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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