realise
their full potential.
The vision will be delivered through two objectives:
• to focus on: the most important issues that will make the most difference to
people’s lives; the most disadvantaged individuals; the issues where progress
has been slowest; and the issues where the Executive has the power to make
a difference; and
• to improve the way in which services are provided to help people overcome
multiple barriers to employment, education or training, and realise their
potential.
The first challenge is obviously that of exclusion and unemployment or inactivity.
Working to reduce the divide between those who benefit from globalisation and
those who are excluded from it is key. The second is to focus on supporting people
through the changes that globalisation will bring, develop new skills and make the
most of their talents. However, it is also essential to improve access to the services
and advice which can enable individuals to engage, and reduce the number of those
who feel threatened by a growing risk of poverty. In this way the benefits of a
growing economy can be carried over to our social institutions to create new safety
measures as economic and social reforms move together.
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This approach can be seen in the types of activities in support of social inclusion
which are eligible under the different priorities in the programme:
• Priority 1
- Requiring organisations to focus on those individuals most at risk of
exclusion, and/or who are experiencing poverty. Projects’ objectives
should include elements which help integration and are designed to
support participants in the longer term.
• Priority 2
- Encouraging skills training for low income workers to lift them out of
poverty and reduce their financial exclusion.
• Priority 3
- Improving access to quality learning services for those who are
excluded from lifelong learning because of their caring responsibilities,
a disability, physical or mental ill health, the area in which they live, or
their recent employment history.
An inclusive labour market supports social inclusion and a well-functioning economy.
This is a long-term approach, which requires a balance between the objectives of
social inclusion and economic objectives. The reality that poverty and exclusion is
not decreasing among all groups or communities, despite the efforts so far, points
clearly to the fact that actions to close the opportunity gap need to be mainstreamed
across all the new Structural Funds programmes and priorities.
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9 EVALUATION, MONITORING AND REPORTING
9.1 Evaluation
In accordance with general provisions in Articles 47 and 48 of the General
Regulation, the evaluations covered under this Operational Programme will aim to
improve the quality, effectiveness and consistency of the assistance provided under
the Programme.
Our approach to evaluation activity builds on the lessons learned from the Scottish
European Structural Funds Evaluation Strategy of 2000-06 and the refreshed
Strategy covering the years 2004-06. Evaluations will be carried out by experts or
bodies, internal or external, functionally independent of the Scottish Certifying and
Audit authorities and will be financed from Technical Assistance. The following sets
out the expected evaluation activity to be covered in the lifetime of the 2007-13
Programme.
• Ex-ante evaluation. The evaluation cycle is required to start with an ex-ante
evaluation of the programme, an iterative process ongoing in relation to this
Operational Programme. This also includes a Strategic Environmental
Assessment of the Programme as well.
• Ongoing strategic evaluation. In applying the lessons from the 2000-06
evaluation activities it is important to recognise the need to review how the
programmes are performing at suitable points of the programme. The
experiences of the 2000-06 Programme evaluations – the mid-term evaluation
(2003) and the mid-term evaluation update (2005) – show the key is to
measure programmes when they have been under actual operation for a time
period which is not too early to report on results or, conversely, too late to
affect any important change of direction to the programme. As such we will set
up a Scottish Evaluation Group to make decisions on the optimum times, and
key thematic areas of activity, to cover in a Scottish Evaluation Strategy for
2007-13. Such areas are likely to include the horizontal themes (equal
opportunities, environmental sustainability and social inclusion) as well as the
key thematic areas covered by the Programme priorities. This strategy will
now be refreshed on a yearly basis and consultation on content for
corresponding years ahead will be taken with partners through Programme
Monitoring Committees and in line with the European Commission evaluation
planning. This revised approach will allow the Programmes to plan evaluation
on a more flexible and need-driven basis.
• Ongoing operational evaluation. The delivery arrangements in Scotland have
altered from the 2000-06 Programme. Projects will now be delivered under
two systems:
- Competitive bidding – applications delivered through the newlyappointed
Intermediate Administration Body (IAB).
- Commissioned approach – a series of strategic projects, planned
through a detailed strategy, by the designated Intermediate Delivery
Bodies (IDBs).
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We will be undertaking a review of the new arrangements in 2010, to take
stock of this new operating environment, including specifically the publicity
measures achieved by the new structures
• Ex-post evaluation - it will be the Commission’s responsibility to carry out an
ex-post evaluation, in line with Article 49 of the General Regulation, to be
completed by 31 December 2015.
The evaluations will take appropriate account of the equal opportunities,
environmental sustainability and social inclusion objectives of the Programme
outlined in Chapter 8.
9.2 Monitoring
Monitoring will be the joint responsibility of the Managing Authority, the Monitoring
Committee, partners and the IAB, in accordance with Articles 63-66 of the General
Regulation. These bodies will be responsible for setting up appropriate monitoring
systems, defining indicators and disseminating knowledge of their use, ensuring that
projects fully understand their reporting obligations, assuring themselves on the
quality and coverage of the indicator data, and providing appropriate reporting on the
basis of that data.
In essence, project partners will be responsible for reporting on the indicators set out
under the priority descriptions in Chapter 4, as appropriate for their project, on a
quarterly basis. These reports will be initially checked for consistency by the IAB and
the information will be stored and analysed on a regular basis by the Managing
Authority. Analysis of the information will feed into reports to the Programme
Monitoring Committee – twice-yearly for regular project reporting but also on an
annual basis for the Annual Implementation Reports discussed below. The data will
also be used as part of the thematic evaluations detailed in the previous section.
A quarter-year monitoring regime of projects will ensure the quality and effectiveness
of implementation of projects through assessment of progress towards achievement
of the indicators defined in the Programme (as discussed below). In drawing up
indicators, account has been taken of the indicative methodology and practical
guidance in the Commission Working Paper Indicators and Evaluation: A Practical
Guide, including the main messages of that paper concerning:
• creating an evolutionary approach from existing indicators;
• concentrating on better focused and less complex set of activity measuring;
• making clear links to priorities within EC policies; and
• adopting a broader approach to the concept of core EU indicators.
Management information systems will provide core data on a regular, timely and
consistent basis throughout the programming period, enabling the Managing Authority
and Programme Monitoring Committee to monitor programme performance and
results in line with their responsibilities. The management information provided will
enable analysis of performance in terms of geographical area and participant
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characteristics and so provide essential information to key stakeholders. Where
appropriate, statistics will be broken down by gender.
A set of core management information requirements for ESF and co-financed activity
will:
• enable progress towards the achievement of financial, output and result
indicators to be assessed at priority level;
• provide performance measures for the Managing Authority and the PMC;
• feed into preparation of the reporting requirements set out in the next section;
• allow transfer of data to the Commission as required in the Commission’s
Implementing Regulation, particularly Annex XXIII; and
• contribute to the wider evaluation of the Programme – where necessary, the core
information requirement will be supplemented by other information such as
follow-up surveys as set out in the section above.
9.3 Reporting
Reporting will also be the joint responsibility of the Managing Authority, the
Monitoring Committee, partners and the IAB, in accordance with Article 67 of the
General Regulation.
As noted above, partners will be responsible for submitting the required robust,
verifiable and up-to-date information under the different indicators on a regular basis,
as set out by the Managing Authority. Reports on programme performance against
key priority indicators will be made to the Programme Monitoring Committee on a
twice-yearly basis by the Managing Authority.
An annual implementation report (AIR) for the Programme will be provided for the
first time in 2008 and by 30 June each year and thereafter for the length of the
Programme period. The first report will be due by 30 June 2008. The report will be
examined and approved by the Monitoring Committee before being sent to the
Commission by the Managing Authority. The Managing Authority is setting a
voluntary target date of prior submission to the European Commission of 30 April
each year. The report will be prepared by the Managing Authority and the IAB jointly.
The Annual Report will include the information set out in detail under Article 67(2) of
the General Regulation, which includes:
• progress made in implementing the programme;
• an update on the financial implementation of the programme;
• an indicative breakdown of the allocation of the Funds by category;
• steps taken by the Managing Authority, partners and Monitoring Committee to
ensure the quality and effectiveness of implementation;
• measures taken to provide information on and publicise the programme;
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• information about significant problems in terms of compliance with community
law;
• progress and financing of major projects;
• use of assistance made following financial corrections, in accordance with
Article 98(2); and
• cases of modification, in accordance with Article 57.
The Commission will inform the Programme of its opinion on the admissibility of
report within ten days of days of its receipt and offer its opinion on the content within
two months. Following consideration by the Commission, the Managing Authority
and partners, the Monitoring Committee will adopt the AIR and agreed adjustments
to the Operational Programme.
An annual review between the Commission, the Managing Authority and partners will
also take place, in accordance with Article 68. The review will examine progress
made in the proper functioning of the operational programme, the principal results
achieved, the financial implementation and other factors, with a view to improved
delivery.
A final report on the implementation of the Operation Programme will also be
provided, as outlined by Article 67, by 31 March 2017. The same content and
procedure (submission to the Commission by the Managing Authority after
examination and approval by the Programme Monitoring Committee) for annual
reports apply to the final report.
9.4 Indicators and baselines
Article 37 of the General Regulation states that Programme documents should
contain “information on the priority axes and their specific targets… the indicators
shall make it possible to measure the progress in relation to the baseline situation
and the achievement of the targets in the priority axis”. Specific indicators, targets
and their rationales have been included in the ‘Indicators and targets’ sections of the
priority descriptions in Chapter 4.
In view of the proportionality principle and the requirement to limit the number of
indicators to make their monitoring effective, there are not quantified indicators for
every target group/activity. Moreover, some data will be collected through individual
participants data collection – in line with the partner responsibilities set out above –
and some through specific follow-up survey/evaluation work.
The Managing Authority will set out national definitions for each of the indicators as
part of guidance to applicants on monitoring. When reporting the information
required by Annex XXIII of the Implementing Regulation, EU definitions will be used.
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Baselines for each priority are set out here. They have been selected with a view to
capturing the key goals of each priority and will be assessed in the second half of the
Programme, although attribution of changes in these regional indicators to
Programme activity may be difficult to make because of the small size of Programme
resources relative to the region’s economy.
• For Priority 1: the levels of economic activity in the region and working-age
people in education, employment or training (the Programme should
contribute to the share increasing), the share of NEET and sick and disabled
benefit claimants (the Programme should contribute to these shares
decreasing) and the ethnic minority employment rate (the Programme should
contribute to this increasing);
• For Priority 2: the share of employees below the low-pay threshold (the
Programme should contribute to the share decreasing), the gender pay gap
through female earnings levels (the Programme should contribute to this
share increasing), the share of over-50s without qualifications (the
Programme should contribute to this figure decreasing), the new firm
formation rate and the gross value added of the region relative to the UK (the
Programme should have a positive impact); and
• For Priority 3: share of adult participation in education and training (the
Programme should contribute to this share increasing).
Baseline indicator Baseline source Baseline figure
Priority 1
Economic activity rate 15-64 year olds ONS (2004) 79.9%
Working-age people in education, employment or
training as share of all working-age people
Annual Population Survey
(2005)
79.7%
Share of NEET in all 16-19 year olds Scottish Executive (2005) 14%
Sick and disabled benefit claimants as a share of
total working population
Annual Population Survey
(2005)
11%
Ethnic minority employment rate Annual Population Survey
(2005)
56.4%
Priority 2
Share of employees below low-pay threshold Annual Survey of Hours
and Earnings (2004)
22%
Average earnings levels of female relative to male
employees
Annual Population Survey
(2004)
84%
Share of over-50 employees without qualifications Labour Force Survey
(2004)
20%
Number of business start-ups per 10,000 people Small Business Survey
(2005)
28
Gross value added in the region relative to UK ONS (2004) 96%
Priority 3
Share of adults participating in education/training
in the last four weeks
Labour Force Survey
(2004)
15.3%
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In addition, there will be a set of Programme-wide indicators based on the priority
indicators described in Chapter 4. Data will be collected by compiling the priority
indicators for reporting to the Programme Monitoring Committee and the annual
implementation reports. The indicators are:
• Number of participants entering into employment
• Number of participants completing a partial or full qualification
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ANNEX A: GLOSSARY OF ACRONYMS
ASLFS – Annual Scottish Labour Force Survey
CPP – Community Planning Partnership
CRF – Community Regeneration Fund
DWP – Department for Work & Pensions
DP – Development Partnership
EET – in ‘education, employment or training’
ESOL – English for Speakers of Other Languages
EAFRD – European Agricultural Fund for Rural Development
EFF – European Fisheries Fund
ERDF – European Regional Development Fund
ESF – European Social Fund
EU-15 – 15 Member States of the pre-May 2004 European Union
EU-25 – 25 Member States of the post-May 2004 and pre-January 2007 European
Union
FEDS – Framework for Economic Development in Scotland
FE – further education
GROS – General Register Office for Scotland
GRfW – Get Ready for Work
GDP – gross domestic product
GVA – gross value added
HE – higher education
IB – Incapacity Benefit
ICT – information and communication technologies
ISDN – Integrated Services Digital Network
IAB – Intermediate Administration Body
IALS – International Adult Literacy Survey
ISCED – International Standard Classification of Education
JSA – Jobseekers Allowance
LUPS – Lowlands & Uplands Scotland
MA – Modern Apprenticeships
NSRF – National Strategic Reference Framework
ND – New Deal
NDYP – New Deal for Young People
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NEET – ‘not in employment, education or training’
NUTS – Nomenclature of Territorial Units for Statistics
ONS – Office of National Statistics
OECD – Organisation for Economic Co-operation and Development
PMC – Programme Monitoring Committee
RTD – research and technological development
SCVQ – Scottish Council for Vocational Qualifications
SIMD – Scottish Index of Multiple Deprivation
SRDP – Scottish Rural Development Programme
SVQ – Scottish Vocational Qualifications
SME – small and medium-sized enterprise
SEA – Strategic Environmental Assessment
TEA – Total Entrepreneurial Activity
TfW – Training for Work
VAT – Value Added Tax
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ANNEX B: REFERENCES
CRFR (2005) Solo Living Across the Adult Life Course, Research Briefing 20
February, Centre for Research on Families and Relationships.
DRC (2005) Equal Treatment: Closing the Gap; Interim Report of a Formal
Investigation into Health Inequalities, Report for the Scottish Executive, Disabilities
Rights Commission.
DTZ Pieda (2005) Supply and Demand of Further Education in Scotland.
Futureskills Scotland (2005a) Labour Market Projections 2004.
Futureskills Scotland (2005b) Skills in Scotland 2004.
Glass, A, Higgins, K and McGregor, A (2002) Delivering Work Based Learning,
Training and Employment Research Unit, University of Glasgow.
Glass, A. et al. (2002). Support Needs Of The Social Economy, Communities
Scotland.
HESA (2001) Statistics Focus, Higher Education Statistics Agency.
Institute for Employment Studies (2003) Employer Perspectives on the Recruitment,
Retention and Advancement of Low-pay, Low-status Employees.
McGregor, A, Glass, A and Clark, S (2003) Valuing The Social Economy, CEIS.
ODPM (2003) Business-led Regeneration of Deprived Areas, Research Report 5.
Scottish Executive (2004) Closing the Opportunity Gap Targets.
Scottish Executive (2005a) Employability Framework for Scotland: Report of the
Employment Demand Workstream, Final Report. Edinburgh.
Scottish Executive (2005b) Employability Framework for Scotland: Report of the
Interventions Workstream, Final Report. Edinburgh.
Scottish Executive (2005c) Lifelong Learning Statistics.
Scottish Executive (2006) Annual Population Survey in Scotland.
SFEFC/SHEFC (2005) Learning for All, Report of the Widening Participation Review
Group, Scottish Further Education Funding Council and Scottish Higher Education
Funding Council.
Small Business Service (2006) Annual Small Business Survey.
Social Exclusion Unit (2004) Jobs and Enterprise in Deprived Areas.
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ANNEX C: PROGRAMME DRAFTING
Introduction
Overall drafting on the 2007-13 Programmes has been overseen by the European
Structural Funds Division (ESFD) within the Scottish Executive. Specific drafting and
research has been undertaken as follows:
• background paper for socio-economic analysis: Training and Employment
Research Unit in the University of Glasgow;
• background paper on indicators and targets for the Programme: DTZ;
• Equal Opportunities Strategic Assessment, led by the ESFD; and
• ex-ante evaluation of the Programme: Hall Aitken Associates.
Throughout the development of the 2007-13 Programmes, there has been regular
and intensive engagement with external partners, as detailed in the sections below.
This has taken place against a background of difficult decisions having to be made
because of the sharp reductions in the Structural Funds coming to Scotland.
Programme drafting, engagement and consultation has gone through several stages:
• initial engagement on proposals;
• the development of the National Strategic Reference Framework document;
and
• the public consultation on the draft Scottish programmes.
Initial engagement
Following the EU Budget agreement in December 2005, the Scottish Executive
initiated active discussion on programme development through a series of
stakeholder events held in December 2005 and January 2006 throughout Scotland
(Dunfermline, Glasgow, Inverness and Melrose). At these meetings, the Executive
set out initial views on the programmes and priorities for discussion. The meetings
were intended by approximately 200 representatives of a range of partner
organisations, including Local Authorities, the Enterprise Networks, further and
higher education institutions, the voluntary sector, environmental bodies and other
organisations.
Following these events, discussions on future programming continued through the
Scottish European Structural Funds Forum. Chaired by the Scottish Deputy Minister
for Enterprise & Lifelong Learning, the Forum brings together senior representatives
from the main Structural Funds partner organisations. Programme development was
discussed at meetings on 30 January, 2 October and 12 February 2007.
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Two important studies were commissioned during this initial phase. First, Hall Aitken
Associates were commissioned to do a study of the new delivery options for the
Structural Funds programmes in Scotland, making use of comparative case studies
from other parts of the EU; the recommendations of Making Every Euro Count are
discussed in section 3.2 of this report. Second, a study group of ESFD and
Programme Management Executive representatives produced a report on how to
preserve and enhance value added activities supported by the Structural Funds; the
Adding Value, Keeping Value report is discussed in 3.2 as well.
National Strategic Reference Framework
The National Strategic Reference Framework (NSRF) was produced under the
overall co-ordination of the UK Department of Trade and Industry. A Scottish chapter
was prepared for the NSRF by the ESFD, taking into account partner views on initial
programme proposals as set out in the stakeholder events and the Structural Funds
Forum. The DTI held a consultation on the NSRF, which ended on 22 May, with
some 45 responses coming from Scottish partners. Taking account of these views,
the ESFD provided the Scottish Executive response for the UK Government’s
Response to the consultation, which was published in October. Partner views
expressed in the NSRF consultation were also taken into account in preparing the
draft Scottish programmes for consultation.
Public consultation on draft Programmes
A full public consultation was held on the four Structural Funds programmes- the
ERDF and ESF Programmes under the Convergence Objective in the Highlands &
Islands, and the ERDF and ESF Programmes under the Competitiveness Objective
in Lowlands & Uplands Scotland. It began on 24 October and ended on 8 January.
103 responses were received on the consultation document for the Lowlands &
Uplands Scotland (LUPS) area and 21 for the Highlands & Islands (H&I) consultation
document. The main category of respondents for the LUPS programmes were
region-wide organisations (22 responses). In terms of locality, a significant number of
respondents were based in the City of Glasgow (16 responses) and a further 8
responses in the City of Edinburgh. In regional terms, the West of Scotland provided
35 responses, the East of Scotland, 28, and a significant number came from the
South of Scotland, particularly Dumfries & Galloway (13 responses). At least one
response was received from each Local Authority area, with the exception of
Inverclyde, as the following table outlines (the table does not include responses that
were region-wide).
Aberdeen City 3
Aberdeenshire 2
Angus 1
Argyll and Bute 2
Clackmannanshire 2
Dumfries & Galloway 13
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Dundee City 2
East Ayrshire 1
East Dunbartonshire 1
East Lothian 1
East Renfrewshire 1
City of Edinburgh 8
Eilean Siar (Western Isles) 3
Falkirk 1
Fife 2
Glasgow City 16
Highland 2
Inverclyde 0
Midlothian 2
Moray 2
North Ayrshire 2
North Lanarkshire 3
Orkney 1
Perth & Kinross 1
Renfrewshire 3
Scottish Borders 5
Shetland 1
South Ayrshire 1
South Lanarkshire 5
Stirling 1
West Dunbartonshire 1
West Lothian 2
By sector, Local Authorities were the largest group responding to the LUPS
consultation (33 responses). A large number of responses also came from the
Higher and Further Education sector (26 responses), the voluntary sector (18
answers) and a number of sub-regional umbrella organisations, including Community
Planning Partnerships (CPPs) and other local partnerships (16 responses), as well
as Scottish Executive agencies and Government bodies (12 responses). Responses
were also received from individuals and business organisations.
Local authorities 33
Scottish Executive Agencies, NDPBs, Government bodies 12
Sub-regional umbrella organisations, CPPs, local representatives 16
Professional bodies, Trade Unions, industrial organisations 0
Academic groups 0
Political parties, MPs, MSPs, MEPs 5
Education & skills organisations, Higher Education, Further
Education 26
Third sector/voluntary sector 18
Individuals 4
Business organisations 4
NGOs 6
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In addition, a series of specific workshops involving external partners were run to
focus on specific priorities and themes in November and December. In Lowlands &
Uplands Scotland, workshops were held on each priority in the ERDF and ESF
programmes, typically involving 15 partners drawn from a wide range of
organisations representing Local Authorities, the Enterprise Networks, the voluntary
sector, higher and further education, Government bodies and other organisations.
The workshops enabled more intensive discussion on the content and delivery of
each priority. Workshops were also held on the two horizontal themes – equal
opportunities and environmental sustainability – and there were a series of similar
workshops involving the Programme Review Group in the Highlands & Islands.
Executive summary of partner and Executive responses to the Lowlands &
Uplands Scotland consultation
The consultation on the Lowlands and Uplands 2007-2013 Operational Programmes
was launched on 24 October 2006 and was completed on 8 January 2007. The
consultation covered the two programmes for the region under the new
Competitiveness Objective of the 2007-2013 Structural Funds period: one European
Regional Development Fund (ERDF) Programme and one European Social Fund
(ESF) Programme. The consultation was held in parallel with the consultation of the
Operational Programmes for the Highlands and Islands area under the Convergence
Objective.
Overall, there was a strong response to the consultation, reflecting the historical
active engagement of Scottish partners in the development of Structural Funds
programmes. Written responses were submitted by 103 respondents altogether from
across the region, reflecting nearly all geographical parts of the region and all
stakeholder sectors.
Socio-Economic Analysis
Partners were largely positive about the socio-economic analyses underpinning the
Operational Programmes. A number of suggestions were made for their
improvement, including more sub-regional analysis, sensitivity to local economic
characteristics and a range of thematic issues such as the role migrant labour and
the impact of demographic changes. These will be added to the revised Operational
Programmes, strengthening the analyses. In addition, following the completion of the
SEA, environmental analyses of the region will be included as well.
Priority Content
On the appropriateness, consistency and coherence of the ERDF priorities,
respondents were largely positive but there were numerous comments on ways in
which the priorities could be refined. Under Priority 1, several respondents asked for
targeting in favour of the areas of need within the region while others argued that the
support for research and innovation should be defined more widely. Under Priorities
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2 and 3, concerns were raised about whether specific areas would be covered under
the ‘urban’ and ‘rural’ definitions under each priority. Views on allocations were
similarly mixed but with little consensus on an alternative funding split.
In responding, the Executive will make several changes to the priorities. To give
greater focus to the region-wide support in the Programme, Priority 1 will now be
split: the new Priority 1 will continue to focus on research and innovation (though
with a wider view of the processes) while Priority 2 will concentrate on access to
finance, entrepreneurship and resource/energy efficiency. No spatial targeting will be
introduced for this priority. The new Priorities 3 (urban regeneration) and 4 (rural
development) will remain, but overall there has been a re-balancing of funding
towards the region-wide priorities (1 and 2).
With regards to ESF priorities, again, respondents were satisfied that they broadly
addressed the region’s challenges and demonstrated concentration and coherence.
However, a significant number of respondents asked whether Priority 3 (lifelong
learning) could be subsumed within Priorities 1 and 2 (although there was strong
counter-arguments put forward). There were mixed views on spatial targeting, some
wanted it relaxed for Priority 1, other extended to the other priorities. There were also
a number of concrete suggestions of eligible groups and activities that should feature
in the priority descriptions.
The Executive welcomes the broad approval of the priority structure and the strategic
focus. We believe that the case for a separate lifelong learning remains strong, but
will adjust the allocations somewhat to give more funding to Priorities 1 and 2. The
suggestions on revising eligible groups and activities will be examined seriously.
Comments were also made about the Programmes’ fit with domestic and other EU
policies. Respondents felt that more account should be taken of regional/local
strategies as well as a number of major national strategies (particularly for tourism
and the environment). In terms of parallel EU funding streams, more needed to be
done to make Structural Funds complement the Scottish Rural Development
Programme, the European Fisheries Fund, the new EU research funding
programmes and other EU initiatives. The Executive accepted that strategic fit was
paramount for the new Programmes – at regional and local as well as national level -
and would provide more detail on how complementarity with domestic and EU
policies can be achieved in the final Operational Programmes.
Horizontal Themes
Respondents welcomed the cross-cutting themes of environmental sustainability and
equal opportunities and a number of concrete suggestions were made about putting
the commitment to these themes into operational practice. With respect to
environmental sustainability, the recommendations are part of the Strategic
Environmental Assessment consultation and the Executive will set out final views on
how to build on the Scottish legacy in these themes as part of the consultation to that
response. For equal opportunities, we have conducted an equal opportunities
assessment of the Programmes involving stakeholders. Their recommendations will
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also inform the final shape of the Programme documents. A third cross-cutting theme
– social inclusion – has been added for all programmes.
Delivery
On the delivery of the Programmes, respondents believed that the current system of
competitive bidding was a strong foundation for the future – it should be ‘fine-tuned’
not ‘overhauled’. As a result, there was some wariness about the proposed use of
Intermediate Delivery Bodies, particularly Scottish Enterprise, and respondents
asked for greater control and monitoring of the bodies’ activities. Several
suggestions were made for improving the challenge-fund approach, although several
partners did not feel that partnership and minimum project threshold requirements
should be introduced. The current structure of peer group appraisal and
representative committees should be kept but with the creation of a single
Programme Monitoring Committee for the two Programmes. A number of specific
recommendations were also made regarding project appraisal and selection.
The Executive fully agrees with the need to preserve the key features of the current
system while adopting it to an environment of reduced funding. Peer group appraisal
should be maintained. Several of the specific suggestions on project appraisal are
welcomed as is the suggestion of a single PMC for the region. However, while the
Executive agrees that partnership should be encouraged and not required in project
bids, it believes that a modest minimum project threshold across all priorities in the
two Programmes will encourage more strategic, legacy projects and reduce the
administrative burdens on partners.
With respect to Intermediate Delivery Bodies, the Executive will limit their use to
Scottish Enterprise in the new Priority 1 and South of Scotland partners in the new
Priority 4 and will ensure that their activities are closely monitored for performance.
Projects put forward by both IDBs will need to secure PMC approval.
Stakeholders were also asked about the role of Community Planning Partnerships.
Respondents felt that CPPs could make a positive contribution to the new
Programmes, but there were numerous comments on how this could be achieved
given the varying capacity of the bodies across the region. The Executive intends to
fund a selection of CPPs for a pilot period of two years, but this will be limited to a
pot of funding within ESF Priority 1 and the new ERDF Priority 3.
Targeting
The issue of geographical targeting of funding generated a considerable number of
comments. Overall, partners acknowledged the value of some targeting given the
reduction in funds, but there was little consensus over how it should be applied. In
particular, there were concerns about the designation and distinction of ‘urban’ and
‘rural’ areas in the ERDF urban regeneration and rural development priorities. Some
respondents argued that targeting should be more widely applied across the
Programmes with resources directed towards areas of need within the region.
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In reflecting on the responses, the Executive believes that spatial targeting should
only be applied in ESF Priority 1 and the new ERDF Priorities 3 (urban regeneration)
and 4 (rural development). For ESF Priority 1 and the new ERDF Priority 3, a limited
list of Local Authority areas would be defined on the basis of areas set out in existing
relevant Scottish strategies and the most deprived areas identified in the Scottish
Index of Multiple Deprivation. For the new ERDF Priority 4, a limited number of Local
Authority areas would be defined using the six-fold urban-rural classification,
targeting those Local Authorities with a significant share of their population that are
in areas with ‘remote rural’ or ‘accessible rural’ areas. Both lists would be updated
annually to take account of changes in the eligibility criteria.
In addition, concerns were expressed at the proposal of ring-fencing funding for
South of Scotland partners and the justification set out for the proposal. We remain
convinced of the value of ring-fencing funding to support a limited number of large,
strategic projects for this sub-region. This not only recognises the significant
development challenges of the area but also the successful track record in making
effective use of Structural Funds in the past and the area’s clearly-articulated
Competitiveness Strategy, which shows where Structural Funds can have an
additional and significant impact.
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ANNEX D: SUMMARY OF EX-ANTE REPORT
Summary of Report
Introduction
This report summarises the findings from the ex-ante evaluation of the 2007-13
ESF Operational Programme for Lowlands and Uplands Scotland, to be
submitted with the final version. The structure follows the outline of key
components as set out in the Commission guidance1.
The full report will contain the detailed findings and reflect the changes and
improvements to the programme which were made through the evaluation
process.
Evaluation Objectives
Council Regulation (EC) 1083/2006 requires an ex-ante evaluation for each
Operational Programme. According to Commission guidance the main
concerns are to assess:
• Relevance – of the strategy to the needs identified;
• Effectiveness – whether the objectives of the programme are likely to be
achieved; and
• Utility – judging the likely impacts against wider social, environmental
and economic needs.
More specific evaluation questions for an ex-ante evaluation concern:
• internal and external coherence; and
• the suitability of implementation systems.
Evaluation Approach
Ex-ante evaluation is as much about the process of developing the Operational
Programme as it is about the final report on the findings. The iterative and
interactive nature of the process requires a close working relationship between
evaluators and programme developers. Guided by the concern to maximise
Community added value, the Hall Aitken ex-ante evaluation team worked
closely with the Scottish Executive’s Structural Funds Division to take the
process forward. This involved:
• The Scottish Executive briefing the team of evaluators and providing
documents and information necessary to carry out the work;
• The evaluators gathering and analysing data as it became available and
providing their assessment in the form of comments throughout;
• The evaluators attending development and consultation workshops
arranged by the Executive;
1 European Commission Indicative Guidelines on Evaluation Methods: Ex-ante Evaluation, 2006
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• The Scottish Executive responding to and implementing the evaluators’
comments and recommendations; and
• Both teams meeting regularly to discuss progress and develop next
steps.
Programme Priorities
The strategy of the 2007-13 Operational Programme for the European Social
Fund has three priorities addressing different aspects of the Scottish labour
market. A fourth priority – technical assistance - provides funding support for
managing and administering the programme.
Figure 1: LUPS ESF priorities 2007-13
Priority Aim
Priority 1 – Progressing into
employment
To assist the co-ordinated
progress of unemployed and
inactive people of all ages towards
sustainable employment
Priority 2 – Progressing through
employment
To improve skills of the workforce
to enhance employability,
productivity, adaptability, inclusion
and entrepreneurial expertise
Priority 3 – Improving access to
lifelong learning
To widen access to post-school
lifelong learning, particularly for
key client groups
Relevance to the Scottish Labour Market
The starting point for the Operational Programme was an analysis of the
Scottish labour market and – resulting from it – a number of key issues which
ESF intervention could address. This chapter summarises our assessment of
the conclusions drawn from the socio-economic analysis and how appropriate
the chosen priorities are for addressing labour market issues.
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Key Challenges
Figure 2 sets out the regional strengths, weaknesses, opportunities and threats
the socio-economic analysis identified for Scotland.
Figure 2: SWOT analysis summarised from ESF Operational Programme
Strengths
Good overall employment
performance with
employment rate at
historical high
Increased employment rates
for major population groups,
including more
disadvantaged groups
Rising skills levels and
education participation rates
Participation in education
and training above EU-25
average
Acute worklessness problem –
low relative employment rates
for disadvantaged groups
Geographical variations in
employment rates (lowest in
Glasgow at 65%)
NEET group as particular policy
challenge with high
concentrations in Glasgow area
Slow decrease in levels of
incapacity benefit claimants
Areas with concentration of
worklessness as policy
challenge
Low relative employment rates
among ethnic minorities
Weaknesses
Opportunities
Macroeconomic stability as
foundation for future
employment growth
Clear standards through
regulatory framework
Scottish Executive
commitment to new
strategies on employment,
regeneration and tackling
NEET group
High willingness to work if
barriers are removed
Entrepreneurship beginning
to rise though still below EU-
25 average
New opportunities through
influx of migrants
Nature of regional economic
problems offers scope for
effective intervention
through spatial and coordinated
targeting
Economic climate and
employment levels vulnerable to
macroeconomic instability or
change in interest rates
Increased migration – challenge
to turn migration into an
opportunity for Scottish
economy
Ageing population
Social attitudes among some
groups within working
population – gender equality
issues
Threats
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Assessing Relevance
The evaluation team provided guidance, commentary and input to the socioeconomic
analysis from the very early stages. This process helped the analysis
to:
• provide a clearer focus on some of the key issues where ESF resources
could add value to existing activity;
• set out clearer evidence of need to underpin any interventions; and
• comment on previous experience through Structural Funds and other
interventions.
Taking into account the objectives of the EU cohesion and employment policy,
the socio-economic analysis identified several areas where the Scottish
economy lagged behind the UK and other EU economies. The key challenges
identified by the analysis, and therefore the key areas for potential intervention,
were around:
• reducing the acute levels of worklessness in certain groups and areas
through targeted intervention;
• improving employment rates among ‘hardest-to-help’ groups by
improving ‘soft’ basic skills;
• sustainable employment measures that address both labour supply and
demand issues;
• tackling equality issues;
• strengthening measures to increase entrepreneurial and social
enterprise activity through developing appropriate skills; and
• increasing lifelong learning participation rates among the most
disadvantaged groups.
These issues all relate to key aspects of the Lisbon agenda, through promoting
greater knowledge based competitiveness and addressing the disadvantage
that holds it back. They support ERDF activity by developing skills for
increasing coherence of the labour market.
The priorities identified to address these key weaknesses have been
developed to make sure that while they support and link with existing domestic
policies and programmes, they clearly add value by filling gaps in existing
provision. The priorities are relevant to addressing the needs identified through
the socio-economic analysis.
Evaluating the Rationale and Consistency of the Strategy
The ESF Regulation emphasises that ESF resources are targeted at the most
important needs in order to bring about significant effects. This section gives an
overview of the strategy within the ESF Operational Programme and
summarises our assessment of how appropriate this strategy is.
Figure 3 below shows the links between the key challenges identified through
the socio-economic analysis and the programme objectives. Each objective is
addressed through one single priority.
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Figure 3: Addressing key challenges through the programme
1 Targeting particular groups
and areas
2 Helping those furthest from
labour market
3 Targeting low-waged and
low-skilled
4 Addressing
under-representation
5 Improving skills for
entrepreneurs
6 Improving social enterprise
skills
7 Targeting access for most
vulnerable groups
1 Progressing
into
employment
2 Progressing
through
employment
3 Improving
access to
lifelong learning
Key programme challenges Objectives & Priorities
The overall strategy provides a clear and logical approach to addressing labour
market issues by removing barriers within the workplace (demand-side
measures) and addressing skills and employability issues within the workforce
(supply-side measures). The interventions flow from a wide body of evidence
regarding successful approaches to engaging hard to reach groups and
overcoming multiple barriers.
The Executive has looked at existing interventions and possible alternative
actions to identify where ESF funding can add most value. The tightness of the
Scottish labour market identified in the socio-economic analysis requires a
strategy that focuses on widening and up-skilling the workforce. This will
require actions aimed at both the pre-employment stage and within the
workplace. Pre-employment employability measures can justify public
intervention because they require a high level of tailored support and a multiagency
approach that is difficult to provide through mainstream measures. And
workplace training and development is widely identified as a market failure due
to the blurred nature of the benefits to the employer, the individual and the
wider economy. Improving workforce skills can be regarded as a public benefit
in meeting the Lisbon objective of a more highly skilled and competitive
workforce.
The three priorities provide a relatively coherent strategy to address the issues
highlighted by the socio-economic analysis. The first two priorities have clear
and complementary roles in addressing the barriers to entering the labour
market and in developing wider skills within the workplace. The third priority on
lifelong learning will need to be clearly directed at developing learning capacity
that focuses on overcoming barriers and widening access (over and above any
measures supported through Priority 1). It should also be clear that the learning
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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infrastructure and outcomes being funded under Priority 3 will help to meet the
needs of the labour market (rather than simply learner’s needs) in order to
meet Lisbon objectives.
This approach will ensure that the three priorities are complementary and that
there is no conflict or confusion between priorities.
Assessing Strategic Coherence
This chapter looks at the programme strategy in the context of policies at EU
and Scottish level. The Community Strategic Guidelines set out priorities at EU
level the strategy needs to support and contribute to achieving the Lisbon
objectives. The ex-ante evaluation mapped the priorities of the 2007-13 ESF
Operational Programme for the LUPS area against these and the key domestic
policies to assess strategic coherence. This analysis justifies the choice of
priorities in the light of these context priorities and the Operational Programme
clearly shows where the links are. The strategy chosen also takes account of
lessons learned from previous relevant programmes.
Figure 4 below summarises how programme priorities will support the relevant
priorities of the Community Strategic Guidelines and the Integrated Guidelines
for Growth and Jobs, as well as the recommendations of the most recent
update of the European Employment Strategy.
The priorities of the 2007-13 Operational Programme fit with the relevant
policies at UK level, such as the National Employment Programme and the
New Deal initiative. They also support the aims the UK Government has set out
in its National Reform Programme.
The UK National Strategic Reference Framework explains how the UK – and
Scotland – will use Structural Funds to achieve the Lisbon objectives. The
strategy in the ESF Operational Programme links into the NSRF logically.
At Scottish level, some key strategies set the policy direction for labour market
interventions. The overarching strategy for developing the Scottish economy is
the Framework for Economic Development in Scotland (FEDS) and the new
ESF priorities are relevant to its key outcomes. The ex-ante evaluation also
looked at strategic fit with:
• Workforce Plus – an Employability Framework for Scotland;
• Closing the Opportunity Gap;
• Regeneration Policy Statement;
• NEET Strategy – More Choices, More Chances;
• Smart Successful Scotland; and
• Lifelong Learning Strategy.
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EU priorities Support through LUPS ESF priorities for 2007-
13
Community Strategic Guidelines – broad guidelines
Making Europe and its regions more attractive places to invest and
work
Improving knowledge and innovation for growth
Creating more and better jobs
• Attract and retain more people in employment and
modernise social protection systems
• Improve adaptability of workers and enterprises and the
flexibility of the labour market
• Increase investment in human capital through better
education and skills
• Administrative capacity
• Help maintain a healthy labour force
Taking account of the territorial dimension of cohesion policy
Addressed through activities related to
improved working conditions under Priority 2
