The future for higher education and employer engagement

1. The future for higher education and employer engagement Chris Millward 26 May 2011

2. A new settlement for higher education___________________________________________________________________________________________________________________ • the Independent Review of Higher Education and Student Finance (12 October) • the coalition Government’s first spending review (20 October) • the Minister for Higher Education’s statement on student finance (3 November, subsequently refined in December and February) • BIS grant letter to HEFCE (20 December) • guidance letter to the Office of Fair Access (10 February)

3. Spending Review headlines_______________________________________________________________________________________________________________________ • £2.9bn (40%) reduction from £7.1bn higher education resource budget by 2014-15 • substitution of HEFCE funding for student loans, with possibly more cuts to meet student support pressures • 44% reduction in capital by 2014-15 • flat cash protection for science and research (9% real terms reduction) • other cuts in public spending that will impact on higher education

4. Illustrative income 2010-11 to 2014-15

5. The Browne proposal (highly simplified) Comprehensive and Variable fees progressive student a and increased competition support Better information Higher quality and Graduate and course choice more efficient jobs courses

6. Key dilemmas______________________________________________________________________________________________________________________ • controlling student finance budget whilst facilitating greater market dynamism in the sector • degree and nature of the regulatory regime • quality vs price/cost • managing supply-side reform including entry of new providers • establishing a ‘level playing field’ – including a unified set of accountability and regulatory requirements for all providers • mitigating against unintended consequences e.g. impact on part-time, postgraduate economy and overseas market

7. Key activities next 6 months______________________________________________________________________________________________________________________ • OFFA assessment of access / outreach proposals (April to July) • Government White Paper (June?) • HEFCE consultation on post-2012 teaching funding – transition, new funding, student finance controls (June and autumn) • Development of new regulatory approach (from White Paper) • Key Information for Students proposals (July) • Beginning of 2012 admissions cycle (from autumn)

8. Managing the transition period__________________________________________________________________________________________________________________________________ • inform the implementation of the new funding settlement working to protect the interests of students and the sector • discharge our funding and regulatory responsibilities in a fair and proportionate way • support institutions through the change process including governing bodies • provide people with clear and unambiguous information • build on the strength of our relationships with institutions by developing new forms of partnership working and ‘co-regulation’

9. Workforce development programme _______________________________________________________________________________________________________________________ • First order objectives • 35,000 additional entrants into HE co-funded by employers by 2010 • 100,000 enrolments to Foundation Degrees by 2010. • Additional objectives • test the market and levels of demand from employers and employees • stimulate HE institutional change • promote access to and progress through HE for a wider range of learners, particularly those in the workforce without previous experience of HE • build a platform to achieve growth in HE based workforce development • generate information to inform policy development.

10. Workforce development - progress _______________________________________________________________________________________________________________________ • growth in work-based students co-funded by HEFCE • 9,300 in 2008-09 (2,400 in SMEs) • 19,800 in 2009-10 (6,900 in SMEs) • 35,000 in 2010-11 • growth in employer income • £4.2M in 2008-09 (54% public sector) • £12.8M in 2009-10 (56% public sector) • evidence of change, impact, and sustainability? • programme-wide evaluation • transition plans of institutions

11. Shared responsibility _______________________________________________________________________________________________________________________ Government Employers Individuals

12. Contributing developments -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- • continued co-funding in 2011-12 • transition and sustainability discussions, drawing on July evaluation report • improving public information on the student experience and employment prospects • student finance for 0.25 fte studies and above • scope for internships, placements and employability activity within access agreements • ‘off-quota’ arrangements for fully employer-funded provision (?) • more support for higher level apprenticeships • sustained commitment to HEIF from 2011-12 to 2014-15

13. New challenges-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- • For HEFCE: • promoting employer engagement in a different way: information, co-ordination, regulation and funding. • For universities and colleges: • focusing on the most successful WFD activities • increasing the efficiency of WFD models • integrating WFD projects with other employer facing activities (e.g. employability; knowledge exchange) • innovating in response to new imperatives (e.g. part-time students’ expectations and choices)

14. Thank you for listening c.millward@hefce.ac.uk