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Interim Report Review of Higher Education Funding and Student Review of Higher Education Funding and Student Finance Arrangements in Wales Interim report December 2015 Review of Higher Education Funding and Student Finance Arrangements in Wales Interim report Overview This document presents a factual summary of evidence considered by the Review of Higher Education Funding and Student Finance Arrangements in Wales. Further information Enquiries about this document should be directed to: HE Review Team Higher Education Division Skills, Higher Education and Lifelong Learning Directorate Welsh Government Cathays Park Cardiff CF10 3NQ e-mail: [email protected] Related documents Independent Review of Higher Education Funding and Student Finance Arrangements in Wales: Call for evidence (2014) © Crown copyright 2015 WG26503 Digital ISBN 978 1 4734 5367 8 Contents Foreword 5 Executive summary 7 Purpose of the report 7 Remit 7 Approach 7 Policy and context 8 The higher education sector in Wales 9 HE funding and student finance arrangements 10 Emerging themes and messages from the evidence base 11 Next steps 17 1. Introduction 18 1.1 Purpose of the report 18 1.2 Remit of the Review 18 1.3 Review Panel membership 18 2. Approach 20 2.1 Guiding principles 20 2.2 Stakeholder engagement 22 2.3 Review Panel meetings 22 2.4 Focus groups 22 2.5 Call for evidence 23 2.6 Other evidence 23 3. Policy and context 24 3.1 The higher education policy landscape 24 3.2 Public sector funding 28 3.3 Wales’ socio-economic context 29 3.4 Value of higher education to the individual and to society 35 4. The higher education sector in Wales 41 4.1 Introduction 41 4.2 Student numbers 43 4.3 Cross-border flows 46 4.4 Qualifications obtained 47 4.5 Destinations of leavers from higher education in Wales 48 4.6 Quality Assurance Agency review outcomes 49 4.7 National Student Survey results 49 4.8 University rankings 50 4.9 Higher education delivered by further education institutions 51 5. HE funding and student finance arrangements 54 5.1 Student finance arrangements in Wales 54 5.2 Student finance arrangements in the UK and elsewhere 56 5.3 Some facts and figures 59 5.4 Resource Accounting and Budgeting provision (RAB charge) 62 5.5 Provisional baseline analysis 63 5.6 University tuition fee levels in Wales 63 5.7 University funding in Wales 65 6. Emerging themes and messages 70 7. Next steps 112 Appendix A: Review Panel terms of reference 113 Focus 113 Key considerations 113 Approach 114 Governance and working style 114 Appendix B: Attendees at Review Panel meetings up to 17 September 2015 115 External stakeholders 115 Welsh Government representatives 116 Appendix C: The call for evidence questions 117 Appendix D: Enrolments at Welsh HE institutions by subject, level and mode of study, 2013/14 119 Appendix E: Student finance arrangements in Wales, England, Scotland 120 and Northern Ireland Appendix F: Fee grant payments – top 20 RUK institutions 2013/14 130 Appendix G: Focus groups – summary of key findings 131 Appendix H: Funding after loan repayment charts 133 Appendix I: Financial factors influencing student recruitment and retention – references 136 Appendix J: Part-time enrolments at UK HE institutions 2011/12 to 2013/14 137 Appendix K: Part-time undergraduate Welsh-domiciled students at all UK HE institutions by intensity 138 Appendix L: Access to higher education in Wales 139 Appendix M: Type of university attended by student background: Wales, Scotland and England 140 Appendix N: Evidence provided to Review Panel 142 Figures and tables Table 1: Population projections (000s) of 15 to 19-year-olds 2010‒22 30 Figure 1: Population projections for ages 18‒24, Wales 30 Figure 2: Projections of employment by qualification in Wales 2002‒2022 33 Table 2: Wales – employment by occupation and qualification (degree or no degree) 34 Figure 3: A bi-dimensional categorisation of the wider benefits of higher education 39 Figure 4: Higher education institutions in Wales 41 Figure 5: Students enrolled at Welsh HEIs 2003/04 to 2013/14 (including the OU) 44 Table 3: Students enrolled at Welsh HEIs 2013/14 44 Table 4: Number of enrolments of Welsh-domiciled students at UK HEIs by year, level, and mode of study, 2013/14 45 Figure 6: Cross-border flows 2003/04 to 2013/14 47 Table 5: The number of qualifiers from Welsh HEIs by level of study and year, 2013/14 48 Table 6: Destination of Welsh-domiciled qualifiers by employment status and location of study, six months after qualifying from university, DLHE survey results, 2013/14 49 Table 7: NSS benchmark information 2014 and 2015 50 Table 8: The Complete University Guide and Guardian University Guide rankings 51 Table 9: Home and EU fundable completed enrolments for FEIs in Wales