(progression routes and gender equality)
Addressed through activities related to skills
development under Priorities 2 and 3
Priorities 1 and 2
Priorities 1 and 2
All priorities, but mainly Priority 3
Addressed through technical assistance
Indirect support through all priorities
Priority 1 addresses the need for an urban
dimension
Integrated Guidelines for Growth and Jobs – 7 out of 24 are
relevant:
17. Implementing employment policies aiming at achieving full
employment, improving quality and productivity at work, and
strengthening social and territorial cohesion
18. Promote a lifecycle approach to work
19. Ensure inclusive labour markets and work attractiveness, and
make work pay for job-seekers (eg. disadvantaged/inactive people)
Priorities 1 and 2
All priorities
Priorities 1 and 2
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20. Improve matching of labour market needs
23. Expand and improve investment and training systems in
response to new competence requirements
24. Adapt education and training systems in response to new
competence requirements
Priorities 1 and 2
Priority 3
Priorities 2 and 3
European Employment Strategy 2004 recommendations for the
UK
Ensuring that wage trends do not exceed productivity gains
Ensuring that active labour market policies and benefit systems
prevent de-skilling and promote quality in work, by improving
incentives to work and supporting sustainable integration and
progress in the labour market of inactive and unemployed people;
addressing the rising number of people claiming sickness or disability
benefits, and giving particular attention to lone parents and people
living in deprived areas
Improving the access to and affordability of childcare and care for
other dependants, increasing access to training for low paid women
in part-time work, and taking urgent action to tackle the causes of the
gender pay gap
Implementing national and regional skills strategies, with particular
emphasis on improving literacy and numeracy of the workforce, the
participation and achievement of 16-19 year olds, and low skilled
workers in poorly paid jobs
Not addressed through 2007-13 programme
Activities under Priorities 1 and 2 address this
Activities under Priorities 1 and 2 address this
All priorities have a link to these issues
EU common objectives on social protection and inclusion Mainly addressed through Priority 1
EU education and training objectives Mainly addressed through Priority 3
Figure 4: Mapping OP priorities against EU priorities
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Figure 5 below shows that OP priorities are in line with these strategies
and where the links are:
Figure 5: Fit with Scottish strategies
Strategy Priority 1 Priority 2 Priority 3
Workforce Plus x x
Closing the Opportunity
Gap x x x
Regeneration Policy
Statement x possibly possibly
NEET Strategy x x x
Smart Successful Scotland x x x
Lifelong Learning Strategy possibly possibly x
Ensuring Equality
It is a major concern of the European Commission that programmes are
designed in a way that ensures equality between men and women and
non-discrimination. Building on lessons from the 2000-06 Objective 3
Programme, the Scottish Executive has made equal opportunities a
horizontal theme underpinning all aspects of the 2007-13 ESF
programme. More specifically, this is done by
• Targeting specific groups under Priority 1;
• Funding activities that address equality issues; and
• Mainstreaming of equal opportunities into programme processes,
including the use of designated equal opportunities champions in
committees and representation in committees themselves.
The selected programme indicators and targets will help with
implementing the equal opportunities objectives, in line with Commission
regulations.
Financial Resources
The relative allocations across the Priorities have been the subject of
detailed consultation and discussion with key stakeholders. The
proposed allocations reflect the extent to which ESF resources can
address current gaps and weaknesses, and therefore add value to the
domestic investment. Most funding has been allocated to the first
(44.9%) and second (36.9%) priorities which reflects the key
weaknesses identified in the socio-economic review. The biggest
allocation towards the employability measures is justified given the level
of intervention that is likely to be needed to move these target groups
nearer to the labour market.
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The financial allocations were based on unit costs of the different
interventions developed through data from the Annual Implementation
Reports and the EKOS Beneficiaries Survey. Some unit costs are clearly
easier than others to quantify and others are perhaps more difficult to
accurately put a cost against.
Spreading funding allocations almost evenly across the whole funding
period 2007-13 carries certain risks in terms of sustainability and the
n+2 rule. Ideally funding would increase considerably after the first year
and decrease gradually from there towards the end in 2013. Only then
supply would be in line with demand. It would encourage projects to
develop exit strategies and prepare for operating without Structural
Funds. It would also be a better response to lessons learned from
previous funds regarding n+2. The Executive does not control overall
annual allocations as the European Commission determines these.
However, flexible intervention rates may offer scope for lowering risks.
Quantification of Objectives: Indicators and Targets
The Operational Programme identifies a set of output, result and impact
indicators. This section gives a brief overview of how the indicators were
developed before providing the ex-ante evaluators’ assessment of how
appropriate the indicators – as well as related targets – are.
The Scottish Executive commissioned a study that aimed to identify a
suitable set of indicators and targets for the 2007-13 programmes. The
specification for the research took into account lessons from previous
programmes by stressing that this set of indicators would have to be
scaled down and simplified compared to existing ones. As ex-ante
evaluators we attended and contributed to two workshops that were part
of the development process. However the approach taken - whereby
indicators were developed in advance of activities - has not benefited
the quality or relevance of the indicators.
The results of the process needed further refinement to make the
indicators appropriate for effectively measuring progress and meeting
Commission requirements. This summary report sets out our comments
on the near-final version of programme indicators and makes some
recommendations.
Experience from previous programmes has shown projects do not
benefit to any great extent from the data collected, so the indicators are
designed to be the minimum required to monitor the programme. Where
more detailed, or different, indicators are required (for example by
Annex XXIII) these should relate back through the programme to
support its delivery, and integrate with national and regional strategies.
The indicators chosen do reflect the activities that will take place under
each priority, so there is a distinct logic behind their choice – a causal
chain that runs through the programme.
There are practical difficulties associated with tracking beneficiaries
post-intervention which mean that much of the longitudinal data will have
to be collected at programme level, rather than by individual projects.
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These difficulties are a lesson learned from previous programmes and
addressed in the choice of indicators. This is a positive result for the
programme as it will yield more reliable data over time and reduce the
onus on projects to track beneficiaries that they may have no dealings
with.
Some work needs to be done in determining how some of the data for
the indicators can be effectively collated, and the information fed back to
projects, programme managers and other stakeholders. There are
potential problems with administrative burden of Annex XXIII; and the
problem of setting targets for groups or achievements that are not
measured. But all indicators should be assessed to see if baseline work
is needed at this stage.
The main question is the use of current unit costs for a programme that
will continue to deliver to 2013. If the programme is trying to drive down
unit costs then this is a reasonable basis for calculating targets, but
delivery agents should be told that they will have to be more efficient (in
line with the reduced TA allocation). But if we assume that costs will rise
in line with Treasury inflation estimates, then we need to discount the
targets by around 2% per annum. Otherwise the targets are unattainable
because the unit cost in year 7 will be 12% greater than in year 1.
Targets need to be assessed for achievability across the programme,
because the demand curve for projects is different from the supply curve
(actually straight line) of resources. So at all times there is likely to be a
disparity between demand and supply that must have an effect on
targets.
There is also a question over whether the £200k project threshold will
have an effect on targets, as larger more strategic interventions are
being encouraged. But it is not clear what impact this change will have
on delivery.
ESF Priority 1
The suggested indicators for ESF priority 1 combine several output
indicators which are based on a count of participants along with two
‘result’ indicators which focus on hard outcomes (jobs and
qualifications). These reflect the core requirements for EU monitoring
purposes. However the final indicator for this priority also aims to identify
soft outcomes or ‘distance travelled’. This reflects a growing recognition
that for many of the hardest to reach groups being targeted under this
priority, a sustainable job is not a realistic prospect in the short to
medium term. However the reference to ‘sustainable employment’ may
be a difficult one for projects to operationalise, particularly given the
flexible nature of the labour market. For many within these target groups
moving into mainstream training or educational provision would be an
extremely positive outcome. The Executive will need to provide clear
guidance as to how this will be measured.
The targets for this priority are based on the most up to date research,
or the best proxy, which is valid. The scale of targets means that the
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interventions are of an appropriate scale for the target sectors/ areas
from the socio-economic analysis, providing a reality check.
ESF Priority 2
The indicators for Priority 2 are a similar combination of the numbers of
participants among lower skilled groups split down by gender, and the
numbers gaining skills at level 2 and level 3. However the indicator
should be the numbers gaining skills at Level 2; rather than at Level 2 or
below.
The impact indicator for this priority is the number of participants who
progress into ‘more sustainable or better employment’. However these
concepts may again be difficult to operationalise or gather through an
evaluation. It may be clearer to use measurable concepts such as ‘more
secure’ or ‘higher skilled’ employment. Security of employment can be
measured through whether someone has a permanent contract as
opposed to a temporary, casual or self-employed arrangement. Skill
levels of jobs can be identified through surveys or earnings could be
used as a proxy.
The impact indicator of net number of participants entering employment
is not particularly relevant given that this priority largely focuses on
workplace training to improve skills among employees. This indicator
should perhaps be explicitly deployed towards the groups being targeted
for labour market re-entry such as females and older people returning to
the workplace. Again, an indicator that measures the skill level or
productivity associated with a job might be more relevant for this priority.
The indicators for gender balance projects focus solely on number of
project participants. The Executive should consider whether an outcome
or impact indicator for this part of the priority is feasible. This may for
example involve identifying whether participating workplaces have
improved their gender balance, in terms of pay, job levels or job types.
The indicators identified for promoting enterprise and social enterprise
skills combine output, result and impact indicators and appear
appropriate to measure progress.
There is a reasonable logic to the way the targets have been calculated.
It will be important that programme managers should keep an eye on the
outputs and results as things progress.
ESF Priority 3
There is a danger of duplicating the indicators for Priority 1, given the
very different activities carried out under Priority 3, and the lack of
causal link between the activity and outputs. Priority 3 is about capacity
building rather than volume of throughput and indicators and targets
need to reflect the increased capacity. The indicators and targets should
reflect the funded activity (certainly for outputs and results) although the
impacts could reflect improvements in, for example, educational
attainment, even numbers of participants. There is also the problem that
the previous Objective 3 programme also found this an almost
impossible task.
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Given the lower allocation to this priority and the large scale of projects,
targets are going to be small and will need to be fairly specific.
Appropriate indicators are going to be very difficult to identify in advance
of any projects being selected, particularly if they are large projects.
Indicators might then include:
• Number of courses/ materials developed;
• Number of pilot projects;
• Number/ distribution of delivery locations for courses;
• Increased quality of courses/ materials, such as quality
accreditation from SQA, or workplace quality systems that lead to
improved on the job training;
• Number of trained trainers or assessors;
• Number of new/ innovative delivery models (consortia,
partnerships, new approaches to education supply chain);
• Number of colleges, institutions, learning centres delivering the
materials – that is dissemination of new materials, licensing,
marketing and communications and so on.
Implementing the Programme
This section summarises the quality assessment of the different aspects
of the programme implementation system. The assessment takes into
account lessons learned from previous programmes and stakeholder
feedback from the consultation process.
The Scottish Executive as Managing and Certifying Authority will work
with the newly appointed Intermediate Administration Body (IAB) for the
LUPS area to implement the ESF and ERDF programmes. They will use
a combination of challenge funding and direct allocations of block
funding to a number of Intermediate Delivery Bodies (IDBs) to deliver
elements of the programmes. The IDBs are existing domestic delivery
organisations who will support specific major projects.
The mix of challenge and block funding was identified as the most
suitable approach for Scotland through in-depth research, including a
comparative study across the EU and stakeholder consultations.
To minimise negative effects of a delayed programme start date a
‘shadow funding round’ was run for projects supporting vulnerable client
groups.
Intermediate Administration Body
The Executive selected the IAB through an open tendering process.
Unlike in previous funding periods, one single body will be responsible
for managing and administering the ESF and the ERDF programme.
This arrangement is likely to ensure better co-ordination and integration
of EU-funded activities – as recommended in previous evaluations. This
is particularly important considering the increased focus on strategic fit
for the 2007-13 period.
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At tendering stage, the Scottish Executive set out the tasks and key
duties of the IAB, as well as a set of key criteria against which the body’s
performance will be measured. The latter cover:
• Application processing;
• Claims processing;
• Project monitoring;
• Management reporting;
• Communications; and
• Secretariat functions.
The performance criteria and the targets seem appropriate for effective
delivery. The requirements as outlined in the tender document, reflect a
shift of the IAB’s focus from a purely administrative role to more project
support and development. This had been an issue from stakeholder
consultations, particularly in the face of smaller project numbers that
result from lower funding levels. As well as setting clear quality criteria,
the tender document left some scope for contractors’ judgement on the
most effective way to implement processes.
The successful tenderer – ESEP - has been the Programme
Management Executive for the East of Scotland Objective 2 Programme
for some time. Building on this experience the organisation is well
placed to carry out the role of IAB effectively.
Considering the length of the funding period, it seems appropriate to
limit the contract with the IAB to three years initially. After that the
Scottish Executive will decide on extensions on an annual basis.
Intermediate Delivery Bodies
The principles and criteria the Executive has been applying when
selecting IDBs seem appropriate. The approach is ring-fencing money
and allocating it to a number of partnerships to fund strategic projects. In
selecting appropriate Community Planning Partnerships to pilot the
Priority 1 measures, the Executive should consider their track record of
effectiveness in delivering against their existing Regeneration Outcome
Agreements.
Procedures
Procedures for dealing with applications and claims seem appropriate.
Particularly plans to introduce a two-stage application process, which
many stakeholders had called for, will improve efficiency. Projects
unlikely to receive funding can be filtered out. We recommend that the
IAB should provide advice and support for organisations producing their
project outlines. Target timescales for processing are likely to ensure
smooth running and prevent ‘n+2 risks’. Projects will be appraised by
appropriate committees who will provide the necessary knowledge and
experience but also strategic direction.
The Scottish Executive has an online application system that will be
used for project applications and claims across programmes. The lack of
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such a system had been a point of criticism in previous programme
evaluations. The system will ensure consistency and many
organisations will already be familiar with it.
The evaluation strategy for the 2007-13 programme will follow a similar
structure to that used for the 2000-06 programme but take into account
recommendations from previous evaluations, most importantly the midterm
evaluation of the Objective 3 programme. One key
recommendation was to undertake more monitoring visits. The new
monitoring plan envisages monitoring visits to 10% of volume as well as
10% of value of all projects which is in line with EU regulations and
seems appropriate. The IAB is responsible for these visits which cover
challenge fund and non-challenge fund projects. The Scottish Executive,
in turn, will carry out detailed monitoring visits to the IAB as well as
verification and compliance visits to a percentage of projects. It is
important that distribution of funds across geographies and sectors is
monitored, as recommended in the Objective 3 mid-term evaluation.
Overall monitoring and evaluation provision, including reporting
arrangements, seem appropriate.
The administrative burden the programme entails is – to a large extent –
the result of Annex 23 of the Commission Regulation setting out
implementation rules2, which asks for very detailed breakdowns of ESF
participation figures. However, the Executive has taken steps to reduce
administration requirements while following the regulations, such as a
reduction of IABs. The threshold for minimum project size, a planned 2-
stage application process and a move towards multi-year funding also
offer opportunities for reducing the administrative burden, so does the
Executive’s encouraging of partnership working.
A communications strategy underpins communication between the
Scottish Executive and the IAB and any publicity on the programmes.
Marketing and PR channels are clear with the Scottish Executive’s
Structural Funds Division acting as the Managing Authority’s contact
point. We recommend putting increased emphasis on dissemination of
good practice, for example by setting up a searchable project database.
The Role of Partnerships
The implementation arrangements offer opportunities for constructive
partnership working where appropriate and the Operational Programme
itself was developed through a partnership approach. The Programme
Monitoring Committee as a key body for delivering the programme will
reflect this through its membership.
Whether partnerships at project level should be a requirement for
delivering the new Structural Funds programme has been the subject of
many lengthy discussions. Stakeholders agreed that certain elements of
partnership working could benefit project success but downsides
included potential disparity of power and costs of developing and
managing partnerships. The Scottish Executive has taken the approach
2 Corrigendum to Commission Regulation 1828/2006
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of encouraging but not prescribing partnership working which provides
some flexibility in that partnerships are likely to be used where
appropriate. We recommend that good practice from EQUAL
Development Partnerships should become an integral part of project
guidance and other publicity and support materials.
Risk Appraisal
Figure 6 below summarises the main risks we have identified in the
context of programme implementation.
Figure 6: Summary of risks from implementation provisions
Risk Recommendation
IAB does not meet performance
criteria and Managing Authority
decides not to extend the contract
Closely monitor performance and
develop alternative strategy if
necessary
IAB has more experience of
managing ERDF – gaps in
knowledge and experience
Ensure staffing profile reflects the
wider remit
IAB is biased towards its traditional
geographic area
Management group should be broadly
representative of all parts of the LUPS
region and application processes
transparent and accountable.
IAB does not have the right staff and
skills in place over time
IAB should develop an appropriate
workforce plan that will minimise the
risks of staffing problems; particularly
towards the end of the contract period.
CPPs turn out to be unsuitable as
IDBs
SE should pilot this approach initially
to highlight any issues with the
delivery capacity and effectiveness of
CPPs. A robust evaluation framework
should be developed for the pilot.
Lack of awareness among advisory
groups and project sponsors of
targets, indicators etc.
Have a robust communication strategy
in place that covers how various
players will be informed and updated.
Monitoring is less consistent for
projects funded through IDBs.
A requirement to report against a
small number of core indicators
should be part of the commissioning
process.
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Conclusion
The final version of the 2007-13 ESF programme for Lowlands and
Uplands Scotland is the result of a process of extensive consultation, as
well as interactive and iterative working between the Scottish Executive
and ex-ante evaluators. We consider the Operational Programme and its
provisions fit for using ESF money effectively to address existing market
failures and adding value.
More specifically, we can confirm that:
• A socio-economic analysis of the area was undertaken that meets
the requirements of Commission guidance;
• The programme has a valid and consistent strategy so priorities
and their eligible activities address the needs identified by the
socio-economic analysis;
• The strategy is strategically aligned with the Lisbon Strategy and
relevant strategies at EU, UK and Scottish level;
• The implementation system is suitable for delivering funds
effectively;
• Lessons learned from previous interventions have been taken
into account; and
• The programme addresses the horizontal themes – equal
opportunities, environmental sustainability and social inclusion –
through its various aspects.
We have made some final recommendations on indicators, financial
allocations and numerical forecasts for the Executive to consider in the
Operational Programme they will submit to the European Commission.
Executive Response to Final Ex-Ante Evaluation Report
The ex-ante evaluation process has been a highly valuable, iterative process
that has resulted in continual improvements to the quality of programme
development and the final Operational Programme. Recommendations have
been made on – and responded to – the different drafts of the Programme by
the evaluators. Consequently, while the above summary represents the final
set of comments by evaluators, it does not fully capture the process of
dialogue that has marked the process as a whole, resulting in a higher quality
Programme.
The Executive has take on board the final recommendations by the ex-ante
evaluators in the completion of the Programme.
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ANNEX E: EQUAL OPPORTUNITIES IMPACT ASSESSMENT
Background
1. All public authorities in Scotland have a statutory general duty to
promote Equal Opportunities and prohibit discrimination in the exercise of
public functions under the Equality Act 2006. This means that listed public
authorities must have due regard for the need to:
• eliminate unlawful discrimination;
• promote equality of opportunity, and
• promote good relations between people with different equality barriers.
2. In addition to the general duty, Scottish Ministers have used their
powers to make a statutory order placing more specific duties on the Scottish
Executive and other public authorities. The specific duties require these
bodies to undertake an Equality Impact Assessment when introducing new
policies, or changing existing policy in a significant way. This will entail:
• assessing and consulting on the likely impact of the policies they are
proposing to adopt;
• monitoring any adverse impact of their policies;
• publishing the results of their assessment, consultations and
monitoring; and
• ensuring public access to the information and to services arising from
the Policy
3. In recognising this duty, the European Structural Funds Division within
the Scottish Executive needs to ensure that the implications of the changes
proposed in the new round of European Structural Fund Programmes have
been thoroughly assessed from all aspects of equality as part of the
consultation and development process.
Deciding on the need for an Equality Impact Assessment
4. All Departments within the Scottish Executive play a part in determining
and contributing to Scottish Economic Development. Our approach is set out
in the Framework for Economic Development in Scotland (FEDS). This sets
out an overarching vision to raise the quality of life of all the people of
Scotland through increasing the economic opportunities for all on a socially
and environmentally sustainable basis – and defines the Executive’s
economic objectives.
5. From 2007 to 2013 Scotland will again benefit from European
Structural and Cohesion Funds to support social and economic development.
Agreement on the EU budget was finally arrived at in December 2005, and
the share of regional aid for each Member State decided. With enlargement
has come re-direction of EU funds towards the new Member States. Scotland,
like many other Member States and regions of Europe, will receive
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significantly reduced levels of funding which for the new programmes will
amount to less than half of the amount available under the previous 2000 to
2006 programmes.
6. The reduced funding has required Structural Funds programmes to be
more targeted than ever before, focusing not only on activities which have the
highest value added, but also those which will leave an economic
development legacy in Scotland post-2013.
7. Following the Scottish Executive guidance, we considered whether we
needed to undertake an Equality Impact Assessment covering gender, race,
age and disability aspects of equal opportunities.
8. Although similar assessments were undertaken in England, Wales and
Northern Ireland, only in Scotland did we decide to go down the route of a full
Impact Assessment. The other regions decided that the underlying economic
development policy had not changed and therefore no Impact Assessment
was required.
The impact assessment process undertaken in Scotland
9. The steps taken to assess the impact of the change in the new
European Structural Funds Programmes were as follows:
i). An Equal Opportunities Working Group was pulled together to advise on
the Scottish European Operational Programmes’ content and the delivery
mechanism. It met for a full day on 29 March 2006 at the Scottish Executive’s
Offices in Glasgow. The workshop attendees came from the Voluntary Sector,
Ethnic Minority Community, Business, Academic, Local Authorities, Single
Issue Groups and the Programme Management Executives for the 2000 to
2007 programmes. The actions arising are summarised below.
ii). At its meeting on 26 April 2006 the European Structural Funds Equal
Opportunities Forum, which meets twice a year to advise on equal
opportunity aspects of the current programmes, was asked for a view on the
outline of the new programme and the elements we should consider in an
Impact Assessment. The actions arising are outlined in section 12.
iii). As part of the EQUAL Initiative’s Good Practice Event in Scotland on
13 September 2006 views were canvassed by the Head of the ESF Objective
3 Managing Authority on adverse impacts which emerging proposals for the
new programmes might have on particular groups. The actions arising are
outlined below.
iv). A joint meeting of the Equal Opportunities Forum and the Impact
Assessment Working Group was held on 22 November 2006 at the Scottish
Executive Offices in Europa Building, Glasgow. This was timed to coincide
with the formal consultation period which ran from October 2006 to 8 January
2007. This meeting mainly focussed on the Consultation from an Equal
Opportunities view point with regard to the new Programmes. A series of
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questions, based on those in the formal Consultation were asked, which again
informed the final draft programmes and the delivery process.
Representatives were invited from a wide range of equality groups in addition
to the usual Equal Opportunity Forum members, however attendance was
low. The reason for this may have been that there had been extremely good
input from a wide range of bodies in the initial stages, and their views had
been taken into account in the development of the draft which had been
published and was then at the formal consultation stage. Some bodies may
have preferred at that stage to enter a view as part of the formal process
registering their input in that way.
v) We therefore proceeded to contact those absent from the Forum and
the Workshop in order to obtain their views and feedback from the questions
relating to the consultation. We tried this in various forms, e-mailing,
suggesting meetings at our offices or for us to go to their offices, asking for
feedback either by telephone or by e-mail. Again the response was poor so
we considered that we should approach some individuals to ensure we had a
wide enough spectrum of views at this later stage. Further responses from the
Disability Rights Commission and the Empower Theme B EQUAL Initiative
Development Partnership were received, and these also informed the
assessment.
vi) The European Structural Funds Equal Opportunities Advisor produced
a list of the key research documents which helped with the evidence base for
some of the analysis incorporated into the early Operational Programme
proposals.
Formal Programme consultation summary of responses on equal
opportunities
10. One of the items specifically consulted on from October 2006 to
January 2007 was equal opportunities. 68 respondents addressed the issue
of equal opportunities under Question 10.35:
i) Of the 68 respondents who answered, 52 positively welcomed the
approach to equal opportunities in the operational programmes or thought it
was well integrated as a horizontal theme. Five felt that it was unclear how
equal opportunities would be implemented or that they needed more
information before commenting, in one case, referring to the forthcoming
Equal Opportunities Impact Assessment being developed by the Scottish
Executive. One respondent felt that it was not well integrated stating that the
design of the delivery system at the outset of the process negated the impact
of equal opportunities as a horizontal theme as many equality groups were
supported by projects run by the voluntary sector which they felt may have
more limited access to funds under future programmes. Eight respondents,
while offering comments in response to the issue of equal opportunities, did
not specifically comment on whether the principle was well integrated into the
programmes.
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ii) A number of specific comments were made in relation to equal
opportunities. These are summarised below:
• respondents felt that the programmes still placed too heavy an
emphasis on gender equality and wanted more consideration of race
and disability issues in line with recent legislation and public sector
guidance. Specifically, it was also suggested by one respondent that
ERDF Priority 2 should take account of access issues for disabled
people when providing funding for refurbishment of learning and
training centres. Another respondent also thought that the programmes
failed to highlight the significant discrimination faced by disabled and
the most disadvantaged groups in accessing learning and employment.
• It was suggested by four respondents that corporate social
responsibility also be integrated as a horizontal theme, requiring
businesses in particular, to provide employment to the socially
excluded.
• A number of respondents emphasised the importance of the new
programmes building upon the experience and expertise of the 2000-
06 programmes (seven respondents). In particular the importance of
integrating equal opportunities into the application, evaluation and
monitoring processes was highlighted by four respondents who
emphasised that appropriate weighting should be given to the issue in
the selection process. Two respondents also emphasised the need to
continue the role of an equal opportunities champion to monitor
progress in implementing equal opportunities into the programmes.
Clear guidance and support would need to be available to ensure that
organisations are aware of their responsibilities with regard to equal
opportunities legislation, including the recent, Age Discrimination
Legislation, and the impact this may have on project impact and
delivery. One respondent suggested that the mid-term evaluation report
should monitor equal opportunities and implementation and seek
adjustments if no progress is being made.
• Two respondents welcomed the integration of equal opportunities but
felt that this should not be pursued to the detriment of other good
projects. One also suggested that this should be monitored to ensure
that this was not funding “more of the same” from the current
programmes.
• Ten respondents for the South of Scotland welcomed the integration of
equal opportunities and highlighted that this was in line with the South
of Scotland Competitiveness Strategy.
• One respondent felt that lack of spatial targeting could affect the
implementation of equal opportunities.
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• Finally another respondent referred to the approach under LEADER+
and suggested that equal opportunities should be built into an
approach that also considers community and economic sustainability.
11. All the above was discussed at an Equal Opportunities Steering Group,
which consisted of the Chair and Secretary of the Structural Funds Equal
Opportunities Forum plus Paul McFadden and Karen Armstrong of the
Scottish Executive and Emeric Heydel, a French Intern serving an internship
with the European Structural Funds Division. This Group identified the equal
opportunities issues which needed to be addressed in redrafting the
programmes before the final proposals went forward to Ministers in March
2007.
So what changed because of the Equal Opportunities Assessment?
12. First of all, in January 2006, when we were just starting to discuss the
broad outlines of the areas on which European Regional Funds should be
spent from 2007 to 2013, particularly in the Equal Opportunities workshop in
March 2006, it was emphasised to us that equal opportunities had to be at the
core of the new programmes. If we were serious about economic
development and closing the opportunity gap going together, we had to build
all aspects of equality in from the start. It should not be an add on, nor should
a small piece of the funds be set aside to address equality issues, as Priority
5 had been in the ESF Objective 3 Programme for 2000 to 2006.
13. Officials started off talking generally about funding going to
disadvantaged individuals and groups. However, it was emphasised by a
number of our contacts that, although it was important to fund projects which
helped underrepresented groups get into the labour force and progress and
develop in the workplace, we should recognise in the wording used in the
Operational Programmes that the barriers faced could be due to
discrimination and ignorance as well as disadvantage or lack of skill. The
early drafts took this point on board, not just in terms of wording, but also
when thinking about the types of strategic projects which would be funded in
the new programmes.
14. There was early general agreement that Equal Opportunities should be
a Horizontal Theme for each of the four Scottish Programmes. This meant
that every project to be funded would have to show how it intended to address
equal opportunities across all aspects of the project, including recruitment of
beneficiaries, and access to the development or business opportunities
provided. The other Horizontal Theme on which there was general agreement
was Environmental Sustainability. However, during the Impact Assessment
and the formal consultation period, it became clear that there was some
reading of Equal Opportunities as being in effect Social Inclusion. Officials
decided to make sure that the role of Equal Opportunities in the programmes
was clear by adding in Social Inclusion as a third Horizontal Theme to be
addressed, and the wording in Chapter 8 on Equal Opportunities was
tightened up to make clear what was expected.
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15. Monitoring of how the programme was performing to assist the underrepresented
groups who should be better represented in terms of the
Programme funding was emphasised. It was clear that some of the previous
programmes had had such a large number of projects running, that it had
been impossible to gather satisfactory information to monitor performance for
particular target groups. It was therefore important to ensure that the new
programmes had fewer, more strategic projects which were carefully
monitored. Calls for projects aimed at particular sections of society, or groups
of people facing specific barriers could then be made to ensure that minority
groups were not overlooked because they had less expertise in accessing
European funding when competing with other ‘old hands’.
16. There was general, but not universal agreement that larger more
strategic projects were likely to have more impact on issues such as the pay
gap, gender under-representation, and employer attitudes. However, most felt
it was important for all partnerships to be covered by the Equalities Duty,
including Community Planning Partnerships, and that again monitoring and
evaluation of the equal opportunities aspects of all partnerships would be
required. When putting local partnerships together specific action might be
required by the new Intermediate Administration Bodies (IABs) to ensure that
some smaller less engaged groups which may get a negative press are
included where appropriate, for example groups working with those suffering
from mental health problems, or gypsies.
17. Some people commented that there was a need to move away from
using case studies, instead identifying how organisations changed, what
processes allowed these changes and in particular how attitudinal change
was achieved in organisations. A key lesson to be learned is to build on
individual commitment to equal opportunities and commitment at an
organisational level to take equal opportunities forward beyond individual
projects. The Equal Opportunities Adviser for the last programmes had
prepared a Report looking at the processes and key elements of projects
which are successful at mainstreaming equal opportunities, and this will still
be used to revise the current Structural Funds Equal Opportunities Good
Practice Guide. However, for the new programmes, Structural Funds Division
will take more responsibility for ensuring that equal opportunities are
addressed by having Champions for specific client groups and for the
horizontal themes among the case officers with portfolios of projects to
monitor.
18. It was agreed that the reduced level of funding required more targeting
of funds on projects which can make a real impact. A number of possible
ways of targeting were proposed. The bulk of those taking part in the Equal
Opportunities Impact Assessment were in favour of minimum project size,
although they felt that £1 million would be too large as a minimum project
size, and the final decision was to have a £200,000 minimum project size for
the LUPS area, and none in the H&I area. They also thought that the funds
should be aimed at those facing multiple barriers including discrimination, and
needing significant help to contribute to economic development. Generally
special targeting was welcomed, although there was a feeling that thematic
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
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targeting should also be considered – particularly mentioned were the young
NEET group, ex-mining communities, low paid female workers, ethnic
minorities and asylum seekers. The eligible areas for ESF Priority 1 and
ERDF Priority 3 in the LUPS area should be those which are already
prioritised by the Executive in strategies such as the Regeneration Policy
Statement, Workforce Plus, Closing the Opportunity Gap, and the NEET
Strategy, and this was added into the operational draft Chapter 4. The key
target groups in Chapter 4 were also revised to take account of some of these
comments.
19. Equal opportunities has become a key appraisal issue when
considering which projects should be assisted. There will be more rigorous
scoring of this element so that projects are not being assisted simply by
making a good Equal Opportunities statement. Each project will be asked to
benchmark itself at the outset of the project, and state where it will have
moved to at the end of the project activity. It must show that it has built in
equal opportunities as a key part of the project, and be able to show the
sustainability of these changes in the organisation or partnership. Conditions
could be added to the offer letter where appropriate requiring better
monitoring of minority participation and the impact of the project on these
groups. This will be monitored by the IAB during the project’s lifetime.
20. When the new operational programmes are approved and start, the
Programme Monitoring Committee will be asked to consider having a new
Equal Opportunities Forum with a more representative membership, and a
reviewed remit.
21. Projects based on the EQUAL Initiative model with a large Lead
Partner and a number of smaller organisations delivering the activity will be
encouraged by the IAB as these organisations often have excellent active
equal opportunities policies. This could range from projects for a number of
different voluntary organisations working with the same target group, to a
project linking a number of ethnic minority organisations. To help with this
process, for the first time, early expressions of interest will be sought from any
group or organisation wishing to take part in the programme, and the IABs will
work to ensure they can participate either in a partnership, or on their own if
appropriate.
22. Some additional eligible activities were added into the programmes in
Chapter 4 as a result of the Impact Assessment. In particular, actions around
acquired disabilities, and access to re-skilling to allow individuals who acquire
a disability during their working life were added. This can be particularly
needed for people who have mental health problems. Projects to educate
employers to understand the needs of certain groups seeking to enter the
workforce were also added as eligible, along with help for employers to adapt
work for people who have suffered some change in health status.
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
146
Final steps in the process
23. The final steps, on the basis of the information we gathered, were to
amend and revise the Operational Programmes, the application and appraisal
process, and the monitoring and evaluation plan for the programme period.
24. This Equal Opportunities Impact Assessment will be published on the
European Structural Funds Division website, and will be submitted to the
European Commission to form a part (in summary form) or our Operational
Programmes.
25. The Equal Opportunities Commission have requested a copy of this
Impact Assessment and we look forward to their response which we will share
with colleagues within the Scottish Executive to help them when they are
undertaking similar processes.
26. The IAB will be required to ensure public access through their
websites, and through a full communications plan, so that all groups,
whatever their interest, have access to information about the new
programmes, and the evaluations carried out.
27. The monitoring and evaluation plan will cover the gathering of
information on groups being assisted. Quarterly progress reports will be
submitted by projects and these will be checked against the targets proposed
in their application, and against the programmes targets.
28. As part of the annual implementation report which is approved by the
Programme Monitoring Committee, sent to the Commission and published,
we will produce a section on equal opportunities assessing the impact of the
programme each year.
29. Some comments were received about too much emphasis on gender
issues, and also some comments against the targeted approach
concentrating scarce resources on fewer areas and on larger projects.
Although these comments were considered, and the underlying socio
economic analysis re-visited, it was decided that these aspects of the
programme should not be amended.
32. We made a few substantial changes in the new European Structural
Fund programmes which we believe will improve the contribution they will
make to economic development and equal opportunities for the people of
Scotland. We also made a lot of small changes which may well be the most
significant ones for the groups representing some of the most vulnerable
individuals covered by these programmes, but who tend to be less vociferous
and have less contact with the Scottish Executive.
European Structural Funds Division
Scottish Executive
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
147
ANNEX F: INDICATIVE BREAKDOWN OF ACTIVITIES
The following tables set out the required indicative breakdown of activities for the programmed use of the Funds, employing the
categorisation in Annex II Part B of the Implementing Regulation. The priority theme table has been used to calculate the
Programme earmarking target in Chapter 4 (the shaded sections in the first table indicate earmarking categories). In the territorial
dimension table, ‘urban’ areas are those eligible for Priority 1. Allocations cannot be split further by area type as it cannot be
predicted at this stage which areas will receive support.
Allocations between activities may change during the programming period and the figures below should not be used as targets.
Priority theme table
Code Category Allocation: % Allocation: total
62 Development of life-long learning systems and strategies in firms;
training and services for employees ... 1.58% 4,264,751
64 Development of special services for employment, training and
support in connection with restructuring of sectors ... 1.58% 4,264,751
66 Implementing active and preventive measures on the labour market 11.07% 29,880,248
67 Measures encouraging active ageing and prolonging working lives 8.18% 22,079,533
68 Support for self-employment and business start-up 9.23% 24,900,207
69 Measures to improve access to employment and increase
sustainable participation and progress of women ... 9.23% 24,900,207
70 Specific action to increase migrants' participation in employment ... 8.18% 22,079,533
71 Pathways to integration and re-entry into employment for
disadvantaged people ... 35.92% 96,955,602
72 Design, introduction and implementing of reforms in education and
training systems ... 7.90% 21,323,754
73 Measures to increase participation in education and training
throughout the life-cycle ... 4.74% 12,794,253
85 Preparation, implementation, monitoring and inspection 1.20% 3,239,052
86 Evaluation and studies; information and communication 1.20% 3,239,051
Total 100.00% 269,920,942
Earmarking 97.60% 263,442,839
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
148
Form of finance table
Code Category Allocation: % Allocation: total
1 Non-repayable aid 100.00% 269,920,942
2 Aid 0.00% 0
3 Venture capital 0.00% 0
4 Other forms of finance 0.00% 0
Territorial dimension
table
Code Category Allocation: % Allocation: total
1 Urban 44.90% 121,194,503
0 Not applicable 55.10% 153,854,937

