Re-skilling for recovery: After Leitch, implementing skills and training policies - Innovation, Universities, Science and Skills Committee Contents


Memorandum 20

Submission from the Higher Education Funding Council for England (HEFCE)

EXECUTIVE SUMMARY

  1.  Universities and colleges are engaging with employers in ways that are deeper and stronger than ever before. Through their mainstream teaching programmes and expanding collaboration with employers on higher level skills, they are a major source of the future world class workforce; they contribute more than £45 billion annually to the economy and are well placed to use their long-established relationships with business to extend their impact. The changing demographic profile of their students makes it good business sense for them to develop into new markets.

  2.  This change in culture and business focus has been gathering pace since the turn of the millennium. The Leitch Review added to an important debate within higher education and HEFCE contributed to that debate through publication, in 2006, of its Higher Education Employer Engagement Strategy[51] Our 2006-07 grant letter from the Secretary of State for Education and Skills[52]asked us to lead "radical change" in developing higher education focused on meeting employers' needs. At the same time we invested in important pilot activity—three regional "Higher Level Skills Pathfinders" (HLSPs) and several university based pilots to test new approaches to stimulating and meeting employer demand for higher level skills. The Leitch Report and its challenging ambition for high level skills led us to move beyond small scale piloting and to encourage higher education providers to come forward with larger and more ambitious employer engagement proposals.

  3.  We set up a major new programme[53] underpinned by a new funding mechanism, separate from our mainstream funding arrangements—specifically designed to encourage transformational change and support new approaches to stimulating and meeting employer demand. Through this programme we are deploying the £105 million, made available in our 2008-11 funding settlement, to build employer engagement capacity within higher education institutions and achieve targets for growth in working people starting employer co-funded provision (5,000/10,000/20,000 entrants over three years). To date thirty-one higher education providers are have taken up the challenge to deliver employer demand-led and co-funded workforce development which will benefit some 6000 employees in 2008-09.

  4.  Through the network of HEFCE Regional Consultants we work regionally with the Higher Education Regional Associations (HERAs), Regional Development Agencies (RDAs), Learning and Skills Council (LSC) and other key stakeholders to support higher education providers in making effective contributions to their regions. We publish annually regional profiles of higher education in England and consult with partners on regional priorities for higher education. The three HLSPs are exploring how higher education can make a more strategic contribution to meeting regional skills needs and connecting providers with brokerage services, such as Train to Gain. In addition individual higher education employer engagement projects are attracting significant RDA investments.

  5.  HEFCE has invested £103 million in twenty-nine sub-regional Lifelong Learning Networks (LLNs), to improve the opportunities open to learners with vocational qualifications for them to progress into and through higher education. These now span120 universities and 300 further education colleges and are, increasingly, linking with employers to create effective opportunities for continuing learning and progression.

  6.  Since 2003 we have supported Sector Skills Councils (SSCs): to raise higher education-SSC understanding and collaboration; to set up projects to enhance HE curriculum; and to strengthen SSC influence in Foundation Degree development, Lifelong Learning Networks, and Higher Level Skills Pathfinders. We look forward to working with the new UK Commission for Employment and Skills on the criteria for re-licensing SSCs to cement closer collaboration in growing the sector-based markets for employer demand-led and co-funded workforce development.

  7.  Key challenges for us over the next three years include:

    —  Improving understanding of the potential scale of the market for new types of higher education delivered workforce development, which are employer demand-led and co-funded.

    —  Testing the policy of employer co-funding to get beneath the welter of opinion and anecdote to establish hard evidence on the willingness of employers to pay for the "right" higher level skills product.

    —  Identifying effective ways of engaging with Small and Medium Sized Enterprises (SMEs).

    —  Finding sustainable business models for higher education employer engagement.

    —  Sustaining the higher education reputation for quality.

    —  Embedding transformation and ensuring a permanent change in the culture of higher education.

    —  Ensuring that people in work continue with lifelong learning after their first workplace experiences of higher education.

  8.  If we can sustain this momentum we can offer the very real prospect of securing the transformation of the higher education sector that the Leitch Report envisaged and of creating a platform for a much more substantial programme of growth towards meeting the Leitch ambition for 2020.

INTRODUCTION

  9.  From Southampton to Derby, from Newcastle to Coventry, universities are engaging with employers in ways that are deeper and stronger than ever before. That an increasing number of universities and colleges are already engaging with employers is no accident: it reflects their refreshed mission, and for many it is now part of their core business.

  10.  There are good reasons for this. First, as the Leitch Report showed, by 2020 at least 40 per cent of our working population will need higher level skills if we are to maintain our international competitiveness. The Government's response[54], in June 2007, recognised the economic value of higher education intervening to increase high level skills in the workforce and added to the gathering pace of the momentum for change in the higher education sector.

  11.  Universities have long been one of the great economic stimulants. Higher education now contributes over £45 billion a year to GDP, for a total public investment of a third of that amount[55] Our continuing economic contribution through this century will come, in part, through greater engagement with employers.

