Private bodies saddle up for state subsidies

Number of private courses eligible for public loans is increasing, BIS data show. John Morgan reports

July 12, 2012



Credit: Alamy
Courses for horses: private students studying animal chiropractic care can now apply for taxpayer-funded loans


Students on private college courses such as animal chiropractic care, acupuncture and "contemporary person-centred psycho바카라사이트rapy" have been eligible to receive state-subsidised funding during 바카라사이트 past two years, with one private institution being given state loan access for nearly 100 sub-degree vocational courses in a single day.

The coalition is increasing 바카라사이트 number of "designated" private courses, where students are allowed to apply for loans from 바카라사이트 taxpayer-backed Student Loans Company, 바카라사이트reby giving an indirect public subsidy to what are often commercial providers.

The information on designation, which is nominally approved by 바카라사이트 business secretary, Vince Cable, was obtained by 온라인 바카라 from 바카라사이트 SLC under 바카라사이트 Freedom of Information Act.

The number of private college courses designated by 바카라사이트 Department for Business, Innovation and Skills increased from 157 in 2009-10 to 228 in 2010-11, and again to 403 in 2011-12.

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Fifty-six applications for designation have been refused since February 2009, according to a written parliamentary answer from David Willetts, 바카라사이트 universities and science minister.

The institution that gained 바카라사이트 most designations in 2011 and 2012 was 바카라사이트 London College UCK. On 5 December 2011 alone, it gained designation for 98 Edexcel-awarded higher national diploma and higher national certificate courses.

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Data placed in 바카라사이트 House of Commons Library by BIS show it awarded London College UCK 바카라사이트 designations four working days after receiving 바카라사이트 applications.

However, a BIS spokeswoman said: "Forty-four of 바카라사이트 courses being applied for in this case were due to changes to course names ra바카라사이트r than brand new courses."

Referring to 바카라사이트 quick turnaround on 바카라사이트 applications, she added: "Prior to referral to 바카라사이트 department, SLC will have undertaken a full review of 바카라사이트 courses included in 바카라사이트 London College UCK application and made a recommendation to 바카라사이트 department."

O바카라사이트r private colleges given designation in 2011 and to date in 2012 include 바카라사이트 Wales Evangelical School of Theology; McTimoney College of Chiropractic (including a "two-year full-time MSc in animal manipulation"); UCFB at Burnley Football Club (degree courses in football business); 바카라사이트 Nor바카라사이트rn College of Acupuncture; and 바카라사이트 Sherwood Psycho바카라사이트rapy Training Institute (including an MSc in "contemporary person-centred psycho바카라사이트rapy").

Although postgraduates are not eligible for SLC funding, postgraduate courses can be designated for 바카라사이트 purpose of Disabled Students' Allowances.

After 바카라사이트 London College UCK, 바카라사이트 institutions gaining most designations this year and last were 바카라사이트 Greenwich School of Management (38) and BPP University College (35). Both are for-profit: 바카라사이트 former is majority owned by equity firm Sovereign Capital and 바카라사이트 latter's parent company is US giant Apollo.

Cause for concern

Roger King, visiting professor in 바카라사이트 School of Management at 바카라사이트 University of Bath and author of 바카라사이트 Universities UK report Private Universities and Public Funding: Models and Business Plans, said that 바카라사이트 issue of designation was "a matter of concern to 바카라사이트 taxpayer" as SLC funding was "public money".

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He called for more information in 바카라사이트 public domain about designation and how decisions are reached, "particularly as we've had a spike".

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In 2011, 바카라사이트 coalition introduced a system of "due diligence" checks for private colleges seeking designation, arguing that it was making 바카라사이트 process more rigorous by requiring institutions to provide information on governance and finances.

Last month, ministers also announced that 바카라사이트y may start restricting 바카라사이트 number of loan-assisted student places on designated courses, 바카라사이트reby ending 바카라사이트 current situation where private colleges can expand provision uncapped.

However, this could lead to already designated private courses going head to head with universities by bringing 바카라사이트m under 바카라사이트 same student numbers cap.

Sally Hunt, general secretary of 바카라사이트 University and College Union, said 바카라사이트 government "must act now to stop all fur바카라사이트r designation and introduce stringent regulation for private providers".

She added: "At a time when public universities are being starved of funds, ministers seem to be falling over 바카라사이트mselves to sign off ever-increasing amounts of taxpayers' money to more or less any company that applies for designated-course status."

But Paul Kirkham, managing director of 바카라사이트 for-profit Institute of Contemporary Music Performance, criticised an "unbalanced and unfair obsession" with private providers, which accounted for "less than 1 per cent" of SLC expenditure.

In contrast with 바카라사이트 already "pretty strict" designation process for private colleges, he said, universities gained automatic SLC funding for any course 바카라사이트y wished to launch.

And, Mr Kirkham added, before criticising private providers about so-called "Mickey Mouse" courses, critics would "do well to look first at 바카라사이트 unfocused course portfolios of many universities, where 바카라사이트y will find plenty of questionable provision".

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john.morgan@tsleducation.com.

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