Tag: increases

  • New legislation in Scotland increases the SFC’s powers, but only up to a point

    New legislation in Scotland increases the SFC’s powers, but only up to a point

    Post-school reform in Scotland continues to chug along, following last month’s announcement of the preferred future shape of the funding body landscape.

    Today sees the legislation that will enact the changes introduced in Holyrood: the Tertiary Education and Training (Funding and Governance) (Scotland) Bill.

    We’ve been over how responsibilities for further education student support and apprenticeships and skills funding will shift around, and the bill also contains expected changes to the governance arrangements of the Scottish Funding Council (SFC), as well as some technical changes relating to fees and private provision.

    But what’s emerged as perhaps the more pressing question for the higher education sector is how the legislation will change SFC responsibilities and powers, as these apply to its work with universities. The legislation sets out the route the Scottish government will take here, and it’s a fairly balanced one – we are still a long way from an England-style “boots on the ground” regulatory environment, likely to the relief of many.

    Tell us about your finances

    Much of what the bill will do legislatively is through modifications to the Further and Higher Education (Scotland) Act 2005. Section 22(4) of this gives the SFC various powers to “pull” information from universities – or strictly, from their governing bodies – but only where the funder knows that the information exists, or may exist.

    The new legislation aims to create a landscape in which post-16 education bodies must “proactively notify SFC of certain developments of which the SFC might otherwise be unaware” in what the bill’s policy memorandum characterises as a “push” of information – a responsibility to notify the funding council of things it would not have known otherwise. Those who are more used to other UK systems will probably be thinking of “reportable events”.

    It’s suggested that notifications would likely be sought in the following kinds of situation:

    • Where a university is planning voluntary or compulsory severance (so no daily refreshing of the QMUL UCU cuts tracker for the SFC)
    • Where a university has reached a certain threshold in a rapidly worsening financial viability situation
    • A major data breach, such as resulting from a cyberattack.

    But exactly how this will work is not specified on the face of the legislation – it would be determined by ministers via the laying of regulations, with consultation and an affirmative procedure in the Scottish Parliament, “given that they could potentially place significant obligations on post-16 education bodies.” But this does mean that there is a lack of clarity on exactly what the bill is going to mandate.

    Part of the rationale for beefing up the legislation from what was previously anticipated (and let’s be honest, what was in the consultation) seems to be that ministers have not received enough clarity about the financial challenges being faced by certain universities and colleges. When the policy memorandum notes that “there can be challenges for SFC in getting information from post-16 education bodies about their financial sustainability,” you feel that really the issue is about ministerial oversight and the sense of having active levers to pull. This is given an explicit tweak elsewhere in the bill (again, quoting the policy memorandum):

    New section 15A(2) allows the Scottish Ministers to seek information and advice from the SFC relating to post-16 education bodies, this could be an individual body or the bodies as a whole. Section 15A(3) requires the SFC to respond to any such request from the Scottish Ministers and the SFC may also offer information proactively when it considers it appropriate to do so. This is necessary because unforeseen circumstances may arise of which the Scottish Ministers might otherwise be unaware (and so would not know to enquire).

    So what are you going to do about it?

    Also in the 2005 Act is provision for the SFC to “secure the promotion or carrying out of studies designed to improve economy, efficiency and effectiveness in the management or operations of any fundable body” – but no such power exists where the matters are not related to financial support.

    The new legislation would amend this, with the intention of making the SFC able to “address a broader range of matters to assist with performance improvement.” So in scope for an efficiency study would now be the needs and interests of learners:

    The policy intention is that the SFC could, particularly where notified of certain adverse circumstances (such as course closures), instigate studies or reviews of the impact on students and learners so that assistance could be provided to ensure they are not negatively impacted. For example, if a college was heading towards needing to close courses before students could complete them, the SFC could help to make arrangements for the students to continue their education at different colleges.

    Bringing the student interest in scope sounds sensible in theory, but there remains the question of what changes on the ground, beyond the production of a study. The 2005 Act allows the SFC to attend and speak to an institution’s governing body – the new section 15(4) of this bill will extend this to the issuing of a set of written recommendations.

    So the SFC will be able to recommend setting specific improvement targets, or requiring the development of an improvement plan. And it will now even be able to publish these, “where there is wider interest amongst institutions, or the public, in the recommendations and they are not sensitive.” But it won’t be obliged to.

