Student Finance Proposals - Consultation Summary - Research - 30 January 2018

Consultation on Higher Education funding proposals

SUMMARY OF RESPONSES

January 2018

Summary

3,374 responses

64% of replies from parents 22% of replies from students

5 weeks of consultation

120 people at drop-in events

88% in favour of the proposal overall

This report

In a five-week period from 11 December 2017 to 12 January 2018, the public of Jersey were asked to give their views about a new proposal for funding higher education.

The Treasury Minister, Senator Alan MacLean, announced the plan in his Budget speech on 28 November. He proposed that significant additional funding be made available through the existing student grant scheme so that more students from Jersey can afford to go to university in future.

The main points were:

• Every student living in a household with an annual income under £150,000 would have tuition fees paid of up to £9,250 a year (£9,250 being the average fee for an undergraduate degree in the UK.)
• Students living in households with income more than £150,000 a year would receive a tuition fee payment of half that amount - up to £4,625.
• The standard maintenance grant for living expenses would increase by £500 a year to a maximum of £6,500.
• An increase in the income thresholds so that more families become eligible for the maintenance grant, which will be available in full to all families earning under £50,000 and in part on a sliding scale to families earning up to £95,000.
• The Higher Child Allowance (a tax break for parents of  Contents

between £6,000 and £9,000 over four years) would be phased

out from 2021 to help pay for the additional grant.

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to go to university. The fall in undergraduate numbers correlates with

the introduction of £9,000 standard tuition fees by UK universities.  Who took part

Many Jersey parents had reported that the current grant scheme was  Level of support

insufficient to help them afford the costs of a university education. The

Treasury and Education Department had been working together to find  Drop-in events

a solution and the consultation was a joint project.

Response rate

This report provides an overview of the consultation and a summary of

thefreq rueesntlpoyns besy r resecpeionvdeend. Itts . highlights the concerns raised most  Respondents' comments

The next steps ..

3  Drop-in comments

Information sheet

How we consulted

A consultation plan dated 30 November 2017 was approved by the Chief Minister, Education Minister and Treasury Minister, which is summarised as follows:

Timescale  Monday 11 December 2017 to Friday 12 January 2018 (five weeks).

Background  There have already been three consultations on this subject – by Education, Scrutiny and

the Student Loan Support Group. It is not necessary to repeat these or collect the same data. This questionnaire needs to be simple, clear and easy to analyse.

Objectives   Inform - To explain the proposal announced by the Treasury Minister in the Budget.

Mandate - To gauge the level of public support for the plan to proceed.

Comment - To give all islanders an opportunity to submit views and feed back to Ministers.

Scope   Distribute information via schools before the end of term on 15 December.

Reach students returning home from university for Christmas.

Reach families that are leaving the Island for Christmas holidays.

Continue early in the New Year.

Enable completion by closing date of Friday 12 January and rapid feedback.

Fit in with the timetable for university applications (mid January).

Material and channels

1. One-page explanatory document (attached at the end of this report) plus FAQ that can be widely disseminated. New page on gov.je
2. A short online questionnaire that provides quantitative data to gauge the level of support in a clear percentage plus qualitative answers for people to submit a range of views.
3. Extensive use of social media supported by drop-in events at JerseyLibrary – easy for students studying there over the holidays and public Christmas shopping / sale shopping in town. Mon 18 Dec (day), Tue 19 Dec (eve), Fri 5 Jan, Sat 6 Jan. Staff from Education and the Treasury to explain the proposal.

Aims of scheme

More of Jersey's young people will be able to afford a university education. Provides the more highly skilled graduate workforce needed by Jersey businesses. Reverses the decline in no of Jersey students attending university.

Enhances the ability of the Island to meet the economic and social challenges. More cost-effective in the long term than a loan scheme.

Helps middle Jersey' – removes financial pressure from families.

Plan for feedback and subsequent action

The survey is tightly focused and structured in a clear format that can be published and understood quickly. It will give the Council of Ministers a clear indication of the level of support and will collate the concerns and comments of islanders. All comments will be anonymous and will be published alongside a report summarising the findings. Subsequently a Report and Proposition can be taken to the States as soon as possible in 2018.

Summary of responses

The aim of the consultation was to reach a wide range of Jersey residents who might wish to express a view. A total of 3,374 responses were received over the five weeks of the consultation via an online

survey. A small proportion were input during the four drop-in sessions at Jersey Library where staff had iPads to help members of the public submit their views.

All responses were anonymous. Any comments that identified specific individuals were edited to ensure anonymity. There were only three instances of this. Submissions were also edited to remove profane language and defamatory comments but only one entry had to be amended because of this.

