New Campus Glasgow: Strategic Benefits Analysis
46
Table 6.2: Uplift in tearners' earnings (ROSCO 2006)
Qualification level Adjusted expected earnings
Earnings difference between
previous qualification level
SVQ Level 4 or equivalent £17,114 £2,886
SVQ Level 3 or equivalent £14,228 £5,166
SVQ Level 2 or equivalent £9,062 £1,325
SVQ Level 1 or equivalent £7,737 £898
No qualifications £6,839 6.22
A thorough assessment of the impact of the colleges would require detailed
information on the entry and exit qualifications of all learners. In the absence of such
information, we assume that, on average, each FT learner enrolled at the college moves up
one qualification level during their time at college and 50% of PT and distance learners move
up one qualification level during their time at college8
. We also assume that the average
length of time of study is 2 years. If we take the average 'uplift' of each qualification level
(£2,569), the implication is that the additional earnings of college students is £29.8m in any
one year.
6.23 These impacts will not simply be experienced by students during one year, but across
all years of working life. Assuming conservatively that each student works for 10 years within
the Glasgow economy, (and assuming a discount rate of 3.5% per annum), the net present
value of the skills that each student takes with them on leaving the colleges is £241m.
Student expenditure associated with college participation
6.24 The three colleges combined have approximately 32,800 learners enrolled. Research
for the Scottish Government9
shows that, on average, FE students in Scotland spend some
£639 per annum on 'participation costs' (these include students' personal contribution to fees;
the costs of their books, equipment and stationery; some travel to and from college; and
childcare costs associated with attending college). Inflating this expenditure figure to 2007/8
prices, and multiplying by the colleges' 31,114 FT and PT learners (i.e. excluding distance
learners and international learners), this implies gross per annum participation costs of some
£19.8m per annum by students at the three colleges.
6.25 Expenditure of international students will be higher, as the expenditure by these
students on housing and living costs also has to be attributed to their participation at college.
Evidence that the expenditure of these students is likely to be at least £5,320 per annum.
8 In reality, some learners will move up more than one qualification level, while others will either not
complete their study, or will be studying at a level at which they are already qualified.
9 Higher and Further Education Students' Income, Expenditure and Debt in Scotland, 2004-5. Produced
by London South bank University for Scottish Government.
220
Appendix 13: Economic Impact Report