    And what if its recommendations are ignored?

    As with the SFC’s right to address meetings, already provided for in section 16 of the 2005 Act, there is no corresponding duty on the fundable body to do anything in response to the recommendations. However, as a matter of good governance and practice, the Scottish Government would expect the fundable body to consider them appropriately.

    But beyond these recommendations, in the legislation as it stands there would be proper statutory powers for the SFC to influence educational institutions’ behaviour, through the issuing of guidance, which currently is “purely administrative” (though presumably always very welcome). The Tertiary Education and Training Bill will change this, so that institutions must have regard to the guidance, in the carrying out of their funded activities (note that “have regard to” is quite woolly language – something that the Office for Students has exploited frequently within the way HERA was drafted). But the SFC will have to consult both ministers and institutions in issuing guidance.

    It could have been otherwise

    Various alternative approaches were considered and rejected. The use of codes of conduct (“for example to address concerns around breaches of fair work conditions”) was felt to potentially lead to complex interactions with other requirements, and diminish autonomy. Plus there would have been a need for “appropriate enforcement mechanisms,” which is a whole other question.

    More powers of audit and investigation were also considered and not taken forward, which would have been a move towards a “more interventionist SFC.” Likewise for stronger enforcement and intervention action, including serving enforcement notices or the removing, suspending, or appointing of officers or governing body members.

    But this would have been “a fundamental change to SFC’s role which requires more careful consideration” – and would have gone way beyond what was originally consulted on.

    There’s still a long way to go here – Universities Scotland is already noting the “new, very broadly defined provisions regarding the monitoring of the financial sustainability of institutions,” and raising concerns that too much change in the relationship between the SFC and universities (or universities and the Scottish government) could jeopardise the classification of universities in the Office for National Statistics classification.

    The Scottish government seems to be aware of this particular risk – but there are certainly MSPs keen for the SFC to become more “interventionist”, and the legislation now faces a complicated passage through a Parliament in which the SNP does not hold a majority. The ministerial statement to Holyrood launching the bill saw Ross Greer of the Scottish Greens concerned about whether the SFC would have the ability to intervene in matters relating to fair work – higher education minister Graeme Dey said he would be happy to discuss the issue further.

    For now the legislation aims at a delicate balancing act between juicing up the SFC’s role and preserving universities’ autonomy. The next question is whether this persists in the face of deeper scrutiny and parliamentary compromises.

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  • UKRI increases PhD stipend by 8 per cent

    UKRI increases PhD stipend by 8 per cent

    Let’s get the headlines out of the way first.

    UKRI is increasing its PhD stipend by eight per cent to £20,780 from 1 October 2025. Wonkhe understands that this will not be funded by a reduction in the overall number of grants but instead forms part of UKRI’s funding settlement for 2025–26.

    Pay

    This means that UKRI will provide a take home income that is equivalent to the take home National Living Wage. This is not the same as the Real Living Wage but it is nonetheless a significant and welcome increase.

    This is the single largest real terms increase of the stipend for funded students since 2003. Given that UKRI supports 20 per cent of doctoral students, and many universities choose to mirror the terms of UKRI, this will undoubtedly have a significant impact on improving the conditions of PGR students.

    There is a sort of unwritten expectation that providers will generally peg their own grants to the levels of UKRI’s. Albeit, as we learn from the accompanying financial analysis that goes with the main report about around one in five students receive an amount above the minimum stipend. However, while half of respondents to a survey on the UKRI stipend indicated that at least 90 per cent of their non-UKRI funded doctoral students received a stipend equivalent to that of UKRI’s minimum level, around one in ten indicated that all of their non-UKRI funded doctoral students receive a stipend lower than UKRI’s minimum.

    The potential implications of this are that some providers will further stretch their already stretched resources in maintaining UKRI’s funding levels, or that some providers will fall behind the UKRI minimum rate for students they fund directly. Prior to today’s announcement providers were generally positive about mooted increases. However, while 72 per cent of respondents say they would increase their own stipends to match the National Living Wage this is lower than the 89 per cent who said they would be very or somewhat likely to increase their own stipends by inflation (and a little higher than the 66 per cent said who said they would be very or somewhat likely to increase their stipend if it was anchored to the Real Living Wage).

