HEFCE BriefingHEFCE Briefing11 June 200711 June 2007

Professor Gareth ParryProfessor Gareth Parry

Dr Anne ThompsonDr Anne Thompson

The University of SheffieldThe University of Sheffield

HEFCE ConsultationHEFCE Consultation

Higher education in further Higher education in further education collegeseducation colleges

06/4806/48

Report on outcomesReport on outcomes

Focus of consultationFocus of consultation

This consultation seeks views on the main This consultation seeks views on the main elements of our policy for supporting higher elements of our policy for supporting higher education in further education colleges. education in further education colleges.

It focuses on four main areas: It focuses on four main areas: our view of the role of HE in FECsour view of the role of HE in FECs strategic development of provisionstrategic development of provision proposals for centres for higher education proposals for centres for higher education

excellence in collegesexcellence in colleges funding and relationships.funding and relationships.

Response by 20 February 2007Response by 20 February 2007

On-line response formOn-line response form

Also responses off-lineAlso responses off-line

ResponseResponse

Total institutional response 132Total institutional response 132 58 HEIs58 HEIs 74 FECs74 FECs

And additionally as part of collective onlyAnd additionally as part of collective only 8 HEIs8 HEIs 82 FECs82 FECs

And 34 partnerships or organisationsAnd 34 partnerships or organisations

MethodologyMethodology

Categorisation of HE providers (2004-05 provision)Categorisation of HE providers (2004-05 provision) FECs with 900 plus HE studentsFECs with 900 plus HE students FECs with 200-899FECs with 200-899 FECs with 1-99FECs with 1-99 FECs with no HE provisionFECs with no HE provisionAndAnd HEIs with 900 plus funded through indirect HEIs with 900 plus funded through indirect

relationshiprelationship HEIs with 200-899 indirectHEIs with 200-899 indirect HEIs with 1-99 indirectHEIs with 1-99 indirect HEIs with no indirect provisionHEIs with no indirect provision

AnalysisAnalysis

Only institutions (132) quantifiedOnly institutions (132) quantified Bar chartsBar charts TablesTables

by:by: All providersAll providers HEIs and FECsHEIs and FECs Type and size of providerType and size of provider

ReportReport

Pattern of responsePattern of response Institutional – percentInstitutional – percent Organisations – summaryOrganisations – summary

Illustrative examplesIllustrative examples amplifyamplify qualifyqualify illustrate minority positionillustrate minority position

Question 1Question 1Do you agree with our view of the distinctive Do you agree with our view of the distinctive contribution which HE in FECs can make to the contribution which HE in FECs can make to the overall pattern of HE provision in this country?overall pattern of HE provision in this country?

82% agree82% agree 90% FECs90% FECs 70% HEIs70% HEIs

Widespread endorsement of the flexibility and Widespread endorsement of the flexibility and responsiveness of the sector and its role in responsiveness of the sector and its role in supporting widening participation and progression. supporting widening participation and progression.

However, recognise diversity and avoid an over-However, recognise diversity and avoid an over-prescriptive definition of the contribution of FECs.prescriptive definition of the contribution of FECs.

Yes, we are making a distinctive contribution but Yes, we are making a distinctive contribution but do not limit us to a narrow definition of do not limit us to a narrow definition of vocational. Many of our ‘academic’ courses vocational. Many of our ‘academic’ courses have very strong progression into employment. have very strong progression into employment. FE should not be restricted to Foundation FE should not be restricted to Foundation Degrees especially where there is a good record Degrees especially where there is a good record of quality delivery. of quality delivery.

(A college with a large amount of HE)(A college with a large amount of HE)

AoC does not share the view of the document that AoC does not share the view of the document that HE provision in FE colleges is, or should be, HE provision in FE colleges is, or should be, ‘short-cycle’.‘short-cycle’.

The majority of the collective and organisational The majority of the collective and organisational responses were supportive, but the representative responses were supportive, but the representative bodies for the universities and colleges of higher bodies for the universities and colleges of higher education were neutral and negative respectively.education were neutral and negative respectively.

