Transcript Slide 1

Implications for Governing Bodies of
the Browne Review
Stephen Marston
Director General, Universities and Skills Group,
Department for Business, Innovation and Skills
HIGHER EDUCATION
REFORM
Background to Lord Browne’s report
• Commissioned by Lord Mandelson in November 2009
with Conservative support
• Fulfilled the commitment made by the Labour
Government during the Commons stages of the Higher
Education Act 2004, to review the operation of variable
tuition fees
• Lord Browne was asked to:
– analyse the challenges and opportunities facing higher education
and their implications for student financing and support
– examine the balance of contributions to higher education funding
by taxpayers, students, graduates and employers
– take into account the goal of widening participation, affordability
and the desire to simplify the student support system
HIGHER EDUCATION
REFORM
Lord Browne’s report followed
a year of intensive
engagement with experts
throughout the HE sector
Browne Report published on
12th October 2010
• 4 days of public hearings with
36 witnesses
• Over 150 submissions from
academics, universities, students
etc
• Over 2000 pages of evidence
• Panel visited 13 HEIs
• 5 Advisory Forum meetings,
made up of over 20 organisations
• All major political parties
consulted
• Discussion groups and
workshops with students
• Panel spent over 50 hours
scrutinising evidence, examining
options, testing recommendations
HIGHER EDUCATION
REFORM
Recommendations based on 6 key principles
THE PRINCIPLES
1 There should be more investment in higher education –
but institutions will have to convince students of the
benefits of investing more
2 Student choice should increase
3 Everyone who has the potential should have the
opportunity to benefit from higher education
4 No student should have to pay towards the costs of
learning until they are working
5 When payments are made they should be affordable
6 There should be better support for part-time students
HIGHER EDUCATION
REFORM
Lord Browne’s main proposals
Designed to ‘increase participation, improve quality and
create a sustainable long term future for HE’
HIGHER EDUCATION
REFORM
Government response
• Oral Statement on 12 October – Secretary of State
welcomed the ‘broad thrust’ of Browne’s report
• Spending Review on 20 October – Chancellor
announced re-balancing of investment in higher
education and confirmed funding for new National
Scholarship Scheme
• HEFCE Conference 21 October – David Willetts spoke
about the Government’s ambitions for HE reform
• Oral Statement on 3 November – David Willetts
presented the Government’s response to Lord Browne’s
review
Key Issue 1: What form of financing
mechanism?
• Not a graduate tax
• Progressive graduate contribution
Key Issue 2: Caps
• Browne recommended no cap
• Instead, thresholds of £6,000 for levy and
£7,000 for widening participation
• Government will keep a cap
• Retain two-level structure as now, with
threshold level of £6,000 and upper cap of
£9,000
• Universities set own graduate contribution
level
• No levy
Key Issue 3: Student Finance
• Same broad structure as Browne proposed
• Needs blind, free at point of delivery
• State pays graduate contribution to university on
student’s behalf
• Student gets loan to cover up-front cost of that
contribution
• Maintenance grant of £3,250 up to £25,000
income
• Tapered grant up to £42,600 income
• Maintenance loans up to £5,500
• Part-time students above 33% intensity receive
tuition fee loan
Key Issue 4: Graduate Repayment
Terms
• Same broad structure as Browne
proposed
• No-one pays under £21,000 income
• 9% of salary above that level
• Real interest rate up to 3% above RPI,
tapered from £21,000 to £41,000
• 30 year repayment period
Key Issue 5: Participation and
quality
• Focus on widening participation, fair access
and quality - what do students get in return?
• Tougher access agreements between £6,000
and £9,000
• Concern about fair access
• National Scholarships; no minimum bursaries
• Guarantees on quality of teaching and
learning - student charters
• Publication of information
Key Issue 6: Structure and
organisation
• Further discussion needed on:
– tariff approach to setting student number
controls
– agency mergers
– requirements for initial teacher training
– better IAG in schools
• New market entry for private providers
• Set out longer term issues in White Paper
HIGHER EDUCATION
REFORM
Next steps and timing
Ambition is to introduce reforms in 2012/13
- By Christmas: Proposals to Parliament on
graduate contribution levels
– By Christmas: HEFCE grant letter setting out
allocations for 2011/12 and indicative for
future
– Around end of year: HE White Paper
– Early 2011: Primary legislation to introduce
real interest rate
Some implications for governors
• Institution’s mission and differentiation
• Range of programmes aligned to intended
constituency
• What will students consider good value quality, relevance and cost-effectiveness
• Pricing strategy
• Demonstrating value