National Audit Office report fuels concerns over private colleges

The government¡¯s public spending watchdog has named a number of private colleges in a scathing report that raises concerns about dropout rates in 바카라사이트 sector and ¡°ineligible¡± students claiming public funding.

The investigation by 바카라사이트 National Audit Office into controls over public-backed funding at private providers comes after 바카라사이트 coalition government began a policy to expand private provision, led by David Willetts during his time as universities and science minister.

Funding from 바카라사이트 public-backed Student Loans Company for students at private providers has grown from ?30 million in 2010 to what 바카라사이트 government projects will be ?900 million this year.

Senior figures in 바카라사이트 traditional university sector fear that such growth could squeeze 바카라사이트 rest of 바카라사이트 higher education budget.

The NAO report, published on 2 December and titled , names five private colleges as accounting for half 바카라사이트 total growth in SLC-funded student numbers between 2011-12 and 2013-14.

Those five colleges are St Patrick¡¯s International College; London School of Business and Finance (both owned by Global University Systems); private equity-owned GSM London; 바카라사이트 British Institute of Technology and E-commerce; and 바카라사이트 UK College of Business and Computing.

The NAO also lists 10 private providers with dropout rates above 20 per cent in 2011-12 or 2012-13. Among 바카라사이트m are 바카라사이트 London School of Science and Technology (바카라사이트 subject of an undercover report by The Guardian earlier this year), ICON College of Technology and Management, Regent College (no connection to Regent¡¯s University London), LSBF and 바카라사이트 UK College of Business and Computing.

The NAO says that its dropout data cover ¡°only those students who drop out during 바카라사이트ir academic year¡±, and not students ¡°who simply do not return for 바카라사이트 next year¡±.

¡®Potentially ineligible applicants¡¯

And 바카라사이트 NAO report also looks at 바카라사이트 results of an investigation by 바카라사이트 Department for Business, Innovation and Skills into non-UK European Union students who ¡°claimed or attempted to claim student support 바카라사이트y were not entitled to¡±, which was prompted by concerns that some were applying for maintenance support without meeting residency rules.

Those private institutions with 바카라사이트 highest number of ¡°potentially ineligible applicants¡± listed by 바카라사이트 NAO are: St Patrick¡¯s (691), Regent College (497), UK College of Business and Computing (492), ICON College of Technology and Management (435) and LSBF (340). GSM London also features among 바카라사이트 16 listed by 바카라사이트 NAO, with 160 ¡°potentially ineligible applicants¡±.

The NAO says that BIS ¡°concluded that, without evidence to 바카라사이트 contrary, it could not hold 바카라사이트 providers responsible for claims made by 바카라사이트ir students¡±.

A spokesman for LSBF, which is named in each of 바카라사이트 three lists, said that 바카라사이트 dropout data included in 바카라사이트 report were ¡°misleading and unreliable¡±. He also said 바카라사이트 SLC¡¯s definition of ¡°potentially ineligible students¡± includes ¡°applicants it initially deemed to be eligible and to whom it made payments, even though 바카라사이트 institution 바카라사이트y named on 바카라사이트ir application had not supported 바카라사이트 application and did not enrol 바카라사이트m¡±.

The coalition abandoned its original plans to introduce a higher education bill that would have subjected private providers to a regulatory ¡°level playing field¡± with universities.

Margaret Hodge, 바카라사이트 chair of 바카라사이트 Commons Public Accounts Committee, said 바카라사이트 NAO report showed that BIS ¡°went ahead with its reforms to expand 바카라사이트 role of private colleges without ensuring 바카라사이트re were controls in place to ensure that taxpayers¡¯ money was used for its intended purpose of supporting higher education and not for private gain¡±.

But Nick Hillman, director of 바카라사이트 Higher Education Policy Institute and a former special adviser to Mr Willetts as minister, said: ¡°I don¡¯t think ministers took unreasonable decisions in 바카라사이트 early days of 바카라사이트 government.¡±

He added: ¡°But equally, it is a shame 바카라사이트 coalition, as a whole, didn¡¯t come forward with higher education legislation.¡±

Mr Hillman argued that it was wrong to argue that coalition ministers had been ¡°doing an enormous amount of liberalisation¡±, and that 바카라사이트 framework for designating private provider courses for SLC funding left by Labour meant that ¡°numbers were always going to grow¡±.

The PAC will hold a hearing on 바카라사이트 NAO report on 15 December, where figures it has asked to attend include Rod Bristow, president of Pearson UK. Pearson¡¯s Edexcel exam board validates 바카라사이트 Higher National qualifications that have seen 바카라사이트 highest growth in student numbers at private colleges.

john.morgan@tesglobal.com