We agree that HE in FECs has a considerable contribution to We agree that HE in FECs has a considerable contribution to make to the overall pattern of HE provision in this country but make to the overall pattern of HE provision in this country but many Universities equally have very close links with their many Universities equally have very close links with their communities, have strong links with employers and can communities, have strong links with employers and can respond swiftly and flexibly to the needs of the market. It is respond swiftly and flexibly to the needs of the market. It is crucially important that the quality, reputation and brand of crucially important that the quality, reputation and brand of UK HE is maintained, in the UK, Europe and internationally. UK HE is maintained, in the UK, Europe and internationally. This means that there should not be any provision of an HE This means that there should not be any provision of an HE qualification that is not linked, in terms of validation and qualification that is not linked, in terms of validation and quality assurance with a formally designated higher quality assurance with a formally designated higher education institution…. There is considerable danger of education institution…. There is considerable danger of mission drift in relation to HE in FE and provision should be mission drift in relation to HE in FE and provision should be focused on the key areas where there isn’t existing provision focused on the key areas where there isn’t existing provision in the HE sector or where FE can attract students that in the HE sector or where FE can attract students that otherwise wouldn’t have entered…otherwise wouldn’t have entered…

(UUK)(UUK)

Most of the HEIs which expressed disagreement Most of the HEIs which expressed disagreement have little or no indirect funding.have little or no indirect funding.

A minority of HEIs cautioned against ‘mission drift’. A minority of HEIs cautioned against ‘mission drift’.

Yes, HE in FECs should build on the basis Yes, HE in FECs should build on the basis provided by the sector’s experience in provided by the sector’s experience in developing and teaching HNC/HND programmes developing and teaching HNC/HND programmes which align closely with employment and which align closely with employment and workforce development, particularly in their workforce development, particularly in their immediate region, and typically leading to immediate region, and typically leading to awards up to Foundation Degree. FECs should awards up to Foundation Degree. FECs should neither seek to or be encouraged by HEFCE to neither seek to or be encouraged by HEFCE to develop full-time undergraduate programmes of develop full-time undergraduate programmes of a conventional nature.a conventional nature.

(An HEI with a medium amount of indirect provision)(An HEI with a medium amount of indirect provision)

Question 2Question 2Do you agree that all FECs delivering HEFCE-Do you agree that all FECs delivering HEFCE-funded HE should provide a strategy statement funded HE should provide a strategy statement which reflects our view of the distinctive features of which reflects our view of the distinctive features of HE in FECs set out in paragraph 38, and HE in FECs set out in paragraph 38, and demonstrates that their HE meets the principles demonstrates that their HE meets the principles set out in paragraph 44a-f?set out in paragraph 44a-f?

Overwhelming agreementOverwhelming agreement96%96%

Echoed in collective and organisationalEchoed in collective and organisationalresponsesresponses

Reflecting the position taken on ‘distinctiveness’ Reflecting the position taken on ‘distinctiveness’ respondents argued for region and institution-respondents argued for region and institution-specific strategies.specific strategies.

The LSC’s concern is that an expectation that all HE in FE The LSC’s concern is that an expectation that all HE in FE must conform to the characteristics laid out in paragaph must conform to the characteristics laid out in paragaph 38 may risk fracturing provision and inadvertently 38 may risk fracturing provision and inadvertently setting boundaries between the ‘type’ of HE the FE setting boundaries between the ‘type’ of HE the FE system may offer and the ‘type’ of HE offered system may offer and the ‘type’ of HE offered elsewhere.elsewhere.

QIA agrees that all FECs delivering HEFCE-funded HE QIA agrees that all FECs delivering HEFCE-funded HE provision should provide a strategy statement which provision should provide a strategy statement which reflects HEFCE’s view of the distinctive features of HE reflects HEFCE’s view of the distinctive features of HE in FECs. However, QIA also believes there should be in FECs. However, QIA also believes there should be some caveats: a one size fits all approach will not be some caveats: a one size fits all approach will not be acceptable; the requirements of the strategy statements acceptable; the requirements of the strategy statements must not be too prescriptive and should enable FECs to must not be too prescriptive and should enable FECs to demonstrate their diverse missions; the strategy demonstrate their diverse missions; the strategy statement should form part of the FEC’s overall statement should form part of the FEC’s overall strategy and not be seen as a stand alone document.strategy and not be seen as a stand alone document.

HEIs generally called for strategies to be HEIs generally called for strategies to be developed in partnershipdeveloped in partnership

The University would agree with production of a The University would agree with production of a strategy but would ask that within a partnership strategy but would ask that within a partnership agreement it be linked to the HEI’s ‘HE in FE agreement it be linked to the HEI’s ‘HE in FE strategy’ and both be linked to local, regional strategy’ and both be linked to local, regional and national needs.and national needs.

