Tertiary Education Student Finance - Ministerial Response Education - 06 June 2017

Findings

Comments

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11. Jersey students and their families are, in many cases, unable to meet the costs of attending university.

The Minister has been aware of this fact for some time, and  has made public statements  to express his  concern about  the  financial  pressure  on  families.  He  has  been contacted  by  parents  directly  and  via  the  2 workshops previously organised by the Education Department at the suggestion  of  the  Minister,  where  full,  frank  and  open discussions took place. The scale of the problem has also been highlighted in meetings and correspondence with the Student  Loan  Support  Group.  The  problem  is  already recognised  and  the  report  reinforces  what  was  already known.

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34. The Minister for Education and the Minister for Treasury and Resources have placed the responsibility for resolving the problems of student finance at each other's door.

The Council of Ministers have recognised that a skilled, graduate-level  workforce  is  vital  for  many  Jersey businesses  and  the  economy.  In  public  statements,  the Ministers have pointed out that they do not have the ability to  solve  the  problem  individually.  They  have complementary roles and responsibilities; it is within the Minister  for  Education's  remit  to  improve  on-Island provision of degrees and links with universities outside the UK, particularly in European countries where the fees are lower.  He  can  also  adjust  the  existing  student  finance system, but does not have the remit or expertise to create a new student loan scheme of the scale suggested. These skills sit with the Minister for Treasury and Resources and his  team,  who  are  best  placed  to  explore  funding mechanisms  and  their  implications.  The  Ministers recognise each other's responsibilities and challenges, and

Findings

Comments

this  is  why  the  Ministerial sub-group  was  created  as a formal mechanism for various Ministers to work together on all aspects of the issue. All parties are committed to working together.

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35. The Minister for Education and the Minister for Treasury and Resources have placed the responsibility for resolving the problems of student finance at each other's door.

See above.

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40. The Island needs a pool of graduates for business to draw from.

This is agreed. The precise nature of any skills gap in the Island is currently being assessed as part of the process to create a new Skills Strategy for Jersey.

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43. Jersey spends less, as a percentage of GDP, than listed OECD countries on Tertiary Education.

This is only one measure and looking at this alone could create  a  misleading  impression. Jersey  has  a  very  high GDP per head, so it would be more informative to compare each country's higher education spend as a proportion of government expenditure or look at spending per pupil.

In 2017 the Education Department will spend £9 million on  higher  education  funding.  Decisions  on  States expenditure  are  based  on   Island-wide  priorities,  social circumstances  and  available  resources.  Therefore, comparisons with percentages spent in other jurisdictions also need to take account of their particular circumstances.

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56. The provision within the Jersey Tax system of Higher Child Allowance is an indirect and poorly targeted method of assistance.

See  the  Minister  for  Treasury  and  Resources'  response (S.R.2/2017 Res.).

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75. The maximum grant provided by the Minister for Education to Jersey students is insufficient to cover either the university fees or the maintenance costs.

This is factually accurate. Every Jersey student is expected to pay the first £1,500 a year of tuition fees so the grant does not cover the full cost for any student. When UK universities began to increase tuition fees, a Jersey student loan  of  £1,500  a  year  was  introduced  to  help  students afford  the  cost.  When  this  loan  is  combined  with  the maximum  grant,  the  tuition  fees  are  covered.  The maximum  maintenance  grant  to  contribute  to  living expenses is currently £6,000 a year, but this is below the estimated  total  for  living  expenses  that  a  student  can except in a year.

Findings

Comments

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82. Many of the Jersey families who spoke to Scrutiny find it difficult to work out their student grant entitlement.

This is regretted. Parents and students are able to contact the Student Finance team, who will advise on potential grant entitlement. The calculation can be difficult because each family's circumstances are different, and this means the formula is complex because, in order to be fair, it has to take account of a number of financial factors, including household income, property ownership, business interests and siblings.

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92. Rather than being the optimal place to study, for issues relating to finance, University College Jersey has the reputation of being the default option'.

Highlands College is the largest single higher education destination for Jersey's degree students. It is a matter of opinion rather than fact that it is the default option'. There are  currently  109 students  taking  degrees  at  UCJ, compared to 44 at the most popular UK university. There is no data available on why students choose to study for a degree  in  Jersey,  but  the  UCJ  offering  means  that,  if finance is an issue, candidates do have more affordable opportunities to study at a higher level.