[indycos]

Originally Posted by Sebspring

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[Sebspring]

[Sebspring]

[indycos]

Originally Posted by Sebspring

Lecture 1 - Introduction
Reading: SLP Ch. 1, Introduction


Natural Language Processing - the dream


Here is a dialogue from the film 2001: A Space Odyssey: Hal the computer and Frank the astronaut are playing chess. If you were programming Hal, what do you think would be the hard problems in making him able to have a conversation like this?


Frank: Anyway, queen takes pawn.


Hal: Bishop takes knight's pawn.


Frank: Rook to King 1.


Hal: I'm sorry, Frank. I think you missed it. Queen to Bishop 3, bishop takes queen, knight takes bishop, mate.


Frank: Yeah, looks like you're right. I resign.


Hal: Thank you for an enjoyable game.


Frank: Thank you.


The problems (theory)


Phonology: sounds and how they combine to make meaningful units
Morphology: meaningful units and how they combine to make words
Syntax: how words combine in structures to make sentences
Semantics: the meanings of words and sentences
Pragmatics: language in use
Discourse: larger chunks of language
World knowledge: language by itself is not enough


The problems (practice)


Speech Recognition
Natural Language Understanding
Natural Language Generation
Speech Synthesis
Information Retrieval (IR)
Information Extraction (IE)
Inference


Natural Language Engineering - achievements


Text manipulation: the Dialectizer
http://www.rinkworks.com/dialect/


Electronic dictionaries: Wordnet
http://www.cogsci.princeton.edu/ wn/
The ``Getty Vocabularies''
http://www.getty.edu/research/institute/vocabulary/


Information Retrieval: Google
http://www.google.com/


Machine Translation: Babelfish
http://world.altavista.com/




Lecture 2 - Techniques I: Probability

Reading:
SLP Ch. 5, Probabilistic Models of Pronunciation and Spelling (not sections 7 and 10)
James Allen, Natural Language Understanding Ch. 7, Ambiguity Resolution: Statistical Methods (sections 1-3)


Then: rule-based NLP


Rules written individually by hand
Usually in LISP or Prolog
Based on linguistic theory and intuition
Small
Often not very useful


Now: corpus-based NLE


Rules learned automatically
Implemented in C, Java, ...
Based on statistical analysis of lots of real language
Large
Increasingly practical and useful


Ntran: English-to-Japanese machine translation
Centre for Computational Linguistics, UMIST, 1984-1987



%------------------- noun phrase ---------------------------
noun_phrase(F) -->
quan(F),
prep(OF),
noun_phrase(F),
{OF/pred=of,F/bar = 3}.

noun_phrase(F) -->
det(F),
number3(F),
prep_phrase(OF),
{
OF/pred=of,
F/nounmod=OF,
OF/slashsubj=yes,
F/enum=alone,
F/bar = 3}.

noun_phrase(F) -->
number3(F),
prep_phrase(OF),
{
OF/pred=of,
F/numbdet=no, % to prevent overgeneration with above
F/nounmod=OF,
OF/slashsubj=yes,
F/enum=alone,
F/bar = 3}.

(26 of these for noun phrases)


%------------------- verb phrase ---------------------------

verb_phrase(F) -->
neg(F),
verb_phrase(V),
{F/vcomp=V,
F/bar = 2}.

verb_phrase(F) -->
to(F),
verb_phrase_x(F),
{F/bar = 2}.

verb_phrase(F) -->
verb_phrase_x(F),
{F/to=no}.

(15 of these for verb phrases)


And so on.

Basic probability theory


``Intuitively, the probability of an event is the likelihood that it will occur." (Allen)


A random variable represents an event, or the outcome of an event:


Tossing a coin: H = heads, T = Tails
A race: W = win, L = lose
The word ``light": N = noun, V = verb, A = adjective
A probability function between 0 and 1 represents the probability of each possible value of a random variable. In many cases this is calculated by counting the outcomes of previous events of the same type: if a horse has won 20 of his 100 races, the probabilities are


PROB(R=Win) = .2

PROB(R=Lose) = .8


This is called the maximum likelihood estimator.

Maximum likelihood estimators can be useful, as we'll see. But real examples often have many different factors (represented by different random variables) affecting each other.


Conditional probability is the likelihood of an event occurring, given a certain condition. Consider our racehorse, and a random variable representing the weather, with possible values Rain and Sun. Overall he has 20 wins from 100 races, However, when it's been raining, he has 15 wins from 30. Intuitively, his chance of winning in the rain - the probability of the event Win given the event Rain - is .5.


Sun Rain
Win 5 15
Lose 65 15



We write this


PROB(Win Rain)


and it is defined by the formula


PROB(e e') = PROB(e & e') / PROB(e')


where PROB(e & e') is the probability of the two events occurring simultaneously. Go back to our racehorse:


PROB(Win Rain) = PROB(Win & Rain) / PROB(Rain)

= .15 / .30

= .5


That's fine for nice toy examples with clean complete data, but the real world isn't often like that, and conditional probabilities can be difficult to estimate directly. To estimate the probability of an event given a condition, we may need to know about an indefinitely large number of occurrences of the condition.


Bayes' rule makes the problem easier by turning it around. Instead of estimating for the event given the condition, we look at the frequency of the condition given the event, for example PROB(Rain Win). The equivalence is


PROB(A B) =( PROB(B A) * PROB(A) ) / PROB(B)


thus


PROB(Rain Win) = ( PROB(Win Rain) * PROB(Rain) / PROB(Win)

= (.5 * .3) / .2

= .75


compare (to demonstrate the equivalence)


PROB(Rain Win) = PROB(Rain & Win) / PROB(Win)

= .15 / .20

= .75


You still need lots of examples to get a useable estimate of the numbers to plug in, but it's easier than the original version of the problem.


Bayes' rule is sometimes referred to as a classifier - given a thing, it helps you decide what class it's a member of.


There are lots of real-world uses for Bayes rule. Here are three from language engineering:


Correcting spelling errors
(see SLP Ch. 5.1): Given a mis-spelt form, what are the relative probabilities of the possible intended words, ie what is the most likely correction?

Recognising pronounciation variants
in speech recognition (see SLP Ch. 5.8): Given an ambiguous sequence of phones, what is the most likely word for it to be a pronounciation of?

Part-of-speech tagging
(Lecture 5): Given a word which could belong to any of several syntactic categories, which is most likely to be correct?
The examples you need come from analysing corpora (singular corpus - large collections of naturally occurring text (or speech), typically millions of words. I'll say more about the significance of scale for statistical ananlysis next time. Lecture 14 (Resources 1) will be about corpora.

Advanced Algorithms


These examples are all static, they are concerned with things co-ocurring - they have no time dimension, no concept of sequence. But language is inherently sequential - much of nlp is really various types of sequence analysis. You can bodge some of the simple cases into Bayes' rule: the chances of ``light'' being a verb go down to almost nothing given the condition that the preceding word is ``the". But we need a notation and some algorithms which can represent sequential order and reason with it.


Sequences (usually of phones, letters, or words) are represented as weighted automata (SLP 5.9) finite state transition networks in which each arc is labelled with a probability representing how likely that path is to be followed. SLP pp 170, 171 gives some good examples.


The number of possible paths through these things gets intractably large very quickly. An efficient way to deal with them is dynamic programming, a class of algorithms which solve large problems by combining the solutions to sub-problems. A table is used to store the partial results.


Speech recognition has the task, given a string of sounds or observation sequence, of deciding what underlying word it represents - the decoding problem. The forward algorithm is a classic dynamic programming algorithm used to compute PROB(O w), the likelihood of a particular observation sequence O, given the weighted automaton for each candidate word w. Informally, it moves stepwise through the automaton, calculating the probability of the path so far at each new state by multiplying together:



the previous path probability
at the previous state;

the transition probability
from the previous to the new state; and

the observation likelihood
that the current state in the automaton matches the corresponding symbol in the observation sequence.
The forward algorithm runs once for each candidate word and compares the final results. The Viterbi algorithm (Allen 7.3, SLP 5.9) is much more efficient: it follows all paths through the automaton in parallel, storing partial results to avoid re-calculating them. We'll look at some examples in detail when we get to Part-of-Speech tagging and probabilistic parsing.

Lecture 3 - N-grams
Reading:
SLP Ch. 6, N-grams (sections 1 & 2)


An N-gram is a sequence of length N. We'll be looking at sequences of words within texts, but the idea is much more general.

Concordances


Concordances are a very old, traditional tool for studying important religious or literary texts. A concordance gives a list of every word in a text with all the contexts it appears in. The first concordances were compiled by hand for the Christian Bible, later for other heavily studied texts like the works of Shakespeare.


Doing this by hand is slow and labour-intensive, and could only be justified for important texts of moderate size. (The complete works of Shakespeare come to well under a million words (tokens) with a vocabulary of under 30,000 (types), a lifetime's effort by hand but trivial by the scale of current corpora.) Concordance software is now easily available and makes the technique easily applicable to any text.


An example of ``Key word in context", using the ``Concordance" package,
http://www.rjcw.freeserve.co.uk


MAINE..............7
Everything about the Maine Coon points to its adaptation to a harsh
climate. Its glossy 2
Maine Coons develop slowly, and don't achieve their full size until they
are three to 15
cajoling their people into playing with them. (Maine Coons love to play,
and many 19
While Maine Coons are highly people-oriented cats, they are not
overly-dependent. 23
trait there are a few Maine Coons that prefer laps. Most Maine Coons
will stay close 27
trait there are a few Maine Coons that prefer laps. Most Maine Coons
will stay close 27
room to room and wait outside a closed door for you to emerge. A Maine
Coon will 29

Collocations:

2 LEFT 1 LEFT
A 1 A 1
About 1 Few 1
Emerge 1 Most 1
Laps 1 The 1
With 1 Them 1
While 1


1 RIGHT 2 RIGHT
Coons 5 Will 2
Coon 2 Are 1
Develop 1
Love 1
Points 1
That 1

Concordance techniques are still widely used in stylistic analysis and in sociolinguistics. There is also recent research on using them to ``mine" some of the information content of very large and/or highly technical text corpora. Patel (2002; 3rd year project) looked at complex technical terminology in radiology reports. Lunn (2002; 3rd year project) and O'Connor (in progress; MSc) use concordance tools on the free text comment fields in the SwissProt molecular biology database. New and promising stuff.

N-grams


An N-gram is like a moving window over a text, where N is the number of words in the window.

igrams: two consecutive words

Trigrams: three consecutive words

Quadrigrams: four consecutive words
And so on.


N-gram analysis calculates the probability of a given sequence of words occurring: if you know what the first word of a pair is, how confidently can you predict the next one, using the conditional bigram probability
More generally, can you predict a word from the N-1 words before it? A statistical model of word sequences in a text corpus is sometimes (especially in speech recognition) called a language model.


Applications:


POS tagging - can you figure out the category of an ambiguous word from the one before it?

word prediction - can you figure out what the current word is from the one before it? Important for speech recognition, augmentative communication, and context-sensitive error correction.
Training


Divide the corpus into a training set and a test set (typically 90% training / 10% test). Calculate the language model from the training set, then evaluate its performance on the test set. Repeat with different divisions into training and test sets, to reduce the risk that the model will be biased by some accident of the exact division (cross-validation). This is, of course, the same as for lots of applications of machine learning.


Training: count all the bigrams in the training set, and normalise the result (divide all by a common divisor so that all the resulting probabilities are between 0 and 1). Count a particular bigram, and divide this count by the count of all the bigrams that share the same first word. This gives you the relative frequency or Maximum Likelihood Estimator for the original bigram. See the ``Berkeley Restaurant" example, SLP pp 201-2.


Notice that there are lots of zeros, not just for doubtful sequences (``I Chinese", ``eat want") but also for grammatical ones (``to want", ``Chinese eat"), because the counts, and therefore the probabilities, are based entirely on what's actually there in the corpus, and any corpus is finite.



Digression: the sparse data problem


The scale of these things is important. There is a general theorem of statistics - the ``law of large numbers" - which says that estimates can be indefinitely accurate if based on an indefinitely large data set. (Note that the ability to build and handle corpora of this size in turn depends on having computing resources on a scale which has only recently been generally available - one reason for the very recent mushrooming of statistical nlp.) Even so, one of the greatest problems for statistical nlp is that of sparse data - it is in the nature of natural language that a small number of words make up the bulk of the text, while a much larger number of words occur too seldom for their behaviour to be reliably analysed. For example, the Brown corpus contains about one million words (tokens) of text, made up of 49,000 different words (types). Of those, over 40,000 occur five times or less. Obviously it will be difficult to make predictions about these with any great confidence.


Zero is not a legal probability value. It is also not an accurate description of the language - it would predict that you could never hear or say anything you hadn't heard or said before, but natural language is Not Like That!


So smoothing - techniques are used to assign some nominal non- zero value to the zero or very low probabilities. The simplest is Add-One smoothing, which just adds one to all of them, but this turns out to be too much and distorts the values significantly (more so the smaller the data set).


More sophisticated algorithms, Witten-Bell Discounting and Good- Turing Discounting, are explained in the book. Key insight: the probability of seeing a zero-frequency N-gram can be modelled by the probability of seeing an N-gram for the first time. ``Use the count of things you've seen once to help estimate the count of things you've never seen." This can be specific to each first (or second) word of a bigram, encoding the fact that some words combine more freely than others.


I'm not concerned with the detail of these algorithms. The important thing to understand is the sparseness of even very large corpora, and roughly how we can compensate for it.


Validation


How good a fit is your model to the corpus?


How do you measure ``fit"?


How often would the system have to guess the value of the next word (or letter, or phone) in a sequence before getting it right?


Entropy - ``a lower bound on the number of bits it would take to encode a certain decision or piece of information in the optimal coding scheme".


Perplexity - ``the weighted average number of choices a random variable has to make". For entropy , perplexity is .


Eight equally likely alternatives can be encoded in three bits: choosing anmong them, the perplexity is . If the alternatives are weighted, the perplexity will probably go down, and the system will make more accurate predictions. See SLP Ch.6.7 for a detailed example.


A footnote on text-types


Because we are recording the observed behaviours of individual words, this stuff is highly specific to a particular style or text-type. For any sort of corpus-based statistical analysis to be accurate, the training corpus must be appropriate - homogeneous with the data to be analysed. Here is what can happen when you train a language model on WSJ and apply it to a text in botany:


``Achenes in a subglobose head..."


922 semantics 414 442 (qlf:[achene(e24),
number(e24, plural),
realisation(e24, offsets(414, 421)),
in(e24, e25),
title(e25, head),
civilian(e25),
subglobose(e26),
qual(e25, e26),
number(e26, sing),
realisation(e26, offsets(427, 437)),
det(e25, a),
realisation(e25, offsets(425, 442))])

Lecture 5 - Components of an NLP system
In the first lecture we looked at how the problem space of natural language breaks down in a theoretical approach:


Phonology: sounds and how they combine to make meaningful units
Morphology: meaningful units and how they combine to make words
Syntax: how words combine in structures to make sentences
Semantics: the meanings of words and sentences
Pragmatics: language in use
Discourse: larger chunks of language
World knowledge: language by itself is not enough


This does not map straightforwardly to the components in an implemented system:



it assumes clean text with clear word and sentence boundaries,

it aspires to dealing with deep syntax, detailed semantics, and human-like general world-knowledge, and

it has no practicalities to worry about.

Implemented systems dealing with real text:



need to identify word and sentence boundaries,

need to make the most of ``chunking'' or ``shallow parsing'',

need simple, efficient ways to encode specific domain knowledge, and

eed to deal with software engineering issues such as speed, modularity, consistency, compatibility, version control, ...

The list of ``Sections'' at http://registry.dfki.de/ will give you some idea of the range of tasks and sub-tasks involved.


The NLP system we'll use as much as possible in the course is the GATE (General Architecture for Text Engineering) system, developed by the Computer Science department at Sheffield University - see their excellent web pages (linked from the CS3421 home page) for details. To quote the GATE documentation, it:

Manages textual data storage and exchange;
Supports visual assembly and execution of modular NLP systems plus visualisation of data structures associated with text;
Provides plug-in modularity of text processing components.
GATE 1 (1995 - 2001) has a configurable modular structure: core modules include


Tokenizer
identifies token (ie word or punctuation mark) boundaries ;
Sentence Splitter
identifies sentence boundaries;
Brill Tagger
assigns part-of-speech tags;
Gazetteer Lookup
matches names of people, locations, &c using domain-specific lists;
Morphology
identifies roots and affixes of nouns, verbs, & adjectives;
SemanTag Tagger
assigns semantic category tags;
buchart Parser
makes two passes, first with a special ``named entity grammar'', then with a general phrasal grammar, and constructs a ``quasi-logical form'' (QLF);
Name Matcher
identifies variant names for the same thing throughout the text;
Discourse Interpreter
uses the QLF, a semantic net, and loads of inference to derive a full discourse model;
Template Writer
extracts the information wanted and writes it into a ``template''.
GATE 2 (2002 )


From their web pages, http://gate.ac.uk/documentation.html:


GATE is made up of three elements:


An architecture describing how language processing systems are made up of components.
A framework (or class library, or SDK), written in Java and tested on Linux, Windoze and Solaris.
A graphical development environment built on the framework.
GATE 2 is a pure Java implementation, with more limited functionaltiy than GATE 1. Core elements now include:


Document resetter
initialises the system;
Gazetteer
matches names of people, locations, &c using domain-specific lists;
Tokeniser
identifies separate word tokens;
Abbreviations
recognises abbreviations;
Sentence Splitter
identifies sentence boundaries;
POS Tagger
assigns part-of-speech tags;
Morphology
identifies roots and affixes of nouns, verbs, & adjectives;
JAPE processor
does shallow syntactic parsing.



Lecture 8 - Stemming
Reading:
SLP Ch. 3, Morphology and Finite-State Transducers
see also the demo and description at http://snowball.tartarus.org/porter/stemmer.html


Sometimes we want to recognise specific forms of words (singular or plural nouns, present or past tense verbs, &c). For other purposes it would be better to group together different forms of ``the same'' word.


Morphology
is the study of the internal stucture of words.

A wordform
is a complete inflected form as it appears in the corpus.

A lemma
is a set of lexical forms having the same stem (except for irregular forms), the same major part-of-speech, and the same word-sense - a set of realisations of a single underlying ``abstract word''.

A stem
is the morphological base of a lemma, without affixes .

An affix
is a bit that gets stuck onto a stem to make a complete wordform. A prefix goes before the stem and a suffix after it.
Thus

wordform cats, being

lemma {cat, cats}, {be, being, was, were}

stem [cat], [be]

affix -s, -ing


This is fine for English, and many other languages, but not for all languages. In the Semitic languages (such as Arabic and Hebrew), each word stem or ``root'' consists of three consonants, and the different inflections are formed by inserting different vowels between them:

*ktb = write, kaatib = writer, ki'taab = book


Turkish, on the other hand, is an extreme example of multiple affixation:

çöplüklerimizdekilerdenmiydi

Was it from those which were in our garbage cans?

uygarlastiramadiklarimizdanmissinizcasina

(behaving) as if you are among those whom we could not cause to become civilised


The space of possible wordforms:



is very very large;

changes rapidly;

has a lot of internal regularity.
So we can't list all possible forms: we have to do some sort of analysis, or parsing.


Morphological analysis used to be done with hand-built rules - here is a sample of the Ntran code for English morphology (the full file is 145 lines long):


% --------------------------- morphology ----------------------------
% this file contains the procedures
% morph, addmorph, form, vowel, consonant, doubleable
% obv, numsyll, syllables, removevowels

% morph(Form,Feature,Inflform)

genmorph(Form,Feature,Inflform) :-
unless(form(Feature,Morph),Feature=Morph),
name(Form,Chform),
addmorph1(Morph,Chform,Chinflform),
name(Inflform,Chinflform).

analmorph(Form,Morph,Inflform) :-
name(Inflform,Chinflform),
addmorph0(Morph,Chform,Chinflform),
name(Form,Chform).
analmorph(Form,nil,Form).

form(comp,er).
form(sup,est).
form(adv,ly).
form(plural,es).
form(thirdsing,es).
form(past,ed).
form(past_part,ed).
form(pres_part,ing).

addmorph(es,"s","ses").
addmorph(es,"o","oes").
addmorph(es,"us","i").
/*the above isnt adequate as it allows incorrect spellings for eg
pianos, tomatoes, potatoes, - you really need to say for each
particular word of this odd type that it has this sort of pl or
that sort of pl. */
addmorph(es,[C|"y"],[C|"ies"]) :-
consonant(C).
addmorph(ed,"e","ed").
addmorph(ed,[C,V,C1],[C,V,C1,C1|"ed"]) :-
vowel(V),
consonant(C),
doubleable(C1),
not(obv([V],[C1])).
addmorph(th,"ve","fth").
addmorph(th,"i","ieth").
<lots more>
addmorph(Morph,[H|T],[H|T1]) :-
addmorph(Morph,T,T1).

% addmorph0 2nd level added jjc to allow for compound morphs
<13 lines of code>

vowel(V) :-
member(V,"aeiouy").

consonant(C) :-
not(vowel(C)).

doubleable(D) :-
member(D,"bdfgklmnprst").

obv("e","r").
obv("e","n").
obv("u","s").
obv("o","n").

numsyll(Form,N) :-
name(Form,List),
syllables(List,N).

syllables([],0).
syllables([V|T],N) :-
vowel(V),
removevowels(T,T1),
syllables(T1,N1),
N is N1 + 1.
syllables([C|T],N) :-
consonant(C),
syllables(T,N).

% spot that removevowels also removes the first non-vowel (bjc)
removevowels([],[]).
removevowels([C|T],T) :-
consonant(C).
removevowels([V|T],T1) :-
vowel(V),
removevowels(T,T1).

Morphological analysis requires:



A lexicon listing stems and affixes;

Morphotactics, the grammar of what things can occur together, and in what order;

Spelling rules for the changes which can happen when things are stuck together.

Morphotactics can be represented by finite state automata.


Morphological parsing can use finite state transducers to map between the lexical level of a word - the underlying string of constituent morphemes - and the surface level, the actual wordform.


These techniques work well, but they depend on a large and accurate lexicon, and they can be slow. The first fast, simple stemming technique to work without a lexicon was devised by Martin Porter in 1980 and is still widely used.


The Porter stemming algorithm (or 'Porter stemmer') is a process for removing the commoner morphological and inflexional endings from words in English. Its main use is as part of a term normalisation process that is usually done when setting up Information Retrieval systems. (Martin Porter, 1980)
It consists of seven sets of simple rewrite rules, of the form

(condition) S1 S2

which strip down



1. Plural nouns and third person singular verbs, eg ies i

2a. Verbal past tense and progressive forms, eg (*v*) ING

b. Cleanup

3. Y I

4. Derivational morphology I: Multiple suffixes

5. Derivational morphology II: More multiple suffixes

6. Derivational morphology III: Single suffixes

7a, b. Cleanup
The full details are given in Appendix B of SLP.


A warning is in place: It is hard to do stemming without using a lexicon. If you are a linguist, the output from a Porter stemmer could easily make you upset. A stemmer such as this could still be useful, however. (Anon.)
Here is a sample of English vocabulary (clearly taken from a corpus, and an odd one at that), with the stems given by a Porter stemmer. Look for examples of under-stemming, taking off too little, and over-stemming, taking off too much; this can be mis- stemming, taking off something which looks like a suffix but is really part of the stem, or over-stemming proper, taking off a true ending which conflates words of different meanings.


a a
aaron aaron
aback aback
abaissiez abaissiez
abandon abandon
abandoned abandon
abase abas
abash abash
abashed abash
abate abat
abated abat
abatement abat
abatements abat
abates abat
abattement abatt
abbe abb
abbess abbess
abbey abbei
abbeys abbei
abbominable abbomin
abbot abbot
abbots abbot
abbreviated abbrevi
abdication abdic
abduction abduct
abed ab
abel abel
aberga aberga
abergavenny abergavenni
abet abet
abetting abet
abhominable abhomin
abhor abhor
abhorr abhorr
abhorred abhor
abhorrence abhorr
abhorring abhor
abhors abhor
abhorson abhorson
abide abid
abides abid
abilities abil
ability abil
abingdon abingdon
abject abject
abjectly abjectli
abjects abject
abjur abjur
abjure abjur
able abl
abler abler
ablest ablest

And here is a bit of my text:

the -> the
relatively -> relat
long -> long
square -> squar
muzzle -> muzzl
facilitates -> facilit
grasping -> grasp
prey -> prey
and -> and
lapping -> lap
water -> water
from -> from
streams -> stream
and -> and
puddles -> puddl

their -> their
dispositions -> disposit
remain -> remain
kittenish -> kittenish
throughout -> throughout
their -> their
lives -> live
they -> they
are -> are
big -> big
gentle -> gentl
goodnatured -> goodnatur
goofs -> goof

``Historically, stemmers have often been thought of as either dictionary-based or algorithmic... But the two approaches are not really distinct. An algorithmic stemmer can include long exception lists that are effectively mini-dictionaries, and a dictionary-based stemmer usually needs a process for removing at least i[nflectional] suffixes to make the look-up in the dictionary possible.''


``... purely algorithmic [stemmers] are, or ought to be, inferior to the performance of well-constructed dictionary-based stemmers. But they are still very useful, for the following reasons:

1) Algorithmic stemmers are (or can be made) very lean and very fast...

2) Despite the errors they can be seen to make, algorithmic stemmers still give good practical results...

3) Dictionary-based stemmers require dictionary maintenance, to keep up with an ever-changing language, and this is actually quite a problem.'' (Martin Porter, 2001)


So - as so often in NLE -

the best way forward seems to be a hybrid, and

something grubby seems to work better than something elegant.