(An HEI with a large amount of indirect funding)(An HEI with a large amount of indirect funding)

Some colleges expressed concerns about thisSome colleges expressed concerns about this

Whilst the College intends to develop further its Whilst the College intends to develop further its successful partnership with its validating successful partnership with its validating partners, and would intend that a strategic plan partners, and would intend that a strategic plan was developed in consultation, it feels it would was developed in consultation, it feels it would not be appropriate for a requirement that any not be appropriate for a requirement that any partner HEI would need to approve and agree partner HEI would need to approve and agree such a strategic plan. such a strategic plan.

Do HEIs agree their strategic plans with each Do HEIs agree their strategic plans with each other?other?

(A college with a large amount of HE provision)(A college with a large amount of HE provision)

AndAnd

As the College has always produced a strategy As the College has always produced a strategy statement, this would meet with our current statement, this would meet with our current practice. Whilst we make an effort to ensure practice. Whilst we make an effort to ensure that our strategy fits with that of our university that our strategy fits with that of our university partners, having three partners with differing if partners, having three partners with differing if not conflicting strategies, which are not always not conflicting strategies, which are not always made explicit to us, makes this difficult and we made explicit to us, makes this difficult and we need the freedom to develop our own strategy. need the freedom to develop our own strategy. We are, after all, an institution in our own right We are, after all, an institution in our own right and not just an extension of the universities with and not just an extension of the universities with which we work….which we work….

(A college with a medium amount of HE provision)(A college with a medium amount of HE provision)

But some HEIs were scepticalBut some HEIs were sceptical

I believe it is expecting too much of FECs, who as I believe it is expecting too much of FECs, who as HEFCE accepts, do not have HE as their core HEFCE accepts, do not have HE as their core purpose to write a strategic plan which meets all purpose to write a strategic plan which meets all the principles set out in paragraph 44a-f.the principles set out in paragraph 44a-f.

(An HEI with a medium amount of indirect funding)(An HEI with a medium amount of indirect funding)

Question 3Question 3How far do you agree with the proposed aims and How far do you agree with the proposed aims and objectives for Centres for HE Excellence in FECs?objectives for Centres for HE Excellence in FECs?

81% agree81% agree 85% FECs85% FECs 76% HEIs76% HEIs

Collective and organisational responses indicated Collective and organisational responses indicated strong or broad agreementstrong or broad agreement

Question 4Question 4How far do you agree with our initial proposals on How far do you agree with our initial proposals on the criteria (eligibility, evidence of excellence, the criteria (eligibility, evidence of excellence, potential for development), and the selection potential for development), and the selection process for the Centres for HE Excellence in process for the Centres for HE Excellence in FECs?FECs?

74% support, but few strongly agree74% support, but few strongly agree

Question 5Question 5Do you agree that under normal circumstances Do you agree that under normal circumstances indirect funding arrangements should provide indirect funding arrangements should provide member institutions with security of funding and member institutions with security of funding and student numbers for at least three years?student numbers for at least three years?

OverwhelminglyOverwhelmingly 97% FECs97% FECs 90% HEIs90% HEIs

Echoed by collective and organisationalEchoed by collective and organisational

responsesresponses

Both FECs and HEIs added the caveat that this Both FECs and HEIs added the caveat that this would need to respect the need for flexibilitywould need to respect the need for flexibility

Question 6Question 6Do you agree that developing information on the Do you agree that developing information on the costs of teaching will assist in identifying the costs costs of teaching will assist in identifying the costs of collaborative activity?of collaborative activity?

70% agree70% agree

The emphasis is on ‘assist’The emphasis is on ‘assist’

Disagreement was usually based on concernDisagreement was usually based on concernabout the application of TRACabout the application of TRAC

Other aspects of collaborative funding were cited Other aspects of collaborative funding were cited as (more) significantas (more) significant

ACP regional consultation indicated ‘broad ACP regional consultation indicated ‘broad agreement with the important caveat that the agreement with the important caveat that the costs of teaching do not equate to the costs of costs of teaching do not equate to the costs of collaborative activity’.collaborative activity’.

Suggestions for activities to be costed include:Suggestions for activities to be costed include: the higher costs of non-traditional deliverythe higher costs of non-traditional delivery the higher levels of support in FECsthe higher levels of support in FECs curriculum developmentcurriculum development quality enhancement/assurancequality enhancement/assurance management and administrationmanagement and administration collaboration and partnershipcollaboration and partnership staff development and scholarship.staff development and scholarship.

