Funding higher level work-based learning

1. Funding higher level work-based learning Peter Seddon UVAC Conference 2 November, 2012

2. Key developments • 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)

3. Income to higher education institutions (real terms)

4. Total income to higher education institutions Public\private – SLC paid fees Private Public Charitable

5. Key activities for HEFCE • 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

6. HEFCE grant plus fees for full-time undergraduates* * Refer to paragraph 43 of ‘Recurrent grants and student number controls for 2012-13’

7. Skills: a shared responsibility Government Universities and Colleges Employers Individuals

8. 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?)

9. 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

10. HEFCE Catalyst Fund • 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

11. Economic growth funding • 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

12. Issues for the future • 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?

13. Thank you for listening p.seddon@hefce.ac.uk