Originally Posted by Andy_RS2113

OPERATIONAL PROGRAMME
EUROPEAN SOCIAL FUND:
2007-2013
LOWLANDS & UPLANDS SCOTLAND
FINAL
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
1
CONTENTS
1 INTRODUCTION
2 SOCIO-ECONOMIC BACKGROUND
2.1 General background
2.2 Employment and employability
2.3 Workforce skills
2.4 Lifelong learning
2.5 Summary of key challenges
3 POLICY BACKGROUND
3.1 Policy context
3.2 Lessons from 2000-06 programming
4 STRATEGY AND PRIORITIES
4.1 Programme vision
4.2 Programme Objectives
4.3 Priority 1: Progressing into employment
4.4 Priority 2: Progressing through employment
4.5 Priority 3: Improving access to lifelong learning
4.6 Technical assistance
4.7 Categories of assistance
5 FINANCIAL ALLOCATIONS
6 CO-ORDINATION WITH OTHER FUNDS
6.1 European Regional Development Fund
6.2 Territorial Co-operation Objective
6.3 The European Agricultural Fund for Rural Development
6.4 The European Fisheries Fund
6.5 EU research funding
6.6 The European Investment Bank
7 IMPLEMENTING PROVISIONS
7.1 Roles and responsibilities
7.2 Financial flows and payments
7.3 Partnership and committee structure
7.4 Award decisions
7.5 Transnational activity
7.6 Publicity
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
2
7.7 Aid schemes
7.8 Exchange of computerised information
8 CROSS-CUTTING THEMES
8.1 Equal opportunities
8.2 Environmental sustainability
8.3 Social inclusion
9 EVALUATION, MONITORING AND REPORTING
9.1 Evaluation
9.2 Monitoring
9.3 Reporting
9.4 Indicators and baselines
ANNEXES
A. Glossary of acronyms
B. References
C. Programme drafting
D. Summary of ex-ante report
E. Equal Opportunities Impact Assessment
F. Indicative breakdown of activities
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
3
1 INTRODUCTION
The European Social Fund (ESF) seeks to address social inequalities within and
across regions by improving the general performance of the labour market and, in
particular in relation to marginalised groups. It is intended to help regions increase
their competitiveness by increasing employment rates, preventing people from
dropping out of the labour market, and increasing productivity through improved skill
levels.
In March 2000, the EU leaders agreed the Lisbon strategy, which committed the EU
to become by 2010:
“The most dynamic and competitive knowledge-based economy in the world
capable of sustainable economic growth with more and better jobs and
greater social cohesion, and respect for the environment.”
The achievement of this goal is seen as essential if Europe is to respond to the
challenges of globalisation and competition from other parts of the world. Scotland is
no less ambitious in its goals aimed at ensuring that the Scottish Executive and its
partners work together to make a real difference to the lives of all the people living
and working here to ensure they fulfil their potential and contribute to and benefit
from a high-earning, knowledge-based economy.
In working together to achieve these goals it is important to be aware that for each
person who moves into sustained employment, the effect is more widespread than
just getting a job – it affects their health, their family, their friends, their
neighbourhood and brings about economic benefits, with less dependency on
welfare benefits and contributing to the economic growth and competitiveness of
Scotland. This is not just or even mainly about numbers – it is about improving the
lives of individuals, families and communities.
The following Operational Programme provides the framework for the spending of
the European Social Fund (ESF) for the Regional Competitiveness & Employment
Programme for Scotland for 2007-13. The Programme covers the ‘Lowlands &
Uplands Scotland’ area, defined as the whole of the NUTS 2 areas for Eastern
Scotland, North-East Scotland and South-Western Scotland (that is, all of Scotland
apart from the Highlands & Islands, which are covered by programmes under the
Convergence Objective). It will complement the European Regional Development
Fund Programme under the Regional Competitiveness & Employment Objective for
the same area.
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
4
The Operational Programme is divided into several sections following this
Introduction:
• Socio-economic background: A summary of the key strengths, weaknesses,
challenges and opportunities for the eligible area within the context of the
Structural Funds contribution to achieving the Lisbon Agenda goals, setting
out the main issues for the Programme to address.
• Policy background: A summary of the policy context for addressing the issues
identified in the socio-economic analysis and the contribution of lessons from
earlier Structural Funds programmes to the 2007-13 Programme and
identification of where Structural Funds can provide added value in
contributing to these different objectives.
• Strategy, Objectives and priorities: A detailed description of the Programme’s
overall vision, its objectives and the three priorities through which it will tackle
the issues identified in the socio-economic analysis within the policy context
set out above as well as the use of Programme technical assistance and the
categorisation of activities in line with Lisbon ‘earmarking’.
• Financial arrangements: The financial allocation tables for the Programme.
• Co-ordination with other funds: A description of how the European Social
Fund will complement other key EU funding in the region, particularly the
European Regional Development Fund, the European Agricultural Fund for
Rural Development and the European Fisheries Fund.
• Implementing provisions: A description of key aspects of managing and
delivering the Programme, including the roles and responsibilities of the
Managing, Paying and Audit Authorities, key intermediary bodies and the
Programme Monitoring Committee.
• Cross-cutting themes: A description of how Equal Opportunities, Sustainable
Development and Social Inclusion will be mainstreamed as underpinning
horizontal themes throughout the Programme.
• Evaluation, monitoring and reporting: The evaluation strategy for the
Programme, setting out how the Programme will be monitored and the
processes for reporting and evaluation.
In addition, there are a number of Annexes covering:
• acronyms and references;
• summary of the drafting of the Programme and engagement with partners;
• summary of the ex-ante evaluation report for the Programme; and
• summary of the Equal Opportunities Impact Assessment for the Programme.
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
5
2 SOCIO-ECONOMIC BACKGROUND
This section provides an evidence base to educate the development of the new ESF
Programme in Lowlands & Uplands Scotland for the period 2007 to 2013. It contains:
• analysis of the main relevant features – and trends – of the region;
• identification of the region’s main needs with particular emphasis on key
spatial variations within the region; and
• a summary SWOT analysis – this will identify a series of clear
challenges/needs that will feed directly into Chapters 3 and 4.
The analysis begins with general background context-setting for the region’s key
demographic, economic and other relevant trends. It then provides more detailed
analysis under several headings:
• employment and employability, focusing on the size of the workforce (and the
barriers to different groups being able to participate in the labour market);
• workforce skills, covering the skills issues relating to different groups in the
workforce; and
• lifelong learning, covering the region’s capacity for addressing the
employment and skills development challenges through training and lifelong
learning.
An assessment was done by the ex-ante evaluator as to whether the ESF
programme required a Strategic Environmental Assessment. The evaluator
concluded that this was required for the ERDF programme for this region, but not for
the ESF Convergence Programme. Consequently, an analysis of the environmental
situation of the region is not contained in this document.
The analysis is not meant to be a comprehensive review of the Scottish economy,
but a focus on a specific set of market failures which Structural Funds can help to
address within the framework of the Lisbon goals on growth and jobs. Some
important elements of wider economic development have not been examined in
detail because Structural Funds under this Objective cannot provide significant
support to address the issues adequately. The role of the Lisbon Agenda as the key
driver in the development of the Programme should be emphasised – the Structural
Funds have to make clear, value-added contributions to the EU’s goals of improving
economic growth and jobs within challenging timescales. Moreover, the analysis
focuses on aspects of socio-economic development where limited Structural Funds
support can make significant differences.
The analysis also covers both Scotland as a whole and at a regional level. Using
Scottish figures is unavoidable in many cases because of the level at which figures
are collected – however, as the Lowlands & Uplands region includes the bulk of
population and economic activity, it remains a strong indicator of the issues facing
the region. Regional statistics are given at NUTS 2 and NUTS 3 level. It is worth
noting that the NUTS 2 regions are:
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
6
• North-East Scotland (including: Aberdeenshire, City of Aberdeen and North-
East Moray);
• Eastern Scotland (including: Angus and Dundee City, City of Edinburgh,
Clackmannanshire, East Lothian, Falkirk, Fife, Midlothian, Perth and Kinross,
Scottish Borders, Stirling and West Lothian); and
• South-Western Scotland (including: parts of Argyll & Bute, City of Glasgow,
Dumfries and Galloway, East Ayrshire, East Dunbartonshire, East
Renfrewshire, Inverclyde, parts of North Ayrshire, North Lanarkshire,
Renfrewshire, South Ayrshire, South Lanarkshire and West Dunbartonshire).
Where specialised sources of data/research are used, these are cited in the text with
the full references listed in the annex. General sources of statistics used in the
analysis include: the Scottish Economic Statistics series, the Scottish Economic
Report and the General Register Office for Scotland (GROS).
2.1 General Background
Population
Before providing a detailed analysis of the region’s main economic and social
features, background statistics are provided here. In 2004, the population of the
LUPs region was 4.711 million people, or 93% of the population of Scotland as a
whole, an upward trend on previous years. Nevertheless, in terms of population
change, there has been considerable variation: areas that have shown significant
population growth since 1995 include West Lothian (10%), East Lothian (6%) and
Stirling (5.5%), while those showing contraction include Aberdeen City (8%),
Inverclyde (7.3%) and Dundee City (6.7%). The majority of the population are
concentrated in the so-called Central Belt area around and between Glasgow and
Edinburgh.
According to the General Register Office for Scotland, the population for Scotland as
a whole is set to continue to rise to a peak of over 5.1 million in 2019 before slowly
declining. At present, children aged 15 and under accounted for 19% of the
population, as do people of retirement age. However, the number of children aged
under 16 is projected to decrease by 15% from just under a million in 2004 to
790,000 by 2031 for Scotland as a whole. This is contributing to the number of
working-age people falling by 7% from 3.18 million in 2004 to 2.96 million in 2031. At
the same time, the number of people of pensionable age will increase by 35% from
0.97 million to 1.31 million over the same time period. The combined trends will
increase labour demand pressures in the regional economy and suggest that policy
will need to focus on how the labour market can be expanded.
One counter trend to population decline has been migration. Again, according to
General Register Office statistics from mid-2005 population estimates for Scotland
as a whole, in the year to mid-2005, there was a net migration gain of around
19,000, reflecting a net gain of around 12,500 people from the rest of the UK, a net
gain of around 7,300 from overseas (including asylum seekers). The latter gain has
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
7
represented a new trend in recent years with significant numbers of migrants coming
from new Central and Eastern European Member States of the EU, particularly
Poland. Migrants tend to be much younger than the general population with 69 %
(overseas) of in-migrants aged 16-34 as compared to 24% of the Scottish resident
population. Although potentially representing an injection of new skills into the
regional labour market, many of the overseas migrants have substantial skills
challenges relating to English language and ‘converting’ overseas skills qualifications
into recognisable qualifications for Scottish employers (an issue relating as much to
employer attitudes as to the nature of the qualifications themselves).
GDP
GDP at basic prices for the LUPS region in 2003 was £74,298 million. The main
contributing regions to GDP have been the major metropole areas, particularly the
cities of Aberdeen, Edinburgh and Glasgow. In recent years, GDP growth has been
improving, but the economy as a whole continues to perform less well than the wider
UK economy.
Productivity performance lies at the heart of regional competitiveness. As Chapter 3
will show, it has also been identified as the key challenge for economic development
by the Scottish Executive. If Lowlands & Uplands Scotland is to be able to contribute
to Lisbon Agenda targets, productivity growth will be a key aspect of economic
development actions.
Productivity in Scotland is low and declining relative to the UK. In 2003, for Scotland
as a whole, gross value added per head of population was 96% of the UK average,
having fallen from 101% in 1995. Within the LUPS region, there is considerable
variation in gross value added, ranging from 160% of the UK average in the City of
Edinburgh, reflecting a concentration of high-value economic activities, especially
financial services, to 62% in East and West Dunbartonshire and the eastern parts of
Argyll & Bute. Other areas with low figures include Clackmannanshire/Fife, East and
North Ayrshire, East Lothian/Midlothian, and the Scottish Borders – all are areas
whose performance relative to the UK average had decreased since 1995. The worst
performing regions share similar traits. These are regions that have lost more
employment in manufacturing and agriculture than the rest of the Scottish economy;
and manufacturing and services in those regions have systematically underperformed
the Scottish average in terms of GVA per employee over the past decade.
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
8
Table 1: Gross value added relative to the UK average (%, 2003)
1995 2003
Scotland 101 96
Aberdeen City/Aberdeenshire/North East Moray 140 131
Angus/Dundee City 97 86
City of Edinburgh 152 160
Clackmannanshire/Fife 78 70
East Ayrshire/North Ayrshire mainland 80 68
East & West Dunbartonshire/eastern Argyll & Bute 65 62
East Lothian/Midlothian 70 64
Dumfries & Galloway 85 75
Falkirk 101 84
Glasgow City 123 138
Inverclyde/East Renfrewshire/Renfrewshire 100 88
North Lanarkshire 73 75
Perth & Kinross/Stirling 96 83
Scottish Borders 86 68
South Ayrshire 93 86
South Lanarkshire 80 80
West Lothian 119 91
Source: Scottish Economic Statistics 2006.
Labour market
The region's labour market has been performing well in recent years, with more
individuals in employment than ever before. Employment rates are, and will remain
partly dependent on broader global economic cycles and UK macro-economic
factors. Both the employment rate and the economic activity rate (those in
employment or seeking employment) for the region are at historically high levels.
The employment rate for the period March-May 2006 stood at 75.3%, with the
economic activity rate at 79.9%. The employment rate has increased by around four
percentage points since 1999 with over 180,000 more people in employment than in
1999. Currently Scotland is fifth highest out of the 12 UK regions in terms of
employment rates and also fifth in terms of economic activity rates. Moreover,
Scotland has higher economic activity and employment rates than England, Wales,
Northern Ireland and the UK as a whole. All employment growth over the last two
decades has been in non-rural Scotland.
The region has seen a very significant structural change across industries in the last
two decades. The transfer of jobs from the primary and manufacturing sectors to
services has been highly significant, and will continue. Similarly, employment in
professional and personal sector services has grown substantially and more than
outweighs the fall in manufacturing and in skilled trades. These trends are expected
to continue with the numbers of higher skilled and professional jobs rising and lower
skilled jobs falling. Estimates suggested there will be half a million job openings
expected between 2003 and 2008. Of these 36,000 will arise due to economic
growth (an increase of 1.4%). The remaining 464,000 will arise to replace existing
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
9
workers who leave the workforce or change their industry or occupation (Futureskills
Scotland, 2005a).
Skills and education
Higher skills levels are linked to higher employment rates. The share of more highlyskilled
jobs within this region’s economy will increase most quickly. Two decades
ago managerial, professional and technical occupations accounted for only 26% of
jobs in the region. By 2003, they accounted for 38%, and are projected to account for
40% by 2008. This is matched by the increasing proportion of economically-active
Scots educated to Scottish Vocational Qualification (SVQ) level 4 or above: 26% in
1998, 32% in 2003, and a predicted 35% by 2008 if rising education participation
rates continue. There is also a trend for increasing emphasis on generic and ‘soft’
skills. The most pressing need will be for more effective communication, problem
solving, numeracy, planning, organisational, team working, and computing skills,
together with an increased emphasis on attitude and self-presentation. (Futureskills
Scotland, 2005b).
Diversity and equal opportunities
With an ageing and potentially declining population in the region, employers are
hoping to use more technology to improve productivity as well looking to nontraditional
groups to enter the workforce. To maintain flow into the labour market this
diversity will have to continue apace to enable the region to be productive in world
markets. Organisations will have to respond to changing demographics to enable
more individuals with direct caring responsibilities for children and for elderly
relatives to be accommodated in the workforce. On the supply side, there is
evidence that more women, more older people and more people from abroad are
entering and staying in the labour market. European integration and expansion of the
EU has increased the supply of cheaper labour into the UK, and this is likely to
continue. 32,135 Eastern Europeans registered in Scotland in 2004 under the
Government’s Worker Registration Scheme according to Home Office figures. More
complex family relationships, more solo households, relatively smaller state pensions
resulting in more older people staying in the labour force, will all have an effect on
the nature of the work, the skills and training required, and the flexibilities and
equality of opportunities which will have to be taken into account to ensure that
people are not excluded from the workplace.
Key messages
• Long-term population decline represents a potentially significant labour market
challenge to the region.
• Inward migration, particularly from overseas, could bring new skills and
dynamism into the regional economy.
• Overall, the region’s level of economic activity and growth remain relatively
low, though there have been notable improvements in recent years.
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
10
• Similarly, the region’s productivity performance is also comparatively limited,
but with significant variations at sub-regional level.
2.2 Employment and Employability
Employment
With the labour market tightening in recent years, employment levels in the region
are high. The region has an employment rate of 75% compared with 63% and 65%
in the EU-25 and EU-15 respectively. The region has already met the EU Lisbon
employment target of 70%. Since 2001, the region’s employment rate has grown at
nearly twice the rate of the EU-25. It also has a higher economic activity rate, at
76%, than the EU-25 and EU-15, both 75%. Between 2001 and 2004, the Scottish
economic activity rate has seen a 1% increase. In contrast the EU-25 rate has fallen
in the same time frame.
According to Eurostat, the region’s unemployment rate (5.7%), is below the EU-25
level of 9.2%. While unemployment across the EU increased between 2001 and
2004, it decreased in Scotland. Scotland also out-performs the EU-25 in terms of
unemployment amongst 15-24 year olds and long-term unemployment. Between
2001 and 2004, Lowlands & Uplands Scotland’s 15-24 year old unemployment rate
has fallen to 14.2% in contrast to the increase across the EU-25 to 18.5%. The rate
for those unemployed for more than 12 months as a proportion of the unemployed
total in the region fell to 21.9% compared to that for the EU-25 of 45.1%.
In terms of the older groups of working-age people, the LUPS region has higher
employment rates for both 45-54 and 55-64 year olds than the EU-25. According to
Eurostat, the difference is most marked for the 55-64 age group with a figure of 54%
relative to the EU-wide figure of 42%. The Scottish percentage increase has also
been above the EU level for both age groups.
Working-Age Population Activity
The number of working-age people in employment, education or training (EET) in
Scotland as a whole was estimated in the Annual Population Survey to be 2.49
million in 2005 (Scottish Executive, 2006). That was 79.7% of the working-age
people, an increase of 0.3 percentage points on 2004. However, this varies
considerably between the different Local Authorities at NUTS 3 level. Glasgow and
East Ayrshire had the lowest EET proportions in 2005, at 72.2% and 74.1%
respectively. Whereas, at the upper end, four areas had EET proportions above
84.0% in 2005: East Dunbartonshire (86.1%); Aberdeenshire (84.4%); City of
Edinburgh (84.6%); and East Renfrewshire (84.4%).
Although Scotland’s employment rates are at historically high levels, again this
masks big variations by locality. Within the region, employment rates vary
significantly as Table 2 shows. Above-average rates have been recorded in rural
areas such as Aberdeenshire, Dumfries & Galloway, Midlothian, Perth & Kinross and
Scottish Borders as well as Aberdeen City, East Dunbartonshire and East
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
11
Renfrewshire, although the figures for rural areas do not take full account of levels of
under-employment in these areas. The lowest rates of employment tend to be
concentrated in urban areas such as Dundee City, East Ayrshire, Glasgow City,
Inverclyde, North Ayrshire, North Lanarkshire and West Dunbartonshire, suggesting
that the key cities of the region are not acting fully as economic drivers for labour
market growth.
Table 2: Employment rates at Local Authority level
Local Authority Employment rate (2006, %)
Aberdeen City 78
Aberdeenshire 80
Angus 77
Argyll & Bute (whole area) 77
City of Edinburgh 77
Clackmannanshire 73
Dumfries & Galloway 78
Dundee City 72
East Ayrshire 70
East Dunbartonshire 80
East Lothian 78
East Renfrewshire 79
Falkirk 76
Fife 77
Glasgow City 60
Inverclyde 71
Midlothian 79
Moray (whole area) 76
North Ayrshire (whole area) 72
North Lanarkshire 71
Perth & Kinross 78
Renfrewshire 74
Scottish Borders 78
South Ayrshire 74
South Lanarkshire 74
Stirling 76
West Dunbartonshire 71
West Lothian 76
Scotland average 75
Unemployment Rates
The variation in unemployment rates mirrors the pattern for employment rates. Using
the Annual Population Survey, Scotland’s 2004-05 official unemployment rate was
5.4%, with 132,700 people of working-age unemployed. The highest unemployment
rates are in Scotland’s larger cities with 8% in Glasgow, 7% in Dundee and 6% in
Edinburgh.
On long-term (over 12 months) unemployment rates, South-Western Scotland has
the highest rate in Lowlands & Uplands Scotland at 24% while North-Eastern
Lowlands & Uplands Scotland European Social Fund Programme 2007-13
12
Scotland’s rate is below 15%. Unemployment rates amongst 15 to 24 year olds
varies from 13% in Eastern Scotland to 15% in South-Western Scotland.
Under-employment
Under-employment is a particular problem in rural areas. It can take a variety of
forms, including taking on a job for which a lower qualification is required, or working
for less time than one would like to. A measure of under-employment that captures
the latter is the amount of people in work that would like to work more hours for the
same pay. According the Annual Population Survey, when individuals were asked if
they would want to work longer hours for the same pay, the Local Authorities with the
highest share of respondents were those most characterised as ‘rural’ using the sixfold
classification. This lends support to the idea that there is more underemployment
in rural areas.
Labour Market in Deprived Areas
Within this regional labour market, there are worrying geographical variations,
particularly between the 15% most deprived areas in the region and the rest of
Scotland in terms of economic activity and qualification attainment, marginalising
these individuals from the labour market. People living in the 15% most deprived
areas were less likely to be in employment in 2005. 56.7% of working age people
living in the 15% most deprived areas were estimated to be in employment
compared to 77.9% for those living in the rest of Scotland.
People living in the 15% most deprived areas were also more likely to be
unemployed in 2005. 13.3% of economically-active people living in these areas were
estimated to be unemployed compared to 4.3% in the rest of Scotland. Relative to
the average, unemployment rates have remained constant over time in relative
terms.
This concentration of individuals marginalised from the labour market is very evident
at both NUTS 3 area level. An analysis of the Scottish Index of Multiple Deprivation
(SIMD) is useful in this regard. The SIMD is a combination of six stand-alone
indicators: current income; employment; education, skills and training; health;
housing; and access to local services. The employment, education and health
indicators are more relevant in identifying disadvantaged urban areas.
Not surprisingly, given the nature of the measures, urban areas are more likely to
display the worst concentrations of social exclusion and poverty as defined here.
Other measures can capture problems which are more endemic to rural areas. For
example, the access to services indicator measures drive times to key services and
is a proxy for rural disadvantage, including variations in access to local services,
such as General Practitioners, primary school and supermarkets, across Scotland.
However, it remains the most robust measure of social exclusion, particularly in an
urban context.
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Table 3: Concentrations of Scotland’s 15% most-deprived data zones by LUPS Local
Authority area (2006)
Local Authority % of total Scottish datazones
% of total Local Authority
data-zones
Aberdeen City 2.8 10.1
Aberdeenshire 0.6 2.0
Angus 0.8 5.6
Argyll & Bute (whole area) 1.0 8.2
City of Edinburgh 6.5 11.5
Clackmannanshire 1.5 23.4
Dumfries & Galloway 1.1 5.7
Dundee City 5.4 29.6
East Ayrshire 2.9 18.2
East Dunbartonshire 0.3 2.4
East Lothian 0.1 0.8
East Renfrewshire 0.3 2.5
Falkirk 1.9 9.6
Fife 4.8 10.4
Glasgow City 33.8 47.6
Inverclyde 4.3 38.2
Midlothian 0.5 4.5
Moray (whole area) 0.0 0.0
North Ayrshire (whole area) 3.4 18.4
North Lanarkshire 8.6 20.1
Perth & Kinross 0.9 5.1
Renfrewshire 3.7 16.8
Scottish Borders 0.3 2.3
South Ayrshire 1.3 13.6
South Lanarkshire 5.7 22.1
Stirling 0.7 7.3
West Dunbartonshire 3.4 28.0
West Lothian 1.4 13.3
Scotland 100.0 15.0
Source: Scottish Index of Multiple Deprivation.
Table 3 gives an overview of the concentrations of social exclusion in Scotland using
the SIMD (ie. the combination of all six indicators) at NUTS 3 level for the region’s
Local Authority areas. Concentrations are the areas where the different processes
measured by the indicators combine to create particularly persistent areas of
economic and social poverty – so, for example, poor educational performance, bad
housing, low levels of health and limited access to key services (such as childcare
and transport) can result in high rates of worklessness and manifested in relatively
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large numbers of claimants of state benefits. Because the factors tend to work
together, areas that ‘score’ highly on several if not all indicators are likely to be those
most resistant to initiatives to raise economic activity, whether in terms of the
creation of wealth within the area itself or the ability of individuals/organisations
within the communities to access neighbouring areas of opportunity.
The table concentrates on the worst concentrations of deprivation as measured at
the 15% level, examining the incidence in terms of shares of data-zones relative to
Scotland as a whole and relative to the Local Authority in question. From the table,
deprivation has been concentrated in some parts of the region. Glasgow City shows
a particularly high concentration – whether measured in national or local terms – and
there are similar above-average concentrations in surrounding areas such as
Inverclyde, North and East Ayrshire, North and South Lanarkshire, Renfrewshire and
West Dunbartonshire. In the eastern part of the region, Clackmannanshire and
Dundee City have relatively high concentrations as well as the City of Edinburgh,
despite its relative overall prosperity.
Despite the continuing severity of the problem, there has been some positive change
in recent years. To measure change over time, the Jobseeker Allowance claimant
count rate for Scotland’s 10% worst wards has been tracked against Scotland’s rate.
Between 2000 and 2004, the JobSeeker Allowance (JSA) claimant count in
Scotland’s 10% poorest wards fell from 15.1% to 12.2%. For Scotland as a whole,
the rate decreased from 4.5% to 3.5%. The gap in unemployment rates has also
fallen in this period from 10.6 to 8.7 percentage points. Measured in proportionate
terms, however, the rate in the high unemployment wards has risen from 3.4 to 3.5
times the Scottish average.
From an area perspective, the Social Exclusion Unit’s (2004) Jobs and Enterprise in
Deprived Areas report found that many people living in these areas have:
• multiple barriers to employment;
• low aspirations for work and study;
• extremely low travel horizons (limiting the extent to which they can gain
employment outside of these geographical areas);
• two or three generations out of work in the same family and neighbourhoods;
and
• less contact with people in work and so do not benefit from informal routes
into employment.
Concentrations of disadvantaged households take hold for different reasons in
different places, but there are three main explanations put forward by the Social
Exclusion Unit:
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• Changes in the nature and location of jobs
- A key local employer or industry closes down.
- Lack of accessible jobs.
- The informal economy can provide income opportunities which make
formal work less attractive, especially when combined with benefits.
• Residential sorting
- The housing market ‘groups’ the most disadvantaged people together.
- Residents with sufficient financial resources can choose to move out of
poorer neighbourhoods.
- Housing policy can unintentionally exacerbate residential sorting.
- Over half of all people moving into Scotland’s 10% most deprived data
zones were previously living in the 10% most deprived.
• Area effects. Residents’ chances of finding work can be reduced simply
because of where they live.
- Place effects – these include location, poor infrastructure, lack of
transport, competition for limited number of job or training opportunities,
and variation in the quality and quantity of local services – these can
combine to making such areas unattractive to businesses moving to
these communities as well as stifling indigenous enterprise
development.
- People effects – these relate to the damaging effect of living with many
other jobless people – for example, residents receive little information
about jobs or encounter area-based discrimination by some employers.
In turn, these three explanations can lead to a:
• skills mismatch – an imbalance between the characteristics of potential
workers and the attributes required by local employers; and
• spatial mismatch – a geographical mismatch between residences and
potential workplaces.
The Social Exclusion Unit, in reviewing UK and international studies, argued that it
matters if jobless people are concentrated in the same areas.
• Living in these areas can damage a person’s life chances – especially those
of children and young people.
- Individuals living in deprived areas are significantly more likely to be out
of work than similar people living elsewhere.
- Children’s educational attainment is closely linked to the level of
neighbourhood poverty. For example, only 46% of pupils living in
Scotland’s 15% most deprived data zones attained expected standards
in writing at the end of primary school. The Scottish average is 61%.
• Residents have lower expectations of finding a job and a lower probability of
actually starting a business.
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• A significant number of children are in danger of growing up in families and
neighbourhoods with little contact with the world of work and a lack of positive
role models.
In addressing these barriers and constraints, research undertaken by the CEEDR
(ODPM, 2003) on the evidence for successful enterprise-led regeneration in
deprived areas looked at the contributions of different types of enterprises. Economic
growth for these areas is dependent on a combination of indigenous enterprise
development, the attraction of outside businesses to the areas to act as significant
local employers and the ability of residents to access good employment opportunities
outside of the region. The latter activity is more appropriate to interventions through
the ESF Programme for the region. However, with respect to the first two activities,
the benefits can be summarised as follows.
• Enterprises provide employment opportunities to local residents. Their
earnings can then be spent in the local economy which increases demand.
• Enterprises can boost the local economy by purchasing their requirements for
materials, components and services locally.
Employability
Inactive and Unemployed Target Groups
Individuals make up the raw figures on unemployment, economic inactivity and
employment deprivation. However, as with the geographic areas which contribute
unevenly to these figures, certain client groups are more likely to be excluded from
the labour force than others. Every individual within a client group will not necessarily
experience the same barriers. For example, one lone parent may only face childcare
availability as a barrier, whereas another lone parent may have poor qualifications,
no work experience and no access to affordable childcare. The workless client group
work-stream for the Employability Framework has also identified that a large
proportion of workless individuals fall into multiple client groups. Low skills or
qualifications, lack of self-confidence and work experience are personal barriers
common to many of the workless client groups. The benefits system and stigma are
also common to many of the client groups
The problems arising from worklessness are particularly acute among young people
who are workless. The number of 16-19 year olds “not in employment, education or
training” (or ‘NEET’) was approximately 36,000 in 2005 which equates to 14% of the
total 16-19 year old population. The NEET group is of particular concern as they
represent a part of the population where worklessness can become entrenched
through an absence of any history of employment. The proportion of NEET in the
region has not significantly changed in any year since 1996 with the proportion
fluctuating between 13% and 15%. Males generally have a higher proportion of
NEET than females.
In terms of scale, the most substantial workless group is the 346,000 sick and
disabled benefit claimants, which equates to 67% of all claimants and 11% of the
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total region’s working population. The client group effectively consists of two groups
– sickness and disability are distinct – but from a policy perspective, it can be useful
to consider them together. Between 2000 and 2005, the client group increased by
2%. However, that still leaves 189,000 claimants in the area, 55% of Scotland’s total.
Breaking this down further by NUTS 3 area, the highest rates have been found in
Glasgow (18%), and in both North and South Lanarkshire at over 12%.
In 2001 it was estimated that in Scotland only 30-40% of disabled people are in
work, compared to 51% in the UK as a whole. This figure reduces to only 28% of
people with a mental health condition and 24% of people with a learning disability
(DRC, 2005). Statistical evidence is not readily available on benefit claimants with
mental ill health. However, data from the research work-streams for the development
of the Employability Framework suggests that approximately 119,100 people claimed
Incapacity Benefit in Scotland due to mental and behavioural disorders in May 2004.
It has been estimated that only 8,250 opportunities on training and employment
programmes exist for the working-age people in Scotland with mental health issues.
It is very difficult to find reasonably accurate figures for individuals with chaotic life
styles, homeless, abusing drugs or alcohol, or ex-offenders. These individuals tend
to be concentrated in the most deprived areas, with 60% of Scotland’s declared
homeless are in Glasgow. Some idea of the scale of the problem can be
extrapolated from specific figures. For example, by applying the overall prevalence
rate of drug misuse to the Scottish population, it can be estimated that there are
approximately 58,000 working-age people with drug problems, and data suggests
that nearly 73% are either long term unemployed or have never worked. Scotland
had a prison population of 6,569 in 2003, the equivalent of 129 per 100,000 of the
total population, and again high proportions of these individuals find it particularly
difficult to enter work on release from prison.
Gender
The working-age employment rate in Scotland was higher for males than females in
2005. The rate for males was estimated at 77.6% compared to an estimate of 72.1%
for females. The total number of working-age males in employment, in 2005, was
estimated at 1.235 million with a further 24,000 over working age in employment.
The total number of working-age females in employment was estimated at 1.104
million with a significantly larger number of 52,000 over working age in employment.
The NUTS 3 area which had the highest male employment rate estimates in 2005
was Aberdeenshire (84.6%).
Lone parents also make up a significant group. There were 66,400 lone parents
claiming state benefits in 2005, which is a 17% decrease from 2000. However, this
still represents 2.1% of the working-age population, and lone parents are
concentrated in areas of deprivation. Lone parents living in deprived areas are much
more likely to be unemployed or inactive and face important barriers to their
participation in the labour market, particularly with respect to their caring
responsibilities. At NUTS 3 level, every area has a rate below 3% except East and
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North Ayrshire, with 4%. East Lothian and Midlothian have the lowest rate at just
under 1%.
The balance between employment and home-life caring responsibilities continues to
be a significant problem for many women. Although around 110,000 economicallyinactive
women in Scotland would like a job, approximately 36% of these were
prevented from returning to work because they had to look after their family. Issues
around caring responsibilities for elderly and ill relatives are now becoming a
common problem for more and more people in the 45-to-64 year age group.
Ethnic Minorities and Asylum Seekers/Refugees
Ethnic group and asylum seekers/refugees have distinctive issues relating to their
participation in the labour market, arising from lack of qualifications (or recognition of
the qualifications they have) and in some cases, lack of key skills such as English
language. The region’s ethnic minority employment rate was 56.4% in 2004 – this
had shown only an increase of 1% since 1999. Indeed the gap between the total
employment rate and the ethnic minorities relies on a small sample size, it indicates
that the group’s employment rate had widened marginally in that period. In addition,
in the most recent data from the Annual Population Survey, the employment rate
amongst non-white females in Scotland is 48% – well below the rates for non-white
males (59%) and white females (72%). The economic inactivity rate is higher for
each ethnic minority group than the ‘White’ rate of 20%. The ‘other’ and ‘Pakistani/
Bangladeshi’ groups have the highest rates with both over 38%. Of the 29,700 ethnic
minority population who are economically inactive, 18,700 live in Glasgow or
Edinburgh.
The largest number of asylum seekers are resident in Glasgow with a report for the
COSLA Refugee and Asylum Seekers Consortium stating that there were 5,798
asylum seekers living in the city in 2005. A recent skills and aspirations audit by the
Scottish Executive (2004) found that only 5.7% of the refugees and asylum seekers
in Scotland who responded to the audit indicated that they were in employment.
Many referred to their lack of language skills, and a lack of language courses for
them. Others noted employer discrimination and lack of cultural awareness among
support staff as barriers to their participation in the labour market.
Key messages
• The region has shown an overall good employment performance in recent
years. Employment rate of 72% exceeds EU Lisbon target of 70% and is at a
historical high, driven by an expanding employment base and linked to low
unemployment rates. Indeed, employment rates have risen for the major
groups of the population, including the more disadvantaged groups such as
lone parents.
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• There is still a substantial gap between the employment rates for the more
disadvantaged groups and the workforce as a whole. Worklessness is a more
acute problem than unemployment in many cases. The NEET Group
constitutes a particularly difficult problem, as well as those working-age
jobless people described by their benefit status as ‘sick and disabled’.
• Relative to the average, unemployment rates for people living in the most
deprived areas have remained constant over time in relative terms. Areas with
concentrations of worklessness often present a greater policy challenge
because there are a number of environmental factors reinforcing the lack of
employability characterising some communities.
• Ethnic minority employment rate at 56.4% increased only marginally (1%) and
the gap has actually widened. Employment rate for non-white females in
Scotland is 48% – well below the rates for non-white men (59%) or white
females (72%).
2.3 Workforce Skills
To improve the region’s relatively poor productivity performance, one important
component is the skills profile of the workforce. In examining the skills of the
workforce, there are several broad areas that need examination: the composition of
the workforce; their skills level; and the ability of the workforce to improve those
skills. Headline features of these different issues are presented here against EU
averages.
Examining the composition of the workforce in Scotland as a whole, there are
608,000 part-time employees, an increase in absolute and in percentage terms since
2001. The proportion of part-time employees in Scotland (25%) is much higher than
the EU-25 average of 18%. Part-time employment is not in itself an issue that needs
to be addressed by Structural Funds intervention, but can be concerning in the
context of low income and skills levels associated with some part-time jobs,
especially under-employment in rural areas.
If the region is to make a full contribution to the Lisbon Growth and Jobs Agenda, the
number and skills level of potential and actual entrepreneurs in the economy is
another important consideration. If the region is to have a enterprise base that is
regularly replenished and generates innovative ideas for high-growth economic
activity, the stock of entrepreneurs needs to be monitored. The evidence suggests
that Scotland has a clear challenge with creating and sustaining entrepreneurs.
There are around 240,000 self-employed people in all of Scotland, 10% of all
employment – a rate well below the EU-15 and EU-25 averages of 15%. There are
significant variations here: the highest proportion of self-employed is in North-
Eastern Scotland, while the lowest is in South-Western Scotland. One measure of
entrepreneurship is given by the Total Entrepreneurial Activity (TEA), which is the
percentage of adults either actively starting an enterprise or running a new enterprise
(less than 3.5 years old). In 2004, the Scottish TEA figure was 5.1%, up from 4% in
2000, but still in the bottom half of a ‘league table’ of those EU countries participating
in the survey. The number of business start-ups per 10,000 population, one of the
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main indicators of entrepreneurship in an economy, was 28 in Scotland in 2005,
