Top PDF House of Commons Library : Briefing paper : Number 7393, 1 July 2019 : Higher education funding in England

Pre-2015 reforms The Government made estimates of the percentage RAB rate on new loans from 2012 when it published proposals for changes to funding. These are discussed in some detail in Changes to higher education funding and student support in England from 2012/13. The estimated RAB rate on new loans was put at ‘around 30%’, but subsequently increased to ‘around 35%’ 25 then to 35%-40% 26 , revised upwards again to ‘around 40%’ 27 and later to ‘around 45%’. 28 These increases were largely due to changes in economic forecasts, particularly on earnings. 29 These less optimistic forecast reduce the expected cash value of repayments and or delay when they will be made. Other factors behind the increase in the RAB rate include the higher than expected level of average tuition fee loans, a change to the timing of repayment

funding and student support in England from 2012/13. The estimated RAB rate on new loans was put at ‘around 30%’, but subsequently increased to ‘around 35%’ 25 then to 35%-40% 26 , revised upwards again to ‘around 40%’ 27 and later to ‘around 45%’. 28 These increases were largely due to changes in economic forecasts, particularly on earnings. 29 These less optimistic forecast reduce the expected cash value of repayments and or delay when they will be made. Other factors behind the increase in the RAB rate include the higher than expected level of average tuition fee loans, a change to the timing of repayment threshold uprating, lower assumed repayments from the extra students who start higher education because the numbers cap is lifted 30 and improvements to the Governments loan repayment model which is used to forecast repayments and hence calculate the resource costs of

least April 2021. An equality analysis was produced alongside the consultation response. 13 This looked at the impact on different types of ‘protected characteristics’ such as age, sex, disability and ethnicity. The Spending Review and Autumn Statement 2015 made some headline announcements about funding paid through the funding council, the extension of maintenance loans to part-time students and new loans for Master’s degrees. It also announced that the discount rate applied to loans would be reduced to 0.7% and set the spending totals for the Department for Business, Innovation and Skills which will eventually feedthrough to annual funding allocations for higher education.

than half. 89 Provisional funding levels for financial year 2011-12 were for cuts of 6.4% in Scotland (excluding capital) and 12.5% in Wales. 10 Public funding in England in 2012 and later 2012 was the first year when the latest major reforms of higher education funding were implemented in England. Some but not all of these changes were recommended in the Browne Report. 11 For more details of the proposals see the note: Changes to higher education funding and student support from 2012/13. For more up-to-date information of the impact of these changes in total funding see HE in England from 2012: Funding and finance.

4. Tuition fee debate The level of tuition fees in England is the subject of much debate. In July 2017 the Institute for Fiscal Studies (IFS) published a briefing Higher Education funding in England: past, present and options for the future, which stated that English graduates have the “highest student debts in the developed world” due to the combination of high fees and large maintenance loans. Much of the recent debate around the cost of higher education has been on whether students are receiving value for money and on whether the reforms have achieved a market in higher education.

8.3 Of the remaining responses there were 516 on whether the changes to the SMSC [spiritual, moral, social and cultural] standard are required to ensure the active promotion of fundamental British values and respect for other people. A significant number of respondents indicated that they disagreed with the proposed changes, but analysis of the related comments revealed that this was because of misunderstanding the effect or raising issues that were not part of the consultation. For example, some responses questioned the definition of the fundamental British values and requested that this be opened up for further debate; others maintained that the changes extend the equality agenda and will result in the marginalisation of Christianity; and others considered that the changes are not necessary, that the standards were only amended in January 2013, and that many schools are already doing this.

• Other bursary elements such as extra week’s allowances for courses that run for longer than 30 weeks and 3 days each academic year, and practice placement expenses. Students who qualified for a bursary also had the costs of their tuition paid directly to their higher education institution by the NHS. Healthcare students could also apply for a non-income assessed reduced rate maintenance loan from Student Finance England.

