Select Committee on Innovation, Universities and Skills Written Evidence


Memorandum 111

Submission from the University of Bolton

WITHDRAWAL OF FUNDING FOR EQUIVALENT OR LOWER QUALIFICATIONS (ELQs)

BACKGROUND OF THE UNIVERSITY OF BOLTON

  1.  The University of Bolton is one of 13 universities located in the North West of England. It was created in 2005 when Bolton Institute of Higher Education was granted University title by the Privy Council.

  2.  The University has more than 9,000 higher education students, of which nearly half study part-time. More than three-quarters of the students are mature on entry and 80% of its undergraduates live within 50 miles of the University. The University's student population is one of the most socially inclusive of any higher education institution in the country with 42% of young undergraduates coming from the lowest socio-economic groups and 31% from low participation neighbourhoods.

  3.  The University is committed to part-time and work-based learning, and to developing provision in partnership with other providers, public and private sector employers to meet the higher level knowledge skills needs of Bolton and the wider North West Region. The University's provision includes teacher training for the lifelong learning sector; health and social care; cultural and creative studies; manufacturing, engineering and technical textiles; and building and construction. In 2006 the University formulated a new Strategic Plan to create "The Professional University", which has at its heart the development of relevant continuing professional development (CPD) programmes across the full range of its study areas. The University fears that many of the students seeking CPD programmes, particularly in the health and lifelong learning sectors, will already have a qualification at an equivalent or higher level and will not be eligible for HEFCE funding.

  4.  The University is actively engaged in a number of sector skills councils (SSCs) relevant to its provision and it expects to make a significant contribution to meeting the training needs of the BBC when it relocates to Salford Quays; in this context the University anticipates that many potential students will already have a degree.

  5.  The analysis of ELQ students undertaken by the Higher Education Funding Council for England (HEFCE) identified that in 2005-6 Bolton had 553 full time equivalent (FTE) ELQ students (before exemptions are applied), which represents 12% of the University's HEFCE funded student FTE. Just over £1 million of the University's funding to support teaching is associated with ELQ students. This represents 5.8% of the University's mainstream funding. With the exception of the Open University, this is the highest proportion of any North West University.

ELQ POLICY AND THE GOVERNMENT'S SKILLS AGENDA

  6.  The Government is committed to improving the skills of the population and has set a skills target of 40% of the workforce having HE level qualifications by 2020. The Leitch Review noted that 70% of the 2020 working age population have already left compulsory education and therefore the focus needs to be on adults developing economically valuable skills. The Government justifies the withdrawal of funding for ELQ students by arguing that the £100 million saved by this change of policy will be redirected to first time entrants to HE. The Government is concentrating on increasing the qualification rate at the expense of ensuring that higher level skills are kept up to date and relevant to the needs of industry by providing support for lifelong learning and continuing professional development. This change of policy is likely to impact significantly on those seeking to acquire leadership and management training eg an MBA, to complement their subject specific expertise. The Leitch Review identified management and leadership skills as a key priority for improving higher level skills and this is locally reinforced within the NWDA's current Regional Economic Strategy. Rather than supporting industry to be competitive this change of policy may have the opposite effect.

  7.  HEFCE's proposal to deal with the concern about higher level skills is to allow institutions to bid for co-funded "employer engagement" Additional Student Numbers (ASNs). We believe that the exemption of co-funded ASNs by itself will not provide sufficient protection for HE providers wishing to develop courses to meet employers' needs for high level skills training and retraining, particularly in the case of SMEs. There is a significant risk that employers will not respond to the employment engagement agenda, which requires them to make a greater contribution to the cost of training, within the timescales anticipated by HEFCE. The result may be an overall reduction in investment in the higher level skills needed to ensure international competitiveness.

THE SCOPE OF THE PROPOSED EXEMPTIONS

  8.  While University supports HEFCE's proposal to exempt certain subjects and qualifications from the effect of the changes, we believe there is a case for the exemptions to be extended. For example, the proposed exemption for Foundation degrees should be extended to HNC/Ds. In some employment sectors, these vocational qualifications are well-regarded by employers as providing high level technical and professional skills closely matched to their workforce needs, eg the Construction industry. The University is currently developing an HNC/D programme in Community Performance with a local Further Education College, in preference to a Foundation degree, because HNC/Ds are better understood in this sector. If HNC/Ds are not exempted there is a strong likelihood that institutions will convert their current HNC/D provision to Foundation degrees, whether or not such a move would have employer and industry support.

  9.  The proposed protection for Strategically Important and Vulnerable Subjects (SIVS) is also welcome but it is unclear how the use of a targetted allocation based on 2005-6 student numbers will incentivise universities to increase recruitment to these programmes.

  10.  There is a lack of clarity about whether some qualifications and subjects will be covered by exemption. These include:

    —  the new suite of qualifications for the Learning and Skills sector endorsed by SVUK, vital to developing teachers of vocational subjects such as engineering, construction, health, childcare and business;

    —  in-service teaching qualifications for the HE sector;

    —  continuing professional development programmes particularly in Nursing, Health and Teacher Education and Management

  11.  Subjects which are important for the economic performance are not included within the SIVS definition. For example, building, construction and IT are not classified as SIVS.