Colleges focused on the costs of deliveryColleges focused on the costs of delivery

HEIs on academic support, validation and quality HEIs on academic support, validation and quality assuranceassurance

Question 7Question 7Are there other barriers that hinder the production Are there other barriers that hinder the production of clear and transparent indirect funding of clear and transparent indirect funding agreements, especially in relation to funding and agreements, especially in relation to funding and student numbers? If so, what are they?student numbers? If so, what are they?

72% see other barriers72% see other barriers 77% FECs77% FECs 66% HEIs66% HEIs

PartnershipsPartnerships

HEIs with large partnerships generally reported HEIs with large partnerships generally reported they had clear and transparent arrangements. they had clear and transparent arrangements. Some colleges agreed.Some colleges agreed.

Other respondents cited:Other respondents cited: poor communicationpoor communication no clear methodology to calculate costsno clear methodology to calculate costs lack of information about the costslack of information about the costs premiums not transferredpremiums not transferred roles and responsibilities unclearroles and responsibilities unclear memoranda of agreement needed.memoranda of agreement needed.

Problems arise if the institutions do not have in Problems arise if the institutions do not have in place people and systems to deal with these place people and systems to deal with these issues. Each partner must nominate suitable issues. Each partner must nominate suitable people in positions of authority to negotiate and people in positions of authority to negotiate and agree arrangements…agree arrangements…

(ACM)(ACM)

We believe that barriers would be dissolved if We believe that barriers would be dissolved if memoranda of collaboration were drawn up in memoranda of collaboration were drawn up in the spirit of partnership agreements with clear the spirit of partnership agreements with clear and detailed information about what is included and detailed information about what is included in the arrangements….in the arrangements….

(FdF)(FdF)

UUK did not see any barriersUUK did not see any barriers

Given that HE institutions are already open with Given that HE institutions are already open with FECs about costs, services and planning whilst FECs about costs, services and planning whilst fulfilling their obligations in terms of support, fulfilling their obligations in terms of support, validation and quality assurance, we would validation and quality assurance, we would question the underlying assumption that there is question the underlying assumption that there is a lack of clarity and transparency.a lack of clarity and transparency.

Question 8Question 8Do you agree that all indirect funding Do you agree that all indirect funding arrangements should reflect the structural and arrangements should reflect the structural and management arrangements associated with management arrangements associated with consortia, and adhere to the principles specified in consortia, and adhere to the principles specified in our code of practice for consortia?our code of practice for consortia?

72%72% FECs 78%FECs 78% HEIs 64%HEIs 64%

Response appears to relate to partnershipsResponse appears to relate to partnerships

Question 9Question 9Do you agree that all data returns for consortium Do you agree that all data returns for consortium arrangements should be made by the lead arrangements should be made by the lead institution?institution?

83%83%

Question 10Question 10Do you agree that HEFCE should take steps to Do you agree that HEFCE should take steps to satisfy itself that institutions adopt the proposed satisfy itself that institutions adopt the proposed changes to indirect funding agreements? If so, changes to indirect funding agreements? If so, what should these be?what should these be?

82%82% FECs 86%FECs 86% HEIs 76%HEIs 76%

ProposalsProposals

Provide guidance and/or a checklistProvide guidance and/or a checklist Make compliance a condition of grant for HEIsMake compliance a condition of grant for HEIs Systematic review by HEFCE of all Systematic review by HEFCE of all

arrangementsarrangements Approval of new arrangementsApproval of new arrangements

MonitoringMonitoring

By:By: Annual monitoring statementAnnual monitoring statement Financial auditFinancial audit HEFCE regional teamsHEFCE regional teams QAA collaborative review and IQERQAA collaborative review and IQER LLNsLLNs

Question 11Question 11Are there other measures that should be adopted Are there other measures that should be adopted to improve the operation of indirect funding to improve the operation of indirect funding agreements? If so, what should these be?agreements? If so, what should these be?

Only a small majority agreed - 55%.Only a small majority agreed - 55%.

Non-reponse rate 18%Non-reponse rate 18%

The spirit, rather than the letter of the formal The spirit, rather than the letter of the formal agreement is highly significant in establishing a agreement is highly significant in establishing a sense of ‘partnership’ versus ‘hierarchy’. Some sense of ‘partnership’ versus ‘hierarchy’. Some FECs observe the word ‘partnership’ being FECs observe the word ‘partnership’ being used, and yet they feel that they receive dictats used, and yet they feel that they receive dictats from HEIs rather than being part of a mutually from HEIs rather than being part of a mutually agreed process, and this can cut across an agreed process, and this can cut across an FEC’s overall strategy.FEC’s overall strategy.

