Convener Professor John Archer CBE FREng FRSE
Director David Caldwell
Universities Scotland
53 Hanover Street, EdinburghEH2 2PJ
Tel 0131 226 11 11 Fax 0131226 11 00
Web www.universities-scotland.ac.uk
Scottish Charity No . SC 029163
Ref : DC/MM/9-1-4/ 9-05-0 7
26 January 200 6
Ms Gill Troup
Head of Higher Education and Science Division
Enterprise Transport and Lifelong Learning Department
The Scottish Executive
Europa Building
450 Argyle Street
Glasgow G2 8LG
Dear Gill
Consultation on The Student Fees (Specification) (Scotland) Order 2005
The Universities Scotland response to the consultation paper accompanies this letter. That response addresses specific issues in the consultation paper's Annexes A-D . I wish to draw the following associated issues to your attention.
The Principals have asked me to express their concern over the timescale which has evolved in respect of the level of student tuition fees being set for the academic year 2006-07. Universities Scotland's view, expressed in the response to the initial consultation in May 2005, was that the Scottish Executive should seriously consider the option of applying no general fee increase in 2006-07, using that year to assess the impact of higher fees in England prior to making any appropriate adjustments in 2007-08 on the basis of hard evidence. Although it was our preference that there be no general fee increase in 2006-07, if a higher general fee level was to be set for that year, we strongly favoured a small increase. The proposed amendment to the fees regime is being introduced very late in this preceding academic year. Prospective students have already made applications without full knowledge of what the fees regime will be for the academic year 2006-07 . The Principals ask that the Scottish Executive ensures that current information available to prospective students and to institutions is comparable in accuracy and quality to the information available to students in England . They feel it is imperative that prescribed student tuition fee levels and information thereon should maintain the competitiveness of Scottish higher education institutions in the national and global market, promote the high quality and value for money of Scottish higher education and not adversely affect the wider access agenda .
Universities Scotland reiterates its view, expressed in its response in May 2005 that, if and when any increase in the general fee level does take effect, provision should be made for students from less well-off families in other parts of the UK to receive bursary support equivalent in value to the bursaries which would be available to them in their own countries. Universities Scotland understands that a bursary of £300 per student may be made available from the additional funds raised but this will compare unfavourably with bursaries likely to be on offer to students in England . In our response to Annex D of the consultation paper we have highlighted that the term `fee waiver' is misleading . The full fee will still have to be paid by or on behalf of the student . Higher education institutions are anxious that current cash-flow arrangements from fees are maintained .
Institutions will have to alter their administrative processes substantially to accommodate the proposed range of fee categories which will arise . The issue of domiciliary evidence may become problematic . Institutions aim to have efficient administrative systems and there is concern in the sector that the implementation of the new fee regime will significantly compromise administrative efficiency .
It would be helpful to know if the Scottish Executive intends to monitor the effect of the proposed new fee regime in neutralising cross-border flows and how this will be done, bearing in mind that students who start their studies in academic year 2006-07 were not fully conversant with the Scottish Executive policy when they decided to apply to a Scottish institution.
If you require clarification, please contact me.
Kind regards
Yours sincerely
David Caldwell
Director
Consultation on The Student Fees (Specification) (Scotland) Order 2005
As a member of the Implementation Advisory Group on Tuition Fees, Universities Scotland welcomes this opportunity to comment on the draft Order . Universities Scotland has already expressed its concern to officials in the Scottish Executive's Higher Education and Science Division (HESD) over the timescale which has evolved in respect of the level of student tuition fees being set for the academic session 2006/07 under powers provided in the Further and Higher Education (Scotland) Act 2005 . Universities Scotland also has concerns that the information generally available about the changes planned in Scotland compares unfavourably with the information which has been widely available for some time about the planned changes in England. Universities Scotland has indicated to HESD officials that it is keen to work with them and other relevant agencies to facilitate the higher education sector's, as well as prospective students', understanding of the likely fees regime for academic session 2006/07, subject to the limitations arising from the timescales involved in securing Ministerial clearance and Parliamentary approval for the specific proposals . Universities Scotland feels it is imperative that prescribed student tuition fee levels and information thereon should maintain the competitiveness of Scottish higher education institutions in the national and global market and promote the high quality and value for money of Scottish higher education .
The consultation documentation asks that responses be clear as to which parts of the consultation paper are being addressed . Accordingly this response is categorised in line with the lettered Annexes in the consultation documentation.
Annex A - The Draft Student Fees (Specification) (Scotland) Order 2005
Universities Scotland wishes to highlight three points .
Point 1 .
Article 1 (2)(b) - the definition of 'existing student'.
Universities Scotland has concerns that the definition may not be adequately worded to include students who deferred, until academic year 2006/07, starting on a course to which they had been accepted for academic year 2005/06 . Universities Scotland is aware that the information note which was made available by HEED to all higher education institutions at the end of November 2005 indicated that students who deferred before August 1 2005 are intended to be classed as `existing students' . The information note stated 'SAAB will pay the fee at £1,200 for students who deferred before 1 August 2005 and the new higher rate for any subsequent deferring entrants .'
