Written evidence submitted by the Association
of Colleges
1. The Association of Colleges (AoC) represents
Further Education, Sixth Form and Tertiary Colleges and their
students. Colleges provide a rich mix of academic and vocational
education at all levels. As independent, autonomous institutions
established, under the Further and Higher Education Act 1992,
they have the freedom to innovate and respond flexibly to the
needs of individuals, businesses and communities.
THE KEY
FACTS ABOUT
HIGHER EDUCATION
PROVIDED IN
COLLEGES
2. AoC welcomes the opportunity to provide evidence
to the Select Committee to inform its inquiry into higher education
(HE). As the UK continues to emerge from the recession, our future
economic prosperity will partly depend on our ability to develop
a HE system that is responsive to demand from individuals and
employers, and can develop the higher level technician skills
needed to re-balance and grow the economy.
3. Colleges play an important role in providing
higher education. Over 150,000 students study HE in a College
on degree courses funded by the Higher Education Funding Council
for England (HEFCE) or 'non-prescribed' HE programmes funded by
the Skills Funding Agency, employers or by the students themselves,
usually on a part-time basis around work or family commitments.
4. The following table illustrates the mechanisms
through which College higher education is funded[1]:
| Funding mechanism
| Number of HE students in Colleges |
| Funding given direct to the College (primarily by HEFCE)
| 57,000 |
| Funding given to a College via a university (primarily by HEFCE)
| 56,000 |
| Funding from the Skills Funding Agency (or other source)
| 38,000 |
5. 262 Colleges provide HE courses across all areas and regions
of England, enrolling around 10% of all HE students in England.
6. Of the 65 Colleges that were examined in the latest review
undertaken by the Quality Assurance Agency, all were given a judgement
of confidence in academic standards and the quality of the learning
opportunities offered. 65 examples of good practice were identified[2].
7. College income from HE provision is presently £500
million and the majority of Colleges charge between £1,700
to £2,200 tuition fee to their degree students, except in
a few exceptional circumstances. This level of fee has offered
an important alternative to courses offered at universities and
other HEIs.
8. As explained above, currently Colleges are able to offer
HE through funding received directly from HEFCE; indirectly via
a university or from the Skills Funding Agency. Some students
are self funded. The latter two routes are mainly used for professional
qualifications such as accountancy, marketing, purchasing and
supply and construction management.
9. Colleges are committed to widening participation to HE,
and often provide HE in areas that traditionally have lower HE
participation rates, and to students with lower eligibility qualifications
than many HEIs.
10. In the near future, several Colleges may have Foundation
Degree[3] Awarding Powers
(FDAP), and in a few cases Taught Degree Awarding Powers (TDAP).
THE DISTINCTIVENESS
OF HE PROVIDED
BY FURTHER
EDUCATION COLLEGES
11. HE in FE provides distinctive, diverse and efficient higher
education:
— HE
students in FE Colleges are generally older than university students[4]
and often have vocational, rather than academic, qualifications.
They usually study around their work and/or family commitments.
— Evidence
shows that HE students in Colleges, particularly those on foundation
degrees, are more likely to come from low-participation neighbourhoods[5].
— FE
Colleges which provide a significant number of HE places are often
located in "higher education cold spots", where there
was historically little HE offered locally, such as the London
Borough of Havering, Blackburn, Blackpool and Peterborough or
in areas where a university may have been historically focused
on national recruitment such as Durham where the University recruits
only 8.4% of its students from Tyne and Wear and County Durham[6].
— FE
Colleges with significant HE numbers are often also in areas with
historically low HE participation rates such as the north east
of England where FE Colleges in Durham, Newcastle, South Tyneside
and Sunderland between them educate over 7,600 HE students.
— FE
Colleges provide specialist higher level vocational courses such
as Higher National Diplomas and Foundation Degrees, across a range
of occupational sectors that promote the development of technician
skills. For example, 20 colleges deliver foundation degrees in
the biosciences and over 80 in engineering. Examples of "niche"
national courses include Worcester College of Technology's payroll
courses and make-up artistry for the media at Craven College in
Skipton and Somerset College.
— FE
Colleges also provide higher technician level skills courses related
to their particular locality, for example Cornwall College has
HE courses in marine studies and rural business management.
THE PRESENT
SYSTEM
12. At present some Colleges—about 50%—are
funded directly by HEFCE for the HE courses they offer. Others
are funded indirectly through one or several HEIs or through a
consortium of an HEI and several Colleges. In a one-to-one or
consortia the HEI controls student numbers and can increase or
decrease the numbers from the partner Colleges as they see fit.
All HE undergraduate awards have to be validated and awarded by
an HEI.