The full responses are available online at gov.je

Who took part

The consultation was self-selecting, which means that it was primarily people with an interest in the issue of higher education funding who filled in the questionnaire. The number of responses is therefore an indication of the strength of feeling and it was higher than for many other recent States consultations. The profile of participants might not be a representative cross-section of the community in demographic terms but it shows the views of stakeholders and those most directly affected or engaged by this issue.

Questions 1 and 2 asked respondents for their age and category. The largest number of responses was in the 40-49 and 50-59 age bracket, which corresponds to the expected age of parents of secondary school students. This group accounted for nearly 58% of respondents. In addition, nearly a quarter of respondents were young people aged between 16 and 29 – those most likely to be actively considering higher education.

Participants were also asked to identify themselves in terms of their social demographic or interest in the subject. Not surprisingly, parents and carers were by far the largest group, accounting for nearly 64% of responses. The second largest group by proportion was school students who submitted just under 15% of the total number of replies. The consultation was publicised through all secondary schools before the end of the autumn term and the drop-in sessions were deliberately located in the town library where students would be working during the Christmas holidays.

Participants who opted for the category of Other' were able to give a precise definition of their circumstances. The list included many grandparents, retired islanders and people who described themselves as taxpayers. Many in this last group submitted comments that expressed concern about the funding source for the scheme – see results for Question 7.

Respondents who identified themselves as students were also asked an additional question designed to give an indication of the potential impact the funding scheme might have on their ability to attend university. The

Level of support by age

One of the key aims of the consultation was to provide an indication of the level of public support for the higher education proposal announced in the Budget speech on 28 November 2017. Overall, the participants overwhelmingly showed support. However, there were differences between people of different ages.

While nearly all students were in favour of the additional funding, There was a marked fall in approval in the older age brackets. In particular, people over the age of 60 were less likely to support the proposal. Many of these respondents expressed concern about the level of the funding and the need for adequate healthcare and services for the elderly.

% agree

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 11 - 16 (school years 7 to 11) 97.3%

16 - 18 (school years 12 to 13) 99.7%

18 - 29 90.8%

30 - 39 90.2%

40 - 49 94.0%

50 - 59 81.5%

60+ 54.6%

Grand Total 88.0%

Response rate

As is common with public consultations, the response rate was front-loaded, with the highest number of replied received near the launch when the survey receives the greatest publicity.

Drop-in events

Staff from the Education Department and the Treasury were available in the foyer of the Jersey Library, St Helier, to answer questions about the proposal and collect and/or help the public fill in the survey electronically using iPads. A total of 120 comments and discussions were recorded and a summary is included at the end of the report.

The majority of contacts were with parents who had queries about their eligibility or the particular circumstances of their family. A small number of people who visited the sessions were extremely upset and expressed this to the team. There were three principal reasons:

• The financial pressure they were currently experiencing because of funding a child at university.
• The perception that they were not supported by the States to the same level as students. This was a specific concern of people who were either pensioners or caring for an elderly relative.
• Parents who had not received States financial support with university costs and had incurred debt or reduced pension as a result.

SAMPLE COMMENTS In favour

A very brave and forward thinking move. This is not a cost but an investment into what will be our wealth creators and taxpayers. My children can now go to university. I was previously trying to put them off as there is no way we can afford it.

I am a professional middle income earner with two children and a single parent. There is no spare money. I have literally been losing sleep worrying how I could afford to send either child to university. To say I am thrilled and thankful about this proposal would be an understatement. It brought me to tears.

I can't even begin to describe the ecstasy in the face of my peers on learning they'd be able to go to university. So many people who thought it was totally out of the option, that they wouldn't amount to anything are suddenly considering university.  

Opposed

As taxpayers we are opposed on several grounds. Many degrees are nothing more than opportunities for socialising in the UK. Many students do not return to Jersey so why should we fund them?

Far more should be done for the older generation who have paid their contributions over many years. This proposal is utterly unfair and puts ridiculous, expensive and unnecessary financial burden on taxpayers.

I wanted to be an astronaut but then reality kicked in, just like it should for students whose parents have insufficient funds to meet their children's wishes. It's called reality and life.

Respondents' comments

People who responded to the survey were able to write comments of unlimited length under three headings. These were designed to give respondents an opportunity to inform the Council of Ministers of their views on this proposal in as much detail as they felt necessary. The open text format also meant that respondents were able to raise related issues without restriction. This qualitative feedback has provided valuable background and points for consideration in fine-tuning the original proposal.

Q5  What would this mean to you?

Response total: 2,584

This section of the survey elicited a large number of personal stories about financial circumstances and expressed considerable concern about the pressure that funding a university education put on families.

