Chris Millward26 May 2011

A new settlement for higher education___________________________________________________________________________________________________________________

the Independent Review of Higher Education and Student Finance (12 October)

the coalition Government’s first spending review (20 October)

the Minister for Higher Education’s statement on student finance (3 November, subsequently refined in December and February)

BIS grant letter to HEFCE (20 December)

guidance letter to the Office of Fair Access (10 February)

£2.9bn (40%) reduction from £7.1bn higher education resource budget by 2014-15

substitution of HEFCE funding for student loans, with possibly more cuts to meet student support pressures

44% reduction in capital by 2014-15

flat cash protection for science and research (9% real terms reduction)

other cuts in public spending that will impact on higher education

Spending Review headlines_______________________________________________________________________________________________________________________

Illustrative income 2010-11 to 2014-15

The Browne proposal (highly simplified)

Comprehensive and Variable feesprogressive student a and increased competitionsupport

Better information Higher quality and Graduateand course choice more efficient jobs

courses

controlling student finance budget whilst facilitating greater market dynamism in the sector

degree and nature of the regulatory regime

quality vs price/cost

managing supply-side reform including entry of new providers

establishing a ‘level playing field’ – including a unified set of accountability and regulatory requirements for all providers

mitigating against unintended consequences e.g. impact on part-time, postgraduate economy and overseas market

Key dilemmas______________________________________________________________________________________________________________________

OFFA assessment of access / outreach proposals (April to July)

Government White Paper (June?)

HEFCE consultation on post-2012 teaching funding – transition, new funding, student finance controls (June and autumn)

Development of new regulatory approach (from White Paper)

Key Information for Students proposals (July)

Beginning of 2012 admissions cycle (from autumn)

Key activities next 6 months______________________________________________________________________________________________________________________

Managing the transition period__________________________________________________________________________________________________________________________________

inform the implementation of the new funding settlement working to protect the interests of students and the sector

discharge our funding and regulatory responsibilities in a fair and proportionate way

support institutions through the change process including governing bodies

provide people with clear and unambiguous information

build on the strength of our relationships with institutions by developing new forms of partnership working and ‘co-regulation’

Workforce development programme_______________________________________________________________________________________________________________________

First order objectives•35,000 additional entrants into HE co-funded by employers by 2010•100,000 enrolments to Foundation Degrees by 2010. Additional objectives•test the market and levels of demand from employers and employees•stimulate HE institutional change•promote access to and progress through HE for a wider range of learners, particularly those in the workforce without previous experience of HE•build a platform to achieve growth in HE based workforce development•generate information to inform policy development.

growth in work-based students co-funded by HEFCE

9,300 in 2008-09 (2,400 in SMEs)

19,800 in 2009-10 (6,900 in SMEs)

35,000 in 2010-11

growth in employer income

£4.2M in 2008-09 (54% public sector)

£12.8M in 2009-10 (56% public sector)

evidence of change, impact, and sustainability?

programme-wide evaluation

transition plans of institutions

Workforce development - progress_______________________________________________________________________________________________________________________

Shared responsibility_______________________________________________________________________________________________________________________

Government

IndividualsEmployers

continued co-funding in 2011-12

transition and sustainability discussions, drawing on July evaluation report

improving public information on the student experience and employment prospects

student finance for 0.25 fte studies and above

scope for internships, placements and employability activity within access agreements

‘off-quota’ arrangements for fully employer-funded provision (?)

more support for higher level apprenticeships

sustained commitment to HEIF from 2011-12 to 2014-15

Contributing developments --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

For HEFCE:

• promoting employer engagement in a different way: information, co-ordination, regulation and funding.

For universities and colleges:

focusing on the most successful WFD activities

increasing the efficiency of WFD models

integrating WFD projects with other employer facing activities (e.g. employability; knowledge exchange)

innovating in response to new imperatives (e.g. part-time students’ expectations and choices)

New challenges--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Thank you for listening

c.millward@hefce.ac.uk