(ACP)(ACP)

Question 12Question 12Would you support HEFCE taking the existing Would you support HEFCE taking the existing formulaic capital allocations and using these to formulaic capital allocations and using these to create a fund for large capital projects in FECs?create a fund for large capital projects in FECs?

Lowest level of support and greatest variability in Lowest level of support and greatest variability in response.response.

51% disagreed or disagreed strongly.51% disagreed or disagreed strongly.

Consistent themesConsistent themes

Variability in partnership arrangementsVariability in partnership arrangements

Credit-based, unitised arrangementsCredit-based, unitised arrangements

Non-prescribed HENon-prescribed HE

Expansion of direct fundingExpansion of direct funding

Validation arrangements for directly funded FECsValidation arrangements for directly funded FECs

Breadth of provision v. mission driftBreadth of provision v. mission drift

Regional issues - mechanisms for regional Regional issues - mechanisms for regional consultationconsultation

See Annex B:See Annex B:ACPACP 9 regional seminars with HEFCE9 regional seminars with HEFCE 162 participants (excluding HEFCE)162 participants (excluding HEFCE) Including: HEIs, FECs, FdF, Aimhigher, LLNs, Including: HEIs, FECs, FdF, Aimhigher, LLNs,

Action on Access, UUK, LSC,AoCAction on Access, UUK, LSC,AoC3 HE/FE partnerships3 HE/FE partnerships1 funding consortium1 funding consortium3 AoC regions and 1 HE/FE Network3 AoC regions and 1 HE/FE Network1 RDA1 RDA3 LLNs3 LLNs

Regional issues – funding partnershipsRegional issues – funding partnerships

Size and formality of partnershipsSize and formality of partnerships Approach taken to consultationApproach taken to consultation

Regional issues – strategy statementsRegional issues – strategy statements

Agreed that all FECs, whether directly or indirectly Agreed that all FECs, whether directly or indirectly funded, should have a strategy statement for funded, should have a strategy statement for their HE provision and that this strategy should their HE provision and that this strategy should provide clarity of purpose and place of HE within provide clarity of purpose and place of HE within the college’s core mission. It is very likely that in the college’s core mission. It is very likely that in many cases such strategies already exist. It is many cases such strategies already exist. It is important, nevertheless, that FECs develop their important, nevertheless, that FECs develop their own strategies which reflect their local and own strategies which reflect their local and diverse market contexts; these strategy diverse market contexts; these strategy statements, therefore, should not be overly statements, therefore, should not be overly prescriptive.prescriptive.

(A college with a large amount of HE provision)(A college with a large amount of HE provision)

strategy statements contdstrategy statements contd

What if the FEC strategy does not relate to, What if the FEC strategy does not relate to, conflicts with or duplicates the regional HEI’s conflicts with or duplicates the regional HEI’s strategy?strategy?

(An HEI with a large amount of indirect funding)(An HEI with a large amount of indirect funding)

Where this might be appropriate for directly funded Where this might be appropriate for directly funded HE, it is not so for indirectly funded HE. Here HE, it is not so for indirectly funded HE. Here there is a partnership between the funded HEI there is a partnership between the funded HEI and the indirectly funded FEC that this proposed and the indirectly funded FEC that this proposed arrangement does not address or reflect and arrangement does not address or reflect and indeed runs counter to. The strategic plan of the indeed runs counter to. The strategic plan of the funded HEI should incorporate the strategy for funded HEI should incorporate the strategy for development of HE in FECs.development of HE in FECs.

(An HEI with a medium amount of indirect funding)(An HEI with a medium amount of indirect funding)

strategy statements contd.strategy statements contd.

Who will be the judge?Who will be the judge?

Regional issues - CfHEEsRegional issues - CfHEEs

We broadly agree with the proposed aims and We broadly agree with the proposed aims and objects for Centres for HE Excellence in FECs objects for Centres for HE Excellence in FECs but have some concerns that this initiative may but have some concerns that this initiative may widen the gap between FECs with a large HE widen the gap between FECs with a large HE provision and FECs with a small HE offer such provision and FECs with a small HE offer such as ourselves. Since all FECs will be aiming to as ourselves. Since all FECs will be aiming to achieve the objectives identified as priorities for achieve the objectives identified as priorities for the future role of colleges, we would suggest a the future role of colleges, we would suggest a consortia approach to the establishment of consortia approach to the establishment of Centres of Excellence, encouraging Centres of Excellence, encouraging collaboration between colleges and increasing collaboration between colleges and increasing opportunities for both FECs and HE learners.opportunities for both FECs and HE learners.