which was significantly lower than the UK average of 38 (Small Business Service,
2006).
With the accelerating developments in internet technology and e-commerce
applications of that technology, it is essential that enterprises are able to make full
use of the nearly universal broadband coverage in the region (to which investment
infrastructure by past Structural Funds programmes have made significant
contributions). Enterprises are making increasing use of broadband in Scotland – the
share of business activity transacted through e-business rose from 17% in 2001 to
20% in 2004, higher than the UK average (DTI, 2004). However, Scotland continues
to lag behind key competitor countries in other parts of the EU and North America,
with continuing challenges in enterprises recognising the potential of e-commerce
and having the skills to make full use of the technology. This challenge is particularly
relevant for new enterprises, especially in non-ICT sectors, where enterprise growth
and survival could be improved through a better use of e-skills and opportunities.
Similarly, in looking at the overall skills level of the workforce, the region shows a
mixed picture. Reliable international comparisons on low/no skills are difficult
because of the problems of comparing different education and qualification systems,
and it is not possible to calculate EU averages because data are not available for all
countries. However, for those countries where comparison is possible, Scotland as a
whole appears to perform well. On the proportion of the 15-plus population whose
highest qualification is ISCED level 2 or below (equivalent to lower secondary
education), the Scottish figure is amongst the lowest, at just 10.7%, above only the
UK, Lithuania, Estonia, the Czech Republic and Slovakia. However, as the sections
below show, there are still significant issues for the region in the numbers of those
with low or limited skills entering into sustainable employment.
Finally, as a measure of the region’s capacity to improve the skills level of its
workforce, Scottish participation in training is well above the average involvement in
the EU-25 with 15.3% of adults aged 25 to 64 years undertaking education or
training in the previous four weeks. However, according to Eurostat, the average for
the Scandinavian EU economies was 25.7% in 2004, and the Scottish percentage
has dropped 2% over the last four years.
Overall skills performance
One measure of the need to improve the skills of the workforce is the concept of
‘skills gaps’. Skills gaps exist within organisations when a current employee is judged
to be not fully proficient at his or her job. Results from Futureskills Scotland (2005b)
skills survey reveal employer perceptions of three areas in which inadequately skilled
staff are deficient. Planning and organisation, customer handling, problem solving
and team working are all identified as weaknesses in over 50% of staff that are less
than fully proficient; then written communication is deficient in almost 35%; and
finally, numeracy and literacy, although among the least common skills deficiencies,
are both still identified as a problem amongst almost one in five employees with skills
gaps.
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Evidence from Futureskills Scotland’s employer survey also shows employer
perceptions of the skills gap varies by broad industrial groups. They see skills gaps
as most common in the hotel and restaurant sector, with 14% of employees judged
to be less than fully proficient. This is significant as these industries are
characterised by short-term and part-time employment. Other services, public
administration and transport all report skills gaps over 10%. However, the largest
number of employees with skills deficiencies – nearly 25,000 – are in the
manufacturing sector where the survey suggests that employers perceive 10% of
employees as not fully proficient. In terms of employers addressing these issues,
people employed in the public sector are more likely to receive in-work training than
those in the private sector. The agriculture & fishing, distribution, hotels &
restaurants and transport & communications sectors have considerably lower levels
of training.
Another important measure of skills is basic skills such as literacy and numeracy. On
the available evidence, while few adults have a complete lack of reading and writing
ability, many more may have very low literacy or numeracy skills. The International
Adult Literacy Survey (IALS) estimated that 800,000 – or 23% – Scottish adults have
low literacy or numeracy skills, while another 30% may have inadequate skills to
meet employers demands. The Scottish IALS identified the characteristics likely to
be associated with an individual having low skills in this area as those who left
education at 16 or earlier, are on a low income, in a manual social class group, living
in a disadvantaged area, and/or over 55.
Lastly, it is useful to consider low skills more widely. In the absence of reliable data
on skills levels, the highest level of qualification held is often used as a proxy. The
report of the Employability Framework, Workforce Plus low paid/low skilled research
work-stream considered the low skilled group as people with qualifications below
SVQ Level 2. In 2004, there were almost 580,000 working-age people, or 18.5% of
the working population, whose highest qualification was below SVQ level 2. At NUTS
2 level, the highest number and concentration of this group was in South-Western
Scotland, with over 300,000 people, or 22% of the working-age population, with
another particularly high proportion (27.5%) in North Lanarkshire.
Groups with specific skills issues
Within the workforce, different groups face different skills issues and challenges in
securing sustainable employment. The groups facing the most distinctive
disadvantages are the following:
• low paid workers and workers with low skills levels;
• those facing acute gender issues;
• ethnic minorities and asylum seekers/refugees; and
• older workers.
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Low Pay/Low Skill
Low pay is defined by the OECD as earnings below two-thirds of the median level.
Data from the Annual Survey of Hours and Earnings shows that around 486,000
people, or 22% of all employees in Scotland, earn below the low-pay threshold. It
also shows that the highest concentrations of low paid jobs are in distribution, hotels
and restaurants and agriculture and fishing, and that the majority of low paid
employees are in either sales and customer service, or elementary occupations.
The Institute for Employment Studies (2003) found that there was no UK research
into the opportunities for progression amongst low-paid, low-status employees.
However, because of the limited training on offer, people in these jobs are unlikely to
gain any formal qualifications. As a result, there are two possible paths for career
progression, either promotion opportunities that do not require additional formal
applications and are not likely to be taken by better qualified external applicants, or
similar but slightly better jobs with other employers. It is considered that there are
likely to be few opportunities in the first category, although as a result of the current
buoyant labour market and the premium placed on work experience and references
by employers, there will be more ‘horizontal’ movement.
Low pay is often associated with part-time working, and evidence from the
Employability Framework’s low-paid/low-skilled research work-stream indicated that
both female and male part-time workers receive 40% less training than their full-time
counterparts.
Gender
Data from the Annual Population Survey show that around 110,000 economicallyinactive
women in Scotland would like a job. Approximately 36% of these were
prevented from returning to work because they had to look after their family. It is
estimated that women returners to the labour market make up around a quarter of
the female labour force at the UK level. Around 35% of mothers are employed parttime,
compared to 21% full-time. Women returning to work part-time are
concentrated in low-status jobs, particularly in administration, sales and customer
services, and caring and personal services. Hourly rates of pay for women are only
84% of the male figure, and for full time jobs female weekly pay is only 82% of the
male average.
Women returners tend not to have the opportunity to make full use of their past
training and experience when returning to work in less-skilled jobs, often because of
the absence of a recent work record. Full-time returners average a loss of wages
(per hour) of 12%, correcting for their characteristics, while the penalty for part-time
returners was 22%. There is evidence to suggest that women tend to return to lowerskilled
part-time work because of the inflexibility of full-time employment. This is not
helped by persistent gender differentials in Scotland’s labour market. Gender
segregation in sectors persists with only 11% of workers in the construction industry
who are female and only 27% in manufacturing, transport and communications.
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Approximately 277,000 Scottish women aged between 16 and 64 are ‘would-be’
entrepreneurs. Of these 34,000 have a current active interest in setting up an
enterprise. In general, however, Scottish women have lower growth ambitions for
their enterprise than their male counterparts. There are 67,100 self-employed
women which is 27% of total self-employment. Taken as a whole, women set up
around 30% of Scotland’s enterprises. These firms continue to be concentrated in
‘traditional’ women’s sectors.
Gender imbalance does not simply apply to women entering male-dominated
sectors. To address the perception that there are gender-specific occupations, it is
important that men are encouraged to enter into jobs and sectors traditionally
associated with women, such as the caring profession.
Ethnic Minorities/Asylum Seekers/Refugees
The 2001 Census provides data on people from ethnic minorities with low
qualifications. 32,000 people from ethnic minorities lack qualifications at SVQ Level 2
or above. The greatest number of non-white people with low qualifications are
concentrated in Glasgow and Edinburgh. The proportion of non-white people with
low qualifications is higher in Glasgow, Falkirk and Ayrshire.
The availability of earnings and employment data on ethnic minorities in Scotland is
hampered by small sample sizes. At a UK level, both men and women in certain
ethnic minorities, particularly Pakistanis, tend to earn less and are more likely to
have no qualifications than their white counterparts. Amongst ethnic minorities, the
rate of female self-employment is much lower than that of men (12% compared to
24%). However, it is worth noting that this is still much higher than the rate of female
self-employment for Scotland as a whole.
Older Workers
Data from the Labour Force Survey show that people aged over 50 are much more
likely to have low skills than other age groups. The number of economically-active
people in this age group with no qualifications is 106,500, around 20% of the age
group. There are variations across Scotland in the percentage of this age group with
no qualifications – ranging from 17% in Eastern Scotland and North-Eastern
Scotland to 23% in the South-Western Scotland.
As noted earlier, using qualifications as a proxy for skills means that that some
people will be classified as being ‘low skilled’ because they lack accredited
qualifications, even though they may have high levels of unaccredited skills. This is
likely to be especially true for people aged over 50.
Skills in SMEs
The number of small enterprises employing less than 200 in Scotland overall is
166,600 with particular concentrations in Glasgow and Edinburgh. SMEs face a
range of quite specific barriers to increasing skills in their workforce or managers
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such as the cost of losing staff time off the job while they undertake training. The
cost of course fees and the need to pay for staff cover are major issues for around
one in five employers. There is often limited money set aside for training within the
organisation, a lack of perceived relevance of external training, and a fear that staff
might be ‘poached’ when they gain qualifications. The smaller the workplace size,
the less likely it is that training will be provided.
The most widely perceived constraint to setting up an enterprise is finance. Beyond
finance, no single constraint affects the majority of ‘would-be’ entrepreneurs and
most face more than one constraint. However a major constraint for them all is a
shortage of skills – specific skill shortages vary between individuals, but cover a wide
range of issues such as accounting, marketing, e-skills, and purchasing expertise.
Self-employed males are less likely to have undertaken adult learning than male
employees. The opposite is true for women.
Social Enterprise Skills
The skills of the social economy is another important issue to consider, not least as
social enterprises and voluntary sector organisations are often the bodies addressing
the employability issues identified in the Labour Market Analysis above. Studies
conducted by McGregor et al. (2003), Glass et al. (2002) and Futureskills Scotland
(2005b) highlight some of the main support needs of social economy organisations.
Around a third of organisations see the need to develop the skills of the workforce,
employed or volunteering. Strengthening the skills of managers was the main
support needed for over one in five of the largest organisations. Smaller
organisations are much more concerned to tackle long standing issues of board or
management committee capacity, but this is reported as main support need by only
10% of large organisations. There are increasing needs for financial skills and
marketing and enterprise training to help staff become more entrepreneurial.
Key messages
• It is estimated that 23% of Scottish adults have low literacy or numeracy skills,
while another 30% may have inadequate skills to meet employers’ demands.
• There are almost 580,000 working-age people considered to be low skilled.
• 22% of all employees earn below the low pay threshold, with the majority of
these employees in either sales and customer service, or elementary
occupations.
• Around 110,000 economically-inactive women would like to work, with 36% of
these women prevented from returning to work because they had to care for
their family.
• Only 10% of all those employed in Scotland are self-employed, compared to a
EU-25 average of 15%. Entrepreneurial activity is increasing in Scotland, but
is still lower than many other EU countries.
• Social economy organisations report that their key needs are developing the
skills of their employees and volunteers, and the capacities of their managers.
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2.4 Lifelong Learning
Although Scottish adult participation has fallen marginally between 2000 and 2004 to
15.3% undertaking education and training in the previous four weeks, and 20% in the
previous 13 weeks, this rate remains significantly higher than the EU average. In the
EU-25, only 8.6% of adults had participated in education or training in the previous
four weeks, and only 9% for the EU-15 in the previous 13 weeks, although the EU
figures are increasing.
In 2003, the region’s percentage of population in further education (FE) had
increased to 11.1%, more than double that of the EU-15 and EU-25 at 5.2%.
Participation in higher education (HE) was 5% of the total population in the region by
2003, again significantly higher than the rate of 3.7% in both the EU-25 and EU-15.
According to Eurostat, at 20%, Scottish participation in workforce training was more
than double the 9% figure in the EU-15 in 2002. Scotland, although starting from a
higher base, has seen a similar slight increase in these participation rates over time
to that in the EU.
Geographical variations
Within Scotland, DTZ Pieda’s (2005) Supply and Demand of Further Education in
Scotland report found substantial variations in participation rates at FE colleges in
different areas across Scotland. Scotland’s average participation rate was 153 per
1,000 of the working-age population. However, the rate was significantly higher in
Glasgow, Fife and Clackmannanshire, Dundee City and Angus, and significantly
lower in Edinburgh, the Lothians and Lanarkshire.
The Scottish Index of Multiple Deprivation Education Indicator shows concentrations
of education deprivation in Scotland using both the proportion of the working-age
population with no qualifications and school-age performance. Within Lowlands &
Uplands Scotland, South-Western Scotland has the highest concentration with 22%
of its data zones in Scotland’s 15% worst areas of education deprivation. Eastern
Scotland has 12% of its data zones in Scotland’s 15% worst, while North-Eastern
Scotland performs well with only 6% of its data zones. The NUTS 3 breakdown
shows that urban areas perform significantly worse on this measure than rural areas.
Glasgow has the most severe problems with 30.5% in the worst 5%, 43.1% in the
worst 10% and 48.8% in the worst 15% areas. Three NUTS 3 areas in Eastern
Scotland have over 15% of their data zones in Scotland’s 15% most-deprived areas
– Edinburgh, Falkirk, and Angus and Dundee City.
The SFEFC/SHEFC (2005) Learning for All report found participation at higher
education level by people from the most deprived areas has grown but very
gradually. People from the least deprived areas were still about twice as likely to be
participating in higher education as people from the most deprived areas.
Low participation neighbourhoods for entrants to First Degree Courses in HE
institutions are defined as areas where the participation rate among 18-19 year olds
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is less than two-thirds the UK average rate. Scottish HE institutions have increased
the proportion of their young entrants who are from low participation neighbourhoods
to 19%. This is significantly above the UK average. However, there has been a drop
in the proportion of mature entrants, those aged 25 years or over, from these
neighbourhoods. (Scottish Executive, 2005c).
Participation in different forms of lifelong learning
Post-Compulsory School-Age Lifelong Learning
The Labour Force Survey estimated that in the academic year 2003-04 there were
2.3 million people of working age (74%) in Scotland involved in some form of
learning activities. This included 700,000 undertaking courses in educational
institutions; 34,000 taking courses outside of Scotland; 750,000 receiving work
based training; and a further 750,000 engaged in more informal learning activities.
On reaching school-leaving age, many young people continue in education and
training at school, college or with an employer. Staying-on rates, that is the number
of pupils who continue into post-compulsory education, divided by the total number
of pupils in the entire cohort, is an important lifelong learning indicator. In 2004-05,
about 76% of those entering S3 in 2002 stayed on until S5. The figure drops to 67%
after Christmas, when education becomes voluntary for all S4 pupils. Only 44% of
those entering S3 in 2002 stayed on until S6. Females have higher staying on rates
than males. The staying-on rates have remained fairly steady over the last five
years.
Half of school leavers went on into Further or Higher Education in 2003/04, which
represents a 2% fall since 2002-03 for those going into HE and no change for those
going into FE. In 2003/04 there were a total of 467,170 enrolments in Scotland’s 46
FE Colleges. Of these, 84% were part-time; 352,290 were vocational enrolments;
59,270 were for non-vocational classes; and 55,160 were in higher education
courses.
In terms of the demographic breakdown of vocational enrolments, 57% are female,
43% male; 40% of vocational enrolments are aged 24 years old or under; 43% are
aged between 25 and 49 years old; and 18% are aged 50 or over.
In 2003/04, there were 172,875 first degree or postgraduate students who were
domiciled in Scotland and studying in UK HE institutions. That equates to 6% of
Scotland’s working-age population. 126,605 were enrolled on first degree courses.
46,270 enrolled on postgraduate courses. 71% of the total 172,875 students
attended Scottish HE institutions.
The Age Participation Index measures the proportion of Scots under 21 years old
who entered higher education anywhere in the UK for the first time in a given year. In
2003/04, 48.9% of young Scots entered a full-time higher education course for the
first time. This has fallen slightly since its peak of 51.5% between 2000 and 2002.
However, over a longer time period, the figure has doubled since 1990. 30% of
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young Scots enter at degree level, with 19% entering at sub-degree level, 78% of
whom were aged under 24 years old. In contrast, 71% of postgraduate entrants were
mature students aged over 25 years of age.
Students with disabilities participate broadly in proportion to their numbers in the total
population. 5.3% of students at Scottish HE institutions declared a disability in
2003/04. In 2000/01, this figure was 3.8%, though this increase can partly be put
down to refinements in data collation.
Taken from HESA (2001) Statistics Focus, 6% of Scottish-domiciled first-year higher
education entrants in 2000/01 were non-white, which compares favourably with the
proportion of non-white individuals living in Scotland, which is 2%.
Other Post-School Lifelong Learning
14,855 people aged 16 to 24 years of age entered Modern Apprenticeships in
2004/05. The majority of participants are male, reflecting the fact that more females
stay on at school or enter further FE. 7,333 achieved an MA.
Of the 8,469 people aged 16 to 18 years of age participating participants in the
Skillseekers programme in 2004/05, 5,556 achieved a vocational qualification. The
numbers of male and female participants in the Skillseekers programme are about
even.
During the period April 1998 to December 2004, 13.5% of the 144,350 18 to 24 year
olds in Scotland starting on to New Deal for Young People (NDYP) chose to move
onto a course of full-time education or training. About 74% of the participants in the
NDYP programme are male (Lifelong Learning Statistics, 2005).
8,543 young people joined the Get Ready for Work (GRfW) programme in 2004/05.
Of these, 3,011 participants achieved Positive Outcomes. GRfW is dominated by
males with only around 35% of participants achieving positive outcomes being
female.
The Scottish Executive’s (2005) Lifelong Learning Statistics define adult learning as
all types of learning excluding that undertaken by full-time students of school,
university or college. Adult learning includes all individual learning, in-work training
and training programmes that improve the chances of employment or progression.
Using these statistics and Annual Scottish Labour Force Survey (ASLFS) data
shows that for women aged 16-54, the proportion undertaking training in the last
three months is around 34-35%. Whereas for men, the proportion undertaking
training varies between 37% for 16-24 year olds and 25% for 45-54 year olds. There
is a definite downward correlation between age and the proportion of people
undertaking training, with older people less likely to undertake training. Older people
are less likely than younger people to have undertaken some sort of adult learning in
the past year.
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Economically-inactive people who are sick, disabled or are looking after the home
are the least likely to have undertaken any adult learning.
Qualification level is positively correlated with the likelihood of undertaking adult
learning. Over 90% of people with qualifications above SVQ Level 4 have
undertaken adult learning compared to 69% and 38% of people with SVQ Level 2
qualifications and no qualifications, respectively.
The numbers participating in the Training For Work programme have been falling
over time, experiencing a significant fall since 1998 when the New Deal for 25+ was
introduced. Of the 9,589 participating, 46% of all leavers achieved a positive
outcome in 2004/05, with 44% of male leavers and 50% of female leavers achieving
a positive outcome.
The people aged 25 or over joining the Adult Modern Apprenticeship programme are
predominantly female, in contrast with the 16-24 Apprenticeship age group. Over
60% of MAs achieved are by females for this age group. This compares to only
around 40% of female participants aged 16-24.
In-Work Training
In-work training can be both on-the-job and off-the-job training. On-the-job training
includes supervised training at the workplace; while off-the-job training includes
training away from the workplace at the employer’s premises or at an educational
establishment or other training provider (Lifelong Learning Statistics, 2005). Using
data from the Annual Scottish Labour Force Survey (2004) it is estimated that in the
last three months, 687,000 (31%) of working-age people in employment have
undertaken job-related training. A greater proportion of female than male employees
have undertaken job-related training in the last week, month and three-month period.
Further evidence on work related training is obtained from surveys of employers,
including the Scottish Employer Skills Survey which shows that 64% of
establishments in Scotland provided some training in the previous year, in the survey
for 2003 and again for 2004. The proportion of establishments giving some off the
job training has decreased slightly, but remains at over 50% while the proportion
offering no training of any sort remained at 36%. The 2004 Annual Scottish Labour
Force Survey shows that in the previous three months, 687,000 (31%) of workingage
people in employment had undertaken job-related training.
The incidence of training increases significantly with workplace size. 96% of
establishments with 250 or more employees provided training in the previous 12
months. Less than half the establishments with less than five employees provided
training.
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Key messages
• Scotland’s participation in education and training at 15.3% is well above the
EU-25 average.
• Over one-quarter of the working-age population is not involved in some form
of learning activities.
• People from the most-deprived areas are about two times less likely to
participate in higher education as people from the least-deprived areas.
• Economically-inactive people who are sick, disabled or have caring
responsibilities are the least likely to access adult learning.
2.5 Summary of Key Challenges
In this final section of the socio-economic analysis, on the basis of the statistical
evidence presented above, a summary of the key issues to be addressed in the
Programme is presented: first, an analysis of the main strengths, weaknesses,
opportunities and threats for the region’s labour market; and second, a more detailed
identification of the key challenges for the Programme under the employability,
workforce skills and lifelong learning headings.
SWOT analysis
Regional Strengths
• The region has shown an overall good employment performance in recent
years. Employment rate of 72% exceeds EU Lisbon target of 70% and is at a
historical high, driven by an expanding employment base and linked to low
unemployment rates.
• Employment rates have risen for the major groups of the population, including
the more disadvantaged groups such as lone parents.
• The proportion of economically-active Scots educated to SVQ level 4 or
above is rising as is participation rates in education.
• Scotland’s participation in education and training at 15.3% is well above the
EU-25 average. Overall, there is a high percentage of young people in higher
education.
Regional Weaknesses
• There is still a substantial gap between the employment rates for the more
disadvantaged groups and the workforce as a whole. Worklessness is a more
acute problem than unemployment in many cases.
• There are big geographical variations in employment rates with, for example,
Glasgow’s employment rate is only around 65% compared to 76% in
Edinburgh and 78% in Aberdeen.
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• The NEET Group constitutes a particularly difficult problem. There are around
33,400 16-19s in this group, the majority in South-Western Scotland with high
concentrations in the Glasgow area. The group represents a particular policy
challenge given the entrenched nature of worklessness among the
individuals.
• The numbers of working-age jobless people described by their benefit status
as ‘sick and disabled’ have fallen by only 2% – and at 346,000 people now
make up 67% of all working-age jobless people. Around 119,000 people
claiming Incapacity Benefit have mental ill health and behavioural problems.
• Relative to the average, unemployment rates for people living in the most
deprived areas have remained constant over time in relative terms. Areas with
concentrations of worklessness often present a greater policy challenge
because there are a number of environmental factors reinforcing the lack of
employability characterising some communities.
• Ethnic minority employment rate at 56.4% increased only marginally (1%) and
the gap has actually widened. Employment rate for non-white females in
Scotland is 48% – well below the rates for non-white men (59%) or white
females (72%).
Regional Opportunities
• The region benefits from macroeconomic stability providing a foundation for
further employment growth.
• There is a regulatory framework that sets clear standards, such as the
national minimum wage, anti-discrimination and equal opportunities
legislation.
• The Scottish Executive is committed to new strategies on employment,
regeneration and tackling the NEET group.
• A significant part of the working-age population in the region is willing to work
if they can overcome barriers such as affordable available care for relative,
health issues, or discrimination.
• Although the measure of entrepreneurship in Scotland is in the bottom half of
the EU, in 2004 it was up from 4% to 5.1%, showing signs of improvement.
• Although there are demographic concerns to the long-term labour market, the
influx of migrants into the region provides new opportunities for employment
and productivity growth.
• Because a number of areas within the region have a combination of economic
problems acting to reinforce problems of poverty and social inclusion, spatial
and co-ordinated targeting of additional resources could provide an effective
means of intervention.
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Regional Threats
• Macroeconomic instability or a change in interest rates might affect the
economic climate and the employment levels.
• Increased migration from new accession EU members might make employers
less prepared to work with the local workless population trying to enter or
progress in the labour market. The challenge will be to turn migration into an
opportunity for the Scottish economy to gain from new skills sets and a
potentially larger pool of entrepreneurs.
• The population is ageing and older workers tend to have less recognised
qualifications and are less prepared to undertake training. There is a need to
retain older workers in the workforce, but also to increase their productivity.
At present there is a market failure as employers will not provide this training
as the private costs to either the employer or the individual are likely to
exceed the benefits to them personally.
• Social attitudes still need to be tackled to overcome gender segregation,
recruitment and progression for some groups within the working population.
Key Programme challenges
The SWOT analysis – and the key messages highlighted above – suggest that there
are a number of key strategic challenges which the Programme should address.
1. Reducing the acute levels of worklessness in certain groups and areas.
Significant efforts are still required to reduce the 520,000 working-age people
who are on state benefits. Although pathways to work should not be the
preferred solutions in all cases, securing sustainable employment can be
critical in helping individuals out of poverty. Efforts are needed to provide
individuals with the opportunity and skills for entering/re-entering the labour
market. At the same time, there are parts of the region where worklessness is
at acute levels, resulting in self-reinforcing poverty cycles that can hinder the
employment prospects of individuals located in particular communities.
2. Improving employment rates in those groups which are the ‘hardest-tohelp’.
Linked to the above issue, there is a case for support to concentrate on
those individuals and groups which face multiple and severe barriers to their
participation in the workforce. Domestic support is more available for those
‘close’ to the labour market. As the ‘hardest-to-help’ require more intensive
forms of assistance, resources should be targeted to allow them to access the
full set of services they require to enter the labour market. While sustainable
employment may not be the right solution for all individuals in these groups,
there is scope for helping those who want to enter the labour market. This
may mean focusing on improving ‘soft’, basic skills in entering the labour
market and aim to further their progress towards achieving sustainable
employment, rather than focus exclusively on supporting individuals to get
jobs immediately. At the same time, employer attitudes need to be addressed
to ensure that employment opportunities will be extended to this group.
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3. Increasing the ability of the low-waged and low-skilled to progress
through the labour market. Only a small proportion of low-waged/low-skilled
employees appear to progress in the labour market. For some groups though,
the issue is not simply one of supply but demand as well, particularly with
respect to employer attitudes to certain groups (such as ethnic minorities,
migrants and older workers).
4. Tackling representation in key occupations and sectors of underrepresented
groups. Persistent gender earnings gaps and strong gendering
in specific occupations and industries need to be addressed more effectively,
both to widen opportunities for women and increase the labour supply to
occupations and industries dominated by particular genders. Similar issues
apply to ethnic minorities. At the same time, there is a need to encourage
greater retention and retraining of groups such as older workers and migrants
to ensure a thriving, growing supply of labour. As a market failure in the
region, the issue relates to both labour supply needs (such as training) as well
as demand (such as employer attitudes).
5. Increasing the skills levels of entrepreneurs and new enterprise
managers. Entrepreneurialism is less common in the region’s labour market
relative to the rest of the UK and the EU. General skills/training support is
needed to help raise the new firm formation rate, but there is also a strong
case for specific measures to help move under-represented groups into selfemployment,
including the currently employed. At the same time, new
enterprise managers often lack sufficient management, e-business and
knowledge economy skills.
6. Providing social enterprise managers and workers with greater skills to
sustain their organisations. The capacity of the social economy to deliver
services more effectively to vulnerable groups and develop the skills to
achieve long-term enterprise survival is important.
7. Increasing lifelong learning participation rates among the most
disadvantaged groups. In terms of headline figures, the region compares
favourably for overall participation rates in lifelong learning, but they vary
considerably by group. This underlines the need to focus on the most
disadvantaged. It also confirms that working intensively to address these
disparities is essential to make in-roads into closing the opportunity gap that
currently exists.
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3 POLICY BACKGROUND
3.1 Policy Context
The ESF Programme must address the challenges set out in the analysis of the
socio-economic background section in the context of a range of policy actions in
order to maximise the value added of the Structural Funds. This context must be
established at different levels to ensure funding not only complements but builds on
existing policy. Specifically, the ESF Programme should fit within and alongside:
• the EU policy context: the Community Strategic Guidelines, which sets the
indicative framework for the Cohesion Policy in support of the EU’s growth
and jobs commitments, the UK’s National Strategic Reference Framework, as
specified in Article 25 of the General Regulation, in which the chapter on
Scottish Structural Funds goals provides the overall framework for Structural
Funds spending in a Scottish context, the Integrated Guidelines on Growth
and Jobs, as approved by the European Council in June 2005, and the
European Employment Strategy recommendations;
• the UK policy context: the UK’s National Reform Programme, detailing how
the UK as a whole is addressing the challenges and targets developed as part
of the wider Lisbon agenda, to which the Structural Funds are intended to
contribute; and, lastly,
• the domestic policy context in the region.
Figure 1 illustrates how these different policy tiers should combine in the
Programme.
Figure 1: Hierarchy of strategic objectives
Community Strategic Guidelines
National Strategic Reference Framework
LUPS ESF Programme UK National Reform Programme
Scottish domestic policy initiatives
European Employment strategy
recommendations
Integrated Guidelines on Growth and Jobs
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The following section presents the key links between the challenges identified in the
socio-economic background with these different tiers of policy guidelines and
actions. By showing the consistency between what the ESF programme has
identified as a key area for action and the priorities identified by other policies, it will
help to highlight where Structural Funds can provide added value in addressing the
key challenges. This will form the basis for the strategy and priorities for action set
out in the following chapter. In addition, there are three cross-cutting strategic
themes which will inform all aspects of the Programme – equal opportunities,
environmental sustainability and social inclusion. These are treated in Chapter 8.
EU policy context
Community Strategic Guidelines
Article 23 of the Structural Fund Regulations provides for the Council to establish
Community Strategic Guidelines to provide an indicative framework for Structural
and Cohesion Fund programmes. Based on the Commission’s 2005 Communication,
three main Guidelines for future spending have been identified:
• improving the attractiveness of Member States, regions and cities by
improving accessibility, ensuring adequate quality and level of services, and
preserving their environmental potential;
• encouraging innovation, entrepreneurship and the growth of the knowledge
economy by research and innovation capacities, including new information
and communication technologies; and
• creating more and better jobs by attracting more people into employment,
entrepreneurial activity, improving the adaptability of workers and enterprises
and increasing investment in human capital.
Given its focus, the key challenges of the Programme identified in Chapter 2
principally fit within the third Guideline, although there are notable links with the
Guidelines on innovation, entrepreneurship and the knowledge economy. The third
Guideline (‘more and better jobs’) has several areas of focus, which map onto the
key Programme challenges set out at the end of Chapter 2:
• attract and retain more people in employment and modernise social protection
systems: the Programme could raise employment rates across the region
under:
- Key challenge 1 by addressing the acute problems of worklessness of
specific groups and in particular areas
- Key challenge 2 by targeting those individuals who are furthest from the
labour market and require more intensive assistance;
• improve adaptability of workers and enterprises and the flexibility of the labour
market: the Programme could contribute to more sustainable employment and
a more flexible workforce under:
- Key challenge 3 by improving the ability of the low-waged and lowskilled
workers to retain employment and progress through the labour
market
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- Key challenge 4 by tackling gender earnings gaps and underrepresentation
in the labour market
- Key challenge 5 by improving the entrepreneurial skills base of the
region
- Key challenge 6 by giving social enterprises the business skills they
require to contribute to both this Guideline and the previous one;
• increase investment in human capital through better education and skills: the
Programme could make a lasting contribution to lifelong learning goals by
improving the region’s training systems under:
- Key challenge 7 through increasing access to the infrastructure and
services for the most vulnerable groups in the region; and
• administrative capacity: technical assistance will partly be used to improve the
administrative capacity of Structural Funds delivery, particularly with respect
to the Intermediate Administration Body, as described in Chapter 7 below.
The Guideline also allows for support to maintain a healthy labour force, though the
Programme is only likely to make indirect contributions to this goal, as there is no
direct focus on health-related activities. Lastly, the Programme could address the
second Guideline on entrepreneurship and the knowledge economy, particularly
through targeted action on key challenge 5 above in line with the promotion of
entrepreneurship. The key links between the Guidelines and the key Programme
challenges are summarised in Figure 2.
Figure 2: Programme challenges and the Community Strategic Guidelines
PROGRAMME CHALLENGES CSG GUIDELINES
1:Targeting particular groups and areas
2: Helping those furthest from labour market
3: Targeting low-waged/low-skilled
4: Addressing under-representation
5: Increasing skills for entrepreneurs/new managers
6: Improving skill sets in social enterprises
7: Targeting lifelong learning access for most
vulnerable groups
Attract and retain more people in
employment
Improve adaptability of workers and
enterprises and the flexibility of the
labour market
Increase investment in human
capital through better education and
skills
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The Guidelines also discuss the territorial dimension of cohesion policy. For
example, the need to address urban regeneration acts as cross-cutting themes
across all the Guidelines. It is explicitly noted that within the Structural Funds,
“actions supported [should] include measures to promote entrepreneurship, local
employment and community development”. The Guidelines also point to the
importance of contributing to plans for urban regeneration within the designated
areas.
The issues identified in the Programme are for the most part common across the
region as a whole. However, targeting will be applied in Priority 1 of the Programme,
which will address the need for an urban dimension in the Programme, as issues of
worklessness are particularly acute in some of the region’s urban areas. This is in
line with the Guidelines focus on the contribution of cities to growth and jobs and is
outlined in greater detail in Chapter 4.
UK National Strategic Reference Framework
The UK National Strategic Reference Framework (as required by the General
Structural Fund Regulation, Article 25) provides a reference instrument for drawing
up Programmes to ensure that Structural Funds spending is consistent both with the
Community Strategic Guidelines and the Member State’s National Reform
Programme for delivering the Lisbon Agenda. In the UK NSRF, there is a dedicated
chapter to Scotland.
Overall, the UK Framework sets out the Government's central economic objective to
raise the rate of sustainable growth and achieve rising prosperity and a better quality
of life, with economic and employment opportunities for all. In Scotland, the primary
aim is to contribute to the sustainable economic growth of the region through
improvements in productivity while addressing social inclusion and environmental
sustainability needs. The European Social Fund will contribute to these strategies to
increase employment and raise skill levels.
The Scottish chapter sets out three sets of priority actions for the ESF Programme
under the Competitiveness Objective. These embody the key Programme challenges
set out above and will match to the priorities presented in Chapter 4. Figure 3 shows
the links between the NSRF priority actions and the challenges.
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Figure 3: Programme challenges and the National Strategic Reference Framework
Integrated Guidelines for Growth and Jobs
The June 2005 European Council approved the Integrated Guidelines for Growth
and Jobs for the period 2005-2008. There are now 24 Guidelines incorporating the
previously separate Broad Economic Policy Guidelines and Employment Guidelines.
These Guidelines fit into the Programme challenges as follows:
17. Implement employment policies aiming at achieving full employment,
improving quality and productivity at work, and strengthening social and
territorial cohesion
- Programme challenges 1-6
18. Promote a lifecycle approach to work
- All Programme challenges
19. Ensure inclusive labour markets, enhance work attractiveness, and make
work pay for job-seekers, including disadvantaged people and the inactive.
- Programme challenges 1-6
20. Improve matching of labour market needs.
- Programme challenges 1-6
PROGRAMME CHALLENGES NSRF PRIORITY ACTIONS
1:Targeting worklessness in particular groups and
