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Title: LLLLN: HE IN FE (October 2011)
Presentation by: Nick Davy, AoC HE Policy
Manager
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LLLLN:
FE (October 2011)
Trends in HE 1:
• 17% of Bachelor degree students study part-time
• 28% of higher education students below postgraduate level study short
cycle courses such as foundation degrees, HNC/D and Diploma in HE
• 45% of all higher education students below postgraduate level are aged
21 and over and 32% are aged 25 and over
• Nearly 40% of HE students study within 25 miles of their home
location
• 25% of new OU students enrolments aged between 17 – 25
• 40,000 HE students studying at non-public institutions
• 22,000 + UK students study abroad on degree level programmes
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HE
FE (October 2011)
Trends in HE 2:
• Number of students studying outside country of citizenship – (a) 1990
– 1.3 million (b) 2000 – 2.1 (c) 2009 – 3.7
• Destinations: USA – 18% (- 5%); UK (- 1%); Australia (+ 2% );
Germany 7% (- 2%)
• 17 countries doubled enrolments since 2000
• Denmark, Sweden, the Netherlands, Finland – many programmes in
English; 14 countries some programmes
• 14 countries higher tuition fees for overseas students
• Type B tertiary education (short cycle/vocational): Australia/New
Zealand – approximately 20%; UK – 6% (OECD average: 4%)
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Mission group share of HE students below postgraduate level
Private providers
1%
Other HEIs and HEFCE
recognised providers (not
included in the above)
12%
AoC (FE Colleges)
10%
1994 Group
9%
Guild HE (and associate
members)
4%
University Alliance
30%
Million +
19%
Russell Group
15%
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Characteristics of HE in FE:
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Generally older than university students; often vocational, rather than
academic, qualifications; usually study around their work and/or family
commitments;
Low-participation neighbourhoods, particularly FD students
Higher education ‘cold spots’ - Havering, Blackburn, Blackpool and
Peterborough; university focussed on national recruitment - Durham
Areas with historically low HE participation rates – NE England,
Essex/Havering
Study on Higher National Diplomas and Foundation Degrees;
technician skills.
Niche national courses
Courses related to their particular locality
HEFCE analysis 2007-08
Source: Foundation degrees: key statistics 2001-02 to 2009-10, HEFCE April 2010
http://www.dur.ac.uk/spa/statistics/college/4.4domicile/
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FE (October 2011)
Browne Review
HE White Paper
Early Repayment
HEFCE Teaching
Funding Consultation
(TFC) 2012/13
 HEFCE TFC – January
2012
 BIS – Regulatory
Framework
 BIS – New challenges
New chances – Section 8
 BIS Review of Nonprescribed HE
 Skills Commission
Inquiry into the provision
of technician and higher
level skills
 Review of FDAP – 2012
 BIS comm. research: HE
in FE (March 2012);
growing P/T HE
 Wilson Review – Industry
Links
 Enterprise
 JISC/Information
capacity
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(October 2011)
Reforms 1:
Predicated: Research – world class; Teaching?
 Quickly/Gradually open up HE to increased market forces
 But managed/quasi market – Price, Volume
 New Entrants – 6 tests – Quality/QAA; Complaints/disputes –
OIA; Information/Data – KIS – HESA/SFA; Tuition Fee
Cap/Access – OFFA; Student Controls; Financial sustainability.
Introduced 2013
 New entrants
 Tough entry/lighter monitoring or light entry/tough monitoring
 New rules for DAP and University Title
 New Awarding bodies – rules for entrance, monitoring
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Key Issue – opening the market
 Core/Margin Bidding – 20,000 places in year 1 – now 9% (2012);
8/16% in Year 2; 8% in year 3; by year 3 – 24%?
 9% now to be taken from all providers not just + £6K
 Eligible – charging below £7,500
 Criteria – Price, Quality, Demand
 Minimum bid – 25; maximum threshold – 20% new entrants
 Demand – track record, NSS, QAA, Local
 Win – direct funding
 Several HEI changing fees to come under
 Core/Margin – AoC: Need for broad based criteria including price,
regional spread, low participation areas, and include indirectly funded
provision
 C/M – lead Institute + partner bids accepted
[Provisional time scale: Publish – 17th October; Window –
end/November; Decision – January]
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Reforms2:
 AAB students + – 60,000 places
 Year 2 – ABB, year 3 – BBB etc?
 Opportunities for growth (?) – high ND results + Internal prog.
[AAB + and C/M withdrawn: (a) Attract more AAB (b) bid for 20K places]
 Income contingent loans – AoC: supportive but too fast, too
steep particularly with introduction of loans for L3 study. Impact
on Access and WP/Social Mobility
 Issue – part time students loans system – now changed: 4+
years after completion
 Non-mainstream grants for all providers – JISC, WP – support
 Issue – land-based Colleges ‘price group’
 Continuing problems – indirect funding, validation
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Reforms 3:
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Need to clarify roles of BIS, HEFCE, QAA, OFFA and OIA - separately
and jointly promote student interests
HEFCE – need new committee structure ensuring its different roles are
separated; conflicts of interest are clear
HEFCE grants - open to any regulated higher education institution
HEFCE Board – needs broadly based membership - include a current
or former College Principal.
The self-regulating organisations – representative of whole sector
New test – fit/proper person/organisation
OFT/HEFCE memorandum clear
Financial sustainability – Bond?
Risk Based QA – good practice as well?
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The New HE Market?:
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Price - loosened, but controlled
Entry- yes; Exit – unlikely; Mergers; partnerships
Profit-maximisers?
Competition – mainly, within a differentiated/stratified market
(USA); continuing ‘cold spots’?
• Information – PI/KIS – capacity issues
• Introduction of technology – productivity gains?
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Structures to establish market/transactional Costs?
- MSC/VET WBL; HEFCE/HE: Takes Time
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FE (October 2011)
Interim Report: National Survey – Colleges Intentions to bid
for the 20,000 Core/Margin Places starting in 2012.
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36% of Colleges offering HE responded
Responses were received from a good spread of Colleges in terms of
HE size and geographical location
88% indicated they intended to definitely bid
The larger the College the stronger intention, albeit in a range of 75 –
100%
68% intended to bid for between 21 to 100 places; 21% for over 100
As with other College-based surveys, HESA categories were
problematic, with 20 responses outside these categories
In the HESA categories the four highest subject areas were in order of
highest: Business and administrative services, creative arts and design,
engineering and computer sciences
[More work needed to ascertain a reliable estimate}
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Continuing Issues 1:
Off Quota continue until new regulatory system
introduced in 2013
Part time loans system to be resolved – employer up
front?
Non – prescribed: BIS: Review - Align or separate?
Indirect Funding/validation
New awarding bodies; Degree awarding powers?
CATS?
Articulation – FE/HE loans
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Continuing Issues 2:
Private/Not-profit enter 2013
Opportunities C/M in 2012 +
Price/Attractive Package
One College – Professional membership;
International visit; Free kit
Part time; Controls from 2013?
Pressures on Private Colleges – new rules overseas
students
Partnership – hire/lease facilities?
Niche markets?
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Continuing Issues 3:
 Problems with C/M guidelines:
HEI withdrawing student numbers – 9%, more, all
HEI withdrawing validation services
Short time-scale - validation
FEC – 9% withdrawn
20% threshold – difficult to make large bid if medium
provision
 25 minimum – difficult for some small HE in FE
providers
 Likely outcome – decrease in HE in FE numbers?
 Potential for large providers with direct numbers to grow?
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Thank you
Any Questions?