    Providers, for their part, stated in interviews that

    Institutions would endorse in principle an increase in line with price inflation (at a minimum) or National Living Wage (which institutions feel, morally, would be preferable) and thought they would be able to match this for university funded stipends. However, for UKRI training grants, were such a raise not accompanied by additional grant funding from UKRI, ROs might need to reduce student numbers in the future to ensure they can continue paying the minimum stipend.

    Providers may see some good news in the increase in the minimum fee for a UKRI student increasing by 4.6 per cent to £5,006.This should mean that providers can recoup a slightly greater amount of funding for their students and like with grants many providers will align their home PGR fees to the UKRI minimum. This is an entirely different question as to whether providers are anywhere close to recouping the actual cost of teaching PGR students.

    Terms

    The funding increase will grab the headlines but the revisions to UKRI’s Standard Terms and Conditions of Training Grant (TGCs) are likely to be as impactful.

    In February 2023 UKRI commissioned Advance HE to carry out a review of its TGCs from an EDI perspective which has been considered alongside UKRI’s own new deal for postgraduate research. There is also a new companion document to the update to the TGCs by the UKRI commissioned Equality, Diversity and Inclusion Caucus (EDICa). In their report EDICa highlighted the impacts of child support on the continuation of studies, the wide variability in disabled students getting the support they need, the inflexibility in moving between full and part-time study, and the considerable time it takes in getting medical evidence for securing adjustments. As the authors state

    However, for many current doctoral training students, the system of support in its current form is entrenching wider inequalities, particularly relating to caring responsibilities, disability and the benefits that may be achieved through change of mode of study.

    This seems to be a message that UKRI has taken seriously.

    The first thing to point out is that UKRI is not a regulator and it is at pains to point this out

    UKRI is not a regulator and while we for the first time are explicit that we expect compliance with consumer law, employment law, Office for Students and Medr regulation (all where applicable), providers remain responsible for their own compliance and regulators for enforcement.

    It feels self evident but the revised terms make it explicit that the role of UKRI is to steer the organisations it funds, and by extension the sector, toward better conditions for PGR students. UKRI will impose conditions on its own grants but it has a wider set of expectations for the sector on improving the conditions for PGRs.

    The reason it is steering not shoving the sector are numerous. Primarily, it has limited powers within HERA but it also acknowledges that it is providers that are best placed to make decisions on their own students. The revision to the terms is the moment where some of the ambitions of the Tickell review have come to life in loosening the conditions and reducing the bureaucracy on student grant funding.

    This new flexibility comes in a number of forms. UKRI has extended the time a student can draw their stipend while on sick leave from 13 to 28 weeks. UKRI is also removing the requirement for students to provide medical evidence when taking medical leave, instead this process will be more closely managed by a students’ provider. This is because obtaining a diagnosis was a barrier to students taking the leave they needed.

    It is in their approach to supporting disabled students where the dynamic of UKRi improving its own conditions while encouraging universities to do likewise comes to light. They note

    We will require that disabled students are offered reasonable adjustments at the earliest opportunity and that the research organisation or provider has a policy to support this. For our part, we will update UKRI’s Disabled Students’ Allowance (DSA) Framework in April 2025.

    Again, the expectation is that providers will not just act reasonably but they will only ask students for evidence of a disability where it is necessary to do so. This is a reflection of EHRC guidance, recommendations of the OfS Disabled Students’ Commission and the Bristol v Abrahart judgement.

    Finally, UKRI is removing restrictions on students moving between full or part-time modes of study. Their view is that providers are better placed to advise on student modes of study, and they may offer additional funding if they wish.

    There are other important measures within here which deserve consideration. Grant funding will include an individual risk assessment when a student is pregnant, breastfeeding or has given birth in the last six months. There is not strong evidence that PGR students are disadvantaged when joining a trade union. And there are still a whole range of challenges in getting support for international students due to the interplay between visa regulations and PGR study.

    In total this feels like the kind of policy change that the sector has been calling for. It is not the kind of public argument, back and forth debate, that has been seen on other culture measures like updating the REF. Instead, it is a considered series of changes to the actual conditions of PGR students that will put more money in their pockets while allowing greater flexibility around: leave, illness, support for disabled students, and mode of study. It is not perfect and the wider pressures PGR students will feel are still acute, but it is a big step forward.

    UKRI has taken an approach which the sector may recognise as reasonable. They have updated their own conditions based on the evidence presented to them, explained where they have chosen not to, and given greater flexibility to providers to do the things they believe are important.

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