  12.  Secondly, it is simply good for the business of higher education providers, whether universities or further education colleges. The undergraduate profile is changing and is no longer so dominated by the 18-21 year-old school leaver. A majority of first year undergraduates is over 21, and a similar proportion is already in the workforce. The number of older teenagers is set to decline and universities and colleges need to widen and deepen participation in both traditional and novel ways, developing a model that attracts a greater proportion of older students, most already in the workforce.

  13.  Thirdly, employers, nationally and internationally, value the reputation of UK higher education for the highest quality and standards. Higher education can equip a workforce not only to meet the demands of today's workplace, but make it more capable of taking continuing change in its stride and of continuing learning to meet future demands.

  14.  In this paper we set out to demonstrate that the higher education sector is facing up to these challenges with increasing enthusiasm and commitment, actively reaching out to employers in new ways to create a highly skilled "world class workforce".

A MOMENTUM FOR CHANGE

  15.  The decade since the Dearing Report has been characterised by a renewing of the engagement between employers and higher education. There has been a strong emphasis on ensuring that higher education graduates possess the necessary skills and attributes for employment: generic skills, such as communications, team working and problem solving; and specific vocational and professional skills, particularly in key disciplines, such as Science, Technology, Engineering and Mathematics (STEM). Leading employers and representative bodies, such as the CBI, are playing a welcome and important role, which is having a significant impact on undergraduate and postgraduate education. Employment outcomes for graduates remain strong and many employers offer students the opportunities for work placements which are excellent routes to enhanced employability. Companies such as Ernst and Young are creating a new range of higher education programmes in which work-based learning is integral throughout.

  16.  The development and growth of foundation degrees—to which HEFCE has committed funding since 2001—has encouraged closer partnership between employers and higher education to create a new, employment focused offerings both for people entering workforce and those already in work. The success of foundation degrees can be measured by far more than the substantial year on year growth in their take-up. What we are now seeing is greater understanding of their potential to underpin the "professionalisation" of many occupational areas, particularly in the public sector; and they are meeting private sector demand for managers and highly skilled technicians in key economic areas of skills growth and shortage. The collaboration between Aston University, the National Grid and leading energy companies to develop a Power Engineering foundation degree exemplifies this trend.

  17.  These changes are taking time to work through the worlds of business and higher education; but the evidence of progress is growing and the pace of change is accelerating. The Higher Education Business and Community Interaction surveys[56] which have reported annually since 2001, have shown consistent growth in the institutions reporting high levels of employer engagement in the curriculum, use of labour market information in course design and income generated from continuing professional development (CPD).

  18.  The Leitch Review added to an important debate within higher education, initiated by the Lambert Review[57]of 2003, about its role in supporting future economic growth. A key question was how higher education should build on its well-established relationships with business—in areas such as research, knowledge transfer, undergraduate and postgraduate education—to work with employers on a larger scale in workforce development and CPD. HEFCE's leading role in that debate was reflected in its grant letter for 2006-07 from the Secretary of State for Education and Skills. He asked HEFCE to "lead radical changes in the provision of higher education by incentivising and funding provision which is partly or wholly designed, funded or provided by employers". We published an Employer Engagement Strategy for the sector in November 2006 and this encompassed the breadth of the potential contribution of higher education towards building a highly skilled workforce.

  19.  Alongside the strategy, in 2006 we invested in two important sets of pilot activity. First, we invited three Higher Education Regional Associations—in the South West, North West and North East regions—to work with regional partners to set up "Higher Level Skills Pathfinders" (HLSPs). Their purpose was to develop new forms of higher education provision in response to employer demand, more accessible to employers through Train to Gain and other intermediaries.

  20.  Secondly, we invited higher education institutions, either individually or in partnership, to submit proposals for innovative approaches to stimulate employer demand for higher level skills, encourage employer investment and create new flexible ways for meeting that demand. Several pilots built upon the development of other business focused services supported through the Higher Education Innovation Fund. This kick-started some important early projects which are now an important source of developing good practice and lessons learned. For example, as a result of first-hand experience of academics developing leading-edge professional practice, Birmingham City University is linking academic involvement in knowledge transfer to the development of problem-solving based curriculum for students.

  21.  HEFCE has the capacity and flexibility to support such pilot activity through its Strategic Development Fund. We have committed £11 million of development funds, and around £2.5 million a year funding for provision, to the three HLSPs to support new courses focused on the needs of employers and employees. Most of this new provision is part-time and is offered in much more flexible formats. Both the RDAs and the LSC have actively supported the pilots and have committed additional funds to the tune of £800,000 in the North East region to support the involvement of further education colleges in the region; and £4 million in the North West to extend coverage to all the RDA priority sectors.