(A college with a medium amount of HE provision)(A college with a medium amount of HE provision)

Regional issues - CfHEEsRegional issues - CfHEEs

… … given the stress on collaboration and given the stress on collaboration and partnership throughout the consultative partnership throughout the consultative document, the possibility of developing document, the possibility of developing collaborative Centres for HE Excellence collaborative Centres for HE Excellence between a number of FECs (with the appropriate between a number of FECs (with the appropriate involvement and support of local partner HEIs) involvement and support of local partner HEIs) would appear to warrant consideration for would appear to warrant consideration for reasons other than just the stated aim of reasons other than just the stated aim of accommodating the smaller colleges. Where accommodating the smaller colleges. Where strong local partnerships already exist, a strong local partnerships already exist, a collaborative bid might be the preferred option.collaborative bid might be the preferred option.

(An HEI with a medium amount of indirect funding)(An HEI with a medium amount of indirect funding)

Regional issues - CfHEEsRegional issues - CfHEEs

Our response to this question would have been to Our response to this question would have been to agree strongly had the proposal been worded to agree strongly had the proposal been worded to recognise recognise muchmuch more emphatically that an HE in more emphatically that an HE in FE partnership could be supported as a Centre FE partnership could be supported as a Centre for Excellence in FE….for Excellence in FE….

(An HEI with a large amount of indirect provision)(An HEI with a large amount of indirect provision)

Regional issues – monitoring indirect fundingRegional issues – monitoring indirect funding

We cannot support this proposal as it is far too We cannot support this proposal as it is far too weak. HEFCE should undertake a systematic weak. HEFCE should undertake a systematic review of partnership arrangements which fully review of partnership arrangements which fully take into account the views of both sides. The take into account the views of both sides. The mere existence of partnership agreements which mere existence of partnership agreements which meet the standards is totally inadequate. For meet the standards is totally inadequate. For one it assumes the revised standards are one it assumes the revised standards are appropriate and two that they are implemented.appropriate and two that they are implemented.

(A college with a large amount of HE provision)(A college with a large amount of HE provision)

monitoring indirect funding contdmonitoring indirect funding contd

Whilst it is difficult to argue against the underlying Whilst it is difficult to argue against the underlying intention to improve clarity and transparency, we intention to improve clarity and transparency, we are opposed to the proposal which is a are opposed to the proposal which is a disproportionate response to problems which are disproportionate response to problems which are likely to be localised and could be dealt with likely to be localised and could be dealt with through other HEFCE mechanisms. It runs through other HEFCE mechanisms. It runs counter to the otherwise lighter touch direction of counter to the otherwise lighter touch direction of HEFCE policies.HEFCE policies.

(An HEI with a small amount of indirect funding)(An HEI with a small amount of indirect funding)

Regional issues - FdsRegional issues - Fds

It should be noted that strategic cooperation It should be noted that strategic cooperation between HEIs and FECs will be made much between HEIs and FECs will be made much more difficult if FECs choose to take advantage more difficult if FECs choose to take advantage of the FD-awarding powers that will be available of the FD-awarding powers that will be available under the new legislation currently going through under the new legislation currently going through Parliament. It will turn FECs from partners to Parliament. It will turn FECs from partners to competitors, at least in the FD market… As the competitors, at least in the FD market… As the number of HE institutions increases nationally, number of HE institutions increases nationally, there is increasing competition between HEI and there is increasing competition between HEI and FEC providers, especially with regard to FEC providers, especially with regard to vocational and professional HE degrees, and vocational and professional HE degrees, and FD-awarding powers could serve to further FD-awarding powers could serve to further divide the market.divide the market.

(An HEI with a medium amount of indirect provision)(An HEI with a medium amount of indirect provision)

Fds contdFds contd

Of particular interest is the way in which an open Of particular interest is the way in which an open market, demand driven approach to skills will market, demand driven approach to skills will impact on the allocation of HE places in FE impact on the allocation of HE places in FE colleges; how degree awarding powers may in colleges; how degree awarding powers may in future demand direct rather than the inefficient future demand direct rather than the inefficient indirect funding; and how quality assurance will indirect funding; and how quality assurance will be streamlined in order to align itself with other be streamlined in order to align itself with other QA processes, the standard for employer QA processes, the standard for employer engagement and self regulation.engagement and self regulation.

(AoC)(AoC)