Student Support and HE Funding In Wales

Most functions affecting higher education in Wales have been devolved to the Welsh Assembly.  One exception is statutory support for higher education students which is administered by the Department for Education and Skills both for England and Wales.

I am very glad to announce, simultaneously with colleagues in Westminster, that agreement has been reached with UK Cabinet colleagues as to the way ahead. The intention is to bring forward legislation which will provide the National Assembly with new powers over the fees charged for higher education and over the support provided to students in higher and further education.

I have been in detailed discussions about the Assembly’s position with Charles Clarke, Secretary of State for Education and Skills and Peter Hain, Secretary of State for Wales, for some months.  We are pleased to have reached agreement on the broad principles which should underpin the devolution provisions in connection with the tuition fee regime, access regulation, and the student support system in forthcoming legislation.  

There is still a good deal of work to do as regards the fine detail of the legislative proposals and about the take over of the tuition fee regimes and components of the student support system for Wales.  Much of this work on the financial, operational and practical implications will be of a highly technical nature.  We shall continue to work on the detail over the summer and I would hope to make a further statement in the autumn before any legislation is introduced at Westminster.  

The Assembly Government’s view is that the forthcoming UK Government legislation should provide us with discretion over the commencement date for the change.  It should also be flexible enough to ensure an effective and manageable transfer which is as seamless and secure as possible from the perspective of learners as customers.   It is envisaged that powers over the tuition fee regime would be commenced prior to the academic year 2006/7.  This would enable the Welsh Assembly Government to meet its manifesto commitment that ‘top-up’ fees (variable fees) will not be introduced during the lifetime of the second Assembly.   Quite separately, September 2006 is the earliest admissions round for which it would be practicable to transfer the student support system to Wales.

Devolution of the student support powers will mean that in line with arrangements in Scotland and Northern Ireland, the Assembly will be responsible for HE and student support.  This will mean that we can take a ‘whole system’ view and over time, design and deliver a student support function which is consistent with the Assembly Government’s wider strategy for HE and in particular our Access and Social Inclusion agendas.

In recognition of the need to give proper consideration to future variable fees policy and the devolution of the student support function to Wales I shall be establishing an independent study of the issues with the interests of the Welsh HE sector firmly in view once again Chaired by Professor Teresa Rees.  

The study group will be expected to examine the issue of variable fees and advise me on the way forward for Wales.  It will also provide advice on how we might use devolved student support powers to achieve the best possible outcomes for Wales.

The Assembly Cabinet will be examining progress on these devolution proposals step-by-step.   Our full and final decisions will be taken in the light of further work with Westminster colleagues and in consultation with the sector, students, local education authorities, this Committee and others.  

Devolution of these functions represents an exciting opportunity to build on our commitment to social justice – especially as regards widening access and establishing an even stronger HE sector in Wales. These remain our key priorities.