  22.  We welcomed the Leitch Report and, in the light of its challenging ambition for high level skills we decided to move beyond small scale piloting. Our aim was to encourage many more higher education providers to mount larger scale projects. We emphasised the need to build sustainable capacity to enable a quick and flexible response to employer demand for high levels skills, through provision which employers would be willing to co-fund. In April 2007 we employed an experienced senior manager to plan the programme. He provides active encouragement and support to higher education providers to bring forward ambitious employer engagement proposals.

  23.  We also welcome the Government's publication in April 2008 of "Higher Education at Work"[58]and the consultation launched to look at ways in which business, trade unions and employers can work together to encourage demand for high level skills, as well as incentives to encourage universities to respond better to employer demand.

  24.  Our 2008-11 funding settlement includes at least £105 million to build employer engagement capacity and achieve targets for growth in the numbers of working people starting employer co-funded provision (5,000/10,000/20,000 entrants over three years). The co-funding model we are testing is straightforward. In delivering employer demand-led provision, higher education providers must generate financial contributions from employers which, together with HEFCE's funding contributions will at least cover their costs. In projects we have approved since September 2007 our expectation is that, after three years, most of the providers will be able to generate sufficient revenues from employers for their operations to be financially sustainable with a HEFCE contribution set at half its normal funding rates (sometimes referred to as "50 per cent co-funding").

  25.  To take this forward we set up a major new programme, underpinned by a new and separate funding mechanism, specifically designed to encourage transformational change and support new approaches to stimulating and meeting employer demand. Thirty-one higher education providers are now leading the delivery of employer demand-led and co-funded workforce development which will benefit some 6000 additional employees in 2008-09. Twenty-two of these are receiving capacity building funds to create new, sustainable and employer-focused operations capable of delivering continuing growth in future years. For example Staffordshire University will be contributing to the regeneration of Stoke through development of the "University Quarter" and establishment of a Business Centre, reaching out to 3000 SME based learners in business supply chains and generating increased employer investment.

  26.  We have so far committed £44 million capacity building funds to these projects, over the next three years. Subject to available funds, we have sufficient proposals in the pipeline to double the number of projects. In allocating funds our overriding principle is achievement of the targets set in our grant letter through long-term, sustainable and transformational change. We aim to harness the considerable experience, expertise and creativity of higher education providers—stimulating demand from employers and employees and meeting it through innovation in the supply of higher education provision.

  27.  Our programme has been designed with the conclusions of the Leitch Report very much in mind:

    —  Exceed 40 per cent of working people qualified to at least Level 4 by 2020. We are investing to build capacity in higher education to create a platform for accelerated growth from 2010-11.

    —  Encompass the whole working-age population. All our projects extend opportunities for employer co-funded workforce development to the11.4 million working people, aged 19 and over, who hold Level 2 or 3 qualifications, but have no experience of higher education.

    —  Shared responsibility to increase investment and action. Our programme is specifically designed to encourage employer co-funding.

    —  Focus on economically valuable skills. Project proposals are assessed for thorough research of target employer market(s), references to Regional Economic Strategies, employer involvement in curriculum development, and SSC/professional body consultation and collaboration.

    —  The skills system must meet the needs of individuals and employers and should be demand-led rather than centrally planned. Our funding mechanism supports provision to meet employer and employee needs—from short, accredited "bite-sized" units through to full qualification bearing courses.

    —  Adaptivity and responsiveness. The funding mechanism also targets the HEFCE contribution at the point of employer demand and enables providers to respond rapidly to new demands from employers.

    —  Build on existing structures. We ask providers to bring forward project proposals which build on their strengths as the basis for transforming their operations to become more employer-facing. We assess bids for the involvement of local partners and intermediaries, such as Train to Gain, Business Link and Lifelong Learning Networks in their delivery plans.

REGIONAL AND SECTOR RELATIONSHIPS

  28.  HEFCE is a national organisation and we allocate core teaching and research grants at a national level. However, through our network of Regional Consultants we work with stakeholders to support higher education providers in making the most effective contribution to their regions. We publish, annually, regional profiles of higher education in England and consult with partners on regional priorities for higher education, which are published. Strong relationships at regional level are important to us in fulfilling our broad role: not only in relation to employer engagement, but also for promoting wider access to higher education and in taking forward the "University Challenge".

  29.  With the HE Regional Associations, our Regional Consultants play a strong advocacy and developmental role in the Regional Skills Partnerships, which include the RDAs and LSC. The three Higher Level Skills Pathfinders are exploring how higher education can make a more strategic contribution to meeting regional skills needs, particularly by connecting providers with existing brokerage systems, such as Train to Gain, providing joined-up services to employers across skill levels. Our investment is not restricted to universities and, to the extent our remit allows, we fund further education colleges, either directly or as members of university-led partnerships. For example we recently approved direct funding for Worcester College of Technology to deliver an employer co-funded foundation degree in payroll management, in collaboration with the Institute for Payroll Management and accredited by Worcester University, which will build to 2,500 students by 2010-11.

