Response to the DEL consultation on the higher education funding model and the Maximum Student Numbers (MaSN) September 2014

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1 Response to the DEL consultation on the higher education funding model and the Maximum Student Numbers (MaSN) As part of the projects being implemented in the new HE Strategy for NI Graduating to Success September 2014 Page 1

2 Introduction to our submission This submission represents the collective views of the Further Education (FE) sector (six regional colleges) in response to the Department for Employment and Learning (DEL) consultation on two projects within the Graduating to Success Strategy in NI. Some FE Colleges in the sector have also submitted their own individual response. Overview of HE provision in the FE sector In 2012/2013 across the 6 regional FE Colleges there were 90,000 students enrolled across 156,806 courses. In terms of higher education facts and figures: 7% of all learners were studying Higher Education (HE) courses and 93% were studying Further Education (FE). This represents 11,453 enrolments on HE provision. The HE provision in Colleges is gradually shifting from traditional HND/HNC to Foundation Degrees. Across the Colleges provision is predominantly part-time as such learners tend to be upskilling while in work. Our average retention rate across all learners is 89% and achievement is 87% (it is worth noting that 43% of FE learners in the Colleges are from the most deprived areas in NI). However, the success rates of learners are most significant across our HE provision. Our retention rate for learners in HE provision in 2012/13 was 95% and while the achievement rate was 91%. The Maximum Student Number (MaSN) allocation to the 6 FE Colleges in 2013/14 was 4,040. Approximately 18% of all HE learners are studying at one of the 6 regional FE Colleges. The FE sector s role in delivering Foundation Degrees, HNDs and the continuing rollout of Higher Level Apprenticeships mean that the sector plays a pivotal role in meeting HE demand at an intermediate level and in delivering DEL s Securing Our Success Strategy. Page 2

3 Consultation response The teaching funding model Q1. How can a new funding model for Northern Ireland better support accessibility and flexibility? Higher Education (HE) provision within the FE sector is a cost-effective and accessible route to pathways within HE for those individuals and groups who are, for whatever reason, least likely to avail of it. This feeds directly into the government s aim of widening participation, enhancing social mobility and creating a fairer society. The vision for the new HE Strategy is supported by four key principles 1 - one of which is accessibility and this is where a strength of the FE sector lies by being able to engage with the most disadvantaged learners. Furthermore the sector has been effective at delivering HE, particular on a part-time basis to support wishing to upskill and gain a higher education qualification whilst in work. This latter point covers another one of the key principles namely flexibility. Therefore a new funding model should support accessibility and flexibility through funding module provision and the financial recognition of on-line learning. In addition, it should recognise the extent to which the NI economy would benefit from the extension of HE provision to those with potential from more economically disadvantaged backgrounds. Q2. Should all publicly funded higher education providers (delivering level 4-8 qualifications) in Northern Ireland be funded for their teaching provision under the same model? It is unlikely that a one size fits-all approach will work with regards to funding. The funding model needs to take account of the differing needs of target groups, differing priorities and ultimately the costs of delivery which may be higher for certain types of programme. These are the types of factors which need to be considered in developing the funding model. There are two sides to this argument It would seem sensible to have all publicly funded higher education providers funded under the same model for their teaching provision. So in one sense it would be good to be treated like a University for this funding also it may lead to more funding perhaps. Also the requirement to comply with FE guidelines for HE provision is a major constraint and is ultimately counter-productive in seeking to deliver high quality, flexible and cost-efficient provision. The FE sector requires guidelines which are geared specifically to the distinct needs of the sector and which value and support its unique contribution. 1 Responsive, high quality, accessible and flexible. Page 3

4 However, on the other hand having different models would create yet another funding stream to manage, and there may be unforeseen consequences if Colleges under or over achieve their MaSN (or it s equivalent in the future). Either way it is clear that more flexibility within the model is required. Maximum student numbers (MaSN) Q3. What are your views on the MaSN and are there alternative ways in which the Department might control its higher education teaching grant and student support budgets? MaSN is a restrictive measure for NI and EU domiciled students studying in NI. Given that it does not cap NI domiciled students studying elsewhere in the UK it does not effectively control the cost of student support. MaSN probably works for Higher Education Institutions (HEIs) because they are large and can vary allocations between subjects to suit demand. HEIs can therefore estimate demand and adjust according to supply. The HE provision within the FE Colleges is smaller in comparison and this makes the FE sector more sensitive to MaSN issues and to fluctuations in demand. As Northern Ireland MaSN represents only one part of DEL s financial commitment, and colleges are only a tiny part of that, the level of MaSN in colleges cannot be critical to budget control. It would be helpful if the percentage tolerance could be widened to help the FE Colleges be more flexible. Part-time provision Q4. How can increased participation in part-time provision, especially at degree level, be encouraged, and what are the main barriers to part-time study at present to both institutions and students? The barriers are cost and accessibility / flexibility of delivery especially in relation to part-time HE provision. Participation can be increased if cost to students and their employers can be reduced, and if delivery can be made as flexible as possible. One College, for example, offers a CMI Level 7 model of two days of intensive workshops every few weeks, supported by blended learning. This works well, but is very expensive to the client because the relatively small timetabled time produces very little FLU funding and therefore it is a cost recovery course. Barriers also include finance, time and entry criteria. Participation in part-time study could be increased through greater awareness of financial assistance available for lower income students. Incentives to increase participation could include, for example, the reimbursement of fees upon successful completion of studies. Furthermore, the entry criteria barrier could be addressed through greater use of APEL and related schemes. An effective sector-wide strategy where all colleges are consistently developing flexible blended learning capability will drive increased participation. Page 4

5 Finally the sector believes that the established definitions of full and part-time study are out-dated and should be reviewed as a priority. This could be replaced with a more open, flexible and responsive form of provision and to keep pace with economic demand. Alternative education providers Q5. Do you think new alternative providers in Northern Ireland could make an important contribution to the Northern Ireland economy? New providers could make a contribution if they are specialists in particular vocational areas. Alternatively if existing providers are adequately resourced they could make the same, if not, more of an impact. Underpinning this it is important that delivery providers are of sufficient scale with appropriate infrastructure, resilience and resource for effective quality delivery. Postgraduate provision Q6. What are the benefits and impacts of the postgraduate awards funded by the Department, both to individual students and to the wider Northern Ireland economy? Postgraduate awards have an immediate impact on the student by making such study financially possible. From the economic aspect these awards no doubt encourage participation in post graduate study hence developing skills and knowledge for employment. Q7. Although the Department provides core teaching funding for taught Masters courses through the HEFCE model, students are not eligible for student support through the SLC. Are there alternative ways in which the Department could support taught Masters students at local universities in areas of strategic importance? Financial incentives should be available to those studying at postgraduate level in areas of strategic importance. For example, one off grants or awards or access to the SLC. Contact details Should you wish to discuss the content of this submission further then please contact Karen Lennon at Colleges Northern Ireland. Karen Lennon, Policy & Public Affairs Manager Colleges NI, 39A Stockman's Way, Belfast, Co. Antrim, BT9 7ET Tel: / Mobile: / karen.lennon@collegesni.ac.uk Page 5