Government reform of Higher EducationWritten evidence submitted by the Alliance of Sector Skills Council
Executive Summary
1. This submission is from the Alliance of Sector Skills Councils. The Alliance is the collective voice of Sector Skills Councils, the employer-led organisations on skills for sectors across the UK economy.
2. The Alliance welcomes the Business, Innovation and Skills Committee’s inquiry into the future of Higher Education. The Alliance welcomed the Browne Review’s ambition to match what Higher Education Institutions (HEIs) provide to what students want and the skills needed by employers and the economy. However the Alliance would like to highlight the concern from employers about the unintended consequences that changes to Higher Education may have on higher level skills needs in sectors.
3. The Alliance wishes to make the following key points:
A constructive approach to employer engagement and employability is needed, as involvement of industry is key.
SSCs are a recognised representation of employers and a reliable key route to industry as higher level skills are important in a range of sectors.
Action is required for high cost subjects that exceed tuition fees.
High quality subject benchmark statements that employers can engage in and add the employability element to are needed.
In a market for Higher Education it is vital that students have access to good information and SSCs should have a role in providing this so individuals can make informed consumer choices.
Higher Education policy and funding must ensure high quality, fit for purpose flexible education and training.
Thought needs to be given to cross UK nation border finance issues.
Funding: A Shared Responsibility
Funding regime
4. Browne’s proposals for England on Higher Education funding and the increased competition which should associate with these proposals when implemented should result in higher quality and more efficient and responsive courses. However there will be situations where this is not the case. For example where the true cost of particular courses exceeds the tuition fees payable. In this situation, HEIs could be expected to support successful delivery of these higher cost courses with income generated elsewhere in the Institution, including by higher volume, lower cost courses. But HEIs being willing and able to do this appears to require that all subject costs are as accurate as possible. There may also be relatively small number of cases where the true costs of courses are so high that the assumption of HEIs supporting them internally without some additional external funding ceases to be reasonable.
5. SSCs should be able to influence the QAA benchmarking statements and the costing assumptions behind these, where this is relevant to their occupational areas and especially where there are legislative or regulation requirements. SSCs should also take sufficiently active part in any Higher Education Funding Council for England (HEFCE) led mediation which may commence in the lead up to the White Paper relating to subjects where costs of courses exceed tuition fees. This is especially important in response to Growth Reviews where high cost courses will need employer engagement.
Employer influence
6. The Alliance recognises that investment in skills at all levels is a joint responsibility between the Government, individuals and employers. It is important to note that employers currently invest a significant amount in skills development (£39 billion a year)
7. In growth sectors and for specific skills requirements it is important that there is a collective employer response to investment. This could take a number of forms, including employer sponsorship of courses or direct involvement in course implementation (work placements, secondments etc). Where employers have identified the need for collective action there may need to be different approaches due to the differing nature and requirements of sectors and it is important that consensus can be secured within an industry. Thought needs to be given on how to encourage SSCs/employers to work as a community.
8. ConstructionSkills is considering how the Construction Industry Training Board levy-grant system may best articulate with the new funding system in England. This could provide a clear and early example of how employers can share responsibility for Higher Education within the changed arrangements
9. More information is needed about how employers can articulate their needs to the Higher Education sector and influence provision. More information is also needed about how employers will be able to feed into and influence quality levels to ensure courses are fit for purpose. SSCs are well placed to manage employer input to Higher Education through their strong links to employers, and are able to work with Higher Education to increase employer involvement in Higher Education provision. The Alliance would welcome further discussion on how this could be taken further, possibly through a pilot scheme.
10. Employers should be able to shape content to be flexible and responsive and change the balance between full time and part time study. It is important that employers are able to influence and focus on increased vocational relevance as it is likely that prospective students may in future be more interested in the employability promised by a course and HEI (including well paid employment) in making their choice, because they will be paying more. This seems particularly pertinent to full time undergraduate courses, but probably applies to other higher education provision to some extent.
A Fair Society
Information for students
11. In a market for Higher Education it is vital that students have access to good information. SSCs should have a key role in providing information so that students/parents etc can make informed consumer choices. One set of information currently not available is what employers collectively think about courses/suitability for employment.
12. Proposals from HEFCE indicate that if there is professional body accreditation for higher education courses, then this must be made clear to students and if courses in these particular subject areas have not received accreditation then this should also be made clear. It is important that the information about professional accreditation of courses is entirely accurate and easily understood. Where there are no professional bodies and SSCs offer course accreditation (or offer in addition to professional bodies) this should be included in the information provided by institutions.
13. There is evidence from some SSCs that the Labour Market Intelligence (LMI) they provide is not in general being used appropriately by Higher Education. If this continues, it will be harder for Higher Education to support growth. For example, it might affect its capacity to meet demand for specialist skills which arise. “Future proofing” of provision would also be reduced, resulting in graduates being less prepared for the realities of work and prospective students being under informed, as the “signalling”’ of employer requirements including of employment opportunities may be insufficient and/or inaccurate. The Alliance would like to emphasise to Government, funding bodies and HEIs to use the LMI that is already available.
Access and diversity
14. It is important that the changes to HE funding do not reduce the opportunity for talented individuals to access learning and development. This is very important as Russell Group Universities are likely to charge full fees and could extend to four year undergraduate degrees. There is a need to ensure that growth areas are tackled as a joint issue with employers and HEIs. Could the American Scholarship model be investigated further?