  30.  Employer engagement projects are attracting RDA funding. For example, University of Derby has secured over £2 million from the East Midlands Development Agency alongside a substantial investment from its own funds and our investment of over £4 million to develop "UoD Corporate".

  31.  HEFCE has invested £103million in Lifelong Learning Networks (LLNs), to improve the opportunities open to learners with vocational qualifications for them to progress into and through higher education. There are now 29 LLNs, spanning 120 universities and 300 further education colleges. Many are collaborating with employers, particularly on curriculum design, and some are adopting innovative approaches to stimulating latent demand from employers and employees through new qualifications, credit accumulation, flexible work-based delivery, and accessible information, advice and guidance. We have, this year, completed reviews of both LLNs and the HLSPs and are considering the lessons learned for the future development of effective regional and sub-regional partnerships to promote employer and employee engagement.

  32.  Since the publication of the first Government Skills Strategy white paper in 2003[59]we, with the Higher Education Academy, Quality Assurance Agency, Foundation Degree Forward and DIUS have supported Sector Skills Councils' (SSC) engagement with higher education through:

    —  Increasing mutual higher education-SSC understanding and collaboration;

    —  Joint projects to enhance HE curriculum;

    —  Strengthening SSC influence in Foundation Degree development, Lifelong Learning Networks, and Higher Level Skills Pathfinders.

  33.  Examples of HEFCE funding of SSC-led projects include £7 million committed to support implementation by higher education providers of a new degree qualification developed in partnership with e-skills and £2 million to support the setting up of Skillset higher education academies. More than forty universities and colleges, in 2006, reported engagement with six leading SSCs—ConstructionSkills, Creative and Cultural skills, e-skills, Lifelong Learning UK, Skillset, and Skills for Health. This year, twelve universities in collaboration with leading construction companies and professional consultancies, will run versions of the six-day "Constructionarium" working field course, which was pioneered by Imperial College London, Expedition Engineering and John Doyle Construction in 2003 and is now hosted by the National Construction Skills College in Norfolk. It will provide hands-on experience for more than 1,000 construction industry students and young professionals and will bring together universities, contractors and consultants working at a significant scale with sizeable costs for both universities and industry but excellent educational and skills benefits. We believe that the planned re-licensing of SSCs by the new UK Commission for Employment and Skills offers the opportunity for more and closer collaboration of this type to grow sector-based markets for employer demand-led and co-funded workforce development.

  34.  Collaboration with professional and regulatory bodies is equally important and there is a long history of universities working with such bodies across a wide range of occupations and qualifications. This is also being taken into new areas—for example a joint project between Harper Adams University College and the Animal Medicines Training Regulatory Authority provides a national programme, co-funded by employers, for over 1,600 people a year to become qualified to prescribe and supply animal medicines under new regulations.

CHALLENGES

  35.  Key challenges for us over the next three years include:

    —  The potential scale of the market. There is good evidence of a market for flexible, responsive higher education focused on meeting the needs of employers and employees, but less about its potential scale. The limited information available at present suggests on one hand that higher education secures 6 per cent of a potential £5 billion CPD market; but a study of private sector businesses employing more than 25 people in the East Midlands[60]suggests universities and further education colleges may be delivering three-quarters of the high level skills training currently purchased by employers and offers new insights into the potential for growing the market. We are funding a repetition of the study in two more regions to add to the research we have already commissioned. But the action research approach of our programme will provide the important real-time evidence we need.

    —  Employer co-funding. There is more opinion and anecdote than hard evidence on the willingness of employers to pay for the "right" higher level skills products. We shall be monitoring and evaluating the success of our provider projects in generating co-funding revenues from employers, whether private or public sector; and we shall look for variations in performance by economic sector, employer size, occupational groups and geographic location.

    —  SMEs present a major challenge both in terms of developing a viable market for higher education delivered workforce development and the scope for generating co-funding revenues. We are supporting projects, for example De Montfort University and Staffordshire University, which are taking on the higher level risks associated with the SME market and these will provide us with valuable evidence.

    —  Sustainability. By the end of their projects our expectation is that higher education providers should be able to sustain their employer facing operations on the basis of our 50% funding rate and the revenues generated by their employer customers. Achieving this outcome requires a viable market and an employer willingness to pay towards provision. At individual provider level it requires the development of a critical mass of new and repeat employer customers; and well managed service delivery operations, underpinned by effective costing, pricing and marketing mechanisms.

    —  Sustaining the higher education reputation for quality. The QAA and HEFCE established a task group, in 2007, on quality assurance required for customised higher education for employers. The aim is to encourage quality assurance processes which support responsiveness and flexibility without undermining high standards which are valued by employers and employees and are vital for continued demand for this provision.

    —  Embedding transformation requires a permanent change in the culture of the higher education. It will also require us to develop and agree with Government an effective long-term funding mechanism to support continuing growth in employer co-funded provision from 2010-11 onwards.

