Select Committee on Innovation, Universities and Skills Third Report


1  Introduction

Equivalent or lower qualifications

1. Most students in higher education are studying for their first degree. There are, however, also those who are studying for a course that leads to a qualification which is at an equivalent or lower level to a qualification that a student has already obtained.[1] Examples of such students—colloquially known as ELQ students—would be a person with a BA studying for a BSc or a person with a PhD studying for an MBA.

WITHDRAWAL OF SUPPORT FOR ELQ STUDENTS

2. ELQ and non-ELQ students currently attract the same tuition fees. This is generally true whether they are full-time students, or are charged on a different basis as part-timers. Their fees are supplemented by the taxpayer, in England, through direct payments through the Higher Education Funding Council for England (HEFCE) channelled to the institutions where they are enrolled. On 7 September 2007 the Secretary of State for Innovation, Universities and Skills instructed HEFCE to withdraw funding from institutions for ELQ students. In future years higher education institutions admitting ELQ students—other than those for whom exemptions apply—will have to decide whether to subsidise the cost of these courses themselves or recover the costs from students by charging them higher fees.

3. In his letter of 7 September, the Secretary of State explained that the "Government has taken this decision because it believes that teaching such students is not […] usually as high a priority for public funding as support for students who are either entering higher education for the first-time, or progressing to higher qualifications".[2] The Secretary of State's objective was to reduce support by around £100 million a year by 2010/11. He asked HEFCE in his letter to phase out the support from the academic year 2008-09 and instructed it:

to consider the details of this in consultation with the sector and it is because I know that time is short for managing this smoothly that I am writing to you now. We would not want support for any existing ELQ students already pursuing their studies to be affected and would still want the Council to give support to institutions for students who are acquiring higher qualifications from ones which they already hold.[3]

4. Following the Secretary of State's letter, HEFCE consulted on the implementation of the change. The consultation period ended on 7 December 2007 and HEFCE finalised the implementation arrangements at its board meeting on 24 January 2008, based on the outcome of the consultation. Following the meeting, HEFCE sent an "admin message" to institutions, informing them of the main decisions on funding for 2008-09, including the withdrawal of funding for ELQ students and exemptions.[4] The detailed plans for implementation were published in March 2008.[5]

EFFECT OF THE WITHDRAWAL OF FUNDING ON FEES

5. The effects of the decision will be significant. For example, in 2007-08 undergraduate students at Birkbeck College, University of London, will pay fees of £1,248 per annum[6] and the College will receive an average of £2,853 per student through HEFCE teaching funding. If fees for ELQ students were to increase to cover the loss of this funding for ELQ students, Birkbeck calculate that they would have to rise to £4,101 per annum, increasing the cost of a four year degree from £4,992 to £16,404.[7] The figures produced by Birkbeck College are not a national average[8] but we found nothing to challenge them as indicative of the scale of the change:[9] an increase of more than 200%. There can be little doubt that the withdrawal of HEFCE funding support for the tuition fees charged to ELQ students will increase substantially the fees such students will have to pay, if the full cost is passed on to them. The almost universally hostile response from higher education institutions and students led us to decide to launch a short inquiry into the withdrawal of funding of ELQ students.

Our inquiry

6. Our inquiry focused on: the arguments for and against the Government's decision to phase out support to institutions for students studying ELQs; the timing of the Government's decision and of the implementation of the change; the appropriateness of exemptions from the withdrawal of funding proposed by HEFCE; the impact upon students, including whether the change will affect some groups of students more than others; and the impact of the change upon institutions, with particular reference to the long-term implications for specialised institutions such as the Open University (OU) and Birkbeck College.[10]

7. Because of the timetable under which the implementation arrangements were finalised, our inquiry has been swift. We held a two-part evidence session on 17 January 2008: first with the National Union of Students (NUS), the University and College Union (UCU), the OU and Birkbeck College; and secondly with Bill Rammell MP, Minister for Lifelong Learning, Further and Higher Education at the Department for Innovation, Universities and Skills (DIUS), and Professor David Eastwood, Chief Executive of HEFCE. We received memoranda and correspondence from nearly 500 institutions, organisations and individuals (including many affected by the changes).

8. Despite a request, the Government did not provide us with a written memorandum on the withdrawal of support for ELQ students. The Minister sought to argue that it was sufficient for him and Professor Eastwood to appear before the committee "to discuss [the proposals] in detail" without a written memorandum.[11] Without the detail in a memorandum, however, we are hindered in our ability, as the Minister himself put it, "to question us, to challenge us, to scrutinise us, on the proposals that were being put forward".[12] We consider it unacceptable for there to be no memorandum provided from the Government. We expect government departments fully to comply with all reasonable requests for written submissions before they appear before us in future.

9. Our report examines:

a)  the policy on public funding for ELQ students;

b)  the timetable for, and consultation on, the changes announced in September 2007;

c)  the effectiveness of the policy;

d)  the impact on certain institutions and groups; and

e)  the transitional arrangements and exemptions.


1   According to HEFCE's modelling, in 2005-06, approximately 8% of HEFCE-funded full-time equivalent student numbers were aiming for an ELQ. HEFCE, Withdrawal of funding for equivalent or lower qualifications (ELQs) Frequently asked questions, Question 4, http://www.hefce.ac.uk/faq/elq.htm#q4  Back

2   A copy of the letter is at http://www.hefce.ac.uk/news/hefce/2007/HEFCE_letterELQ.pdf Back

3   Secretary of State's letter of 7 September 2007, http://www.hefce.ac.uk/news/hefce/2007/HEFCE_letterELQ.pdf Back

4   HEFCE, Funding for universities and colleges in 2008-09, 25 January 2008, http://www.jiscmail.ac.uk/cgi-bin/webadmin?A2=ind0801&L=admin-hefce&T=0&F=&S=&P=448 Back

5   HEFCE, HEFCE supports higher education in England with increased funding of £7.5 billion, 6 March 2008, http://www.hefce.ac.uk/news/hefce/2008/grant0809/  Back

6   For most undergraduate courses in 2008-09, though for some such as Accounting and Management (BA) fees are £1,470 and can go as high as £1,932 for Law (LLB) (Accelerated) Back

7   Ev 41, para 28 Back

8   Birkbeck College has a higher proportion of ELQ students compared to many other universities. Back

9   See also Ev 55 [Million+] and Ev 100 [Heads of Department of Mathematical Sciences], para 6 Back

10   "Funding for Equivalent or Lower Qualifications (ELQs)", Innovation, Universities and Skills Committee News Release No.6 (07-08), 6 December 2007, http://www.parliament.uk/parliamentary_committees/ius/ius_061207.cfm  Back

11   Q 64 Back

12   Ibid. Back


 
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