Highland Council Education Committee Supports Recommendation For Youth Work And Adult Learning Transfer And The Financial Position Of Highlife Highland

13th September 2024

At the Education Committee today (Thursday 12 September 2024) Members agreed to the recommendation to transfer Youth Work and Adult Learning to the Council from High Life Highland. The final contract review report will come to the Committee in November 2024 for consideration.

The benefits arising from the transfer are set out in detail within the report which stresses the intention to build upon the strong foundations that High Life Highland has established for Adult Education and Youth Work across Highland. These include alignment with the ‘Workforce for the Future Portfolio' which has a strong focus on career pathways and lifelong learning; strengthening and expanding the accredited achievement programmes in all Highland schools; and linking more closely with the work of the Council's employability service in supporting adults into employment.

The change also supports the requirements of the Community Learning and Development (Scotland) Regulations 2013 which came into force after High Life Highland was established. The legislation places a requirement on Education Authorities to develop Community Led Development (CLD) plans and CLD provision is inspected by Education Scotland (HMIE). High Life Highland has worked in partnership with The Highland Council and other organisations to publish and deliver CLD plans, and a transfer of those teams will enable the Council to do this directly.

Education Committee Chair, Cllr John Finlayson said: "I am delighted to be welcoming Youth Work and Adult learning to the Council. The teams do fantastic work in our Highland communities and I am really pleased that by aligning our associated services more closely within the Council we will strengthen the benefits this brings for young people and adults and build upon the great work that High Life Highland has led on to date.

"I am also pleased the Committee endorsed the progress and direction of travel with the wider review of the High Life Highland Service Delivery Contract (SDC) and I look forward to a further report coming to the November Education Committee for final consideration."

Michael Golding, Chair of the Board of High Life Highland, commented: "From both a legislative and delivery standpoint, transferring these services to The Highland Council is a sensible and forward-thinking step. Together, we aim to build on the tremendous work High Life Highland staff have already accomplished in supporting both young people and adult learners. Services will continue without disruption, ensuring a seamless transition. We welcome the Education Committee's decision that forms part of our close collaboration with The Highland Council to review the High Life Highland Service Delivery Contract as we continue making life better for people in the Highlands."

One of the benefits not mentioned above but surely is important in the first sentence of the paper. "The Highland Council (THC) established High Life Highland to deliver a range of Council services relating to sport, leisure, and culture, whilst also achieving reductions in the cost of service delivery." Para 6.1 sets out the problem for the finances -
The need for the review has also been driven by the wider economic situation. The financial impacts of the COVID-19 pandemic were mitigated by implementing a range of measures: strict cost control; receiving customer support through donations; government support (drawing down in excess of £7m from the COVID Job Retention (Furlough) Scheme) and additional financial support for the Council. Post pandemic, inflation, and in particular staff pay inflation, has grown rapidly. With most of HLH services not legally permitted to generate income, it has not been possible increase charges from income generating services at a level that could cross-subsidise other services without risking significant customer loss and further undermining the charity's financial viability. With 84% of HLH's budget as staff costs, there were pay award pressures in excess of £2m in FY 22/23 and 23/24. This led to the HLH Board raising concerns that, without changes to the SDC, the charity would become unsustainable as a going concern.

Read the full committee paper at Item 5 HERE