    —  Continuing Lifelong Learning. To meet the Leitch ambition we need people who come into higher education through the workplace to continue learning, either with their employers or in their own right. Almost all of the projects we are supporting include opportunities for employees to accumulate credit towards a higher qualification, but there is more work to be done to create effective mechanisms to enable people to transfer their credits between providers.

CONCLUSION

  36.  We believe we have been successful in generating a momentum for change within the higher education sector. This paper shows that by acting early and through a sustained campaign of raising awareness in the sector we now have a major programme of higher education projects in place which will enable us to meet our targets for 2008-09 and beyond.

  37.  If we can sustain this momentum we can offer the very real prospect of securing the transformation of the higher education sector that the Leitch Report envisaged and of creating a platform for a much more substantial programme of growth towards meeting the Leitch ambition for 2020.

April 2008

Annex

DATA

  This annex presents data in four areas:

    A.  Contextual data on HE students (entrants to programmes).

    B.  Data on students who combine work and learning.

    C.  Income from employers to HE relating to teaching.

    D.  Engagement between HE institutions and employers.

A.  CONTEXTUAL DATA ON HIGHER EDUCATION STUDENT ENTRANTS

  It should be noted that numbers are rounded to nearest five including totals hence sum of rows/columns may not match the total shown.

Table 1

2006-07 STUDENT POPULATION (HEADCOUNT STUDENT NUMBERS FOR NEW ENTRANTS REGISTERED AT HE INSTITUTIONS IE STUDENTS IN THE FIRST YEAR OF THEIR DEGREE AFTER 1 AUGUST 2006)i
Full-time Part-time
Total
LevelUnder 21 21-2425 and over Under 2121-24 25 and over
First degree236,410 40,61031,8804,180 9,59542,120364,795
Other undergraduate21,220 11,14017,82520,610 26,210172,235269,235
Postgraduate research40 7,82011,34515 3954,81024,425
Postgraduate taught1,170 61,08551,885820 10,72579,700205,380
Total258,835120,650 112,94025,62546,925 298,865863,840

Age is on entry. Students with unknown date of birth have been assigned to "Under 21".


Table 2

NUMBER OF FOUNDATION DEGREE STUDENTS AND ENTRANTS BY YEAR AND MODE OF STUDY (REGISTERED AT HEIs AND FECs) 2001-08ii
Students
Academic yearFull-time Part-timeTotal % full-time
2001-022,530 1,7954,32059%
2002-036,2956,015 12,31051%
2003-0412,24011,710 23,94551%
2004-0519,78018,040 37,82052%
2005-0626,91019,870 46,78058%
2006-0733,85526,725 60,58056%
2007-0840,82031,095 71,91557%
Entrants
Academic yearFull-time Part-timeTotal % full-time
2001-022,260 1,7403,99557%
2002-034,8054,095 8,90054%
2003-048,2506,695 14,94555%
2004-0512,8909,220 22,11058%
2005-0616,8109,850 26,66563%
2006-0719,84014,095 33,93058%
2007-0824,44016,005 40,44560%

(Home, EU and overseas students and entrants at HEIs and FECs in England)


Table 3

2006-07 GENERAL QUALIFICATION AIM (HEAD COUNTS FOR NEW ENTRANTS): HEIs ONLYiii
General qualification aim of student Full-timePart-time Total
Diploma in HE leading towards obtaining eligibility to register to practice with a Health or Social Care regulatory body 14,41058515,000
First degree288,390 53,830342,220
First degree leading towards obtaining eligibility to register to practice with a Health or Social Care or Veterinary statutory regulatory body—General Dental 860860
First degree leading towards obtaining eligibility to register to practice with a Health or Social Care or Veterinary statutory regulatory body—General Medical 6,78056,780
First degree leading towards obtaining eligibility to register to practice with a Health or Social Care or Veterinary statutory regulatory body—Other 12,8752,06014,935
Foundation degree15,070 11,48026,550
NVQ level 4 or 540 40
Other formal HE qualification of less than degree standard 7051,9702,675
Other postgraduate qualification430 10,63511,065
Other undergraduate qualification17,280 188,600205,880
PGCE22,6303,360 25,990
Postgraduate (Not professional qualifications or PGCE) 108,54076,300184,840
Professional qualification at postgraduate level (not PGCE) with or without academic qualification 1,3405,5056,840
Professional qualification at undergraduate level, with or without academic qualification 2857,9108,195
Professional qualification for serving school teachers 690695
Qualified teacher status only180 125305
No formal undergraduate qualification2,245 7,6509,895
No formal postgraduate qualification405 6701,070
Total492,425371,415 863,840

B.  STUDENTS WHO COMBINE WORK AND LEARNING

  (Tables 4-6 and 9 are taken from the Destination of Leavers from HE survey (DLHE) 2005-06 which surveys qualifiers who left their programme in academic year 2005-06 six months after completing their studies.)