15. For older workers it is important that HEI entry criteria recognise their significant work experience and their ability to do the job to encourage further learning and progression. The inclusion of mature entrants in categories that may benefit from the National Scholarship Programme is most welcome. However, this is just one of several categories. The National Scholarship Programme is perforce limited, and will be emergent for some time. It would be helpful if the White Paper signalled about older workers and their significant work experience as English HEIs develop their own systems for supporting certain categories of student.
Supply Side Reform
Quality fit-for-purpose provision
16. It is vital that there is fit for purpose provision at all levels and through all types of provision whether this is full time, part time, placements or internships. These should be routes by which employability skills are delivered to the future workforce.
17. The growing emphasis on Higher Education in Further Education is welcomed, as this fits with the preferences of many employers and employees. A potential new role for private providers and University Technical Colleges (UTCs) supported by the Technicians Council is also welcomed. While it is likely that such providers would have more interest in some occupational areas rather than others, the greater emphasis on higher education in further education and new role for private providers hold the possibility of different delivery partnerships which may better serve employers and the workforce.
18. Many HEIs are currently working to reform the way courses are designed and delivered to reflect the growing demand for greater flexibility and to offer more cost effective programmes. Modular courses, the ability to build up credits over time, the ability to customise courses to individual needs, and moving beyond the three-year course format, are all concepts which many HEIs are now putting in place. Government should encourage this trend, and the Alliance is willing to work with HEIs to take this further with employers.
19. Working with Foundation Degree Forward (FDF) Sector Skills Councils have contributed to the target of 100,000 Foundation degree students being exceeded in England. This has enabled SSCs to work with Higher Education much more closely on aligning sector need to provision and is an example of good practice. It also has led to innovation in delivery and growing relationships, including interest by Higher Education in dovetailing provision with higher level vocational qualifications on the QCF and in ensuring sensible progression from QCF qualifications at level 3.
Higher Level Apprenticeships
20. Thought needs to be given to Higher Apprenticeships as the demand for these (at Levels 4 and 5) will vary by sector. Intelligence describing how and where these courses would be most appropriate should be pursued and should be sector-led to ensure relevance. In those sectors where there is demand for HLAs, their introduction would enable movement into Higher Education and significantly increase the pool of technicians in the UK. This would deliver wider, more flexible and CPD-based apprenticeship pathways, enabling an individual to enter at level 2 and progress all the way to level 5 and beyond.
21. However the Alliance is concerned with the potential duplication that may occur between Higher Apprenticeships at Level 4 and 5 and other provision such as NVQs at level 4. There are likely to be situations where the Higher Education sector is already able to deliver on its remit and satisfy employers and in those situations adding Higher Apprenticeships may not necessarily be the right way to promote progression.
22. Consideration needs to be given to flexible and innovative ways to link Vocational Qualifications into Higher Education provision and QCF qualifications at levels 4 or 5. Traditional routes such as UCAS points can be insufficient and limiting, and there are already pockets of good practice where SSCs have collaborated with HEIs to create innovative alternatives. It is essential that Higher Education recognise a range of appropriates Vocational Qualifications, apprenticeships and higher level apprenticeships as entry and progression routes.
23. The Alliance is willing to work with NAS to help them understand the new landscape and employer perspective.
Internships
24. Employers and SSCs have a responsibility to offer and promote opportunities for placements and internships. For example the e-skills Internship offers an industry-backed placement programme that maximises benefits for employers, students and universities. Placements within industry, of various types, need some seed corn funding to enable sustainability. Also a single place to help employers is needed urgently as the offer to employers is confused due to the number of parties involved.
Masters
25. Thought needs to be given to the knock on impact to post-graduate study and the impact on taught masters. Flexible provision that builds to a professionally recognised Masters degree is being encouraged and some initial delivery is being trialled. The Alliance warmly welcomes the recent decision that Professor Sir Adrian Smith reconvenes the postgraduate review panel—which produced a comprehensive report on postgraduate study in March of last year—in order to consider impacts that higher graduate contributions could have on postgraduate study.
Wider issues
26. Thought needs to be given to the cross border finance issues. England has the majority of the UK’s higher education including certain cutting edge course provision and there will be implications for the other nations. Already fees have been capped at £6,000 for Northern Ireland whereas it seems likely that fees will be nearer to £9,000 elsewhere in the UK, and particularly in the case of Russell Group and other HEIs. Lack of attention to cross border finance issues could create unwelcome imbalances which prove awkward for employers, employees and graduates and reduce the capacity of the UK’s higher education system overall to meet needs.
27. Innovation is an area where employers can work with HEIs to take up opportunities for growth. Research carried out by SSCs shows that employers see the development of new products and processes as a means of coming out of the recession and preparing for growth. HEIs have the capability to help businesses in all areas of innovation. SSCs can provide the access to employers (particularly SMEs) identifying opportunities for employers to work with HEIs. The redevelopment of the Higher Education Innovation Fund may provide unique opportunity to better enable the necessary links between employers/SSCs and HEIs. It is essential that research undertaken in Higher Education is transferred to industry or into Further Education and Higher Education to equip individuals and businesses for the future.
28. The Alliance welcomes the opportunity to build on this brief response to the inquiry into the future of Higher Education funding and will be working with HEFCE on the future of Higher Education funding especially regarding high cost subjects.
10 March 2011