Education Act 1996 they do have a duty to make arrangements to identify children in their area who are not receiving a suitable education. 21 The DfE’s guidance for local authorities explains that, while the law does not assume that a child is not being suitably educated if they are not attending school full-time, it does require local authorities to enquire what education is being provided. 22 There are no detailed requirements as to how a system of oversight should work, and it is for each local authority to decide its approach. However, the guidance emphasises that a proportional approach needs to be taken and local authorities should not exert more oversight than is actually needed when parents are providing a suitable education. It recommends that an authority should ordinarily make contact with home educating parents on at least an annual basis so that it can reasonably inform itself of the suitability of the education provided. 23

After the UK leaves the EU it will no longer receive European structural funding (of which the social fund is a part). In order to replace this funding, the Government has pledged to set up a Shared Prosperity Fund to “reduce inequalities between communities and help deliver sustainable, inclusive growth.” 20 In the short term, the draft Withdrawal Agreement would mean that the UK would continue to participate in the ESF until programmes end in 2023. The Government has additionally guaranteed to fund all European Social Fund projects that would have been funded by the EU under the 2014-2020 programme period in the event of no deal being reached. 21

The energy and skill with which so many colleagues have lobbied underlines how effectively so many hon. Members across the House represent the most needy in their constituencies. We have already made £1.4 billion available this year to deal with maintenance problems. Overall, we are spending more on school buildings in every year of this Parliament cumulatively than the previous Government spent in every year of their first two Parliaments. But I want to do more, which is why today I am launching a new privately financed school building programme to address the schools in the worst condition, wherever they are in the country. The programme will be open to local authorities and schools that had been due funding via BSF but, critically, it will also be open to those which, despite real problems, had never been promised BSF funding. I believe strongly that those in genuine need should receive the funding they deserve and that no part of the country should be favoured over any other. Individual schools and local authorities will all be able to apply, and I am launching the application process today. The scheme will be rigorously policed to ensure that we do not incur the excessive costs incurred by previous privately financed schemes. The programme should cover between 100 and 300 schools, with the

2.5 The government wants to ensure that families get the best value for school uniforms. A 2015 Department for Education survey found that nearly one-fifth of parents and carers reported that they had suffered financial hardship as a result of purchasing their child’s school uniform. The survey found that parents and carers are significantly less likely to report that they have experienced hardship if schools allow them to purchase uniforms from a variety of suppliers. The government wants to ensure that effective competition is used to drive better value for money and will therefore put existing best practice guidance for school uniform supply in England on a statutory footing. This will ensure that schools deliver the best value for parents by avoiding exclusivity arrangements unless regular competitions for suppliers are run. (pg 11)

least disadvantaged groups still remained substantial in 2018 and the overall MEM gaps increased in absolute and relative terms in 2016 and 2017. UCAS breaks down some of its group entry rates by the ‘tariff’ level of different universities. There are three tariff groups; high, medium and low and these refer to average grades of students admitted. High tariff institutions where entrants have higher grades are generally considered more prestigious and harder to get into. This type of analysis therefore can shed light on a different aspect of widening participation. In 2018 only 2.7% of 18 year olds from England who were eligible for FSM at school got into one of these high tariff universities. The rate has increased over time from less than 1.5% in the period 2006 to 2010, but was still well below the 10.0% for the non-FSM group. The size of the relative gap has fallen over time; in 2006 the non-FSM group were almost six time as likely to go to a high tariff university and this fell to below four times as likely in 2015 onwards. However, the absolute gap has increased in recent years from six percentage points in 2012 to more than seven points in 2016, 2017 and 2018.

at UK schools and colleges, particularly at independent schools. In the first half of the period there was a clear increase in the proportion of state school pupils entering Oxford. This increased from 43% in the early 1970s to 52% in 1981. The level at Cambridge was more erratic, varying between 45% and 50% for most of this period. The rate at both institutions fell noticeably in the mid-1980s. New definitions were brought in from 1986/87 and trends since then have been more stable. Cambridge overtook Oxford in 1988 and took a higher percentage of state school pupils in each subsequent year other than 2011. There was little change at either institution during the early/mid-1990s. Rates at both increased to more than 50% in the late 1990s and early part of this century. This increase has generally been sustained in recent years and both institutions saw record highs in 2018; 61.3% at Cambridge and 58.9% at Oxford.