13. Lord Browne's vision of a managed market
will not become a reality unless the system, which currently places
FE Colleges under the control of universities, is modified. For
example, at present:
— When
funded via a university, a College can have its student numbers
withdrawn by their partner university even if the College demonstrates
clear demand for courses and potential students.
— Colleges
are unable to develop new courses without the consent of their
partner university, as only universities have the legal power
to award degrees.
14. Indirect funding of HE in Colleges, via a
university, means Colleges are denied control over their own student
numbers and although some consortia work successfully, in the
last two years there have been several examples of universities
withdrawing student numbers in FE Colleges. This is clearly detrimental
to those students who wish to study in a College setting and the
local businesses who want to help their employees gain higher
level skills. We believe that maintaining indirect funding will
inhibit Colleges' freedom to innovate and identify new markets
and to develop the specialist higher technician level courses
needed to help ensure the country returns to higher growth and
future prosperity.
15. In this situation, except in the case of
very popular areas such as business or early childhood studies,
Colleges in regionally based consortia can only develop courses
that are not in direct competition with their partner awarding
HEI. This relationship means that in some cases Colleges are unable
to develop courses that meet local or, indeed national, need.
Colleges could approach another HEI for validating purposes but
that is not straightforward, not always possible and can lead
to significant additional quality assurance (QA) processes as
each HEI has different systems, despite the fact that there are
national codes of practice published by the Quality Assurance
Agency (QAA). This leads to extra expenditure for Colleges.
16. Further, there is no consistency in the administrative
fees that HEIs charge for their validation and awarding services,
or indeed in the services related to the fees charged. In the
better managed consortia these fees will cover administrative
support, staff development, curriculum advice and liaison with
international scholars. In most cases though, the service only
relates to the provision of a validation service, and fees can
vary between 20%-80% per student.
THE FUTURE
17. As set out above, HE in FE provides a public
good, as it brings advantages to communities and individuals who
often missed out on higher level learning earlier in life, and
to those from lower socio-economic backgrounds. If gaining an
HE qualification brings the individual significant financial advantages
it seems appropriate that they should pay a contribution towards
that advantage and the Government should promote this potential
gain. Therefore AoC supports a system based on tuition fees and
income contingent loans.
18. AoC
also fully supports the opening up of the HE market to more competition
and is particularly pleased to see the distinction between full-time
and part-time HE students removed. However, we are concerned that
a trebling of tuition fees by some universities could have an
adverse effect on access to the most prestigious universities
from students from lower income backgrounds, and possibly reverse
the widening participation gains made in the last ten years. It
may be significant that there seems to be a reduction in applicants
through UCAS for 2011 entry.
19. The Browne Report effectively recommended
the establishment of a managed market in HE, moving from a mainly
grant-based system paid for from general taxation to a consumer-based
price system. AoC is not opposed to this in principle although
we have several concerns about how the market could operate in
practice—see below.
20. AoC is not advocating that all Colleges should
gain Taught or Foundation Degree Awarding Powers (T/FDAP), but
that for the market proposed by Lord Browne to operate as efficiently
as possible, Colleges with large numbers of HE students should
be able to compete on a level playing field with HEIs. T/FDAP
would mean that Colleges are not tied to HEI for their course
development, could fairly compete with HEIs and what we believe
amounts to restrictive practice is ended.
21. AoC is supportive of different types of awarding
bodies entering the market as we believe a managed market is the
most efficient way of ensuring course and qualification development
meets student demand, the development of higher level technician
skills and the economic needs of the country. It will also break
the present monopoly of HEIs.
22. However, AoC is not convinced that a complete
"free for all" is appropriate and would argue for a
role for employers and agencies such as the UK Commission on Employment
and Skills (UKCES) in informing course development. AoC welcomes
the fact that QAA are developing revised guidelines for Colleges
with polygamous awarding body relationships, to minimise over-complicated
external review and associated costs.
23. In summary, it is AoC's view that to address
the anti-competition issues inherent in the present system the
system of indirect funding needs to be reformed, more Colleges
need to have the power to validate and award their own degree
titles and that other non-teaching awarding bodies are able to
enter the market.
24. Although indirect funding may disappear in
a "money follows the student" system envisaged by the
Browne Review and the Government, it is still likely in the present
squeeze on public spending that some form of student number control
could remain. AoC would be deeply concerned if such a system maintained
present indirect funding arrangements, and allowed HEIs to retain
the power to effectively control the market. We would argue that
if any student control system is introduced it is based on 2008
enrolment figures before recent decisions taken by universities
to withdraw College HE student numbers took effect.
PART-TIME
STUDENTS
25. At least half of HE students studying in
FE Colleges are part-time[7]
therefore AoC welcomes the proposed improvement in support for
part-time students although we have some reservations about the
administration of loans to support their learning. The new system
must be flexible and take into account the fact that some part-time
students, who are usually older, may not wish to take out a loan,
that some may want to pay back the loan quickly and that employers,
in particular, may not want a long pay back time.