THE IMPACT OF THE ELQ POLICY ON SPECIFIC GROUPS

  12.  The University believes that the change of policy will have an adverse impact on certain groups. Examples include women returning to work after a career break to care for children or other dependents and older workers in declining industries subject to redundancy who need to update their skills or retrain to obtain employment. These groups will not be protected by the exemptions currently proposed for employer engagement co-funded additional student numbers. Therefore, the University would support suggestion made by Birkbeck that individuals studying for an ELQ after five years should be exempted.

THE MODELLING OF THE IMPACT OF THE GOVERNMENT'S ELQ POLICY ON INSTITUTIONS UNDERTAKEN BY HEFCE?

  13.  HEFCE proposes to use 2005-6 HESA data concerning students' qualifications on entry to determine changes in funding for 2008-9.

  14.  The University has a number of concerns about HEFCE's model:

    —  HEFCE are using HESA data collected for one purpose for a different purpose. The highest level of previous qualification for direct HE entrants (ie non UCAS entrants) is based on students' self reporting and has not been subjected to the same level of scrutiny at enrolment as other items of data eg residential category, which determines fundability. Similarly, administrative staff are required to code qualifications according to HESA categories: some categories are not clearly defined eg professional qualifications. There is considerable scope for misreporting and inaccuracies in this process yet HEFCE has stated that it will not permit institutions to revisit this data to assure its quality.

    —  There are concerns about the categorisation of certain qualifications by HESA which make it difficult to accurately identify genuine ELQ students. For example, the description of postgraduate qualifications does not differentiate between postgraduate certificate and postgraduate diploma qualifications with the result that a student who completes a PG Certificate and then returns to continue to PG Diploma will be regarded as an ELQ student and therefore will not be fundable. Students who undertake a Graduate conversion course (eg in Psychology) may also find that their subsequent postgraduate course (MSc in Psychology) may be regarded as an ELQ and therefore not fundable. Another example relates to students whose previous qualifications are categorised as "Unknown". This includes OU credits, credits from other UK HEIs and professional qualifications. HEFCE has assumed that a certain proportion of these students will be ELQs (based on the proportion of ELQs generally at the HEI) and has estimated ELQs on this basis. Institutions, such a Bolton, who admit a high proportion of mature students with non-standard entry qualifications are likely to be adversely affected by this approach.

    —  The "Unknown Level" category used in the model includes some qualifications where it can be assumed the level is known as not being equivalent to undergraduate level. For example, "other non advanced qualification" is regarded as "Unknown level" when a reasonable interpretation would be that it is below HE level and therefore should be classed as "other". Similarly, "mature student admitted on basis of previous experience (without formal APEL/APL) and/or institutions own entrance examinations" is classed as "Unknown level". HEFCE is assuming that a certain proportion of "Unknown level" students are ELQs. HEFCE should revisit the categorisation that it has used

    —  The data used to run the model relates to the 2005-6 academic year. Although this was the most recent data available when HECFE was developing the model, more up to date (2006-7) data is now available.

HEFCE'S PROPOSAL TO SUPPLEMENT THE PART-TIME TARGETED ALLOCATION TO PROTECT PART-TIME PROVISION

  15.  The University has a long tradition of providing flexible part-time provision which meets the needs of employers in Bolton and the wider NW region. The University welcomes the proposed supplement but notes that it will only be available for two years—2009-10 and 2010-11—after which it will be reviewed. This short timescale and the element of uncertainty about long term funding arrangements for part-time provision does little to encourage institutions to develop and grow a sustainable part-time course portfolio.

THE IMPACT OF THE ELQ POLICY ON THE OBJECTIVE OF REDUCING THE REGULATORY BURDEN ON INSTITUTIONS?

  16.  In order to assess whether a student is eligible for mainstream funding institutions will have to collect much more precise data about a student's previous qualifications than has hitherto been the case. This information would not necessarily be declared routinely during the application/enrolment process as the previous highest qualification may not be needed as an entry qualification to the ELQ course. Institutions will be reliant on students accurately declaring their previous qualifications as there is no central mechanism for checking whether a student has already gained an equivalent or higher level qualification. If institutions decide to charge higher fees to non-exempt ELQ students, then there will be a financial disincentive to disclosing a previous qualification at the same or higher level. It appears that institutions will be required to interpret and apply complex rules relating to exemptions in order to establish whether an individual is either a fundable or non-fundable ELQ student. This is likely to require high level decision making skills by Admissions and Registry staff. This policy, if implemented, will add to, not reduce, the administrative burden and cost to institutions.

RECOMMENDATIONS

  17.  The University recommends that the Government's proposal to withdraw funding for equivalent or lower qualifications be delayed which would allow:

    —  HEFCE to undertake more detailed modelling of the impact policy based on more up to date data which has been verified by Universities;

    —  HEFCE provide clear guidance to institutions to enable them to accurately identify non-exempt ELQ students

    —  More time for university-employer engagement initiatives to become established

    —  Greater clarification of the scope of proposed exemptions

    —  Institutions to decide on fee policies for ELQ students and to provide accurate information to potential ELQ students and their sponsors.

  18.  The University recommends that HEFCE broadens its exemptions to include HNC/D qualifications and a broader range of subjects to include eg construction, IT, and management. It also recommends that students who return to study after a period of time eg five years, should be exempt.

January 2008






 
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