Table 4

HE LEAVERS IN EMPLOYMENT ON THE CENSUS DATE FOR THE dESTINATION OF lEAVERS FROM HE (DLHE) 2005-06 WHO RESPONDED THAT THEY WORKED FOR THEIR EMPLOYER BEFORE OR DURING THE PROGRAMME OF STUDY THEY RECENTLY COMPLETEDiv
HeadcountAs % of those who answered
Yes—before my programme of study 11,3707%
Yes—during my programme of study 29,99518%
Yes—both before and during my programme of study 23,99515%
No98,23560%
Total163,595100%


Table 5

TYPES OF WORK UNDERTAKEN BY HE LEAVERS RESPONDING TO DLHE SURVEY 2005-06 WHO WORKED FOR THEIR EMPLOYER DURING OR BEFORE THEIR COURSEv
Sandwich placement Other placement or project work Holiday job FT or PT all year round FT or PT during term time Other
Employer sizeHeadcount As % of those who answeredHeadcount As % of those who answeredHeadcount As % of those who answeredHeadcount As % of those who answeredHeadcount As % of those who answeredHeadcount As % of those who answered
Small4600.8% 9501.7%1,160 2.0%5,2909.2% 1,7403.0%735 1.3%
Medium4150.7% 1,0301.8%580 1.0%3,8856.8% 1,2952.3%315 0.6%
Large1,6402.9% 3,6206.3%2,195 3.8%20,41535.7% 3,8756.8%1,275 2.2%
Unknown4600.8% 1,1902.1%675 1.2%4,9008.6% 1,2752.2%535 0.9%
Total2,9705.2% 6,79511.9%4,605 8.0%34,49060.3% 8,18514.3%2,865 5.0%
5.19%

Note: Percentages sum to more than 100% as leavers can tick as many of the options on the questionnaire as they wish.


Table 6

SOURCE OF FUNDING FOR STUDY, TRAINING OR RESEARCH IDENTIFIED BY HE LEAVERS RESPONDING TO THE DLHE SURVEY 2005-06 WHO WERE REQUIRED BY THEIR EMPLOYERS TO UNDERTAKE FURTHER STUDY OR RESEARCHvi
HeadcountAs % of total employed and required to study (who answered this question)
Self-funding eg savings/loans/employment    430  12%
Grant/award eg Research Council Studentship/LEA Award for PGCE    185    5%
Sponsorship   120     3%
My employer provided financial support 2,465  70%
Other   325    9%
Total3,525100%


C.  INCOME TO HE FROM EMPLOYERS FOR TEACHING ACTIVITY

Table 7

MAJOR SOURCE OF TUITION FEES 2006-07vii
First degree Other undergraduate Postgraduate research Postgraduate taught Total
Major source of tuition feesFull-time Part-timeFull-timePart-time Full-timePart-timeFull-time Part-time
Absent for year 0
Charitable foundation210 5045175 85540700 2402,315
Departments of Health/NHS/Social Care7,670 2,89511,60521,345 265651,265 3,69048,805
Departments of Social Services60 9560130 180 145670
EU Commission50 12010545 019045 550
Fee waiver under government unemployed students scheme 30 30 1575
Fees paid under part-time graduate apprentice study programme 510 5 1540
Government/Local authorities335 4452353,535 235951,330 3,5509,760
Institutional waiver of support costs1,600 1,2103706,620 3,2105204,145 2,52020,195
Local government—Channel Islands and Isle of Man/Scottish FE Bursaries 6551520 40510 90125965
No award or financial backing102,090 30,15020,120127,720 6,2453,48079,295 48,515417,615
Overseas1,99050 7851,2252,140 704,230390 10,890
Research Council255 10703,690 401,595130 5,440
Student's employer1,075 6,22599529,780 4604101,750 20,69561,385
UK industry/commerce65 53510315 15570310 1,3102,765
Whole or part SLC, SAAS, DELNI189,545 12,25012,71511,050 602015,195 2,350243,175
Other8201,100 7654,615805 1501,5803,575 13,405
No fees1,535560 1,79510,140290 1151,0702,545 18,055
Not known1,170270 5352,150745 1401,2151,390 7,610
Total308,90055,895 50,180219,05519,205 5,220114,13591,245 863,840


Table 8

MAJOR SOURCE OF FUNDING FOR THE PROGRAMME OF STUDY 2006-07viii
First degree Other undergraduate Postgraduate research Postgraduate taught Total
Major source of funding for the programme of study Full-timePart-timeFull-time Part-timeFull-timePart-time Full-timePart-time
Departments of Health/NHS/Social Care11,770 4,13517,00024,475 1101,365 2,39561,250
Departments of Social Services35 505 60 150
EU Commission5 10115 6085270
Funded entirely by student tuition fees 5501,0902,595 4,040240135 3,1302,65014,425
HEFCE288,25049,215 29,610182,98018,730 4,94086,88068,110 728,720
Joint between two sources including a funding council 5 10 7590
LEA/DfES 235 195430
LSC 25 25
Overseas government or other overseas organisation 3045 80
Own institution 545 260315
Research Council 30 553010125
TDA7,780115 3453,7605 1021,63515,645 49,290
UK charities 10 10525
UK government365180 2251,280 400395 2,845
UK private industry/commerce 25675 35415 1,155
UK public corporation/nationalised industry 195 140 335
Other funding1201,070 3501,22085 70585805 4,310
308,90055,895 50,180219,05519,205 5,220114,13591,245 863,840