Systems. These systems bring together the NHS, local authorities and other local partners with the aim of ensuring women and their families receive seamless care, including when moving between maternity or neonatal services or to other services such as primary care or health visiting. By spring 2019, every trust in England with a maternity and neonatal service will be part of the National Maternal and Neonatal Health Safety Collaborative. Every national, regional and local NHS organisation involved in providing safe maternity and neonatal care has a named Maternity Safety Champion. Through the Collaborative and Maternity Safety Champions, the NHS is supporting a culture of multidisciplinary team working and learning, vital for safe, high-quality maternity care. Twenty Community Hubs have been established, focusing on areas with greatest need, and acting as ‘one stop shops’ for women and their families. These hubs work closely with local authorities, bringing together antenatal care, birth facilities, postnatal care, mental health services, specialist services and health visiting services.

8.3 Of the remaining responses there were 516 on whether the changes to the SMSC [spiritual, moral, social and cultural] standard are required to ensure the active promotion of fundamental British values and respect for other people. A significant number of respondents indicated that they disagreed with the proposed changes, but analysis of the related comments revealed that this was because of misunderstanding the effect or raising issues that were not part of the consultation. For example, some responses questioned the definition of the fundamental British values and requested that this be opened up for further debate; others maintained that the changes extend the equality agenda and will result in the marginalisation of Christianity; and others considered that the changes are not necessary, that the standards were only amended in January 2013, and that many schools are already doing this.

The proportion of students who disclosed a mental health condition to their university has increased rapidly in recent years. Source: Equality and diversity data, OfS Surveys of students have found much higher rates of mental ill health than those disclosed to universities. A recent survey found that 21.5% had a current mental health diagnosis and 33.9% had experienced a serious psychological issue for which they felt they needed professional help. Survey responses are confidential and are likely to give a better idea of the full extent of mental ill health.

Library briefing paper, Vice-chancellors’ pay in higher education institutions in England , 20 June 2018 outlined the policy issues and debate. The Office for Students (OfS) has a role in senior staff pay as part of its remit to ensure value for money for the taxpayer. In February 2019 the OfS published its first annual report on senior staff renumeration, Senior staff remuneration Analysis of the 2017- 18 disclosures . The report showed that the majority of vice-chancellors received an increase in basic salary or total remuneration between 2016-17 and 2017-18.

An additional concern with the introduction of the government’s illustrative example is the high marginal tax rate that individuals would face under the new system. Since repayments on the postgraduate loan would be made “concurrently” with undergraduate repayments, individuals earning between the lower loan repayment threshold (of £21,000 in 2016 prices) and the higher income tax-rate threshold would face marginal tax and employee NICs rates of 50%, while those earning above the higher rate tax threshold would face marginal rates of 60%. This could potentially affect the labour supply decisions of young postgraduates and hence may have wider consequences for growth and productivity. 31

Department for Education advice on the Registration of independent schools provides more information. In particular, on the registration process, it states: The Secretary of State must decide whether the independent school standards are likely to be met before a school can be registered. Once an application for registration has been received, the Secretary of State must notify Ofsted of it and Ofsted must then inspect the institution and make a report to the Secretary of State on the extent to which the school is likely to meet the independent school standards upon registration. […] The Secretary of State will consider the report from Ofsted and any other evidence relating to the independent school standards which is available in coming to a decision. If the Secretary of State decides that the standards are likely to be met once the institution becomes registered as an independent school then it must be registered as such. 2

The Apprenticeship Grant for Employers of 16 to 24 year olds (AGE 16- 24) was introduced in February 2012, and provided £1,500 to small businesses hiring young apprentices. In 2013/14 advanced learner loans were introduced, and individuals aged 24 and over were required to take these loans to pay half of the cost of advanced level apprenticeships. This was the first time that apprentices were expected to contribute to the costs of their learning, and led to an 88% fall in the number of people aged 25+ starting an advanced or higher apprenticeship. In February 2014 the Skills Funding