ACCESS TO
HIGHER EDUCATION
26. FE and Sixth Form Colleges provide 35%[8]
of entrants to higher education and therefore we have a significant
interest in HE from the perspective of access and progression.
The actual infrastructure needed to develop a transitional or
managed market in HE is only now being developed. For example,
the following are being introduced: a National Scholarship Programme
(NSP), tougher Access Agreements, back loaded loans, relatively
progressive repayment, loans for part-time students and tidying
up the external quality assurance system.
27. Overall, AoC is supportive of these developments
with certain caveats. First, we are unsure if the proposed NSP
is fit for purpose as a scholarship scheme to help bright people
from poor backgrounds enter higher education. In the first year
of operation it is effectively a scheme that will not deter applicants,
rather than one to incentivise applications, particularly to those
universities with high eligibility requirements for its courses.
We welcome the Government's decision to treat the first year as
a pilot because we would support exploration of a scheme that
involved schools and Colleges identifying students who would benefit
from additional support. We are concerned that possibly over one
hundred institutionally based schemes could lead to unnecessary
complexity and confusion for applicants.
28. AoC, in the main, supports the guidelines
for the administration and monitoring of access agreements recently
published by the Office for Fair Access, in particular the decision
to await the publication of the White Paper and subsequent legislation
to address the complex issues related to part-time student loans.
It is supportive of a more robust approach to universities who
systematically fail to hit benchmarks related to widening participation.
29. The Browne Review identified that College
students had to achieve an average of one grade better to get
into certain universities. The withdrawal of the Education Maintenance
Allowance, cuts to transport provision for 16-18 year olds and
to overall College budgets could also impact on supply. We hope
that the proposed access agreements, the introduction of better
information, advice and guidance through the proposed all-age
careers service and an enhanced Learner Support Fund will tackle
these issues.
30. AoC is also concerned with the ability of
adults to progress into HE, and is anxious that the proposed partial
removal of financial support for Level 3 students aged over 25
on inactive[9]
benefits, could reduce applications from this group. Early analysis
of the Skills Funding Agency individual learner record indicates
that about 9% of College students aged 25 and over are on income
based benefits similar to the definition of inactive benefits.
This group of students are amongst the poorest in our communities,
most adverse to debt and least able to pay up front fees or payback
loans.
QUALIFICATION AND
CREDIT FRAMEWORK
31. AoC believes that one mechanism to create
a more flexible HE system is the creation of a lifelong learning
credit accumulation and transfer system (CATS) which could include
the Qualifications and Credit Framework (QCF) and cover some HE
courses.[10]
32. AoC accepts that it would not be appropriate
for some HEI courses to be part of such a scheme, and of course
some HEIs with a more traditional portfolio of courses may not
view participation as relevant or necessary. However, the introduction
of a lifelong learning CATS would facilitate the acquisition of
HE knowledge and skills on a modular credit basis allowing the
individual to study at their own pace and in line with the skills
needed by their occupational sector. It would create a more efficient
HE system as individuals would have a record indicating the HE
learning credits they had achieved. This would be accepted by
all participating Colleges and HEIs, thus supporting portability,
addressing duplication of learning and fostering a lifelong learning
culture. We believe that the Government should explore the possibility
of establishing a regional or sub regional CATS pilot, possibly
involving the NHS where there is a significant amount of un-credited
learning.
10 March 2011
1 House of Commons Written Answer given to Kelvin Hopkins
MP, 9 June 2010, Col:193W. Back
2
Integrated Quality and Enhancement Review: Findings from the 2009-10
summative reviews QAA 2011. Back
3
Foundation Degrees are higher education qualifications that combine
academic study with work-based learning. Designed jointly by universities,
Colleges and employers, they are available in a range of work-related
subjects. Back
4
HEFCE analysis 2007-08 Back
5
Source: Foundation degrees: key statistics 2001-02 to 2009-10,
HEFCE April 2010. Back
6
http://www.dur.ac.uk/spa/statistics/college/4.4domicile/ Back
7
HEFCE analysis, 2007-08. Back
8
Error! Bookmark not defined. Back
9
Inactive benefits are all those not including Jobseekers Allowance
and Employment and Support Allowance. Back
10
Credit accumulation and transfer systems credit 'chunks' of learning
based on time and complexity, and assign that chunk a value. This
value specifies the number of credits gained by learners who complete
that unit. The flexibility of the system allows learners to gain
qualifications at their own pace along routes that suit them best.
There is already a credit transfer and qualification framework
for vocational education and training (VET) and FE, including
higher VET, but at present the university sector has only introduced
a credit system Back
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