directly funded by HEFCW, 2012/13 52 Table 10: Number of enrolments franchised in from HEIs and taught at FE institutions 2012/13 52 Figure 7: Matrix of characteristic-based groupings: tuition fees versus development of support system 59 Table 11: Amount of full-time student support awarded or paid (£m) in 2012/13 and 2013/14 60 Table 12: Amount of part-time student support awarded (£m) in 2012/13 and 2013/14 61 Table 13: Distribution of Tuition Fee Grants awarded to applicants domiciled in Wales and EU 2012/13 – 2014/15 61 Table 14: Tuition fee income to Welsh HEIs from other UK students 2012/13 – 2014/15 61 Figure 8: Loans and repayment 62 Table 15: Gross average tuition fee levels for all undergraduate full-time students by HEI 64 Table 16: Postgraduate tuition fees 2015/16 64 Table 17: Projected income of Welsh HEIs, with average known fees and tuition fee grant, cash terms 65 Figure 9: Projected income of Welsh HEIs, with average known fees and tuition fee grant, cash terms 66 Table 18: Total net income for Welsh HEIs 2011/12 to 2013/14 66 Table 19: Welsh Government grant allocation to HEFCW for the period 2012‒13 to 2015‒16 67 Table 20: HEFCW allocations 2011/12 – 2015/16 67 Figure 10: State support for student spending power across the UK 2014‒15 80 Table 21: Student grant in the UK in 2014‒15 80 Table 22: Enrolments at Welsh HE institutions by subject, level and mode of study, 2013/14 119 Table 23: Comparison of AY 2015/16 full-time undergraduate student support in each of the UK administrations 120 Table 24: Comparison of AY 2015/16 part-time student support in each of the UK administrations 123 Table 25: Comparison of AY 2015/16 postgraduate student support in each of the UK administrations 125 Table 26: Comparison of AY 2015/16 miscellaneous student support in each of the UK administrations 126 Table 27: Comparison of the support each UK administration has pledged to provide for armed forces personnel and their families in AY 2015/16 127 Table 28: Comparison of HE Hardship Funds for AY 2015/16 in each of the UK administrations 128 Table 29: EMA commitments each UK administration has pledged to support 129 Table 30: Fee grant payments – top 20RUK institutions 2013/14 130 Figure 11: Funding after loan repayment: Funding per undergraduate full- time student studying at HEI by domicile, country of study, funding item and year (£, 2013/14 prices) 133 Figure 12: Funding after loan repayment: Funding per undergraduate full- time student studying at HEI in England, by domicile, funding item and year (£, 2013/14 prices) 134 Figure 13: Funding after loan repayment: Funding per undergraduate full- time student studying at HEI in Wales, by domicile, funding item and year (£, 2013/14 prices) 135 Table 31: Part-time enrolments at Welsh and UK HEIs 2011/12 to 2013/14 137 Table 32: Part-time undergraduate Welsh-domiciled students at all UK HEIs by intensity (FTE), 2013/14 138 Table 33: Part-time undergraduate Welsh-domiciled students at all UK HEIs by intensity (FTE), 2013/14 138 Table 34: Part-time undergraduate Welsh-domiciled students at all UK HEIs by intensity (FTE), 2013/14 138 Figure 14: University attended by student background ‒ Wales 140 Figure 15: University attended by student background ‒ Scotland 141 Figure 16: University attended by student background ‒ England 141 Foreword As the twenty first century moves on it becomes ever clearer that those countries that have greater levels of higher skills in their populations and a vibrant research base will thrive both economically and socially. The development of higher level skills is based on a strong system of higher education; and in the period since devolution, the Welsh Government has been committed to the sustainable funding of such a system. Also, the period since devolution has seen steadily divergent systems across the four UK nations. Given the benefits of higher education both to individual students and to Wales as a whole, it seems reasonable that the costs should be shared. But how should those costs be shared and which aspects of the costs of higher education should fall on the Welsh Government and which on the individual are big questions, and Wales is not the only nation that has addressed such questions. It is right, then, that Wales should seek to identify a means of funding higher education that enables individuals to benefit from higher education and for Wales’ universities to help to drive economic performance and social cohesion. I am very privileged to have been asked by the Welsh Government to lead this Review of Higher Education Funding. I am further privileged by the quality of the experts who have given their time to sit on the Review Panel; and also by the cross party nature of those experts.
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