Student Loans Company

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Student Loans Company Annual Report and Accounts 2 019 -20 Annual Report Contents 01 Chair’s Statement 04 02 Chief Executive’s Foreword 06 03 Strategic Report 08 04 Remuneration and Staff Report 34 05 Governance Statement 50 06 Parliamentary Accountability and Audit Report 62 07 Financial Statements 74 Chair’s Statement 01 01 Chair’s Statement It is my pleasure to introduce SLC’s Of course, just like every other During 2019-20, SLC has not Compliance function and the everything that we can to improve Annual Report and Accounts for organisation, SLC has faced only delivered our core financial development of both a Workforce our customers’ experience. There the financial year 2019-20. It is a unprecedented challenges in the services to students but also Strategy and a People Strategy. is still much more that we can do to story of continued success in again final months of 2019-20 due to maintained the momentum of In March, we completed the provide an intuitive, right-first-time delivering our stakeholders’ key the COVID-19 pandemic. I have our transformational Evolve transfer of SLC’s Pension Scheme and trusted service to applicants, priorities. A great deal has been been impressed by the way our Programme. One key achievement to the Civil Service Pension students and repayers, one where achieved and I would like to put leadership team has transformed was the implementation of the Arrangements, a move that has they no longer need to telephone on record my thanks to our staff, our delivery capability from a More Frequent Data Sharing made our pension arrangements or write to us. Our task is to evolve shareholders, Executive Directors largely office-based operation to an project, whereby HM Revenue and both more sustainable for the future into a leaner company with an and Non-Executives for their energy organisation which is substantially Customs (HMRC) provides near and also provides a competitive increasingly skilled workforce, one and dedication throughout the year. home-based. real-time data on the repayments element of the reward package that that our customers will instinctively made by borrowers: this has we are able to offer to our staff. have confidence in. I would in particular like to I would also like to pay tribute to reduced the amounts that have wholeheartedly thank my two the flexibility and adaptability of all The Government’s Tailored Review been over-repaid by customers. A immediate predecessors in the role our staff and their willingness to of SLC – a standard review process second key part of Evolve this year of Chair of the company. For six take on new ways of working. All for all Non-Departmental Public was the development of a facility years, Christian Brodie successfully of this has depended on the rapid Bodies - was published last July. for applicants which enables them led SLC through a period of activation of our business continuity It affirmed the continued strategic to digitally upload the supporting unprecedented growth – in terms of plans and protocols for the rollout value of the company in the delivery evidence for their loan application the number of customers we serve, of technology that has enabled of student finance services for the Peter Lauener (rather than having to post these the number of financial products SLC to safely deal with this year’s UK. We have already implemented Chair items to us). This demonstrates our we provide to students and the size applications for financial support for several of the recommendations commitment to providing the kind of the loan book that we manage. the 2020/21 academic year, and to from that report – for example, of experience that our tech-savvy Professor Andrew Wathey then ably make this transition quickly. the rationalisation of our key customers expect to see in their took up the reins as Interim Chair performance indicators – and made At the time of writing, the pandemic everyday lives. until my appointment. I am deeply progress with many others. I believe is a critical focus for the company. indebted to both, and I am grateful One of our key business objectives that recommendations to work with The two key priorities in SLC’s for the support that they have given for the year was to “improve shareholders to simplify existing response to the ongoing situation me as incoming Chair. financial management through a policy and crucially to bring forward are: to protect the health and well-managed, skilled, engaged and the timetable for commissioning of We are also indebted to Natalie wellbeing of employees, and to properly rewarded workforce”, and new policy will be key to building Elphicke who stepped down as continue to deliver core services to SLC made progress in this area, further success in the future a member of the Board this year, customers. with stronger financial planning through the Evolve Programme. and warmly welcome two new and controls, the establishment members, Charlotte Moar and As we move into the 2020s SLC’s of a new Enterprise Risk and Stephen Tetlow, who both have primary focus will be on doing already provided a wealth of insight to our discussions. 