Table 9

EMPLOYEES STUDYING PART-TIME WHO WERE SUPPORTED BY THEIR EMPLOYER (2005-06)ix
HeadcountAs % of PT qualifiers employed
Yes: my tuition fees were paid 7,51548%
Yes: I was given a grant to cover my tuition fees and living expenses 245  2%
Yes: I was given study leave4,980 32%
Yes: I was supported in other ways4,245 27%
No: my employer did not support me in any way 4,38528%

Note: Percentages sum to more than 100% as leavers can tick as many of the options on the questionnaire as they wish.

Table 10

INCOME FROM COURSES FOR BUSINESS AND THE COMMUNITY—CONTINUING PROFESSIONAL DEVELOPMENT (CPD) COURSES AND CONTINUING EDUCATION (CE) (2003-07) (EXCLUDING THOSE FUNDED BY THE NHS OR TDA)x

  It should be noted that Tables 10-16 are taken from the HE-Business and Community Interaction Survey. Figures for 2007-08 are provisional ahead of the publication of the report which is scheduled for 10 July 2008. It should be noted that the survey is in two parts. Financial information is accurate up to the period 1 August 2006-31 July 2007. Qualitative data on employer engagement is taken as a snapshot of activity in January 2008.
YearCPD for SMEs, other (non-SME)
commercial businesses and other
non-commercial organisations
CE and CPD for individualsTotal
2003-04198,122 57,560255,682131
2004-05229,10987,642 316,751129
2005-06236,51899,758 336,276129
2006-07290,840110,738 401,578130

D.  ENGAGEMENT BETWEEN HE INSTITUTIONS AND EMPLOYERS

Table 11

HEIs REPORTING ENGAGEMENT WITH SECTOR SKILLS COUNCILS (SSCS) AS PART OF THEIR BUSINESS AND COMMUNITY STRATEGY (2004-08)xi
YearAsset Skills Automotive SkillsGovernment Skills Construction SkillsCogent Creative and Culturale-skills UK Energy and Utility skillsFinancial Services Skills Council GoSkills
2004-05  3 18n/a25   95254 1518  1
2005-06  622 153414 71631623   2
2006-07  928 244018 86702028   6
2007-081132 254325 89702534 10


Year
Improve Ltd LantraLifelong Learning People 1stProskills SEMTASkillsActive Skillfast-UKSkillset Skills for Care
2004-05  4 1841142 251312 3314
2005-06  930 59173 29191847 23
2006-071330 73215 35262257 38
2007-081632 77267 46292462 46


Year
Skills for health Skills for JusticeSkills for logistics SkillsmartSummit Skills OtherTotal HEIs responding

2004-05
3715   610  3 11130
2005-065026   817  7 16130
2006-076834   919  8 17128
2007-087440 142010 16130


Table 12

HE INSTITUTIONS REPORTING THEY HAVE A CENTRAL DEDICATED UNIT TO PROVIDE SUPPORT FOR SMEs (2004-08)xii
YearAn enquiry point for SMEs Assistance to SMEs in specifying their needs Total number of HEIs responding
2004-05116102 130
2005-06117105 130
2006-07118107 128
2007-08119110 130


Table 13

HE INSTITUTIONS REPORTING THEY OFFER ENTREPRENEURSHIP TRAINING TO SPIN-OFF COMPANIES (2004-08)xiii
YearEntrepreneurship training (HEI provided) Entrepreneurship training (Partner provided) Entrepreneurship training (Both provided) Entrepreneurship training (None provided) Number of institutions responding
2004-05667 3125130
2005-06668 3521130
2006-07674 3918128
2007-08666 4216130


Table 14

HE INSTITUTIONS REPORTING THEY OFFER COURSES FOR EMPLOYERSxiv
YearDistance learning for businesses Continuous work- based learning Short bespoke courses for business on campus Short bespoke courses at companies' premises Total HEIs responding
2004-058679 109103130
2005-068882 113106130
2006-078986 115110128
2007-088887 117109130


Table 15

HE INSTITUTIONS REPORTING THEY MONITOR SKILLS NEEDS AND SECTORAL CHANGE THROUGH LABOUR MARKET INTELLIGENCE, AND TAKE THIS INTO ACCOUNT IN PLANNING PROVISION (ON A PREDEFINED SCALE of ONE TO FIVE) 2004-08xv
Year3 45Total HEIs responding
2004-054259 10130
2005-063667 7130
2006-073669 7128
2007-082878 8130