The  UCJ  degrees  are  all  accredited  by  recognised  UK universities,  and  feedback  from  students  is overwhelmingly  positive.  Employment  rates  for  UCJ degrees  are  well  above  the  national  average,  which demonstrates  the  value  placed  on  them  by  Jersey employers. It has been a long-held principle that degrees offered locally have been developed in conjunction with business sectors that already exist in the Jersey economy to help meet their skills requirements. This targeting makes them an important and valuable provision that also meets the needs of older students who cannot, or do not, wish to leave the Island to study because they have commitments in the Island.

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95. Increasing the provision of University College Jersey ALONE is not a viable option to provide for the needs of all Island students. Similarly, arranging provision with other overseas locations will only help at the margins.

This is accepted: A variety of solutions is needed to meet the circumstances of the different students in Jersey. The Education  Department  will  continue  to  expand  the different options available to Jersey students, and this is why we created the concept of Campus Jersey', increasing local provision with the close co-operation of the private sector and offering greater choice and more opportunities for students.

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102. Many parents and

students in Jersey, who either spoke to the Panel or made written submissions, want some form of loan scheme.

The Minister is aware of these views. However, he is also conscious  that  many  families  with  lower  incomes  are grateful for the assistance they receive through the current grant system. They say a large student debt of £60,000 would be a deterrent to their children attending university. A number of students have said they would not support a full loan, particularly those who currently receive grants.

Findings

Comments

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107. No talks have taken

place with the UK at political level in relation to removing the blockages for Jersey students entering the UK loans scheme.

This is factually accurate. Although initial approaches had been discussed, these have not yet been progressed. So far, meetings  have  been  held  at  officer  level  with representatives of the UK Student Loans Company and the UK Department of Business, Innovation and Skills. This will now be followed up at a political level, but might be delayed by the UK General Election on 8th June 2017. Correspondence has been drafted as part of the Island's Brexit negotiations, requesting that when higher education arrangements  are  renegotiated,  the  students  from  the Crown dependencies should be put on an equal footing with students from Overseas Territories, who can access the UK Student Loan.

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123. During the period that

this review was running, the Chief Minister created a Sub- Committee of the Council of Ministers tasked with finding a solution to the funding problems being suffered by Jersey students and families.

This is factually accurate.

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

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59. The  Minister  for  Treasury  and Resources should phase out Higher Child  Allowance  from  standard rate  (20%)  taxpayers  as  soon  as possible.

Min. T&R

See the Minister for Treasury and Resources' response (S.R.2/2017 Res.).

N/A

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60. The  Minister  for  Treasury  and Resources should phase out Higher Child  Allowance  from  marginal rate taxpayers and redirect money to  direct  assistance  for  students once a suitable solution is found.

Min T&R

See the Minister for Treasury and Resources' response (S.R.2/2017 Res.).

N/A

Recommendations

To

Accept/ Reject

Comments

Target date of action/ completion

3

70. The  Chief  Minister  must  ensure that the Council of Ministers Sub- Committee, tasked with finding a solution  to  the  problems  of financing  students  through university,  examines  the implications  of  Income  Support when  seeking  a  solution  to  the problems  of  financing  students through university.

CM

See the Chief Minister's response (S.R.2/2017 Res.(2)).

N/A

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83. The Minister for Education should provide an online calculator, that allows families to understand their entitlement  and  that  is  flexible enough  to  change  as  policy  is amended, with immediate effect.

Min. for Edu.

Accept – ongoing

The suggestion has been considered previously by the Student Finance team, and is being actively discussed with the Information Services team with a view to having a calculator online. Scoping meetings are taking place shortly.

Qtr. 4, 2017

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114. The  Chief  Minister  must  ensure

that the Council of Ministers Sub- Committee is tasked with finding a  solution  to  the  problems  of financing  students  through university,  must  consider  some form of student loan system.

CM

See the Chief Minister's response (S.R.2/2017 Res.(2)).

N/A

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125. The  Chief  Minister  must  ensure

that the Council of Ministers Sub- Committee created to resolve the problems  of  financing  students through university, should publish its terms  of reference, specify a deadline  for  the  work  to  be concluded  and  present  its recommendations to the States in the form of a report

CM

See the Chief Minister's response (S.R.2/2017 Res.(2)).

N/A