4 5 Chief Executive’s Foreword 02 02 Chief Executive’s Foreword I am pleased to report that 2019- performing their roles from home, There has, for example, been shape of the company in a way that Our hard work will enable our 20 has been a successful year all with the minimum of disruption major progress in updating our will continue to meet the needs of student customers to invest in their for SLC. We again exceeded the to the services that we continued to underpinning technologies; this our customers, shareholders and futures through higher and further majority of our core business provide to our customers. includes the implementation education partners over several education. I believe that this is an targets and at the same time This success story was of course of a new core HR and financial years ahead. organisation that is quite capable drove forward our strategy to management ERP system, further of continuing to succeed in what underpinned by the dedication of What SLC achieves has not always transform our technology and progress on moving to cloud-based may be challenging times ahead. In staff and the strong leadership and been well communicated, and ever ways of working which will deliver platforms and the deployment these unprecedented times, I want commitment of my colleagues. since I first joined the company, I our goal to provide increasingly of technology which integrates you to know that SLC will be ready I am pleased to have this timely have felt it was important that we intuitive, joined-up and trustworthy our data and processes. We also and able to continue to meet the opportunity to put on record communicate and engage better digital services both to our student further enhanced the security of needs of our customers. my thanks for their remarkable with our customers – with students, customers and to our Government our systems, with the completion achievement in putting SLC onto a applicants – perhaps with their shareholders and partners. of a new data anonymisation stable footing. parents too – and of course also I am proud of how our team has and encryption programme and The last month of this year has with those former students now responded to the challenge posed upgraded cyber defences. And confirmed what I already knew: that repaying their loans. It means by the COVID-19 pandemic. we are poised to deliver major SLC has committed, conscientious communicating better with our Within just a month of the UK improvements in our digital services and resourceful people at all Government shareholders, with Government’s announcement to customers during the months Paula Sussex levels throughout the company. our partners throughout the higher of restrictions for people leaving ahead. Chief Executive This bodes well for the future, and further education sectors, and their homes, over 99% of those as we continue to drive forward This year, there was also good also crucially within our teams and SLC staff whose roles could be together with the operational progress in the implementation of within the company as a whole. We performed from home had been transformation of the company. our People Strategy, developing have made significant progress in provisioned with the necessary During 2019-20 we have already a new set of career pathways this during 2019-20 that will stand equipment and technology to passed major milestones in our supporting the development of the us in good stead for the future, do so. This achievement meant longer-term transformation, the skills that we need for the future, in particular reaching out to our that SLC transitioned from a Evolve Programme, which will build alongside an expanded graduates customers in the forums of their predominantly office-based the capacity of our technology and apprentices programme. choice – whether this is via our organisation to one where 90% of and workforce in order to meet the We have already seen a clear many social media channels or, its 3,500 staff were successfully challenges ahead. improvement in our employee for example, via a new outreach engagement score, and this further programme whereby all my development of “our team” will be a Executive Directors now spend time key focus in the year ahead. For the visiting higher and further education longer-term, we also developed a institutions across the UK to spend new Workforce Strategy, which now time talking to students and Higher provides a comprehensive roadmap and Further Education providers. for achieving the future size and 6 7 03 The Strategic Report Contents 3.1 About SLC 10 3.2 Core Business 11 3.3 Performance 12 3.4 Strategic Challenges 21 3.5 Environment, Sustainability and Corporate Responsibility 25 3.6 Risk 27 3.7 Financial Review 28 8 9 The Strategic Report 03 3.1 3.2 About SLC Core Business SLC's Mission SLC is a UK public sector Memphis Building, Lingfield Point, Wales – these are in Darlington and services for Scotland and Northern contingent repayment” (ICR) organisation established to provide McMullen Road, Darlington, DL1 Llandudno Junction respectively.
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