Funding higher level work-

based learning

Peter SeddonUVAC Conference2 November, 2012

• Browne review (Nov 2010)

• Comprehensive spending review (Nov 2010)

• Parliament approves £6-9K fee limit (Dec 2010)

• Higher Education White Paper (Jun 2011)

• BIS consultation on new regulatory framework (Aug 2011)

• BIS grant letters and student number guidance (Jan and Apr 2012)

• HEFCE consultations on teaching funding and student numbers (Jun – Sep 2011 and Feb – Jun 2012)

• HEFCE student numbers and grant allocations (Jan and Mar 2012)

• Admission of first £6-9k fee payers (Sep 2012)

Key developments

Income to higher education institutions (real terms)

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 -

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Other income

Student fee income

Research grants & contracts

Research - HEFCE

Teaching grants

Total income to higher education institutions

48%

11%

37%

4%

All income 2010-11

30%

26%

40%

4%

All income 2014-15

Public Public\private – SLC paid fees

Private Charitable

implementing outcomes from phase 1 and 2 of the T-funding consultations - student number controls and a more targeted approach to teaching funding

phasing out policy for WFD and employer co-funding

implementing the KIS

adopting a more risk-based quality assurance system

developing our approach to funding provision for SIVS and PGT/PGR

working with partners on research, REF and KE

developing the regulatory environment

taking forward development activity e.g. catalyst funding

Key activities for HEFCE

2011-12A

Clinical years of study

BLaboratory-

based subjects

CIntermediate cost subjects

DClassroom-

based subjects

HEFCE T-grant £13,335 £4,894 £3,426 £2,325

Max fee £3,375 £3,375 £3,375 £3,375

Total £16,710 £8,269 £6,801 £5,700

HEFCE grant plus fees for full-time undergraduates*

2012-13A

Clinical years of study

BLaboratory-

based subjects

CIntermediate cost subjects

DClassroom-

based subjects

HEFCE T-grant £9,804 £1,483 £0 £0

Max fee £6-9,000 £6-9,000 £6-9,000 £6-9,000

Total £15,804 - £18,804

£7,483 - £10,483

£6,000 - £9,000

£6,000 - £9,000

* Refer to paragraph 43 of ‘Recurrent grants and student number controls for 2012-13’

Skills: a shared responsibility

Government

Individuals

Employers

Universities and Colleges

What does this mean in the context of skills?

• Working based learning – fees (including for higher level apprenticeships)

• Employability

• Innovation – institutions responding to the new environment (new models, focus on strategic relationships, SMEs?)

Wilson review

• National Centre for Universities & Business (NCUB)

• Students on a year abroad

– Fee 15% of maximum; HEFCE funding 25% of maximum (£1,350 and £2,250)

• Sandwich provision

– BIS response: fee 15% of maximum

• Strong support for work based learning

Catalyst fund goals:

To help manage transition to new finance regime

To support key priorities of HEFCE/Government

Forthcoming focus on economic growth:

‘Economic growth funding’ of £50M

Separate call for expressions of interest for December

To generate longer term benefits for the economy

HEFCE Catalyst Fund

Three themes

Supporting innovation-led growth in key sectors

Enhancing the economic anchor role of universities and colleges

Stimulating employability, enterprise and employment

Forthcoming guidance:

HEIs and FECs - £100k to £8M

Linked to core research / teaching strengths

Leverage / match funding

Private sector focus

Economic growth funding

• Student demand: (at different levels) will 13-14 move back to trend and how will the government respond?

• Regulation: how to protect the student interest and the government’s interest?

• Graduate employment: will the jobs market improve and how will this influence student choice?

• Institutions: how will behaviour change in response to the reforms, to the REF and to international developments?

• Public spending: what are the prospects from 15-16 and how should we shape our case?

• Future skills policy?

Issues for the future

Thank you for listeningp.seddon@hefce.ac.uk