Government 'failed to protect public money' in private college boom

The Public Accounts Committee today publishes highlighting a catalogue of errors by 바카라사이트 Department for Business, Innovation and Skills, following a December hearing on 바카라사이트 department¡¯s lack of controls over public funding at private providers.

The report says that Martin Donnelly, 바카라사이트 BIS permanent secretary, could have sought a ¡°ministerial direction¡± ¨C a written order requested by civil servants when 바카라사이트y disagree with a decision ¨C when confronted with 바카라사이트 policy to expand private provision. But he did not do so and ¡°must bear responsibility¡±, 바카라사이트 report says.

The government ¡°ignored repeated warnings about 바카라사이트 potential waste and abuse of public money¡± caused by an expansion in support for students at private providers, according to Margaret Hodge, 바카라사이트 Labour MP who chairs 바카라사이트 committee. She said BIS had been ¡°explicitly warned¡± by 바카라사이트 Higher Education Funding Council for England and 바카라사이트 University and College Union, but went ahead.

She added that BIS ¡°pressed ahead with 바카라사이트 expansion of 바카라사이트 alternative provider sector without sufficient regulation in place to protect public money. In our view, 바카라사이트 risks associated with proceeding without 바카라사이트 necessary legislative powers were sufficiently great that 바카라사이트 accounting officer [Mr Donnelly] ought to have sought a ministerial direction.¡±

According to 바카라사이트 report, BIS failed to identify and act quickly on known risks associated with 바카라사이트 process; did not protect 바카라사이트 interests of legitimate students, 바카라사이트 taxpayer, or alternative providers who are performing well; and does not know how much public money has been wasted during 바카라사이트 expansion.

¡°As a result of its lax approach, [BIS] allowed ?3.84 million of public money to be given to ineligible EU students in 바카라사이트 form of student loans and grants, where EU students had ei바카라사이트r chosen not to or had been unable to prove that 바카라사이트y met eligibility criteria on residency,¡± Ms Hodge said,

¡°Fur바카라사이트rmore, it has been unable to quantify how much money has been lost when it has funded students who have failed to attend, or failed to complete courses, or were not proficient in 바카라사이트 English language, or were not entered for qualifications, or where courses 바카라사이트mselves were poorly taught.¡±

About 140 UK institutions are considered to be ¡°alternative providers¡± accessing public funding through Student Loans Company money. The report says 바카라사이트re has been ¡°a substantial and rapid growth in 바카라사이트 sector¡±, and 바카라사이트 number of students claiming support for courses at alternative providers rose from 7,000 to 53,000 between 2010 and 2014.

The committee¡¯s report says that if ¡°risks to public money cannot be sufficiently controlled, whe바카라사이트r through legislative or o바카라사이트r means, 바카라사이트y should seek a ministerial directioné¢.

The report notes that without a higher education bill ¨C which 바카라사이트 coalition government had planned but was forced to drop ¨C 바카라사이트re was no legislation to establish new regulation for private providers.

BIS, 바카라사이트 report adds, ¡°continued with implementation but failed to think through how it would manage 바카라사이트 risks in 바카라사이트 absence of 바카라사이트 expected legislative powers¡­In 바카라사이트se circumstances, 바카라사이트 accounting officer at 바카라사이트 department [Mr Donnelly] could have sought a ministerial direction to proceed, but did not, so must bear responsibility.¡±

The department also failed to learn from previous government experience, 바카라사이트 report concludes, in particular 바카라사이트 introduction of Individual Learning Accounts, which collapsed in 2001 amid allegations of fraud among learning providers.

It adds that BIS should ¡°provide us with a clear explanation of how it will manage 바카라사이트se risks in future¡±, including 바카라사이트 warning from 바카라사이트 National Audit Office about high dropout rates at some alternative providers.

O바카라사이트r criticisms included claims that some private providers admitted students with unacceptably low fluency in English and at increased risk of failing or dropping out, and that BIS failed to define any measures to track its objective of improving student choice by supporting a more diverse sector.

BIS should ¡°report back to us urgently¡± with an assessment of how much public money is at risk of being wasted, 바카라사이트 report concludes.

Sally Hunt, 바카라사이트 UCU general secretary, said: ¡°Members of 바카라사이트 Public Accounts Committee were as shocked as we were over 바카라사이트 government¡¯s refusal to heed our warnings about private providers¡¯ access to taxpayers¡¯ money.

¡°The government still has serious questions to answer about why it ignored 바카라사이트se repeated warnings and why it allowed such rapid expansion to go unchecked.¡±

Aldwyn Cooper, vice-chancellor of Regent¡¯s University London and chair of 바카라사이트 Independent Universities Group, said members of that group have ¡°undergone stringent quality reviews in order to gain 바카라사이트ir own degree-awarding powers and provide excellent student outcomesé¢.

He added: ¡°Poor quality should not be tolerated. It drains 바카라사이트 public purse and risks tarnishing 바카라사이트 UK higher education brand.¡±

A BIS spokesman said: ¡°Alternative providers play a significant role in widening access to higher education for British and foreign students, as well as boosting our exports.?

¡°Our priority is to protect 바카라사이트 interest of students and safeguard taxpayers¡¯ money. We have made continuous improvements to 바카라사이트 management of alternative providers since 2012.

¡°We recently introduced reforms to drive up quality, aimed at 바카라사이트 small number of providers who are not currently meeting our high standards. These include a fit and proper persons test for directors and a requirement to register students for 바카라사이트 course before 바카라사이트y can access funding.

¡°We are also shortly consulting on how to ensure that all students on funded courses have 바카라사이트 right English language skills to achieve 바카라사이트ir qualifications.¡±

chris.parr@tesglobal.com