areas
2: Helping those furthest from labour market
3: Targeting low-waged/low-skilled
4: Addressing under-representation
5: Increasing skills for entrepreneurs/new managers
6: Improving skill sets in social enterprises
7: Targeting lifelong learning access for most
vulnerable groups
Progressing into sustainable
employment
Progress through sustainable
employment
Improving access to
lifelong learning
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23. Expand and improve investment in human capital.
- Programme challenges 7
24. Adapt education and training systems in response to new competence
requirements.
- Programme challenges 3-7
European Employment Strategy Recommendations
The European Employment Strategy determines how the Lisbon Growth and Jobs
Agenda can be achieved in the areas of employment, employability and social
inclusion policy. In reviewing the positions of the labour markets in the different
Member States, the 2004 Recommendations noted the following about the UK:
The UK exceeds all the employment rate targets, including those for women and for
older workers. However, concentrations of economic inactivity, and to a lesser extent
unemployment, persist in certain communities and amongst particular groups.
Productivity levels, especially as expressed per hour worked, remain comparatively
low. This is in part due to the prevalence of low skills amongst the workforce,
including insufficient basic skills. The gender pay gap remains one of the widest in
the EU. The United Kingdom should give immediate priority to:
• ensuring that wage trends do not exceed productivity gains:
- this is not relevant to the Structural Funds activity in this context;
• ensuring that active labour market policies and benefit systems prevent deskilling
and promote quality in work, by improving incentives to work and
supporting sustainable integration and progress in the labour market of
inactive and unemployed people; addressing the rising number of people
claiming sickness or disability benefits, and giving particular attention to lone
parents and people living in deprived areas:
- This is particularly relevant to Programme challenges 1-3 by assisting
those with particular difficulties in achieving sustainable employment;
• improving the access to and affordability of childcare and care for other
dependants, increasing access to training for low paid women in part-time
work, and taking urgent action to tackle the causes of the gender pay gap:
- This is particularly relevant to key Programme challenges 1-7, not least
by recognising the need to provide support to beneficiaries with caring
responsibilities – gender pay and representation issues are explicitly
acknowledged in Programme challenge 5;
• implementing national and regional skills strategies, with particular emphasis
on improving literacy and numeracy of the workforce, the participation and
achievement of 16-19 year olds, and low-skilled workers in poorly paid jobs:
- This is particularly relevant to all the Programme challenges.
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UK policy context
The UK National Reform Programme details the challenges currently facing the UK
economy, and sets out the Government’s strategy for delivering long term
sustainable growth, high employment and a fair and inclusive society. As explained
in the UK’s National Reform Programme, the Government’s overall approach to
increasing growth in the UK economy is based on maintaining macroeconomic
stability and driving forward lasting improvements focused on employment and the
five drivers of productivity: competition, enterprise, innovation, investment and skills.
The Government believes that radical labour market reform aimed at getting more
people into employment is key to delivering economic growth and ensuring the longterm
fiscal sustainability of the economy. A flexible and job-creating labour market is
especially important for competing in today’s increasingly global markets. By
boosting productivity and employment, it helps ensure that the gains of economic
growth go to the many rather than the few.
The National Reform Programme sets out the Government's aim of employment
opportunity for all and its aspiration of an 80% employment rate and the need to help
a further 2.5 million people into work. Getting more people into employment is key
both to delivering economic growth and to building a more inclusive society. Policies
to promote employment include the New Deals (focusing on long-term
unemployment) and Pathways to Work (offering a range of support). Any Structural
Funds activity addressing Programme challenges 1-2 in particular will add value to
the employment strategy set out in the National Reform Programme.
With regards to productivity, the evidence for focusing on the five drivers was set out
in Productivity in the UK: The Evidence and the Government’s Approach, which was
published alongside the Government’s Pre-Budget Report in 2002. The National
Reform Programme sets out the UK Government’s strategy to:
• raise skills levels in the workforce by: increasing participation in education at
age 17 from 75% to 90% over the next ten years;
• ensure 2.25 million adults improve their basic skills over the period 2001 to
2010; and
• reduce the number of adults in the workforce without a level 2 (upper
secondary) qualification by at least 40%.
Again, activity in support of key Programme challenges 4-9 will add value to the skills
strategy in Scotland, through additionality enabling the targets to be exceeded or met
earlier.
In this context, it is worth drawing attention to the Leitch Review of Skills. Published
in 2006, the Review argued that the UK needed to raise urgently achievements at all
levels of skills and recommended that it commit to becoming a world leader in skills
by 2020, benchmarked against the upper quartile of the OECD. This means doubling
attainment at most levels of skill. The Review echoes nearly all the key challenges
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set out in the socio-economic analysis – implementing its recommendations is
something to which the Structural Funds could make significant contributions.
Scottish policy context
The Framework for Economic Development in Scotland
FEDS, refreshed in 2004, sets the overall strategy for developing the Scottish
economy. Its vision is:
to raise the quality of life of the Scottish people through increasing the
economic opportunities for all on a socially and environmentally sustainable
basis.
To achieve this, FEDS has a set of enabling as well as principal outcome objectives.
The latter are:
• economic growth: with growth accelerated and sustained through greater
competitiveness in the global economy;
• regional development: with economic growth a pre-requisite for all regions to
enjoy the same economic opportunities, and with regional development itself
contributing to national economic prosperity;
• closing the opportunity gap: with economic growth a pre-requisite for all in
society to enjoy enhanced economic opportunities, and with social
development in turn contributing to national economic prosperity; and
• sustainable development: in economic, social and environmental terms.
Central to these four outcomes is a long-term strategy to improve the productivity of
the Scottish economy. As in the wider UK strategy, one of the key factors in this is
the generation and full economic use of knowledge; FEDS acknowledges that
Scotland needs to adapt to knowledge-intensive global markets rather than the
labour-intensive markets in which it has successfully competed in the past. In
addition, FEDS recognises the importance of lifelong learning as an underpinning
factor in achieving this.
The key challenges faced by the region all fall within this broad framework of the
Scottish economic development challenges set out by FEDS. Within this Framework,
specific issues are covered by the respective strategies discussed below. In addition,
the partnership approach espoused by the Framework in terms of policy delivery
closely mirrors the approach in the ESF Programme.
Workforce Plus – An Employability Framework for Scotland
Published in 2006, the Employability Framework complements UK Government
activity to promote economic growth and sustainable development, reduce
disadvantage and inequality and to end child poverty. The Framework sets a target
of assisting 66,000 individuals in seven local government areas of particular
deprivation to move off benefits and into employment. The Framework identified six
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themes where more co-ordinated and targeted policy can achieve this:
• interventions at an early stage;
• more client-focused interventions;
• employer engagement;
• support towards sustaining as well as progressing employment;
• more joined-up planning and delivery of services within the public sector; and
• a focus on better outcomes.
The analysis fits with the socio-economic analysis in Chapter 2. Under Programme
challenge 1, Chapter 2 recognised that the problems of worklessness were
particularly acute among particular groups and in certain areas. Under Programme
challenge 2, the need to help those furthest from the labour market was identified as
a key need, a conclusion also drawn in Workforce Plus, which drew attention to the
existing focus of domestic policy on those closest to gaining employment. The
Structural Funds can provide added value within this strategic framework by
supporting activity that will target more client-focused interventions as well employer
engagement. Through the partnership approach set out in Chapter 7, the
Programme will encourage more joined-up planning, both because the EU funding
will need to be match-funded with domestic funding and because project decisions
will be made through the Programme Monitoring Committee which will bring together
the main resource providers and delivery groups for these services. Moreover, the
Framework further acknowledges that local employment partnerships are the more
effective delivery channel for such employability activity. This approach is reflected in
the ESF Programme and the use of partnerships in project delivery, also as set out
in Chapter 7.
Closing the Opportunity Gap
Closing the Opportunity Gap is the Scottish Executive strategy aiming to prevent
individuals and families from falling into and to provide routes out of poverty. It sets
two relevant targets to tackle poverty and disadvantage:
• to promote community regeneration of the most deprived neighbourhoods,
through improvements in employability, education, health, access to local
services and quality of the local environment; and
• to improve service delivery in rural areas so that agreed improvements to
accessibility and quality are achieved for key services in remote and
disadvantaged communities.
In 2004, this was translated into a set of six objectives with a particular focus on
areas of particular deprivation:
1. to increase the chances of sustained employment for vulnerable and
disadvantaged groups – in order to lift them permanently out of poverty;
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2. to improve the confidence and skills of the most disadvantaged children and
young people – in order to provide them with the greatest chance of avoiding
poverty when they leave school;
3. to reduce the vulnerability of low income families to financial exclusion and
multiple debts – in order to prevent them becoming over-indebted and/or to lift
them out of poverty;
4. to regenerate the most disadvantaged neighbourhoods – in order that people
living there can take advantage of job opportunities and improve their quality
of life;
5. to increase the rate of improvement of the health status of people living in the
most deprived communities – in order to improve their quality of life, including
their employability prospects; and
6. to improve access to high quality services for the most disadvantaged groups
and individuals in rural communities – in order to improve their quality of life
and enhance their access to opportunity.
The ESF Programme embodies – directly as well as indirectly – these Closing the
Opportunity Gap objectives. The strongest links are through the first and fourth of
these objectives and Programme challenge 1, with the focus on particular client
groups and areas.
Regeneration Policy Statement
In 2006, Closing the Opportunity Gap was supplemented by the Scottish Executive’s
People and Place: Regeneration Policy Statement, which states that regeneration is
central to achieving the main goal of sustainable economic development. The
Regeneration Policy Statement integrates public, private, voluntary and community
sector activities to sustainable regeneration. It defines the regeneration challenge for
Scotland:
Regeneration is a crucial part of growing the economy and improving the
fabric of Scotland… Our aim is to turn disadvantaged neighbourhoods into
places where people are proud to live. To turn places that have been left
behind into places connected with the opportunities around them. To create
areas of choice and areas of connection, rather than inward-looking places
excluded from the wider successful Scotland around them. To build mixed
and vibrant communities that sustain themselves.
The Regeneration Policy Statement recognises that this can only be achieved
through an integrated policy approach that goes beyond investment in the physical
infrastructure of these areas: the economic, social, physical and environmental
aspects of regeneration requires an integrated approach which ‘joins up’ planning
and delivery across these aspects, so that change is mutually reinforcing. At the
same time, it must be an approach based on partnership, as no single organisation
can deliver all of these outcomes.
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One key instrument to take forward this and other strategies are the Community
Planning Partnerships (CPPs). The CPPs, one for each Local Authority area, set out
how the relevant partners at local level intend to combine their activities to achieve
regeneration outcomes. The CPPs consist of partnerships of the key partners
involved in local regeneration including the Local Authority, voluntary sector
organisations, local Health Boards and other relevant bodies.
Structural Funds can be an important instrument for integrating funding in support of
the social inclusion and employability aspects of the regeneration agenda,
particularly with respect to the Programme challenges 1-2. As noted above, the
Funds role as a match-funder and the partnership-based approach underlying its
delivery through the Programme Monitoring Committee. As described in Chapter 7,
there is scope in the Programme for using partnerships to deliver funding in support
of these objectives.
NEET Strategy – More Choices, More Chances
One of the most difficult-to-reach groups of individuals outside the labour market are
young people who are ‘not in education, employment or training’ (NEET). These are
concentrated in seven areas in Scotland which require particular policy interventions,
complementing the work being taken forward as part of the Employability Framework
and Closing the Opportunity Gap. The NEET Strategy – launched in 2006 – has a
set of objectives:
• to stem the flows into NEET (ie. prevention rather than cure);
• to have a system-wide (pre and post 16) focus on, ambitions for, ownership of
– and accountability for – the NEET group;
• to prioritise education and training outcomes for the NEET group as a step
towards lifelong employability, given their low attainment profile; and
• to position NEET reduction as one of the key indicators for measuring the preand
post-16 systems' success.
It aims to achieve this through five priority areas of intervention: opportunities for
young people of school age; post-compulsory education and training; financial
incentives for employment, education and training; removing the barriers to
accessing opportunities; and co-ordination of national and local leadership in
delivery.
Under Programme challenge 1, one of the key groups identified for support targeted
in the socio-economic analysis was the NEET group. It also recognised the
concentrations of this group in particular parts of the region. Structural Funds can
complement the NEET strategy, particularly through assistance for removing the
barriers to accessing opportunities, both through giving the appropriate skills and
support to those in the NEET group as well as in employer engagement activity.
A number of other policies are being taken forward for the school sector which will
have an impact on young people’s employment prospects on leaving school. These
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are: Curriculum for Excellence; with its focus on the four capacities of the individual;
Determined to Succeed, which increases awareness of, and enthusiasm for
enterprise and entrepreneurship; and the School – College Review; which is aimed
at increasing the range of opportunities open to young people of school age.
Smart Successful Scotland
Scottish Executive policy for developing the enterprise sector has been set out in
Smart Successful Scotland, which was refreshed in 2004. The strategy not only lays
out the goals of the Scottish Enterprise – the key economic and skills development
agency in the Lowlands & Uplands Scotland region – but acts as a framework for coordinating
enterprise development policy more widely. It has a vision consisting of
three outcomes:
• growing businesses: a fast learning, high earning Scotland;
• global connections; and
• learning and skills.
Under the last outcome, a set of priorities have been defined:
• improving the operation of the Scottish labour market by improving the
adaptability of the Scottish labour force and the labour market mechanisms
contributing to that adaptability (especially in lifelong learning);
• the best start for all young people through good training support and
opportunities;
• narrowing the gap in unemployment; and
• improved demand for high quality in-work training.
Under the second of these goals (‘developing skills’), the strategy links strongly with
several Programme challenges:
3. targeting low-waged/low-skilled workers: ensuring that support is
concentrated on those groups which have most difficulty in achieving
sustainable employment;
4. addressing the gender pay gap and representation: providing specific support
to redress the remaining gender imbalances in the labour market;
5. increasing entrepreneurial skills: targeting the skills needed by entrepreneurs
to develop sustainable enterprises; and
6. improving social enterprise skills: recognising that social enterprises have
particular skills needs to ensure that they can contribute to addressing all
Programme challenges.
Through the strategy, Scottish Enterprise delivers a number of training programmes.
Get Ready for Work supports 16-to-18 year olds in identifying their training needs
and their employment aspirations and provides a training allowance and
opportunities for ‘work tasters’. Skillseekers targets young people who have left work
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and are seeking basic qualification levels to enable them to enter employment.
Modern Apprenticeships is also focused on young people by helping them into paid
employment with a view to gaining job-related skills.
Lifelong Learning Strategy
Life Through Learning, Learning Through Life sets out the Executive’s strategy for
Lifelong Learning to 2008. It is concerned with post-compulsory education, training
and learning and recognizes the need to address the:
• opportunity gap between those who achieve their potential and those who do
not;
• skills gap between those in work and those who are not; and
• productivity gap between Scotland and the world’s leading economies.
To achieve these strategic aims there is a need to promote work based learning as
part of the overall lifelong learning agenda through a two-pronged approach that both
encourages individual learners to participate in lifelong learning and employers to
support lifelong learning both in and beyond the workplace. The strategy has five
goals, creating:
• a Scotland where people have the confidence, enterprise, knowledge,
creativity and skills they need to participate in economic, social and civic life;
• a Scotland where a high quality learning experience is delivered;
• a Scotland where people's knowledge and skills are recognised, used and
developed to best effect in their workplace;
• a Scotland where people are given the information, guidance and support
they need to make effective learning decisions and transitions; and
• a Scotland where people have the chance to learn, irrespective of their
background or current personal circumstances.
The strategy underpins the approach needed in support access to lifelong learning in
Programme challenges 7 and 8, which identify needs in the access and quality of
training provision in the region.
In addition, there are specific learning needs for part of the workforce. For migrant
workers, the Adult ESOL (English for Speakers of Other Languages) Strategy is
particularly relevant. This aims to improve the quality and quantity of provision for all
those who need help in this area with a particular focus on asylum seekers and
refugees, people from settled minority communities, and migrant workers. The
definition of eligible activities in Priority 1 has taken special attention of the issue. In
this context, the role of the Executive’s Fresh Talent Initiative is important in
encouraging people coming to live and work in Scotland - it echoes the challenges in
the Programme in helping migrant workers in the region.
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Other Key Strategies
In addition to these overarching strategies, there are a number of other related policy
areas, where Scottish Executive strategies will inform and complement activity in the
ESF Programme.
On the specific issues facing individuals with mental health problems, the Scottish
Programme for Improving Mental Health and Well-being aims to improve the mental
health and well-being of everyone living in Scotland, and improve the quality of life
for people experiencing mental health problems and mental illness. The publication –
‘With Work in Mind: The Evidence Base for Change’ – sets out the size and nature of
the workless client group with experience of mental health problems. This forms
another key group that should be addressed through Programme challenge 1.
Similarly, the Scottish Executive’s Healthy Working Lives action plan links the
importance of health and employability, particularly for individuals with health-related
problems or disabilities, and has a series of actions that overlap with the first
Programme challenge.
Effective and confident literacy and numeracy skills contribute to closing the
opportunity gap in Scotland, including equipping people to fulfil their employability.
These have been identified as a critical area for intervention in the Adult Literacy and
Numeracy Strategy. By 2008, £65 million will have been invested through community
learning and development strategies. From 2001 to 2005, over 100,000 new
literacies learners have been supported across Scotland. The Big Plus awareness
raising campaign, and the Big Plus for Business toolkit to raise employer awareness
of workplace literacies, has been launched to encourage their staff in developing
these skills, a set of activities that fit with the literacy/numeracy skills issues set out in
Priority 2. It has also been recognised that skills in using a computer are standard for
all – that is why the universal offer for Individual Learning Accounts targets ICT skills.
Lack of such skills are a common feature of many of the groups identified in
Programme challenge 1 in the socio-economic analysis.
The Scottish Childcare Strategy will aim to provide affordable, accessible, good
quality childcare in every neighbourhood, supported by Childcare strategy funding
from the Executive to local authorities. Childcare has an important role to play in
labour market growth and family prosperity by helping people back into work or
training as well as supporting childcare enterprises. The Working for Families
programme supplements these with further support for parents in disadvantaged
areas and groups, supplemented by the childcare element of working tax credit for
those on a low income, to get the affordable and flexible childcare they require. Lack
of childcare has been seen as a barrier to individuals being able to participate more
sustainably in the labour market and is recognised as a key issue in Programme
challenge 4 (addressing the gender pay gap and workforce representation).
The social economy sector is already delivering a number of employment and
training opportunities for the long-term unemployed. The success of the sector in this
area rests with the experience such organisations have of working with their clients,
the confidence that they inspire in their clients and the one-to-one support that they
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are frequently able to offer. The Scottish Social Enterprise Strategy will set out the
social economy as a key area is creating employment and development
opportunities for those furthest from employment through helping to make social
enterprises more sustainable and competitive. Priorities for supporting the sector in
the strategy will complement the focus on the social economy within the ESF
Programme. The importance of this goal is explicitly recognised in Programme
challenge 6.
3.2 Lessons from 2000-06 Programming
Structural Funds programming in Scotland has always built on the experience of
earlier programmes, maintaining the good practice while adapting to new
circumstances. In developing the ESF Programme for the LUPS region for 2007-13,
the lessons of the 2000-06 use of European Social Fund in Scotland were examined
from a number of different perspectives. This section summarises the key studies
drawing on those lessons:
• the mid-term evaluation update of the Objective 3 programme;
• the study of social inclusion activity supported by ESF for the mid-term
updates, conducted by EKOS;
• the 2005 beneficiaries survey conducted by MORI;
• the 2005 report of an internal Value Added Group on how to increase the
value added of future Structural Funds programmes;
• the 2006 Hall Aitken report on options for delivering Structural Funds
programmes.
Mid-term evaluation update of the Objective 3 Programme
In 2005, the 2000-06 Scottish Objective 3 Programme was assessed as part of the
mid-term evaluation update of Structural Funds. The update set out a number of
conclusions and recommendations that informed the development of the 2007-13
ESF Programme for Lowlands & Uplands Scotland, particularly with respect to the
focus of assistance on certain groups and activities.
• Individuals who remain outside the workforce often face multiple barriers to
progressing into sustainable employment. Considering these groups by length
of time unemployed, age, sex, etc has tended to lead to less effective
interventions. There is a need to address the person’s needs as a whole and
employers’ perceptions, and to be as flexible as possible in accepting a range
of interventions as eligible activities.
- The 2007-13 Operational Programme will give greater weight to
projects that link together support for the totality of challenges facing
key client groups. This will be reflected in the eligibility criteria under
Priority 1, as set out in Chapter 4.
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• For those groups which are farthest from sustainable employment, there is a
need to acknowledge that progress can be slow and soft outcomes and
movement towards the labour market must be encouraged, rewarded and
sustained over a considerable period. There are few short-term interventions
for these client groups.
- The 2007-13 Programme gives emphasis to supporting these groups
as seen in the Priority 1 description in Chapter 4 and to measuring
outcomes and impacts through a greater use of ‘soft’ indicators, as
described in Chapter 9.
• Local variations and labour market needs have to be better catered for.
Strategic fit has to be not just at national level, but also has to be based on
local partnership plans.
- Delivery of Priority 1 on sustainable employment will include supporting
partnership action plans, especially through the Community Planning
Partnerships described in Chapter 6.
• Projects which encouraged and supported a network involving a range of
partners, including economic development bodies, local and national
government policy makers, front line delivery bodies such as health and social
services tended to be innovative and focused on their clients’ needs. They
were more likely to leave a lasting legacy, and to work together again. The
Development Partnerships established in the 2000-06 Equal Initiative in
Scotland were good models of this.
- The Equal thematic partnership approach has been used as the model
for the partnership approach to delivery, as envisaged for the CPPs
under Priority 1 and described in Chapter 6.
• Access to post-school education for those not participating could be highly
effective where there was a high degree of innovation and flexibility in the
approach on offer. Tasters of a non-academic nature, or outside the normal
further or higher education buildings were often more welcome (eg. learning
centres in Housing Association offices or youth clubs).
- This activity continues to be encouraged through Priority 3 of the new
Programme, as described in Chapter 4.
EKOS social inclusion study
As part of the mid-term evaluation update, a specialist study was commissioned of
EKOS Consultants in 2005 to review the effectiveness of social inclusion Measures
within the Objective 3, Objective 2 West of Scotland, as well as the Highlands &
Islands Special Transitional Programme in the 2000-06 programming period. It made
the following recommendations, which have taken into account in developing the
current Programme as follows:
• The categorisations of key client groups should be linked to standard
statistical sources to enable quantification of the number of individuals being
reached by the Programme.
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- This recommendation has informed the development of the monitoring
and evaluation indicator framework for the new Programme, set out in
Chapter 9.
• Project administration requirements should be looked at again in relation to
key match-funding programmes, seeking to streamline and complement
where possible.
- This recommendation is being pursued as part of the simplification and
streamlining of administrative procedures in the new Programme and
will be reflected in the new Guidance.
• There continues to be a requirement for improved strategic co-ordination of
ERDF and ESF funding streams. It may be appropriate to use structures such
as Community Planning Partnerships to facilitate this discussion at a local
level.
- A recommendation which lies behind the delivery arrangements for
Priority 1 in the new Programme, as set out in Chapter 7.
• Longer-term tracking of individuals would be desirable in order to provide a
more realistic time frame for job seekers to achieve results, as well as to
demonstrate sustainability of outcomes.
- Again, the new evaluation and monitoring framework is giving greater
weight to tracking outcomes in this way.
MORI beneficiaries survey
In 2005, a GB-wide beneficiaries survey was also commissioned, to follow up
individual beneficiaries of projects supported under the ESF programme, who took
part in the different EU programmes in 2004. For this research, separate surveys
were conducted in England, Wales and Scotland, building on similar work conducted
in earlier years and carried out by MORI. It has the most relevance for the
development of Priority 1, as set out in Chapter 4.
The findings showed that in general, expectations beneficiaries had on joining a
course were met and often exceeded, with most people reporting that they had
developed both ‘hard’ and ‘soft’ work-related skills. Indeed, four in five beneficiaries
attained a qualification on completion of their course. It is also instructive to note that
gains and improvements appeared to be relatively well-focused on key groups of
beneficiaries. Non-working entrants – whether they are actively seeking work or are
inactive – clearly benefited not only from targeted, skills-based training but also from
the development of ‘soft’ skills relating to their self-confidence. As a result, eligibility
under Priority 1 will continue to include such ‘soft’ skills, not least as this is
particularly critical for the targeted client groups identified in Programme challenge 1.
Furthermore, there was evidence of upskilling among beneficiaries who were
employed on entry. This group cited a wide range of skills development, in particular
improving practical skills relating to a particular job, as well developing IT and study
skills. A key outcome, however, for any ESF-funded training was whether
beneficiaries improved their labour market status. From the two-stage survey
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process, it was possible to see a clear and positive move from unemployment to
employment for many beneficiaries. The proportion of beneficiaries in the second
wave of research who were employed rose from 32% on entry to 50% at the time of
the survey. This represented a 56% increase in employment. While this research
was not set up as an empirical evaluation to establish a causal link between
attendance on the ESF course and subsequent labour market activity, the majority of
those who moved into a new job felt that participation in the course had helped them
to do so.
Moreover, even if they were not moving directly into work, inactive entrants were
moving in the direction of work: a third of those who were unemployed at the time of
the survey (30%) and nearly half of those in education (47%) had been inactive on
entry. This is a major finding of this research – that inactivity is being directly
addressed by the ESF in Scotland. It should also be noted, however, that
unemployment levels are affected by this move. Rather than falling, unemployment
actually rises from entry to leaving a course (from 18% to 29%) and is still higher
than at the beginning of the process by the time of the survey (24%). While this rise
may be seen as a disappointment, it should be recognised that the ‘direction of
travel’ is a positive one. This is reflected in the 2007-13 Programme through
Programme challenge 2, which identified the need to target funding on those furthest
from the labour market and in need of the most assistance.
The survey concluded that the challenge for the ESF in Scotland was to maintain the
increase in employment so that inactive and unemployed beneficiaries were able to
make that final transition. This underpins the focus of Priority 1 in the 2007-13 ESF
Programme.
Value Added Group: ‘Adding Value, Keeping Value’
As part of the preparations by the Scottish Executive for developing Structural Funds
programmes for the 2007-13 period, a short-life internal working group was set up in
2005 to draw lessons on the ‘value added’ of the Structural Funds for the 2007-13
Scottish programmes. The specific objectives of the Group were the following:
• to identify the types of projects that have provided the highest added value in
the 2000-06 programmes;
• to consider the characteristics of those projects which have made them
particularly successful;
• to define added value in the context of Structural Funds programmes; and
• to assess how best to encourage development of such projects within the
regulations governing future Structural Funds.
The Group was drawn from the European Structural Funds Division and the
Programme Management Executives for the 2000-06 programmes. It concluded the
following of relevance to the current Programme.
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• In future, a greater premium should be placed on qualitative value added in
project selection. This was not to suggest that value added should not have a
strong quantitative dimension, but that qualitative value added should be a
priority. In practice, this meant that Structural Funds could usefully support
pilot, innovative projects.
- The importance of an innovative approach to projects is reinforced in
the Programme, as discussed under each of the Objectives in more
detail in Chapter 7.
• Consideration should be given to providing a greater time limit on project
funding in future. If the focus is on supporting qualitative projects, Structural
Funds should have the role as a major lever for the early stages of a project’s
development. ‘Repeat’ projects or longer-term continuations should be
discouraged unless there are strong operational reasons for doing so. As a
result, project awards would be for a minimum of two years, though with
annually-set targets and reviews.
- This conclusion will be reflected in the new guidance to be issued to
applicants and in the section on innovation in Chapter 4.
• Partnership has been a critical factor in supporting value added, particularly
when applied in particular ways. Partnership at a local/regional level in project
development is important, often acting as ‘brokers’ for development activity (a
role that has been supported through Structural Funds support). Where
projects and activities have been developed through a networked, interagency
approach, project quality appears to have been driven up.
- Chapter 7 sets out the role of partnership in delivering parts of the
Programme.
• The continuing promotion of key shared policy goals should continue,
particularly the horizontal themes. The Structural Funds have played a pivotal
role in promoting equal opportunities and sustainable development as wider
policy goals and should continue to do so.
- This is reflected on the continuing emphasis on the mainstreaming of
these three horizontal themes, as set out in more detail in Chapter 8.
Value added has also been apparent where funding has been co-ordinated through
a series of activities targeting a common goal. Whether the co-ordination is of
different types of funds (ERDF, ESF and other sources of EU funding) or different
types of projects (through project clusters), their impact is strongest when geared
towards a specific development goal. In Structural Funds, these goals have been
most readily achieved when defined in terms of local geography (especially through
community economic development) or niche sectors (particularly through targeted
enterprise development activities). The focused approach is reflected in the targeted
nature of the priorities described in Chapter 4.
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Hall Aitken: ‘Making Every Euro Count’
As part of the preparations for developing the 2007-13 programmes, the Scottish
Executive commissioned a report of Hall Aitken Consultants in 2006 with several
objectives:
• to identify a series of delivery options for single-stream funding of Structural
Funds and other domestic policy resources, based on 2000-06 practice
elsewhere in the EU;
• to draw out comparative lessons with a view to setting out options for Scottish
delivery; and
• to set out options for Scotland.
On this basis, the report concluded that any approach should achieve as many of the
following criteria as possible:
• minimise the administrative costs of operating projects;
• direct funds to where they will make the most difference in terms of economic
need, opportunity and delivery capacity and quality;
• build on existing structures, partnerships and systems where possible and be
developed with the support of stakeholders;
• shift the focus of effort from project selection to effective delivery and
monitoring;
• integrate Structural Funds actions more closely with related domestic policy
actions;
• retain sufficient flexibility to respond to changes in need and opportunity
during the programme lifetime and ensure that projects address both issues;
• promote the horizontal themes; and
• spread learning and good practice.
The delivery mechanisms for the programmes – set out in detail in Chapter 7 – were
developed with these conclusions in mind. They have also been designed to make
use of the following range of elements, set out by Hall Aitken as mechanisms that
could be used in delivering the programmes:
• area and local outcome agreements: the partnership-based approach to
delivery for parts of the Programme set out in the Priority 1 description in
Chapter 4 reflects this mechanism;
• competition between single-stream funding bodies: again, as the Priority 1
description details, competition is anticipated between partnerships for the
delivery of parts of the Programme; and
• thematic partnerships: in line with the above bullet points, the partnerships will
be expected to show thematic complementarity in the supported activity.
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4 STRATEGY AND PRIORITIES
4.1 Programme Vision
The strategy for the ESF Competitiveness Programme proceeds from the
identification of key challenges within the socio-economic analysis (in Chapter 2), the
need for actions to fit with EU, UK and Scottish policy frameworks and the
experience of previous programming (in Chapter 3). The socio-economic analysis
described how the region has clear strengths and opportunities on which it can build
– such as its achievement of the Lisbon employment rate goal– while recognising a
range of significant weaknesses and challenges – deriving from low productivity,
high rates of worklessness (particularly among certain groups and in certain areas)
and a range of skills deficiencies. Seven challenges have been identified:
1. Reducing the acute levels of worklessness in certain groups and areas.
2. Improving employment rates in those groups facing multiple barriers.
3. Increasing the ability of the low-waged and low-skilled to remain in, and
progress through the labour market to achieve financial security.
4. Tackling gender representation in key occupations and sectors of underrepresented
groups.
5. Increasing the skills of entrepreneurs and new managers
6. Providing social enterprise managers and workers with greater skills to
sustain their organisations.
7. Increasing lifelong learning participation rates among the most disadvantaged
groups.
Structural Funds in the Competitiveness Programme are limited. The EU resources
in the ESF programme are €269.921 million for 2007-13, resulting in a total
programme value of €598.526 million. In light of current developments in the EU, the
funding may be the last substantial funding of this scale for the region, and so it is
essential that the Programme aims to deliver lasting legacies to the region that will
extend beyond the programming period. Consequently, the strategy for the ESF
Programme for the Lowlands & Uplands Scotland area is set by its overall vision:
to contribute towards sustainable growth in the size and skills of the
Scottish workforce in line with the Lisbon Jobs and Growth Agenda, in a
climate which offers equality of opportunities to individuals to achieve
their full potential.
The Programme does not operate in isolation, but as Section 3.1 stressed, Structural
Funds are intended to complement key domestic policies, particularly the Workforce
Plus (Employability Framework), Closing the Opportunity Gap, the NEET Strategy,
Smart Successful Scotland and the Scottish Lifelong Learning Strategy. Sustainable
development, social inclusion and equal opportunities will remain key themes within
all ESF activities: how this will take place is described in detail in Chapter 8.
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The Programme will make its principal contributions by:
• acting as a lever to encourage domestic resources to focus on the key
development challenges outlined in the socio-economic analysis through its
role as a match-funder;
• encouraging partnership working to support beneficiaries on their pathway as
they move closer to labour market participation;
• supporting beneficiaries and employers at the critical period of entry into
employment or education;
• progressing supported beneficiaries into more sustainable, productive
employment;
• increasing the skills level of supported beneficiaries; and
• increasing access to lifelong learning among targeted groups so that they are
able to take responsibility for their future progress, reducing the inequalities
between the least advantaged and the rest of society .
If current trends continue, a stable or reducing working-age population sustaining a
larger elderly population in the region will not be possible. Although people will live
longer overall, many will do so in poor health, and in relative poverty depending on
the area in which they live, and their work experience. For individuals born into poor
households, the gap with the most affluent households in Scotland could widen even
further in terms of health, behaviour and employment outcomes unless the Scottish
Executive, UK Government, EU programmes and individual attitudes work together
to alter the current trends.
Better skills help improve individual life chances, increase the flexibility of the labour
force and increases the economy’s competitiveness. Scotland has to embrace the
knowledge economy and the reality of continual learning if it is to compete in the
global marketplace. What cannot be accepted is the opportunity gap between those
who achieve their full potential and those who do not; the skills gap between those in
work and those who are not; and the productivity gap between Scotland and the
leading economies of the world. Bridging these gaps is vital if Scottish enterprises
are to grow and become more globally competitive, and if this Programme is to help
the people of Scotland to help themselves in the future.
The Programme cannot support all activities that can contribute to the above vision,
but will concentrate support on those areas where additionality and added value can
be clearly demonstrated, in line with identified regional priorities. The strategic vision
