Higher education in further education colleges

1. Where can a college get guidance on how to complete its Higher Education in Further Education: Students Survey (HEIFES) return?

We expect further education colleges that receive direct HEFCE funding to be familiar with, and refer to, HEFCE's annual HEIFES request for data. This sets out the timetable and process, and provides detailed answers to questions such as:

• What is considered a non-completion?
• How is the full-time equivalent calculated for part-time students?
• How should an institution deal with non-standard years of study?

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2. How can an institution download their grant tables?

Institutions can download grant tables and letters to institutions from HEFCE's extranet. We send out access keys and instructions on using the extranet to the head of institution.

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3. Will changing the proportion of students in each price band affect an institution's contract range, and if so how can I model the effect?

There are a set of templates at the end of the grant tables which allow you to model changes for your institution. Notes for templates within the grant tables give you guidance on their use.

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4. How is student number control calculated, and what happens if an institution over-recruits, is given additional student numbers, or if a partner pulls out? How can I model the effect?

'Funding for universities and colleges in 2010-11' (HEFCE Circular letter 02/2010) informed institutions that we would shortly be defining a new limit on intakes for 2010-11. In addition we advised institutions that the Council would stipulate a maximum number of HEFCE-fundable and employer co-funded full-time undergraduates and PGCE admissions in 2010-11, and that this number would be based on 2008-09 HESA/ILR data.

Our Letter to institutions providing provisional 2010-11 Student Number Control (24 February 2010) is the key communication on the student number control. It:

• notified institutions of their provisional limit for 2010-11
• provided a detailed explanation of the scope and calculation of the student number control
• identified whether institutions were required to respond to provide more information on transfers for 2009-10, or address discrepancies in data
• described the arrangements for monitoring compliance with the limit
• informed institutions how to seek changes to the student number control as the result of amendments to underlying data
• invited appeals to amend the 2010-11 limit.

We wrote to institutions in June 2010 to provide information on the implications of recruitment in 2010-11 and beyond, for those institutions that exceeded their permitted limits on entrants in 2009-10. Annex A to this letter contains worked examples of the impact of various recruitment levels.

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5. Where can I find information about the scale of higher education provision in further education colleges and about HEFCE policy in this area?

We have provided an overview of higher education in further education on our web-site. This includes general information, key facts, policy documents and more detailed data.

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6. Why does HEFCE only fund particular higher education (HE) courses in further education colleges (FECs)?

The Further and Higher Education Act (1992) specified which courses HEFCE could directly fund at FECs. These courses are often referred to as prescribed HE. They are:

• Higher degrees (such as masters)
• Postgraduate diplomas
• Postgraduate Certificates of Education
• First degrees (BA, BSc, BEd and foundation degrees)
• Foundation degree bridging courses
• Higher National Diploma and Certificate
• Diploma in Higher Education
• Certificate in Education
• Diploma in Teaching in the Lifelong Learning Sector

Non-prescribed HE refers to higher-level courses not included in this list. It includes higher level professional awards by awarding bodies such as Edexcel and City & Guilds in areas like management, accountancy. The Skills Funding Agency has the power to fund non-prescribed HE under the Learning and Skills Act 2000.

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7. Can a college apply for foundation degree awarding powers? What is the process?

Further education colleges can apply for these powers providing they meet the criteria set by the QAA.

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8. What is the difference between direct and indirect funding?

Student numbers funded by HEFCE at further education colleges (FECs) are either funded directly by a HEFCE teaching grant or indirectly through a franchise agreement with another institution. In many cases FECs have both directly and indirectly funded students. FECs are responsible for setting the fees for their directly funded provision, while the fees for their indirectly funded provision remain the responsibility of the franchising institution.

If a college has directly funded places then it is fully responsible for all aspects of finance, administration and quality related to these students, and is required to enter data on these students in the annual Higher Education in Further Education: Student Survey (HEIFES) return. The student numbers remain with the FEC, and it can keep them if it decides to work with a different validating higher education institution (HEI).

If a college has indirectly funded students, then the student numbers belong to the franchising institution (generally an HEI), which is responsible for these students and must enter them in its Higher Education Students Early Statistics Survey (HESES) return. The funding passes from HEFCE to the franchising institution, which passes on a proportion to the FEC (the element of funding retained by the HEI is often referred to as the 'top slice').

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9. Can an indirectly funded further education college become directly funded by HEFCE?

The Government’s Higher Education White Paper 'Students at the Heart of the System' announced the creation of a flexible margin of about 20,000 places to reward universities and colleges who combine good quality with value for money and whose average tuition charge (after waivers) is at or below £7,500 per year. We ran a bidding process for these places in late 2011, and announced the allocations in March 2012. As a result of this process, we will be providing direct funding to 65 FECs that were not directly funded in 2011-12. In the White Paper the Government signalled its intention for the margin to grow steadily in future years. We are waiting for advice from the Government on the size and timing of any future margin rounds.

An indirectly funded college could also persuade a higher education institution (perhaps a franchising partner) to agree to pass some numbers to it, in which case HEFCE might consider entering into a direct funding agreement. Such transfers can take a long time to organise so we would advise a college to make contact with the appropriate institutional team as soon as possible if this is something they are considering.

If a college does become directly funded by HEFCE then it also becomes subject to the obligations attached to this funding, including reporting through HEIFES, student number control, access agreements, the provision of Teaching Quality Information data, and audit by the Quality Assurance Agency. Colleges which currently recruit students on a ‘fee only’ or ‘off quota’ basis should note that if they become directly funded then all their commencing students which meet our student number control definition will count against their SNC, and any recruitment beyond their student number control will result in grant reductions.

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10. What happens to the HEFCE-funded places if a higher education institution (HEI) withdraws from a franchise arrangement with a further education college (FEC)?

If an HEI allocates some of its HEFCE-funded provision to a partner FEC and subsequently withdraws from the arrangement, the HEFCE-funded places remain with the HEI. HEFCE's advice is that indirectly funded institutions should have a minimum period of security over student numbers and funding, normally at least three years (see our good practice guide 'Supporting higher education in further education colleges'). Any franchising agreement, however, is a contract between the two institutions, and the conditions of the agreement are for the institutions to decide.

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11. Who is responsible for the funding of further education?

On 1 April 2010, the Learning and Skills Council (LSC) was replaced by two successor bodies – the Skills Funding Agency and the Young People's Learning Agency.

The Skills Funding Agency is an agency of the Department for Business, Innovation and Skills. It funds and regulates adult further education and skills training in England, and forms part of a network of organisations in the country who commission, manage and market training for adults.

The Young People's Learning Agency (YPLA) is a non-departmental public body which supports the delivery of training and education to all 16 to 19 year olds in England. It does this by:

• channelling funding to local authorities, which are responsible for providing education and training provision for 16-19 year olds (and for young offenders in youth custody and young people with learning difficulties up to the age of 25)
• raising participation and improving attainment by 16-19 year olds
• funding academies for all their provision
• providing financial support to young learners, typically in the form of education maintenance allowance.

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