EXECUTIVE SUMMARY
1 The overall aims of the study were to assess the likely demand for Career Development Loans ( CDL) in Scotland and to investigate attitudes towards this type of funding for training among both learners and learning providers. There were, therefore, two strands of research; one among the adult population in Scotland and one among training providers. It should be noted that the research was designed to be indicative of potential demand rather than provide a fully quantified estimate of demand.
2 Research among learners and potential learners was carried out in two phases, a survey of the adult population was carried out through the Scottish Opinion Survey followed by focus groups of previous and potential learners in 4 different locations. Research among training providers involved a telephone survey followed by in-depth qualitative interviews with the 5 training providers whose students accounted for the largest proportion of CDL uptake in Scotland.
Learners and potential learners
Awareness of and use of CDLs
- Relative to other types of funding for vocational training, there appears to be limited awareness of CDLs within the general population in Scotland. Overall, 16% of the adults questioned in the Scottish Opinion Survey had heard of CDLs. Knowledge was, however, higher among particular groups.
- Awareness was higher among respondents who were 25-54, had higher levels of qualifications and were in the higher social classes. This reflects previous UK-wide research into CDLs which found that the highest level of applications for CDLs came from those who were already well qualified.
- Within the focus groups most participants had not heard of CDLs and those who had were not really clear about how the funding worked.
- Use of CDLs among those surveyed was also limited; only 1% of those who had received vocational training had used CDLs to fund their course, which is broadly as expected, based on statistics of actual use.
Attitudes to loans for vocational training
- In terms of current funding for vocational training, it appears that most training is paid for by employers or through government funding and that, although some respondents had funded their own training, very few would consider taking out a loan to pay for training.
- Focus group participants felt that there were risks associated with borrowing money for vocational training.
- In relation to loans, the focus group members were not discerning, voicing that all bank loans carried unnecessary risk. For some, student loans were viewed more favourably, because of the repayment structure that allows an individual to be earning a set amount of money before they are required to pay back the loan.
- However, in the private capture exercise, where individuals were given a written description of the CDL scheme and asked to write down their initial reaction to what they had read, focus group participants generally gave a positive response to the CDL concept as being different from general loans.
Training providers
Awareness of and registration for CDLs
- The majority of training providers questioned in the telephone survey had heard of CDLs, but more than half were not registered or were unsure as to whether they were registered or not.
- The majority of the providers who were not registered had not considered registering, mainly because they did not feel that CDLs were relevant to the training that they provided, despite the fact that all of those interviewed provided at least some vocational courses.
Use of CDLs
- Among the majority of registered providers, CDLs were not a major source of funding for their trainees; most reported that CDLs had been used by fewer than 10 students in the past 3 years. However, three private sector companies and two public sector organisations were an exception to this in that between them they accounted for more than half of all the CDLs used in Scotland.
- Public sector providers in particular thought that CDLs were less attractive to students than other types of funding.
Operation of the CDL scheme
- In-depth interviews with the top 5 providers (i.e. the 5 training providers whose students accounted for the largest proportion of CDL uptake in Scotland) indicated that in their current form CDLs were thought to be of value to the organisations interviewed, as they allowed learners to undertake vocational training opportunities when ineligible for other forms of funding.
- The strengths of the CDL were identified by the top 5 providers to be the opportunity for learners with no other means of financial support to access training, regardless of past employment background. The support of the government for CDLs and the interest free two-year period was also recognised by the respondents.
- Most registered providers contacted in the CATI survey felt that the process of registering for CDLs and for complying with the requirements of the scheme were easy for them.
- However, in the opinion of the top 5 providers the weaknesses of the CDL scheme related to
- frustration with some of the current providers of the loans, such as the complex forms, the need for student information and loss of submitted forms
- the availability of CDLs for some courses but not others
- changes in the registration process, which meant that training providers could no longer assist students with obtaining and completing the CDL forms. Some providers felt that this had led to fewer CDLs being processed by their organisations.
Promotion of CDLs
- Most providers contacted in the CATI survey gave potential students information about CDLs, although not always, and would continue to do so in the future.
- Providers in the CATI survey also felt that more promotion of the scheme by the government would make it more attractive to students and training providers.
- Respondents to the in-depth interviews and the CATI survey made suggestions as to who should promote and provide information on CDLs. The main suggestions were:
- banks
- the government
- CDLs should be promoted in areas where vocational training opportunities were advertised, such as the Job Centres
Separate scheme for Scotland
- Respondents in the in-depth interviews were positive about a Scottish CDL, with a number of the respondents providing suggestions as to how they would hope to see a Scottish scheme develop:
- Interviewees identified the need to keep the approach as consistent as possible for English and Scottish learners, and to limit the need to duplicate the administration of the scheme.
- Some felt that Scottish learners would value the provision of a Scottish service, with key Scottish banks providing the loans.
- The public sector organisations based in Scotland stated that the location of the administration of CDL was not the issue, but an improved service was needed.