Earlier this month, principal Carole Kitching wrote compellingly on how the delivery of higher education in colleges is key to solving the skills gap and fostering long-term economic recovery. But if changes to further and higher education loans are implemented, this opportunity could be derailed.
In June, the government set out its vision for a new loans system in a consultation document. The changes primarily concern advanced learning loans, but also have important implications for higher national courses. They stem from the decision to cut the adult skills budget by 40% by 2015 and an overspend by the Treasury thanks to an unexpected increase in the number of private providers offering higher-level qualifications, which they’ve needed to fund.
Both of these things mean that the government will have far less money to pay for adult education and needs people to fund courses themselves. With the student number control system coming to an end next year, there’s a pressing need for it to take quick action to limit spending. Along with these issues, the consultation is a timely way of Westminster showing that they’re responding to fears about the alleged fraudulent activity at some private colleges that have access to the higher education loans.
One of the key proposals in the report is the transfer of funding and regulation of higher education qualifications below degree level to the further education loans system. In simple terms, this means that any qualifications that fall into this category will now be funded via the Skills Funding Agency rather than through the Higher Education Funding Council for England (HEFCE). Colleges and private providers that deliver higher education will be strongly affected by the move, although the consultation makes little reference to this.
A reduction in funding will make it difficult for colleges to deliver higher education
If the changes are put into place, they will seriously limit a college’s capacity to develop new higher education programmes and train people in skills that are needed by different industries.
For colleges without foundation degree awarding powers, higher-level qualifications have proved an effective way of increasing student progression into higher education and widening participation more generally. But it is highly unlikely that programmes will continue to attract funding that is equivalent to the HEFCE teaching grant and the extra cash that supports the enhanced resource costs will no longer be available.
Yet another squeeze on budgets will create a real dilemma for college leaders on whether to persist with developing higher education if there is a lack of money available to support technical subjects. Colleges are often told to grab opportunities to diversify their provision, but the government needs to recognise that this costs money.
There will be less financial support for students
The document also suggests that maintenance loans for higher-level programmes should be introduced. It’s unclear whether students taking these qualifications would still be eligible for maintenance grants or whether financial assistance would only be available through loans. If it’s the latter, it would be a very swift move by the government to reduce obligations for supporting students.
A lot of the learners who take up college-based higher education courses are older and re-entering education at a time in their lives when financial concerns are considerably greater than those faced by the majority of 18-year-old undergraduates. By making it even harder for them to pursue further education, colleges could see a real drop in numbers.
Since the raising of fees and the introduction of tuition fee loans, providers have already experienced a significant decline in part-time higher education students and this will only exacerbate the problem. Unsurprisingly, the government is pitching the proposals as an opportunity to increase student choice. But, if I was being cynical, I’d say it’s a fairly blunt way of allowing higher education to grow without placing added strain on the Treasury.
The consultation recently closed and it’s expected that the government will publish its final recommendations later in the year. Setting up the new system will take some time and it’s unlikely it will be fully operational until September 2016. Given the impending election, it’s reasonable to assume that these proposals will go through significant alterations before final decisions are made. But if they’re introduced in their current form they could seriously prevent colleges and students from making a valuable contribution to tackling the skills gap.
Stephen Batchelor is the director of higher education at MidKent College. He tweets as @sjbatch.
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