2014 Report details for project: HE Reform Programme

Project name: HE Reform Programme - there are 2 reports for this project: 2013, 2014
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Organisation: BIS (D3) - see all reports for this organisation
Report year: 2014 (data is from Sept 2013)
Category: Transformation - see all reports for this category
Description: To put higher education funding on a sustainable footing from September 2012 by shifting public spending away from teaching grants towards repayable tuition fee loans and contribute to eliminating the economic deficit while maintaining high quality in higher education. This overarching objective is supported by a number of subsidiary objectives with the following key deliverables: • Generation of £3 billion savings annually by 2014-15 • A single regulatory framework by Academic Year (AY)15/16 • Quality of HE provision maintained or improved from AY11/12 levels • Successful launch of the annual student support application cycle • An agreed Communications and Stakeholder Engagement Strategy and Plan
DCA (RAG): Amber/Green
DCA text: The Amber/Green status reflects that student numbers appear to be recovering this year after a fall in the first year of the new regime. New regulatory requirements for alternative providers have been introduced to strengthen protections in the absence of primary legislation. The Programme is nearing its closure point and we are moving activities increasingly into Business As Usual. Action has been taken to ensure continued good governance to oversee risks and issues and stewardship of benefits realisation on a continuing basis.
Start date: 2011-06-30
End date: 2015-12-31
Schedule text: No departmental narrative
Baseline: £970.00m
Forecast: £1,180.00m
Variance: 21.65%
Variance text: HE Reform affects academic year 2012/13 onwards, with the system changes reaching full implementation by 2015/16. The assessment of the long-term resource cost of loans has increased since the original cost estimates were made, primarily because the £21,000 repayment threshold for 2016 will now be more generous than originally planned due to lower than typical earnings growth. The budget figures reflect the original costs of the reforms and the forecast/actuals the current assessment of the costs. The original decisions on the reforms were taken in Spending Review 2010 and the assessment of costs and benefits used to justify the reforms were set out in the June 2011 Impact Assessment "Higher Education: Students at the Heart of the System". The current assessment of costs is consistent with estimates available during Spending Round 2013. Any increase in costs above Departmental budgets will be resolved as part of annual discussions with HM Treasury.
Whole Life Cost: £4,600.00m
WLCost text: The financial benefits are the savings to HEFCE teaching grant that result from the reforms within the timeframe from first year of change through to full implementation in 2015-16. The net present value is from the HE White Paper Impact Assessment, and shows the discounted net costs (a saving) to Government. This has not yet been reviewed but is likely to fall as a result of the increase in the estimated resource cost of the new student loan outlay. We will review this estimate once we are in a position to review the expected cash outlay on loans using final 2012/13 academic year data.
Sourcefile: IPA_2014.csv

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.