  See Annex B of HE-BCI publication 2007/17 for full description of levels 3, 4 and 5 (http://www.hefce.ac.uk/pubs/hefce/2007/07_17/)

Table 16

HE INSTITUTIONS REPORTING THAT EMPLOYERS ARE ACTIVELY INVOLVED IN THE DEVELOPMENT OF CONTENT AND REGULAR REVIEWING OF THE CURRICULUM (ON A PREDEFINED SCALE OF ONE TO FIVE) 2004-08xvi
Year3 45Total HEIs responding
2004-053162 32130
2005-062466 36130
2006-072458 43128
2007-082360 44130


  See Annex B of HE-BCI publication 2007/17 for full description of levels 3, 4 and 5 (http://www.hefce.ac.uk/pubs/hefce/2007/07_17/)

GLOSSARY AND ACRONYMS
Channel Is.Channel Islands
CEContinuing Education
CPDContinuing Professional Development
DELNIDepartment of Employment and Learning Northern Ireland
DLHEDestination of Leavers from Higher Education Survey
DfESDepartment for Education and Skills
EUEuropean Union
FECFurther Education College
HEHigher Education
HE-BCIHigher Education-Business and Community Interaction Survey
HEFCEHigher Education Funding Council for England
HEIHigher Education Institution
HEIFESHigher Education in Further Education Students Survey
HESAHigher Education Statistics Agency
HESESHigher Education Students Early Statistics Survey
I. of ManIsle of Man
LEALocal Education Authority
LSCLearning and Skills Council
NHSNational Health Service
NVQNational Vocational Qualification
OUOpen University
PGCEPostgraduate Certificate in Education
SAASStudent Awards Agency for Scotland
SLCStudent Loans Company
SMESmall and Medium Sized Enterprises
SSCSector Skills Council
TDATraining and Development Agency for Schools
UKUnited Kingdom


References

i  HESA Record 2006-07 (Figures for HEFCE-funded HEIs only. OU students domiciled in Scotland, Wales and Northern Ireland have been excluded.

ii  Data source: Columns 1 + 2 of HESES and HEIFES (2007-08 values are provisional).

The numbers of overseas entrants for 2005-06, 2006-07 and 2007-08 are estimated by assuming they represent the same proportion as for the other years, that is 4.6% for full-time and 5.5% for part-time.

2001-02 student numbers include some continuing students from 2000-01 which were marketed as foundation degrees but which may not have had all the attributes described in the HEFCE foundation degree prospectus.

iii  HESA Record 2006-07.

iv  Destination of Leavers from HE survey 2005-06 (Figures for HEFCE-funded HEIs only. Only those records counted within the DLHE target population are included.

v  Destination of Leavers from HE survey 2005-06.

vi  Destination of Leavers from HE survey 2005-06.

vii  HESA Record 2006-07.

viii  HESA Record 2006-07.

ix  Destination of Leavers from HE survey 2005-06.

x  HE-Business and Community Interaction Survey.

xi  HE-Business and Community Interaction Survey.

xii  HE-Business and Community Interaction Survey.

xiii  HE-Business and Community Interaction Survey.

xiv  HE-Business and Community Interaction Survey.

xv  HE-Business and Community Interaction Survey. See Annex B of HE-BCI publication 2007-17 for full description of levels 3, 4 and 5.

xvi  HE-Business and Community Interaction Survey. See Annex B of HE-BCI publication 2007-17 for full description of levels 3, 4 and 5.






51   Engaging employers with higher education http://www.hefce.ac.uk/learning/ employer/strat/Board_strategy_plus_ annexes.pdf Back

52   HEFCE 2006-07 Grant Letter http://www.hefce.ac.uk/news/hefce/2006/grant/letter.pdf Back

53   Higher education delivering on the Leitch agenda http://www.hefce.ac.uk/pubs/board/2007/116/67.pdf and http://www.hefce.ac.uk/pubs/board/2007/116/67a.pdf Back

54   Cm 7181(July 2007) Department for Innovation, Universities and Skills World Class Skills: Implementing Leitch Review of skills in England  Back

55   The economic impact of UK higher education institutions, Universities UK (2006) http://bookshop.universitiesuk.ac.uk/downloads/economicimpact3.pdf Back

56   HEFCE Higher Education Business and Community Interaction Surveys, http://www.hefce.ac.uk/reachout/hebci/ Back

57   Lambert Review of Business University Collaboration-Final Report, HM Treasury, December 2003 Back

58   "Higher Education at Work", Department for Innovation Universities and Skills, April 2008 Back

59   Cm 5810 (July 2003) Department for Education and Skills "21st Century Skills: Realising our potential" Back

60   Kewin, Casey, Smith "Known unknowns: the demand for higher level skills from businesses", Centre for Enterprise (March 2008).  Back


 
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