of the Programme operates through three sets of interlocking Objectives, which are
described in the following section. The Chapter also contains: detailed priority
descriptions, including the use of technical assistance; and the categorisation of
assistance for the purpose of Lisbon ‘earmarking’.
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4.2 Programme Objectives
The strategic vision of the ESF Programme operates through three sets of
Objectives, addressing market failures in the following areas:
1. Progressing into Employment
2. Progressing through Employment
3. Improving access to Lifelong Learning
Objective 1: Progressing into employment
Increasing the size of the workforce is important if Scotland is to contribute to the
Lisbon Jobs and Growth Agenda. As the socio-economic background highlighted,
trends in Scotland’s population have emphasised the importance of ensuring that
there is a large enough labour force to drive Scotland’s economic growth. This not
only means joining up the various supports already available for individuals who face
multiple barriers to entering the workforce, but also ensuring that they gain the skills
on the way to ensure that they can remain in sustainable employment in the future.
At the same time, it also means that employers need to be encouraged to give equal
opportunities to individuals drawn from these disadvantaged groups.
Sustainability is crucial – the aim is not only to make sure that beneficiaries are
prepared to get jobs, but that they also acquire the skills and motivation to progress
in long-term employment. UK policy delivered by Jobcentre Plus concentrates on
those individuals who are unemployed, but close to ‘job ready’, or those who wish to
enter or return to the job market, and can do so with some help. The UK fiscal policy
works to provide a stable environment and offer incentives to individuals to ensure
that they are better off working than on benefits. The Scottish strategies in this area
address physical, social and economic barriers to work, as well as making the
connections with global markets to allow employers to grow their enterprises and
expand their workforce.
Consequently, the Objective has been set as follows:
to assist the co-ordinated progress of unemployed and inactive people
of all ages towards sustainable employment.
Structural Funds Value Added
As can be seen from Chapter 3, domestic funding to support social inclusion and
employability challenges is significant within Scotland. The total estimated figure of
the annual funding for employability services mainly based on the 2004-05 financial
year is £421 million, though this excludes welfare benefits, or housing benefits, paid
to eligible people. It also excludes substantial funding for lifelong learning, as
indicated under Objective 3, where it is difficult to separate out the specific activities
which fully support employability, for example the work in colleges. In addition, it is
not possible to quantify some other funding streams, such as that provided by the
voluntary sector.
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The main streams in this annual sum include:
• Jobcentre Plus, through the New Deal, Pathways to Work and other
programmes and support (£169 million);
• the Scottish Executive through a large number of programmes, such as Cities
Growth Fund, Homelessness, Adult Literacy and Numeracy, Working
Families, Individual Learning Account Scotland, Healthy Working Lives, Lone
Parent Mentoring, Full Employment Areas Initiative, Criminal Justice Social
Work Services, LEAD Scotland, NEET Funding and Scottish Skills Fund (£83
million);
• the Enterprise Networks, and Careers Scotland through Get Ready for Work,
Training for Work and guidance services (£51 million);
• Local Authorities, as increasingly important providers of employability services
from their core funds (£20 million); and
• Communities Scotland, through the Communities Regeneration Fund
(approximately £16 million).
Given the limited resources available in this Programme, it is crucial that within this
Objective, funds target those groups where they will make a particularly significant
difference, notably those facing multiple or acute barriers or discrimination who are
not already well supported through other existing initiatives. It also needs to address
the special problems associated with Scotland’s high proportion of workless, who are
typically concentrated in particular urban locations which tend to reinforce the factors
that result in exclusion from the labour market with the inevitable economic and
social consequences.
Moreover, the evidence is that more traditional ‘training’ activities for jobless people
are well-resourced – but initial engagement and aftercare once in employment are
under-resourced, particularly for those groups which are further away from entering
the labour market. Consequently, more resources could be devoted to:
• initial positive activity to help workless individuals and more vulnerable
groups, who often require more customised and intensive support; and
• aftercare and support for employee and employer to help sustain employment
once individuals enter the labour market.
While these are often presented as labour ‘supply’ interventions, resources and
support also needs to go to the labour ‘demand’ side as well, particularly to changing
employer attitudes to hiring individuals in disadvantaged groups and to in-work
support services.
Funding will go towards significant projects aimed at building capacity at local level
to meet the challenges set out in the policies to address NEET and economic
inactivity. Such projects will build capacity around those beneficiaries facing multiple
barriers including those with health and mental health barriers often related to
addictions, those with learning disabilities, and the over-50s. This capacity-building
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approach will ensure that projects are not short-term interventions for a small
number of participants, but rather that they are sustainable in the longer term.
Resources for tackling these issues are provided across the region, but the
Programme can have a particularly added-value effect by targeting its limited
resources on specific areas. Further, the role foreseen for the Community Planning
Partnerships described in Chapter 6 shows the value of the Funds in encouraging
partnership working at local level and an integrated action-plan approach to tackling
social exclusion issues.
As can be seen from the list above, the key match-funders supporting activity
through this Objective would come principally from the Scottish Executive (though
funding provided under the Workforce Plus and NEET Strategies as well as through
the City Strategies), Jobcentre Plus, Department of Work and Pensions (DWP), the
Local Authorities, further/higher education, the Scottish Trades Union Congress,
and the voluntary sector.
It will encourage an innovative approach to funding in this Objective through:
• making new connections with the hardest-to-reach workless groups;
• combining activity under Priority 1 with complementary activity under Priority
3 of the ERDF Programme, as described in more detail in the priority
description;
• where appropriate, supporting linked bids with activity in projects to support
the workless when they get jobs as part of the scope of Priority 2’s activity, as
described in more detail in the priority description; and
• encouraging partnership working, capacity building and integrated action
plans to address the issues here, as described in more detail in section 6.1.
Objective 2: Progressing through employment
Improving the quality of the Scottish skill base can contribute directly to the
productivity increases necessary to raise Scottish economic activity and employment
rates and enable Scotland to be integrated into rapidly growing global markets. This
objective has several dimensions. Chapter 2 analysed the trends in skill
requirements against those which were available in the workforce. Higher skills
levels are linked to higher employment rates across Europe. This has meant that the
issue of education and levels of qualifications is an important one for Scotland.
Similarly the rise in the perceived importance of soft skills means that assurance is
needed that young people and other workers are being equipped with the right skills.
Again, it means that the additional European funding should be concentrated where
it can make a significant difference outside the mainstream education and skills
funding streams.
This will mean firstly concentrating on those sections of the workforce that are most
vulnerable, particularly to those at risk of losing their jobs or dropping out of
employment – in other words, providing the skills necessary for sustainable
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employment. This would include ensuring low-skilled, low-paid workers have the
required skills to take advantage of opportunities for higher-quality, better-paid and
more sustainable employment. It also includes special support for groups facing
large scale redundancy, or whose skills need upgraded or renewed, or those who
acquire a disability.
Secondly, European funding would also tackle the need to target the skills of
particular groups within the labour market. The need to reduce the gender gap in
participation and incomes remains an important issue for the LUPS region. Similarly,
support is needed where upgrading skills or learning new skills can contribute to
other economic development objectives co-ordinated with those under the ERDF
programme – such as financial management and enterprise training for new
entrepreneurs and managers.
Consequently, the Objective has been set as follows:
to improve the skills of the workforce to enhance employability,
productivity, adaptability, inclusion and entrepreneurial expertise
Structural Funds Value Added
Skills support is already extensive in the region. It is difficult to estimate fully the
scale of domestic support, but the principal provider in the region is Scottish
Enterprise’s annual skills-related budget of approximately £160 million, supporting
workforce training, vocational skills and career guidance and information. In addition,
the higher and further education institutions of the region are provided significant
funding for supporting training – the Scottish Funding Council has an annual budget
of approximately £1,650 million for the whole of Scotland.
In light of the significant difference in the scale of funding, EU support would have
most value added targeting particular skills issues which continue to present
significant challenges to the Scottish labour market. These challenges involve
addressing those groups which are on the borderline between employment and nonemployment
and experience low pay and low skills. There is also a need to focus on
groups with special issues of participation and progression in the labour market,
such as women returners, those who have a health problem and those from ethnic
minority communities. Lastly, there is a significant role in supporting the key
challenges for enterprise development within the economy, again focusing on the
distinctive challenges facing entrepreneurs and new managers of SMEs.
The key match-funders supporting activity through this Objective are likely to be
Scottish Enterprise (in its skills training capacity), the higher and further education
sector, the Scottish Executive (again though funding provided under the Workforce
Plus and NEET Strategies), the Local Authorities, the Scottish Funding Council, the
Scottish Qualifications Authority, the Scottish Trades Union Congress, and the
voluntary and social enterprise sector.
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It will encourage an innovative approach to funding in this Objective through:
• fully complementing the work of Priority 1 in supporting groups which have
moved from inactivity into jobs by ensuring that they have a pathway open to
them to develop the skill sets needed for sustainable employment – where
appropriate, supporting linked bids for projects whose activity straddles both
Priority 1 and 2, as described in more detail in the priority description; and
• supporting holistic and integrated approaches to increasing underrepresentation
and more diversity in the workforce.
Objective 3: Improving access to lifelong learning
The knowledge, skills, competencies and other attributes acquired through learning,
contribute to economic activity. Accumulating knowledge and skills enables
individuals to improve their position in the labour market, increases productivity and
earnings, and collectively enhances the society in which they live. Underpinning the
efforts to increase the size and skills levels of the workforce is the lifelong learning
and training environment.
This Objective recognises that support for individuals must be made in parallel with
improvements to the systems that will enable them to access the training and
support needed to enter, stay and progress in the labour market. That not only
means enabling those within the lifelong learning and training sector to improve their
ability to reach out to all groups, but also allowing them to work collaboratively with
other agencies to invest in new methods, technologies and models for accessing
lifelong learning. The Objective also needs to be targeted on those groups and
enterprises for whom lifelong learning access is the greatest challenge. Lastly, it
needs to take full account of issues of geographical access – for example, in areas
of urban deprivation where there is no acknowledgement of the value of learning, or
in rural areas which often lack the same level of training and lifelong learning
provisions available in other areas, giving rise to opportunities for developing more
innovative approaches to distance learning.
Consequently, the Objective has been set as follows:
to widen access to post-school lifelong learning, particularly for key
client groups.
Structural Funds Value Added
Lifelong learning support is principally driven by the support going to the higher and
further education sector. As was noted above, the funding to the Scottish Funding
Council for the whole of Scotland amounts to some £1.65 billion each year.
However, for this Objective, the key match-funders supporting activity would not just
be the higher and further education and training sector, but the voluntary sector, the
Scottish Qualifications Authority, the Scottish University for Industry, the Scottish
Trades Union Congress, the Local Authorities and Scottish Enterprise as well.
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In light of the strength of domestic support, the value added of the Funds in this
priority is in explicitly supporting more innovative and pilot approaches to improving
access to lifelong learning, especially for the target groups lacking soft and basic
skills identified in Priority 1, low paid/low skilled workers from Priority 2, and the
SMEs needing to access new skills to develop their workforce and remain
competitive. Not only would it encourage new projects and ideas to address the
issues, but it would fund mainstreaming of pilot approaches that had worked and
capacity building. It would also encourage strong partnership between different
actors in lifelong learning, especially between policy-makers and delivery bodies, to
ensure that the good practice and lessons arising from the approaches tested here
are mainstreamed into domestic policy.
The innovative approach of this Objective should be clear from the priority
description, with its focus on pilot, innovative ways of addressing access to lifelong
learning. This Objective will be key to reducing the divide between those who benefit
from access to services which enable them to contribute to a growing economy, and
those who feel excluded and threatened by technology changes and globalisation.
Access to learning and advice can enable individuals to engage, develop new skills,
and make the most of their talents. By encouraging partnership working and linking
pilot activity to mainstreaming within the same project, the Objective has drawn
significant lessons from the EQUAL Community Initiative under the 2000-06 period,
which successfully encouraged partnership-based, ‘life-cycle’ projects in lifelong
learning, that tested new products/services/systems and fed the lessons of the
piloting directly to policy-makers to shape future domestic policy.
Relationship between Programme challenges and Objectives
The Objectives have been derived from the seven key Programme challenges set
out in the socio-economic analysis, as Figure 4 displays. Each Objective is
addressed in the Programme by a single priority, as described in the following
sections. Each of these priority sections contains: a rationale for and description of
activity; targeting; eligible activity; and indicators and targets. In addition, the
priorities will be informed by the three cross-cutting themes for the Programme –
equal opportunities, environmental sustainability and social inclusion – as set out in
Chapter 8.
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Figure 4: Programme challenges and Programme Objectives
The Programme is not anticipated to make use of the global grants instrument or the
possibility of ESF funding for specific support of inter-regional and transnational
cooperation (beyond what is set out in Section 7.5 below).
The following sections set out the descriptions for each of the individual priorities
derived from the three Programme Objectives above. Eligible activity is set out under
each as well as geographical targeting for Priority 1. In addition, a common eligibility
criteria will be applied across the Programme with respect to project size. A minimum
project threshold of an annual average of £200,000 in total eligible project costs will
be put in place. The threshold has been introduced to:
• support the development of most strategic, legacy projects for the Programme
with more significant impacts;
• encourage smaller, complementary projects to come together into more
strategic partnerships;
• minimise the financial and audit risk of funding small projects; and
• promote linkages between small, pilot actions and activities to mainstream
and disseminate their results.
Employment and employability
1: Targeting particular groups and
areas
2: Helping those furthest from the
labour market
Skills
3: Targeting low-waged/low-skilled
4: Addressing under-representation
5: Increasing skills for entrepreneurs
and new managers
6: Improving skill sets in social
enterprises
Lifelong learning
7: Targeting access for most
vulnerable groups
Objective 1:
Progressing into
Employment
Objective 2:
Progressing through
Employment
Objective 3:
Improving Access to
Lifelong Learning
PROGRAMME CHALLENGES OBJECTIVES
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The threshold has been set to take account of the nature of the eligible activities in
the Programme and the financial and audit experience of the 2000-06 Programmes.
4.3 Priority 1: Progressing into Employment
Rationale and aim
There have been real achievements over the last ten years in helping people move
from welfare dependency into work. Employment rates in Scotland have risen to
historic highs, as the employment base has expanded – but there are still significant
challenges of economic inactivity, inequality and disadvantage in opportunities for
employment. Often this is particularly acute in the most deprived areas within the
Lowlands & Uplands area where the individuals marginalised from the labour market
are concentrated. For some of these more disadvantaged groups, and in some areas
of multiple deprivation, the gap has actually widened.
The issue of employability, or tackling inactivity, has emerged as Lowlands &
Uplands Scotland’s major challenge as registered unemployment has fallen.
Employers are now unable to fill vacancies from education leavers or by recruiting
from competitors, and this has exposed the scale and significance of those who are
on inactive benefits such as Income Support and Incapacity Benefit. Many of those
who are on these benefits would like to work if they were given the appropriate
support to help them overcome the barriers which prevent them making the transition
from inactivity to employment.
The challenge for Scotland in becoming more competitive is to help more of these
people take the opportunities available in a stable or growing economy for sustained
and well paid work, particularly those who have not traditionally been able to sustain
participation in the labour market. For most families, work is the best way out of
poverty: it increases independence from state benefits, encourages self-reliance and
builds confidence. That is why the first of the Closing the Opportunity Gap strategy’s
objectives is to increase the chances of sustained employment for vulnerable and
disadvantaged groups. Smart Successful Scotland also makes clear that tackling
poverty, disadvantage and economic growth go hand in hand.
Each workless individual faces a unique combination of barriers determined by their
own personal experience, characteristics and circumstances, that prevents them
from entering and sustaining employment. The support that workless individuals
receive on their transition to work must therefore be flexible enough to recognise and
adapt to the different stages on their journey and the barriers that face them at any
particular point. It must also be tailored to local circumstances and simply accessed
in a supportive local environment, even though it will inevitably be delivered by a
number of organisations. As the MORI 2005 beneficiaries study noted, this support
must be long term – from early engagement to progression in work – and must
provide a joined-up package of care to ensure that the appropriate local agencies
work together.
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The pathway into work can be a long one involving uncertainties and setbacks for
the individual who has to overcome barriers and build trust, confidence and selfesteem
along the way. The successful route will have to be individually tailored and
include a number of very different stepping stones from initial commitment to some
positive activity, through the various stages of work preparation, to a move into
supported employment, and eventually to progress beyond an entry level job into
sustained progression in employment.
Early engagement with a client-centred, locally-customised approach which meets
the needs of the workless individual has been clearly demonstrated through some of
the EQUAL Community Initiative partnerships as being effective in helping overcome
multiple and complex barriers. It is also an area which receives a relatively low level
of funding as little immediate return can be seen in terms of individuals getting into
employment or education. Specialist support services need to be available locally,
and over a lengthy period to sustain the momentum and motivation of those with the
greatest ‘distance to travel’ to gain and remain in employment.
Equally important is having in-work support available for those who need it, as this
would considerably increase the chances of an individual making a successful
transition from inactivity to sustained employment. Without more focus on the
sustainability, and also retention of a job, the cost and effort of getting an individual
into a job is wasted if they leave within weeks of obtaining work. The important
aspect of this in-work support is again that it must reflect the local conditions, in
terms of the client groups who require support and the needs of employers in the
area.
Support is also necessary to address employer perceptions of particular client
groups, recognising that the challenges facing certain individuals are not entirely
supply-side based. However, labour demand activities will principally be covered in
the parallel ERDF Programme for the region, whose focus will be on creating jobs
rather than ensuring the labour market can provide the required workers and skills.
Co-ordinating the two programmes will be essential to ensure that labour demand
and supply actions are integrated – this is discussed in more detail in Chapter 6.
Consequently, the overall aim of the priority is to achieve the first Objective:
to assist the co-ordinated progress of unemployed and inactive people
of all ages towards sustainable employment.
Targeting
The challenges discussed above are most acutely felt among particular groups and
in particular parts of the LUPS region.
Although the region now has a relatively high employment rate, rates for some
groups of individuals are significantly less than the rate for Scotland as a whole.
These specific groups of individuals experience multiple barriers to entering
employment and retaining jobs, causing high levels of unemployment and economic
inactivity in particular areas relative to the rest of the population. Low skills, poor or
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no qualifications, lack of self-confidence and work experience, are some of the main
personal barriers common to many of the workless clients. They also often face
barriers of employer perceptions and discrimination. As the socio-economic analysis
highlighted, the specific target groups could vary considerably depending on
particular concentrations of deprivation and the particular challenges facing the local
area. Priority will be given to the hardest-to-reach, workless groups, those
experiencing multiple challenges and those in the NEET group, but target groups
include the following.
• Long-term unemployed/inactive people, particularly those with no or low
qualifications and multiple barriers to entering employment or selfemployment,
and remaining in a job
• 16-19 year olds not in education, employment or training, particularly: young
people leaving care; carers; young offenders; young people with physical
and/or mental health problems and young people abusing drugs or alcohol
• Young people identified as being at risk of not entering education,
employment or training on leaving school, particularly low attainers and
persistent truants
• Unemployed/inactive lone parents and other carers
• Unemployed/inactive people with mental health problems, long-term illness,
disabilities or learning difficulties
• Older people seeking to re-enter the labour force or requiring re-skilling to
enable them to remain in the workforce
• Other disadvantaged unemployed/inactive groups such as prisoners prior to
release, ex-offenders, people with drug or alcohol problems, homeless people
and refugees
• Unemployed/inactive people from ethnic minority groups
• Individuals experiencing persistent part-time/seasonal employment
• Employers who recruit from the above groups and who need support in
retaining and developing these employees
At the same time, within the LUPS region, there are particular areas where these
problems are most acute. As the socio-economic analysis showed, the groups
identified above are most concentrated in certain urban areas. Such communities
which are particularly excluded from the benefits of economic growth and efforts to
bring about lasting regeneration are also a high priority for Scottish Ministers. Failure
to tackle the problems associated with exclusion is not only contrary to a
commitment to social justice but also represents a failure to make best use of all of
the economic resources at our disposal in order to drive growth.
By concentrating actions in this priority on particular urban areas, the best use is
being made of the limited funding available to make the greatest impacts on
exclusion and poverty and help provide additional fuel for a drive to contribute to the
Lisbon Agenda. Although the targeted areas are likely to change through the
programming period, the principles for their selection should remain constant.
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Support will be limited to those Local Authority areas that are:
• areas prioritised in key Scottish strategies, specifically Workforce Plus, the
NEET strategy and the Regeneration Policy Statement; and
• in addition, to reflect any changes in relative deprivation within the period
covered by these strategies, other Local Authority areas with the ten highest
shares of their population in the 15% most deprived data-zones, as measured
by the Scottish Index of Multiple Deprivation, will be considered eligible.
At present, these areas would account for approximately 60% of the region’s
population, but it is anticipated that the list of eligible areas will change through the
Programme, reflecting changes in the indicators on which they are based.
Consequently, the areas will be identified by the Managing Authority in advance of
each project selection round using the methodology above.
Projects will be supported which address the challenge of these areas, although
activity can be located elsewhere in the Local Authority area. Moreover, where
projects covered beneficiary groups that overlap with similarly deprived data-zones
in bordering Local Authorities, up to 10% of the project award could be in the
neighbouring data-zones.
Individual projects will be eligible for support through the priority. In addition, a share
of funding will be set aside to support projects that are part of integrated packages of
support put forward by Community Planning Partnerships. This may include a range
of small projects, linked together into a common aim of improving the sustainability of
communities within the list of eligible areas. The approach is described in more detail
in section 6.1 with respect to bringing together ERDF and ESF funding to support
integrated action plans. The 10% geographical flexibility described above would not
apply to the funding for Community Planning Partnerships.
Eligible activities
€121.195 million of EU funding has been allocated to the priority, or 45% of the
Programme, to support the following activities:
• Early engagement, identification of needs with action plans setting out
customised support, particularly for the hardest-to-reach groups
• Work preparation to build confidence and develop basic, life and coping skills ,
including ICT, literacy, numeracy and English for speakers of other languages
• Vocational training, developing care skills, supported volunteering, job search
advice, job tasters and work experience, again for the hardest-to-reach groups
• Initiatives to help raise awareness of the world of work, enterprise and
entrepreneurship among young people, including work experience
placements, particularly among the NEET group
• Initiatives to encourage employers to understand the needs of vulnerable
groups in entering and remaining in the workforce
• Intermediate labour market activity
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• Innovative approaches to job brokerage/matching
• Assistance with childcare and care for dependent persons, where caring
responsibilities are a barrier to progressing into the labour market
• Developing support for employees and employers to help employee retention
and progress in the early months of employment, included supported and
subsidised employment
Preference will also be given to projects which can demonstrate an innovative
approach to the activity or represent the mainstreaming or rolling-out of a pilot
approach which has tested successfully.
The distinction between beneficiaries in different priorities is not always clearcut.
This is true of ESF Priority 2. Some of the most successful projects recognise that
there is a continuum of support for workless individuals going into sustainable
employment, often requiring aftercare to avoid the ‘revolving door’ of individuals
going in and out of employment. Under ESF Priority 3, support for the development
of new lifelong learning approaches may also entail support for training workless
beneficiaries. It is also true of ERDF Priority 3 (Urban Regeneration), which covers
complementary area-based regeneration activity in the same eligible areas.
Consequently, Priority 1 project bids will be able to put in parallel applications under
these different priorities and decisions on the bids will be co-ordinated.
This is in addition to the flexibility facility, which can allow up to 10% of the funding in
this priority to be used for related ERDF-type activity. The flexibility could be applied
in cases where the supported activity would not warrant a full-scale application to the
ERDF Programme as the support to be provided would be limited.
Indicators and targets
The indicators reflect the priority’s targeting of key groups experiencing acute
problems of worklessness, including those with multiple deprivations (which will be
set out as part of guidance to applicants). Targets have been set with reference to
previous programme experience and the MORI Beneficiaries Survey, as discussed
in Chapter 3. The data on these indicators will be collected from individual participant
data on a quarterly basis, as described in more detail in Chapter 9. For all these
indicators, data will be collected on key beneficiary characteristics, such as gender,
in line with Annex XXIII of the Implementing Regulation.
In addition, there are a number of indicators which will be measured through
specially-commissioned data-gathering exercises. The ‘sustainability’ of employment
will be measured through follow-up surveys on the number of participants who
remain in work six months after leaving – data on these beneficiaries surveys will be
collected in 2011 and 2013. While the main results are those entering employment or
gaining a partial/full qualification and those entering into education or training, the
impact indicators reflect that not all participants will gain sustainable employment. In
particular, as part of the evaluation work of the new Programme, a ‘soft’ indicator will
be measured to reflect the progress of individuals towards employment (a measure
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of ‘distance travelled’ by individuals who are furthest from sustainable employment)
as well as the net effect of those entering employment. Data on these will be
gathered through a specifically-commissioned evaluation to be conducted in the
latter half of the programming period.
Baselines for the priority are set in Chapter 9, which also discusses in more detail
how the data will be used for evaluation and reporting purposes.
Indicator Type Target
Number of participants receiving support Output 17,600
Number of participants with multiple deprivations Output 6,600
Number of participants in the NEET group Output 3,400
Number of participants in ethnic minority groups Output 800
Number of participants who are aged 50 or over Output 2,100
Number of participants entering into employment Result 5,800
Number of participants entering education or
training
Result 5,800
Number of participants completing a partial or full
qualification
Result 8,800
Number of participants in work six months after
leaving
Result
Number of participants who progress towards
employment
Impact
Net number of participants entering employment Impact
4.4 Priority 2: Progressing through Employment
Rationale and aim
The level of investment in training varies considerably in the region. Training is not
always sufficiently well aligned with business objectives to generate real benefits.
One measure of the need to improve the skills of the workforce is the concept of
‘skills gaps’ when a current employee is judged not to be fully proficient at his or her
job. Results from Futureskills Scotland’s employer survey revealed employer
perceptions of significant areas in which staff are viewed as inadequately skilled. In
particular, over 50% of staff identified as having skills gaps are considered less than
fully proficient in planning and organisation, customer handling, problem solving and
team working. Written communication is deficient in almost 35%, and numeracy and
literacy, although among the least common skills deficiencies, are both still identified
as a problem amongst almost one in five employees with skills gaps.
Consequently, investing in the skills of the workforce has several benefits for the
region, all of which can contribute to addressing Scotland’s relatively poor
productivity performance. First, such investment complements the efforts to
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encourage workless individuals into the labour market by providing those who have
low skills with the additional training they require to achieve sustainable employment
and move into better-paid employment. Second, it can encourage fuller
representation in the workforce, particularly from a gender, age and ethnic minority
perspective and for senior posts such as enterprise managers. Lastly, there is a
need to improve a range of enterprise skills within the region, particularly for
entrepreneurs and new managers of small companies, to enable them to adapt
better to globalisation and the knowledge economy.
There is evidence from a range of sources of the effectiveness of promoting workbased
learning, particularly to deliver core skills to employees within SMEs. It is
important for skills improvement and progression through employment to be
encouraged by increasing employer awareness of the benefits. Employers are not
sufficiently aware of the benefits of work-based learning for all groups of staff, even
those undertaking basic level jobs. This can be tackled by reducing the direct cost of
training or the productive time lost. There is the danger that employers will focus on
training that will offer them a financial incentive, therefore skewing the process of
skills development. So, early work with employers to help them identify their own
enterprise and training needs before choosing from a selection of training products,
combined with longer monitoring of results, should ensure the broader quality and
qualification training focus is retained.
It is also possible to intervene more effectively by developing a more co-ordinated
approach to the delivery of training services. This can be done by partnerships
identifying and prioritising the sectors and skills needs where intervention can make
the most difference in their area. This will require more effective working together for
enterprise agencies, local authorities, and employers who can then make their
enterprises grow and become more competitive, and trade unions and employees
who can become more committed to improving their skills and using these skills
productively. The system to provide these skills will have to be flexible, nurturing,
and innovative to facilitate progression and to be responsive both to the short-term
demands of employers and the long-term needs of the economy. As employers
become more engaged in the education and training system which delivers on their
needs, those who need to will continue to invest in training and thereby increase the
productive use of their workforce’s skills.
The second priority addresses the skills of those in the workforce by aiming to
achieve the second Objective:
to improve the skills of the workforce to enhance employability,
productivity, adaptability, inclusion and entrepreneurial expertise.
In light of the limited resources, the priority will focus on four key goals, which are
elaborated further in the sub-sections below:
• improving the ability of key groups to progress from low skill/low paid jobs into
sustainable employment offering financial security;
• increasing participation in occupations traditionally under-represented from an
equal opportunities, diversity perspective;
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• underpinning support for entrepreneurship and the managerial skills training
required to make a success of new enterprise formation and growth; and
• providing the social enterprise and voluntary sector with the required skills to
make their organisations sustainable.
Reinforcing Sustainable Employment
The link between limited qualifications and lack of career progression or improved
wages is discussed in the analysis in Chapter 2. It is estimated that 23% of adults in
Scotland have low levels of literacy and numeracy skills and 22% of all workers are
in low paid employment. Motivated, high-quality and appropriately-skilled people are
a fundamental requirement in delivering innovation, increased productivity and
growth. Scotland’s record in getting people into apprenticeships, college and
university is amongst the best in the world but there is still a challenge in getting
people to continue developing their skills and improving their productivity once in
work. The challenge is particularly difficult for the more vulnerable groups identified
in Priority 1. Supporting vulnerable or highly-disadvantaged individuals in obtaining
sustained employment needs to be part of a continuing, co-ordinated range of
support for ensuring that they not only remain in jobs but progress through the labour
market.
Addressing Under-Representation in the Workforce
As the socio-economic analysis indicated, the LUPS region continues to have
significant under-representation in occupational and sectoral participation and a pay
gap from both a gender and an ethnic perspective. The Programme should
contribute to addressing the problems by supporting participation by women and
ethnic minority groups in the workforce, particularly in activities that encourage
returners, allow skills upgrading or conversion, and assets in retaining in – and
progressing through – work those requiring special assistance to balance caring
responsibilities. It should also support initiatives to address employer attitudes to
training these groups and other workplace barriers that may continue to exist. The
issue of representation also relates to male participation in sectors traditionally
dominated by women, such as caring professions. At the same time, there is scope
for ensuring the retention and up-skilling of older workers in the workforce and
encouraging the integration and progression of migrant workers in the labour market,
all of which will contribute to increasing the size of the workforce and improving
productivity.
Improving Entrepreneurial and Managerial Skills
Given the vision that Scotland must become a high earning, high skills-based
economy to improve its competitive future, this second priority also addresses the
workforce skills issues around giving high quality financial, marketing and e-skills to
entrepreneurs and new managers in new and existing SMEs, partly complementary
to the ERDF priority to commercialise research in Scottish higher and further
education, and encourage spin-out of new and growing companies. The objectives of
the priority therefore include fostering entrepreneurial skills of entrepreneurs and
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new managers across the region, the development of leadership skills in enterprise
(specifically, for those under-represented among new managers, such as women
and ethnic minorities) and addressing lack of ICT and e-commerce skills and
business and financial planning. This partly reflects the need to improve skills
development among potential and new SME managers, and the need for measures
to encourage entrepreneurs to grow and globalise their companies.
Increasing Social Enterprise Skills
Training needs vary significantly among different organisations. In the case of the
social economy and voluntary sector – which will carry out some of the activity
supported under Priority 1 – these needs have been recognised as a training priority
by the Scottish Executive. To enable these organisations to continue their critical
work in engaging with the most vulnerable groups outside the labour market, it is
important that they are helped in developing a longer-term capacity for sustainable
development. Consequently, support is needed to tackle the specific needs of social
enterprises in gaining the commercial and entrepreneurial skills required for future
survival. The pump-priming and demonstration projects which ESF funding can
support will enable these and other social enterprises to understand better their
needs and how to address them to become more self-sustaining while offering
worthwhile employment to their workforce.
Targeting
To raise the skills of the workforce and Scotland’s global competitiveness there
needs to be substantial investment in the training of employees. The key groups that
this priority is seeking to assist therefore include the following.
• Employees who lack basic core skills, including those having low levels of
literacy or numeracy, and those for whom English is not their first language
• Employees without qualifications at SCQF level 5 and 6 (SVQ level 2 or level
3)
• Specific groups, such as women returners, ethnic minority and migrant
workers, and workers with disabilities
• Older workers who need to update their skills to remain or return to the
workforce
• Potential and new entrepreneurs and new managers of (both new and
existing) SMEs
• Key staff in social enterprises
Eligible activities
Four groups of activities are envisaged in this priority: support for the low-paid/lowskilled;
improving under-representation in the workforce by women, particularly for
higher-skilled jobs; addressing the managerial and entrepreneurial skills gap in the
region; and supporting skills upgrading in social enterprises. Consequently, €99.601
million of EU funding has been allocated to the priority, or 37% of the Programme, to
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support eligible activities such as:
Reinforcing sustainable employment
• Initiatives to encourage the development of vocational skills among low-skilled
and low-waged individuals
• Activities enabling disadvantaged young people and adults to enter
apprenticeships, particularly those from groups not traditionally taking up this
form of training
• Training/education in basic literacy, numeracy, basic ICT skills and English for
speakers of other languages including migrant workers
• Activities to support the progression in employment of disadvantaged young
people and adults with low level skills from foundation level up to SVQ level 3