The most significant response related to the fact that students themselves said the proposal would mean they are more likely to go to university. In addition, a large number of parents said that this additional funding would make the difference between being able to send their children or not. Greater equality of access was a consistent theme.

Lower numbers of views were submitted on a range of other points including the increased likelihood of students going to university for the experience rather than with a career plan in mind. Other suggestions include taking another look at student loans and more support for on-island apprenticeships.

Q6  Fairness of the proposal

Response total: 2,340

Respondents in this section generally made their opposition or approval clear and explained their reasons to the particular point of view. The targeting of the funding was a recurrent theme. Many respondents expressed concern about the level of the upper threshold, which people felt was too high at £150,000. There were also many comments questioning whether the scheme should extend to cover all families, including those households with very high annual incomes.

The most common reasons respondents felt the scheme was unfair include:

• General taxpayers do not benefit.
• Some degrees are not really valuable or needed in Jersey.
• Students do not return so there is no benefit to the Island.
• Higher education is not a right, it's a privilege.
• Parents should save and take responsibility for their children.

Q7:  Other questions and comments

Response total: 1,155

People who responded to this question were able to raise any issue and submit comments of any length. The most common responses were expressions of positive support and/or gratitude for the potential help. This category also included comments that the additional financial help was long overdue' and requests to ensure the scheme is implemented without further delay.

Fewer than 10 comments were received on a number of other subjects including:

• Help for arts students
• No more cuts to education
• Population policy needed
• Students should take a two-year degree
• Opposition to student loan
• Reform party proposal is better
• Free nursery should also be means-tested

The next steps

This report and the detailed responses to the consultation will be considered by the Treasury and Education Ministers and then the whole Council of Ministers. Copies have been made available to the Education and Home Affairs Scrutiny Panel and will also be available on the States website at www.gov.je

The views submitted will be used to make a final decision on whether and how the proposed a new funding scheme should be fine-tuned. When the Treasury Minister announced the plan, he proposed that it should be in place in time for the September 2018 at the start of the next academic year.

The comments from the public will be taken into account and once any final adjustments have been made, a report and proposition will be lodged for consideration by the States Assembly. In order to meet the September 2018 implementation target date, this would need to be before the States in late March or early April 2018.

Copy of information sheet used for consultation P1  

Higher education funding  

Public consultation  

From 11 December to 12 January, Jersey students, parents and the public can  have their say about a new university funding proposal from the Council of Ministers.

It is similar to the current grant system but with higher income allowances so that more young people can get more financial help from the States. This will apply to all eligible students studying for a degree from September 2018 – first, second and third years.

What this means for families

Most of the elements of the existing grant scheme will stay the same. You can find the details online at gov.je but the main points are:

• The extra fees for doctor, dentist and vet courses will be covered by an extra grant.
• The grant will still be available if you study for a degree in Jersey or take a recognised qualification at an overseas university outside the UK.
• If your family has assets (not including your family home) of more than £500,000 you will get the same as those in the £150,000 bracket. Examples are property or shares.

You still need to:

• Have lived in Jersey for five years (or one year if you are entitled').
• Have the right qualifications: A-levels or equivalent.
• Apply through the Student Finance department.
• Repay the grant if you don't complete the course.

PUBLIC CONSULTATION: How to give us your views

Complete our online questionnaire at https://survey.gov.je/s/unifunding

Closing date: 12 January 2017

Copy of information sheet used for consultation P2  

Higher education funding consultation  

How will Jersey pay for the new scheme?  

The extra financial help for students will cost the island more but our economy will benefit from having a highly skilled workforce. In the first two years the cost will be met from existing States funds, which are healthier than previously predicted.

Income tax changes

Currently, some families can claim Higher Child Allowance for children at university, which reduces their income tax bill. This will be removed from 2021.

In the meantime, families who receive the tax allowance will have their higher education grant reduced accordingly. However, all households will be better off under the new grant system.

This income tax change will add an extra £3.5 million to the Education Department's £10.5 million annual budget for higher education and help pay for the new scheme.

What about a student loan?

A loan system has been ruled out because of the burden of debt it would place on students, their families and the island's finances.

Student loans would tie up a significant amount of money that could be used for other public services. In addition, loans are complex and costly to administer, especially the repayments. Many students return to the island but a significant number don't and it would be expensive and difficult to collect repayments from people who are not in Jersey.

What happens next?

A report on the consultation responses will be produced early in 2018 and a proposition with the final option will be taken to the States as soon as possible after that.

• More details can be found online at www.gov.je/unifunding
• Background report Higher Education Funding R.51/2016 www.statesassembly.gov.je