Transcript Slide 1
Title of the slide Second line of the slide Access in a New Era Funding Update Julian Gravatt, Assistant Chief Executive Association of Colleges 23 March 2012 Title of the slide Access Second linefunding of the slide update The wider context Higher education funding and finance Further education funding and finance Some concluding thoughts Title of the slide Events trump Second line of the slide plans 2007: The credit crunch (Northern Rock) 2008: The banking collapse (Lehmans, RBS, Lloyds) 2009: Bank rate 0.5%, Quantitative easing, Fiscal Stimulus 2010: Eurozone Crisis starts, Coalition government 2011: The Arab Spring, the summer riots in UK 2012: What’s the most important thing this year? Title of the slide Funding Second line ofof the higher/further slide ed Coalition agreement (May 2010) had two priorities Economic recovery Reduction in government deficit Higher education funding left to the Browne review (Oct 2010) Decisions (autumn 2010) to: protect spending on research remove teaching funding/replace with fees & loans measures to protect access (fee cap, loan changes etc) reduce spending on FE skills by 25% Title of the slide The Secondhigher line of the education slide budget The imperative “The issue is how the higher education sector makes its contribution to deficit reduction” Vince Cable, Parliament, 12 Oct 2010 Total spending rises... Teaching grants cut from £5 bil to < £2 bil) Student loans rise from £3 bil to £7 bil ...but every £1 in loans costs 30 pence in interest subsidies and write-off Title of the slide Quotas 2012-13 Second line in of the slide 360,000 full-time entrants a year est. 65,000 AAB+ places 2012-13 quota = 2011-12 less 9% 20,000 places up for grabs if fees < £7,500 11,000 places to Colleges, 9,000 to Unis Withdrawal of University places in Colleges Title of the slide Universities & HE Second line of the slide teaching Universities have diverse income – UK teaching, research, overseas HE teaching income rising in some Universities Growing competition between Universities for AAB+ students; Divergence in University fortunes Universities control 93% of the student loan quotas in 2012-13 Uncertainty about student demand and the pace of reform Title of the slide Colleges Second line of& the HE slide teaching Long tradition of College higher education but evolution depends on local factors (eg compare Outer vs Inner London, Essex, Suffolk etc) 266 Colleges offer government-funded HE courses 25 Colleges >1,000 FTE students 30 Colleges have 500-100 FTE students 210 Colleges have less than 500 (a long tail) Colleges account for 7% of HE full-time entrants Title of the slide 19+FE Second lineand of the skills slide funding Budget cut £4 bil (2011) to £3 bil (2015) Single Adult Skills Budget Initial plan to reduce 100% entitlements inactive benefits, ESOL second level 2s level 3s for over 25s Partial reversal of rule changes in 2011 Title of the slide SFA Second stops line of theand slide starts 2010 12% cut in adult learning (before election) Single adult skills budget 2011 Smaller (2%) cut than expected for 2011-12 Many Colleges missed 2010-11 targets SFA distributed extra funds in autumn 2011 2012 Large (12%) cash cuts in provisional allocations Final allocations for 2012-13 due shortly Title of the slide Skills funding Second line of the slide& policy Colleges have some freedom with diminishing budgets BUT • • • • Expectation that apprenticeships and unemployed come first Course funding rates have been cut Some courses have been declared ineligible System and rules still pretty complicated Meanwhile • SFA downsizing and managing multiple initiatives • New growth initiatives every month Title of the slide FE loans Second line of from the slide 2013 A revenue/capital switch (like HE) Level 3 & 4 courses, over 24s Similar to 2012 HE fee loans Big differences between HE & FE admin Big implementation risks Briefing paper on www.aoc.co.uk . Title of the slide Access Second linecourse of the slideviability Understand HE /19-24 FE/25+ FE funding & fees Forecast income (SFA rates * student numbers) What will happen to student demand as things change? How can things be done differently to sustain your area? Changes in course hours Changes to teaching input Other sources of income Other cost reductions Title of the slide Some challenges Second line of the slide & opportunities Some big uncertainties - where competition will come from - political direction - student & employer response to higher fees - which courses are worth doing Income reduction/staffing changes are a permanent fact of life Would you rather be somewhere other than London? Has it ever been particularly easy?