Second supplementary memorandum submitted
by the Rt Hon Charles Clarke MP, Secretary of State, Department
for Education and Skills
At the Committee hearing on 7 July I promised
to provide details of the Student Loans Company and any outsourcing
of its IT operations.
The Student Loans Company (SLC) is a limited
company. On 1 April 1996 it was also designated as an executive
Non-Departmental Public Body of the former Department for Education
and Employment. The Company is now wholly owned by the Secretary
of State for Education and Skills and the Secretary of State for
Scotland, but the ownership is being reviewed following the transfer
of responsibility for student support in Scotland to Scottish
Ministers.
None of the SLC's current IT operations and
computer systems is outsourced. ln 2002 an external consultancy,
PA Consulting, was contracted by the SLC to help them build "Protocol",
the new national IT system for processing applications for higher
education student finance. That contract has now ended. Where
necessary, the SLC outsource the handling of overflow telephone
calls to an external company, "Response Handling". The
Company also outsources some of its data preparation work, and
some of its trace and debt recovery work under the old, mortgage
style, loan scheme to a number of external agencies.
Following a successful pilot in 2003-04, the
Protocol system is being used by all local education authorities
(LEAs) to process 2004-05 applications. Progress is being closely
monitored and the SLC is working closely with LEAs and the Department
to ensure students who apply on time are paid at the start of
term.
9 July 2004
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