Article 1(2)(b) states 'an "existing student" is any student who has been accepted on to a course, at an educational institution, which commences in any academic year before an academic year commencing in 2006 and is continuing to study that course ;'. Universities Scotland seeks assurance that the `existing student' definition includes such deferred students.
Point 2.
Article 1(3 )
Universities Scotland feels that the inclusion of the phrase 'but before 1st January 2007' will not take into account flexible-start full-time undergraduate degree courses which some higher education institutions provide as a commitment to widening access and participation, whereby students are permitted to commence or recommence studies at the beginning of any semester / trimester This issue was highlighted by at least one higher education institution in its response to the Scottish Executive's Funding For Learners Division's consultation, `Review Of Distribution Of Payments For Higher Education Student Support' in April 2005.
It would appear that the inclusion of the date 'Ist January 2007' in the Draft Student Fees Order does not take account of, or may not apply to, such courses which start at times in the academic year 2006/07 other than the `usual' start time of autumn 2006.
Universities Scotland asks that the Draft Student Fees Order takes full account of such flexibility, thereby being consistent with widening access and participation policies .
Point 3 .
This point does not relate to a specific arti cle .
The draft Order does not take account of Scottish and non-UK EU domiciled self-funding students, for whom Universities Scotland understands, from the HESD information note mentioned at point 1 above, it is proposed SAAS will pay the difference between £1200 and £1700 . Universities Scotland acknowledges, as stated in the covering letter to the consultation, that the Draft Student Fees Order is not be able to address this issue but asks whether it will be addressed in amendment to existing Regulations in respect of student support from the Student Awards Agency for Scotland .
Annex A - Explanatory Note
It is acknowledged that the Explanatory Note is not part of the Order. Universities Scotland reiterates that the definition in article 1(2)(b) at point 1 above may not be consistent with what is stated in the Explanatory Note; `Whether a student is a new student or an existing student is determined by when ( i.e . in what academic year) the student is accepted onto a course, rather than when the student actually starts the course .'
Paragraph two of the Explanatory Note states that 'Article 2(5) provides that existing students i .e. those who have started a course already (whether in or outwith Scotland), who are continuing that course at a fundable body shall pay a fee of £1200' . Articles 1(2)(b) and (c) refer to `educational institution' which is defined in Article 1(2)(c) as 'not limited to a fundable body' . Although there appears to be no inconsistency in terminology in the Draft Student Fees Order with respect to 'educational institution' and 'fundable body', nevertheless Universities Scotland feels that any inconsistency in terminology could be problematic .
Annex B - Executive Note
Policy Objective s
With reference to our point 1 at Annex A, it is noted that paragraph six makes reference to a fee level of £1200 for 'existing students who commenced their studies in earlier academic years'. Again it is hoped this includes students who deferred before 1 August 2005.
Financial effects
Universities Scotland notes that the Scottish Executive acknowledges that 'This instrument may present cost implications to business, charities or public bodies, in terms of increased costs of administering proposed changes .' As charitable bodies, higher education institutions anticipate that the proposed changes will result in increased administration costs which they will have to absorb.
Annex C - Statement of Reasons (to be laid with Draft Order)
No comment other than that it is hoped that reference to `existing students' includes relevant deferred students.
Annex D - Regulatory Impact Assessment 2005/38 (RIA)
Option 3 - Implement the proposed increase in fees
Universities Scotland notes that 'The proposed new fee levels are designed to maintain the current levels of cross border flow .' Universities Scotland supports this aim though it notes that the RIA, at section 5, Costs and Benefits, acknowledges that the proposals will result in students from the rest of the UK having to pay increased fees to attend Scottish higher education institutions, compared with current fees for such students . It is noted that the Scottish Executive anticipates a saving for such students in comparison to the likely fees regime in the rest of the UK.
Universities Scotland also notes at Option 3 that 'Additional funds in the order of £10m would be raised at the point of a 4 year roll out (2009/10)' . Universities Scotland notes the Scottish Executive's intention to introduce 'a fee waiver scheme available to all UK students from low income families not eligible for fee support from the Student Awards Agency for Scotland' and that `the administrative arrangements of this scheme would be designed in partnership with institutions .. .' . It will be important in designing the mechanism to implement this Scottish Executive policy that it is made clear that the full fee of £1700 requires to be paid by the student to the institution and that there is a separate mechanism whereby eligible students receive the 'fee waiver' from the additional funds which the Scottish Executive expects will be raised . Institutions will have to alter their administrative processes substantially to accommodate the proposed range of fee categories which will arise . Institutions aim to have efficient administrative systems and there is concern in the sector that the implementation of the new fee regime will significantly compromise administrative efficiency. Additionally, of crucial importance to institutions is the maintenance of the current cash-flow arrangements of institutions.
Universities Scotland and its member higher education institutions look forward to early discussion and clarification on the mechanism envisaged for academic session 2006/07 to allow effective and efficient administration of the proposed scheme, given that the additional funds are projected to accrue only after a four year roll out.
Section 7 of the RIA - 'Test Run' of business forms
Universities Scotland points out that while deemed in the consultation to be not applicable there will be associated increased administrative burdens on higher education institutions in identifying the correct fee for which individual students are liable in academic session 2006/07.