• Training for workers leading to SVQ level 2 and 3 qualifications – ESF funding
will support activities additional to those funded domestically under the SVQ
level 2 entitlement
Addressing under-representation in the workforce
• Training, mentoring and supporting men and women who want to enter
occupations or sectors where their gender is under-represented, in order to
tackle gender segregation and the pay gap
Improving entrepreneurial and managerial skills
• Training to provide entrepreneurial, business planning, financial, marketing,
and e-skills for those in self-employment and new managers in new and
existing SMEs
• Initiatives to provide training for those wishing to start up or manage a
business, particularly from groups under-represented at managerial levels
such as women or individuals from ethnic minority backgrounds
Increasing social enterprise skills
• Business skills required by workers in social enterprises to improve the
sustainability of their organisations
As with Priority 1, preference will be given to projects which can demonstrate an
innovative approach to the activity or represent the mainstreaming or rolling-out of a
pilot approach which has tested successfully. Also project bids for support under
ESF Priorities 1 and 3 will be co-ordinated. This is in addition to the flexibility facility,
which can allow up to 10% of the funding in this priority to be used for related ERDFtype
activity. The flexibility could be applied in cases where the supported activity
would not warrant a full-scale application to the ERDF Programme as the support to
be provided would be limited,
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Indicators and targets
Indicator Type Target
Number of participants receiving support Output 64,600
Number of participants gaining partial or full
qualification
Output 42,600
Reinforcing sustainable employment
Number of male participants without level 2 or below
skills
Output 7,800
Number of female participants without level 2 or
below skills
Output 7,800
Number of male participants without level 3 skills Output 6,300
Number of female participants without level 3 skills Output 6,300
Number of male participants gaining level 2 skills Result 3,200
Number of female participants gaining level 2 skills Result 3,200
Number of male participants gaining level 3 or above
skills
Result 2,600
Number of female participants gaining level 3 or
above skills
Result 2,600
Number of participants who progress into more
secure or better-skilled employment
Impact
Addressing under-representation in the workforce
Number of women (in projects addressing better
gender balance)
Output 9,400
Number of men (in projects addressing better gender
balance)
Output 4,700
Number of women going into gender-imbalanced
sectors
Result 6,200
Number of men going into gender-imbalanced
sectors
Result 3,100
Improving entrepreneurial and managerial skills
Number of participants (in projects addressing
entrepreneurial and managerial skills)
Output 7,500
Number of entrepreneurs and new managers
completing a partial or full qualification
Result 4,900
Number of companies benefiting from improved skills
training
Impact
Increasing social enterprise skills
Number of participants from social enterprises Output 5,200
Number of participants from social enterprises
completing a partial or full qualification
Result 3,400
Number of social enterprises benefiting from
improved skills training
Impact
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A single output indicator has been set for the priority as a whole – the number of
participants and those gaining partial or full qualifications. However, the output and
results indicators also reflect the individual sub-activities in the priority:
• targeting the low-skilled and low-paid and reinforcing sustainable employment
(participants trained to level 2 or 3 skills levels);
• encouraging participation in gender-imbalanced sectors (participants in
projects targeting gender balance);
• promoting entrepreneurial skills (participants in projects gaining partial/full
qualifications); and
• support for social enterprise skills sets (participants from social enterprises
gaining partial/full qualifications).
Targets have been set with reference to previous programme experience. The data
on these indicators will be collected from individual participant data on a quarterly
basis, as described in more detail in Chapter 9. Guidance will be provided to define
‘gender balance’ and ‘entrepreneurial and managerial skills’ projects and tagging
such projects will be the responsibility of the Managing Authority.
Impact indicators differ for the different sub-activities:
• low-skilled and low-paid participants moving onto more secure or better-paid
employment, to be defined in discussion with the impact evaluators;
• positive benefits to companies resulting from the entrepreneurial/managerial
training, as measured by directly-attributable turnover or productivity changes;
and
• positive benefits to social enterprises resulting from the training, as measured
by directly-attributable changes to the longer-term security/sustainability of the
enterprises.
An impact indicator has not been set for gender imbalance, as the long-term effect of
the Programme on the gender imbalance of different sectors will be difficult to
measure within the timescales of the programming period. For all impact indicators,
data will be gathered through a specifically-commissioned evaluation to be
conducted in the latter half of the programming period.
Baselines for the priority are set in Chapter 9, which also discusses in more detail
how the data will be used for evaluation and reporting purposes.
4.5 Priority 3: Improving Access to Lifelong Learning
Rationale and aim
Underpinning the ability to improve the job market opportunities of particular groups
outside of the workforce under Priority 1 and to allow individuals to progress to
higher-quality, more sustainable employment under Priority 2, is the quality and
accessibility of the post-school learning infrastructure. Investment in knowledge and
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skills brings direct economic returns to individuals and collective economic returns to
society. Investment in quality-assured learning offers benefits not only to the
individual, but also to the programme’s central goal of contributing to the
competitiveness of the economy, while closing the opportunity gap and reducing
inequalities in the wider society. As economies which compete in the global
marketplace have to ensure their workforce continually updates its skills and
learning, an important element to Scotland’s achievement of Lisbon Agenda goals is
upgrading this infrastructure and widening and deepening access. Investment in
knowledge and skills brings direct economic returns to individuals and collective
economic returns to society, and provides the potential for social gains through
increased participation, improved health outcomes and greater social cohesion.
Lifelong learning is delivered in Scotland through a number of different bodies.
Learndirect Scotland and Careers Scotland have central roles in providing
information, advice and guidance to learners and enterprises, while Futureskills
Scotland analyses and provides the labour market intelligence that has shaped
policy in this area. In addition, a wide range of professional organisations deliver
learning activities to different groups, including the HE and FE sector, while the
Scottish Trades Union Congress has a valuable role to play in bringing learning into
the workplace, just as voluntary organisations have in bringing learning into
communities through community learning and development programmes. EU funding
can bring real value added by enabling these organisations to widen this access
develop and mainstream new approaches to delivering lifelong learning to those who
have not benefited so far.
This priority has to be focused on delivering what the people who have to be drawn
into learning and training need, where and when they can most easily access it. To
do this, learning providers must work out new ways to design, deliver and evaluate
learning which meets the needs of these people who have so far felt excluded,
alienated or threatened by learning. Outreach to engage individuals who have no or
poor experience of learning will be an essential feature. Projects will have to ensure
that all learners are given the information, guidance and support they need not just at
the point of initial engagement, but also at transition points to make an informed
decision about their next move; and to ensure that the right kind of assistance is
available to support their continued learning.
This priority will therefore be one where flexibility and innovation are key. For those
who have not engaged with learning for a long period, or who feel themselves
excluded from learning, attracting them back will be a gradual process which may be
through informal learning in a community or work setting, or through outreach
centres which they attend for social reasons.
The encouragement of the reform of current methods of entry into particular training
courses or recruitment onto apprenticeships can also be assisted. The aim would be
to ensure that a more diverse group of people are able to take advantage of early
opportunities to progress and gain recognised sectoral and professional
qualifications. Installing new networks, systems and support in work places, and links
between groups of employers or employees to enable a wider spectrum of people to
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access learning opportunities from their workplace would also be encouraged
through this priority. In some cases, partnership working will be essential to ensure
that access to lifelong learning for more disadvantaged groups can not just be
offered, but also fully supported until the individuals are comfortable within the more
established learning services.
Consequently, to support the activity of improving lifelong learning access, this
priority aims to implement the third Objective:
to widen access to post-school lifelong learning, particularly for key
client groups.
Targeting
Target groups are different for this priority from the eventual beneficiaries. It aims to
assist the design and introduction of innovative products to reform education and
training systems or provide access to existing provision of learning products, as well
as funding the piloting/dissemination of these new products/systems. Consequently,
ESF funds will be available from this priority for those offering new, innovative ways
of attracting into learning people who have been disillusioned by early educational
experience or who have been unable to access the opportunities to fulfil their
learning aspirations because of a variety of barriers to be overcome, social, cultural,
caring or financial.
There is no spatial targeting in this Priority. However, issues of access differ in
different parts of the region – in particular, areas of urban deprivation may lack
services or security for individuals wishing to access learning and training, just as
rural areas may experience problems with geographical distance and access to
provision. Support will be available for projects that recognise the area-based lifelong
learning challenges of different parts of the region.
Individuals, employers and those providing learning opportunities are all critically
important in relation to the employability and lifelong learning agendas. Individuals
and employers create the demand for skills, which are then facilitated and/or
delivered by a range of private, public and third sector organisations within the
learning market. Equally, workers in small businesses may find it impractical to get
training provided at their workplace during the working day, while low paid workers in
larger organisations may simply find employers unwilling to invest in portable
qualifications in case this risks higher staff turnover. Consequently, activities will be
supported for the following groups.
• Personnel in public and private training/education bodies providing access to
lifelong learning and support services to key client groups
• Voluntary sector/social economy organisations
• Agencies working with employers, particularly SMEs, including learndirect
Scotland/Scottish University for Industry
• The Scottish Qualifications Authority, schools, HE institutions, FE institutions
and the Scottish Funding Council
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• Community learning and development centres and local and community
organisations
• Professional bodies
• Employers, their representative bodies, the Scottish Trades Union Congress,
trade unions, and workers organisations
Eligible activities
€42.648 million of EU funding has been allocated to the priority, or 16% of the
Programme to support eligible activities including:
• Projects that develop and mainstream successfully tested innovative
approaches to learning, particularly for the target groups listed under Priority 1
• Development of new training materials or course content to accommodate
different cultural and skills backgrounds
• Creation and distribution of new online learning materials
• Projects that develop distance learning and make innovative use of ICT in
training
• Skills training for personnel requiring specialist skills to address the
employability needs of target groups listed under Priority 1
• Initiatives that support local learning access points
• Innovative workplace initiatives, particularly those linking learning and training
for groups of companies or employees which would otherwise not participate
in training activities
Project bids for which some activity would be eligible under ESF Priorities 1,2 and 3
will be co-ordinated. For the rural areas eligible under ERDF Priority 4, where the
provision of higher and further education services is an eligible activity, projects
bringing together activities to enable access to these services to more
disadvantaged groups would be encouraged. This is in addition to the flexibility
facility, which can allow up to 10% of the funding in this priority to be used for related
ERDF-type activity. The flexibility could be applied in cases where the supported
activity would not warrant a full-scale application to the ERDF Programme as the
support to be provided would be limited.
Indicators and targets
The output indicators for the priority reflect the number of participants supported
through projects, but more importantly, the number of materials (by type rather than
volume) and courses introduced, both those which are wholly new or those which
have been adapted. In addition, to measure the priority’s impact, the number of
trainers trained will be measured as an indication of the priority’s goal of improving
lifelong learning capacity in the region.
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Targets have been set with reference to previous programme experience. The data
on these indicators will be collected from individual participant data on a quarterly
basis, as described in more detail in Chapter 9. Clear and specific guidance will be
provided by the Managing Authority to define what is meant by new ‘courses’ and
‘materials’, but the focus will not be on the volume of such activities, but the number
of new types of these activities. Such definitions have been a significant issue in the
efforts of previous programmes to measure lifelong learning activity.
The key impact indicator for the priority will be the effect of the supported projects on
longer-term changes in the number of participants with access to lifelong learning, as
measured by participation in training. This data will be gathered through a
specifically-commissioned evaluation to be conducted in the latter half of the
programming period.
Baselines for the priority are set in Chapter 9, which also discusses in more detail
how the data will be used for evaluation and reporting purposes.
Indicator Type Target
Number of participants receiving support Output 7,900
Number of projects supporting the development of
new courses/materials or innovative approaches to
learning
Output 100
Number of new courses/materials developed Result 1,900
Number of trainers trained Result 1,600
Number of participants completing a partial or full
qualification as a result of supported projects
Impact
4.6 Technical Assistance
Technical assistance support will be provided to assist the management and
administration of the programme. This will include activities in support of the various
selection, appraisal, management and committee groups, the monitoring of financial
and performance progress, Programme publicity and communication, and facilitating
the exchange of best practice. Technical assistance will be used to support the work
of the Intermediate Administration Body, which is described in Chapter 7.
Eligible activities
€6.478 million of EU funding has been allocated for technical assistance, or 2% of
the Programme to support eligible activities including:
• Servicing Programme groups and committees
• Communicating decisions and policy to partners
• Implementation of a common monitoring and evaluation framework and
provision of regular monitoring reports
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• Provision of advice to applicants
• Compliance work required under the implementing regulations and national
rules for the programme, including on the spot visits, claims processing, and
subsequent follow up of eligibility and compliance issues with beneficiaries
• Publicity including awareness-raising of the Programme among all
beneficiaries and applicants in line with the activities set out in the publicity
section in Chapter 7
• Annual reporting on the Programme
• Development of ICT systems to assist the application, monitoring and
financial control of the Programme
• Evaluation studies in line with the strategy set out in Chapter 9
4.7 Categories of Assistance
As set out in Article 9 of the General Regulation, Programmes under the
Competitiveness Objective must meet an target of 75% for expenditure on activities
contributing directly to the objectives of the Integrated Guidelines for Growth and
Jobs (2005-08). The relevant categories of assistance are listed in Annex IV of the
General Regulation.
While this target will be met, the ESF Programme for Lowlands & Uplands Scotland
has set itself an ambition of achieving 97% of expenditure.
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5 FINANCIAL ALLOCATIONS
The financial allocations for each year of the programme are shown in the table
below. €269.921 million of Community funding will contribute to a Programme of
€598.626 million in total, resulting in a target Programme intervention rate of 45% (as
calculated with respect to total public expenditure).
Table 3: Year by source of funding for the Programme (in €)
Year Community
Funding
(a)
National Public
Funding
(b)
Total Funding
(c) = (a) + (b)
Co-financing
Rate
(e) = (a)/(c)
2007 36,307,594 44,182,308 80,489,902 45%
2008 37,033,746 45,065,954 82,099,700 45%
2009 37,774,421 45,967,273 83,741,694 45%
2010 38,529,909 46,886,618 85,416,527 45%
2011 39,300,507 47,824,350 87,124,857 45%
2012 40,086,517 48,780,837 88,867,354 45%
2013 40,888,248 49,756,455 90,644,703 45%
2007-13 total 269,920,942 328,463,795 598,384,737 45%
For the three key priorities of the Programme, resources have distributed with the
following rationale.
• Priority 1 has received the highest share of funding, reflecting the priority
placed on the challenge of worklessness in domestic policy. With an economy
that has already achieved the Lisbon employment rate targets, the key issue
for the Programme is to reduce persistent worklessness, especially in parts of
the region where it is particularly entrenched.
• Priority 2 also has a high share of funding because it covers a range of
important, inter-related factors influencing skills development in the region.
• Priority 3 has the smallest share of funding in recognition of the smaller-scale,
pilot nature of the activity and its aim of leveraging in partnership funding from
a range of domestic partners.
Table 4: Priorities by source of funding (in €)
Community National Total Co-financing EIB Other
Funding Public Funding Rate Contributions Funding
Funding
(a) (b) (c)= (a)+(b) (d) = (a)/(c)
Priority Axis 1 121,194,503 148,126,615 269,321,118 45% 0 0
Priority Axis 2 99,600,827 121,734,344 221,335,171 45% 0 0
Priority Axis 3 42,647,509 52,124,733 94,772,242 45% 0 0
Priority Axis 4 6,478,103 6,478,103 12,956,206 50% 0 0
Total 269,920,942 328,463,795 598,384,737 45% 0 0
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The intervention rates have been set to reflect previous ESF experience and to
ensure that the minimum required EU funding would be provided to match-fund
projects.
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6 CO-ORDINATION WITH OTHER FUNDS
Co-ordination of the Structural Funds with other relevant funding streams is a
regulatory requirement, but it is given greater importance in the 2007-13
programming period. Compared to previous funding rounds, the scale of funding in
the eligible LUPS area is significantly reduced, making it more critical that the value
of the 2007-13 Structural Funds are enhanced by ensuring they work closely with
other sources of funding. Similarly, the scope of eligibility in the 2007-13
programming round is more targeted than in earlier rounds, giving greater
opportunities for Structural Funds to work in combination with other, similarly
targeted policies.
In this context, there are several relevant funding streams. This chapter discusses
how the ESF Programme will work closely with:
• the European Regional Development Fund;
• the European Territorial Co-operation Objective;
• EU support for agriculture and fisheries;
• EU research funding; and
• European Investment Bank support.
6.1 European Regional Development Fund
As the other major funding stream within EU cohesion policy, it is essential that ESF
works closely with the European Regional Development Fund, while recognising the
distinctive objectives of the two Funds. In parallel with this ESF programme, there
will be a European Regional Development Fund programme for the Regional
Competitiveness and Employment Objective of the Structural Funds, covering the
same eligible area. This is an important change from the 2000-06 programming
period, where ESF (through Objective 3) was not only available in much wider
territorial area than ERDF funding (through Objective 2), but it was available in two
programmes (not only the Objective 3 programme, but also in the Western Scotland
Objective 2 programme). The geographical contiguity between both the ESF and
ERDF programmes and their mono-fund nature should enable strong co-ordination
between the two funding streams to take place.
The experience of the 2000-06 programming period in co-ordinating ESF and ERDF
funding (as discussed in Section 3.2 above) has fed into developing the approach for
the 2007-13 programming period. As the mid-term evaluations of the 2000-06
programmes attested, ESF and ERDF co-ordination was broadly successful but
there have been lessons to be learnt. Foremost among these has been the need to
build in greater complementarity at the start of the programme, not least with respect
to setting up formal mechanisms to ensure that not only co-ordination takes places
systematically, but that it is monitored and assessed on a regular basis.
The main co-ordination mechanism will be through a single Programme Monitoring
Committee overseeing both the ESF and the ERDF programmes for the whole LUPS
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area. The arrangements for the Programme Monitoring Committee (PMC) are
discussed in detail in Chapter 7.
On an annual basis, the use of the funding flexibility allowed by the General
Regulation will be reviewed. Under the Article, up to 10% of total ESF Programme
resources can be spent on ERDF-related activities. This will enable projects to avoid
unnecessary applications on projects where such activities are likely to be a small
proportion of total project funding. At the start of the programming period, the
Managing Authority will set out detailed guidelines on the types of activities that
could be covered by the flexibility rule. The Managing Authority will monitor spending
on ‘ERDF’ activities and provide the information as part of the annual report on ESFERDF
co-ordination.
One of the ESF Programme priorities will be delivered jointly with one of the priorities
in the ERDF programme for the LUPS region. Joint awards of funding under Priority
1 of the ESF Programme and Priority 3 (Urban Regeneration) of the ERDF
Programme will be made to bidding projects. Priority 1 of the ESF Programme
concentrates on supporting those outside the workforce to secure employment,
particularly among the most disadvantaged groups, and has a clear strategic fit with
the community economic development focus of Priority 3 in the ERDF Programme.
Projects will not be required, but will be encouraged to put forward action plans that
will show how ERDF and ESF funding can be used in tandem within the same
project, although projects will not be required to apply for both Funds. While
applications need to be made separately to each Programme, appraisal and project
selection between both programmes will be co-ordinated through advisory groups
(as described in the Implementing Provisions chapter below). Applications will need
to be specific in allocating distinct activities, expenditure and outcomes to each
Fund. Projects will also be required to report on the co-ordination between both sets
of Funds on an annual basis.
Use of Community Planning Partnerships
For the first years of the period, the Programme will make limited use of the
Community Planning Partnerships model for delivering some funding. As set out in
Chapter 3 above, the Partnerships are local networks of key community regeneration
and social inclusion actors which are charged with setting out their collective goals
and spend on tackling regeneration/inclusion within Scottish-wide policy through
Regeneration Outcome Agreements. They have been allocated Community
Regeneration Fund support to take forward new activities within these Agreements.
The partnership-based approach and the use of co-ordinated public funding offers
clear opportunities to the Programme to extend the value added of the Funds. An
example of such an integrated bid could include: funding the rolling-out of an e-skills
learning project for target groups under the ESF Programme with the development of
e-learning facilities under the ERDF Programme.
A small number of Community Planning Partnerships will be selected to deliver
funding under Priority 3 of the Programme in conjunction with ESF Priority 1 at the
start of the programming period. A minority share of the allocation under the priorities
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will be available to support these Partnerships on a competitive basis and using the
eligibility criteria of both priorities for selection (notably the geographical criteria).
Selection will be on the basis of the eligibility criteria set out in the priority description
above as well as the capacity of the Community Planning Partnerships to administer
the Funds successfully. Detailed criteria – as well as further examples of integrated
action plans – will be provided by the Managing Authority in advance of the bidding
round.
The approach will encourage a more co-ordinated, area-based approach to
addressing areas with the most severe social inclusion and employability problems.
It is distinct from the Intermediate Delivery Body mechanism, which is described in
detail in the Implementing Provisions chapter. Awards will be made on a competitive
basis for a share of the joint ESF Priority 1-ERDF Priority 3 allocation. Funding will
be provided for two years to support eligible activities as set out in the priority
descriptions – this will act as a pilot for the approach to funding delivery. At the end
of the two-year period, the Partnerships will be evaluated for the effectiveness and
value added in their use of the funding, after which, decisions would be taken on
whether the funding initiative would be continued.
Funding would be delivered through specified accountable bodies to be used in
activities set out in line with key local strategies. Activity would be set out in annual
Structural Funds Outcome Agreements. The Agreements would identify the specific
activities to be funded by the ESF contribution, how the funding would be used in
conjunction with the ERDF contribution (and identifying clear ESF outcomes for the
funding), make clear the additionality of activity and set financial and performance
targets in line with the priority targets. The Agreements would be monitored regularly
by the Managing Authority, which would report to the PMC on the performance of the
selected Community Planning Partnerships on an annual basis.
Other Co-ordinated Activity
Less formally, Priority 2 of the ESF Programme has also been designed to
complement Priority 2 (Enterprise Growth) of the ERDF Programme. The focus of
Priority 2 on the skills needs of entrepreneurs and SME managers will complement
the support of Priority 1 in the ERDF programme on the enterprise development
needs of SMEs, new enterprises and entrepreneurs. In addition, Priority 3 of the ESF
Programme will also complement the support for higher and further education
service provision eligible through ERDF Priority 4 (Rural Development). Where
complementary activities fall into these priorities within the same project, coordinated
joint applications will be invited to ensure that EU funding for projects is as
integrated and strategic as possible. Such activity will be distinct from the
Community Planning Partnership and the Intermediate Delivery Body activity, as it
will be taken forward on a case-by-case basis with individual projects that are in a
position to deliver high value-added through activity linking together two different
priorities.
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6.2 Territorial Co-operation Objective
As well as the ERDF and ESF programmes under the Regional Competitiveness and
Employment Objective, there are a number of programmes in the different strands of
the Territorial Co-operation Objective which cover part of the LUPS area. In the
transnational co-operation strand, there are two relevant programmes. The Northern
Periphery programme, which principally covers the Highlands & Islands, allows some
eligibility in the LUPS area. The area is also eligible under the North Sea
programme, whose priorities – not finalised at the time of the final drafting of the
Operational Programme – most closely relate to Priorities 1 and 3. Lastly, under the
cross-border co-operation strand, the LUPS area will be eligible for support from a
programme with partners in Northern Ireland and Ireland.
Activity supported under these Co-operation programmes will be co-ordinated, where
appropriate, with the ESF Programme through the Managing Authority. However, the
scope for overlap is limited. There is also an option for inter-regional co-operation to
be pursued as a strand of the ESF programme. Given the limited funding and the
greater effectiveness of keeping co-operation activities under a single banner, the
option is not currently envisaged for the LUPS area in the 2007-13 programming
period.
Transnational and interregional co-operation actions may also be supported within all
priority axes of the programme. Transnational arrangements will provide the
opportunity to recognise activities being addressed by programmes elsewhere in the
EU which can positively influence the delivery of the Programme in Scotland.
Transnational ties with other Member States will operate at a national level through
the Managing Authority. The Managing Authority will set out, in guidance, how
transnational and inter-regional actions will operate. The Managing Authority will
work with the Commission and appropriate national authorities to ensure that ESF
does not support operations being concurrently supported through the programmes
supported under the Co-operation Objective.
6.3 The European Agricultural Fund for Rural Development
Both the General and the ESF Regulations specify that the Operational Programmes
must set out how ESF and the European Agricultural Fund for Rural Development
(EAFRD) will complement each other. EAFRD in Scotland is governed by the
Scottish Rural Development Plan, which covers the whole of Scotland. The
Managing Authority for the Fund is the Scottish Executive Environment and Rural
Affairs Department.
The ESF Programme and the Scottish Rural Development Plan (SRDP) have been
developed in parallel by the Scottish Executive with particular attention given to the
areas where project eligibility could overlap. The consultations on the two sets of
documents made explicit reference to each other with responses solicited on the
relationship between the two.
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The main area where demarcation is important is with Axis 3 of the SRDP. Both
programmes have some common areas of scope, as set out by their respective
regulations. To ensure that there is no overlap in eligibility, but at the same time, that
there is full complementarity in the activities supported, the lists of eligible activities
of both the ESF Programme and the SRDP have been drawn up so that projects
receiving funding through one stream in one phase of their development could
receive follow-on support from the other stream in a new development phase. The
following table sets out the eligible activity areas where this is envisaged.
Table 5: Demarcation between SRDP and ERDF activities
Type of activity SRDP eligible activities ESF eligible activities
Training • Vocational training for
individuals in the agricultural,
food and forestry sectors
• Limited training for
individuals in the sectors
mentioned for SRDP
Complementarity will be regularly also be reviewed through an annual meeting of the
respective Managing Authorities. This will produce a report on joint implementation
of the different Funds which will be presented on an annual basis to the Programme
Monitoring Committee as part of annual reporting exercises. The PMC would then be
able to refine eligibility criteria and project recommendations to take account of
supported activity through the SRDP. As part of any mid-term evaluation, the
strategic and operational fit between the programmes will be part of formal
evaluation.
6.4 The European Fisheries Fund
The regulatory requirements applying to the EAFRD apply similarly to the European
Fisheries Fund (EFF). In Scotland, EFF strategic priorities are set out in the strategy
document and the Managing Authority is also the Scottish Executive Environment
and Rural Affairs Department. Demarcation issues are more limited in the case of
the EFF, because of the limited geographical overlap with the ESF programmes. The
main parts of the LUPS area where EFF support is available is in the coastal zones
of the Borders region.
The main areas where complementarity is evident are set out in the following table.
Table 6: Demarcation between EFF and ERDF activities
Type of activity EFF eligible activities ESF eligible activities
Training • Vocational training for
individuals in the fisheries
and aquaculture sectors
• Limited training for individuals in
the sectors mentioned for the
EFF strategy
As with the EAFRD, the two Managing Authorities will meet on an annual basis to
review strategic and operational co-ordination and report back to the Programme
Monitoring Committee.
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6.5 EU Research Funding
The 7th Framework Programme for Research, Technology Development and
Demonstration Activities has combined all research-related EU activity into a
common framework addressing how research can contribute to achieving the Lisbon
Agenda goals. The broad objectives of FP7 have been grouped into four categories:
cooperation; ideas; people; and capacities. For each type of objective, there is a
specific programme corresponding to the main areas of EU research policy though
all are designed to work together to promote and encourage the creation of
European poles of (scientific) excellence.
Similarly, the EU Competitiveness and Innovation Framework Programme also
highlights areas identified in the socio-economic analysis for the region, such as
competitiveness of enterprises, promotion of innovation and the promotion of energy
efficiency. One of the key blocks of activities is the Entrepreneurship and Innovation
Programme which fits with support under Priority 2 of the ESF Programme.
Complementarity between the different funding streams will be reviewed with the
following instruments:
• ESF project applications would be required to show strategic fit and clear
distinction from any relevant projects supported through FP and the CIP; and
• the Managing Authority will report annually to the Programme Monitoring
Committee on project activity supported under the research streams to allow
the PMC to make more informed decisions on eligibility criteria in the ESF
Programme and project recommendations.
6.6 The European Investment Bank
The General Regulation specifies the need for the Operational Programme to
discuss how the cohesion-policy funding initiatives of the European Investment Bank
will be co-ordinated with the use of Structural Funds. The principal funding stream to
which this applies are the JEREMIE and JESSICA Initiatives. JEREMIE provides a
mechanism for setting up revolving loan instruments for providing development
capital to enterprises while JESSICA provides repayable and recyclable assistance
to public-private partnerships for urban renewal and development. However, it is not
anticipated that this financing will be used in the ESF Programme.
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7 IMPLEMENTING PROVISIONS
7.1 Roles and Responsibilities
The following section sets out the roles and responsibilities for the management of
the programme. It covers the identity and duties of the following:
• Managing Authority
• Certifying Authority
• Audit Authority
• Compliance Body
Managing Authority
The Managing Authority of the Programme will be the Scottish Executive through the
European Structural Funds Division in the Enterprise & Lifelong Learning
Department:
Scottish Executive Enterprise & Lifelong Learning Department
European Structural Funds Division
Meridian Court
5 Cadogan Street
Glasgow G2 6AT
United Kingdom
In accordance with Article 60 of Regulation 1083/2006, the tasks of the Managing
Authority will consist of the following:
• ensuring that operations are selected for funding in accordance with the
criteria set out in the Operational Programme and with relevant Community
and national rules;
• verifying that co-financed activities have been delivered and permissible
expenditure defrayed in accordance with Community and national rules and
that beneficiaries and other bodies maintain appropriate arrangements for
accounting and maintenance of documents required for verification and audit;
• establishing and maintaining an effective monitoring system – including
financial management, verification, audit and evaluation – and that
beneficiaries can fulfil their monitoring obligations as well;
• providing the Certifying Authority with all appropriate information to allow it
fulfil its obligations as set out below;
• guiding the work of the Monitoring Committee and providing it with appropriate
monitoring information;
• ensuring the evaluations set out in Chapter 9 are made;
• overseeing the annual and final reports on implementation;
• ensuring compliance with the required publicity actions; and
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• providing the Commission with information to allow it to appraise major
projects as required.
Lastly, the Managing Authority will pay the beneficiaries on receipt of valid claims.
Intermediate Administration Body
In accordance with Article 59, the Scottish Executive has decided to delegate
selected Managing Authority tasks to an Intermediate Administration Body (IAB). A
single body will be responsible for managing and administering selected Managing
Authority tasks in the ESF Programme on behalf of the Scottish Executive for the
whole of the Lowlands & Uplands Scotland region. The principal tasks will be:
• publicity: to implement the relevant publicity requirements of the EU
regulations;
• project applications: to facilitate the process of publicising, overseeing the
application process, registering new organisations and provide advice and
support to prospective applicants and communicating decisions, key guidance
and programme/policy changes to partners;
• project selection: to undertake technical checks on applications and facilitate
the assessment of challenge-fund applications and recommendations of
awards to the Programme Monitoring Committee;
• project monitoring: to carry out monitoring visits on all projects in fulfilment of
programme obligations;
• reporting: to monitor progress towards programme financial targets and
contribute to programme requirements; and
• secretariat to the Programme Monitoring Committee.
The IAB will be accountable to the Managing Authority and act in accordance with
the formal contractual agreement. ESEP Ltd has been awarded the contract to carry
out these delegated functions will be reviewed by 31 December 2010:
ESEP Ltd
Suite 3
Forth House
Burnside Business Court
North Road
INVERKEITHING
Fife, KY11 1NZ
Certifying Authority
The Certifying Authority of the Programme will be the Scottish Executive through the
Enterprise & Lifelong Learning Department. Certification will be undertaken by a unit
within the Department that is functionally independent from the Managing Authority.
Its tasks, as set out in Article 61, will be to:
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• draw up and submit certified statements of expenditure and payment
applications to the Commission;
• certify that the statements of expenditure are accurate and verifiable, comply
with relevant Community and national rules and have been incurred in
accordance with the relevant Operational Programme criteria;
• ensure for the purposes of certification that the Managing Authority has
provided adequate information on procedures and verifications carried out in
relation to the expenditure detailed in the statements of expenditure;
• take account of all relevant audits for the purposes of certification; and
• maintain adequate records of expenditure declared to the Commission and of
amounts recoverable or withdrawn following cancellation of a contribution for
an operation.
Audit Authority
The Programme Audit Authority will be the Scottish Executive through the Finance &
Central Services Department.
Scottish Executive Finance & Central Services Department
Audit & Accountancy Services Division
Victoria Quay
Edinburgh EH6 6QQ
United Kingdom
As described in Article 62, the tasks of the Audit Authority will be to:
• ensure that audits are carried out to verify the effective functioning of the
management and control system of the programme, including audits on a
sample of operations to verify expenditure declared;
• submit to the Commission an audit strategy for the Programme within nine
months of the programme’s approval as well as an annual control report
detailing the audits carried out during the previous year, their result and any
shortcomings consequently found in the management and control of the
programme;
• submit to the Commission an annual control report setting out audit findings in
the previous year (to the period ending 30 June of the year concerned);
• issue an annual opinion on the basis of the controls and audits that have been
carried out under the Audit Authority’s responsibility as to whether the
management and financial control systems function effectively and provide
assurances to the Commission with respect to the statements of expenditure;
• where appropriate, produce for the Commission a declaration for partial
closure assessing the legality and regularity of the expenditure concerned
(where appropriate) and, at the latest by 31 March 2017, a closure declaration
covered by the final statement of expenditure, which will be supported by a
final control report; and
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• ensure that audit work takes account of internationally accepted standards.
Compliance Body
Article 71 requires that an independent body is designated to give an opinion
whether the management and control systems are in compliance with the Articles
58-62, based on a description of the systems to be provided to the Commission
within twelve months of the programme’s approval. The ‘Article 71’ body for the
Programme will be the same as the Audit Authority: the Scottish Executive through
the Finance & Central Services Department.
7.2 Financial Flows and Payments
The Certifying Authority will make all payment claims to the European Commission,
derived from the declarations of expenditure submitted by final beneficiaries. The
Managing Authority will maintain systems to identify all Commission receipts as well
as all payments to final beneficiaries. Procedures to ensure that all relevant
regulations are complied with and appropriate financial controls will be in place.
Financial flows will operate as follows:
1. Final beneficiaries declare through interim claims expenditure defrayed to the
Managing Authority. The financial check obligations set out above are made
by the Intermediate Administration Body.
2. The Managing Authority verifies claim expenditure and ensures that the
financial management system contains correct information. The Intermediate
Administration Body will be responsible for checking claims in the first
instance before passing to the Managing Authority.
3. The Managing Authority certifies and authorises payments to final
beneficiaries and carries out any necessary recovery action.
4. The Certifying Authority submits payment requests to the European
Commission at Programme level.