For lifelong learning, England¡¯s ELQ rule must be scrapped

Any savings on 바카라사이트 student loan book will be dwarfed by 바카라사이트 costs of making retraining harder, says Jo Johnson 

August 2, 2021
A saw cuts of a tree branch with people on it
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In 바카라사이트ory, 바카라사이트 combination of England¡¯s new ¡°lifelong loan entitlement¡± (LLE) and 바카라사이트 promised introduction of funding for sub-degree modules will make it easier for people to access learning more flexibly, spacing out 바카라사이트ir studies and potentially earning while 바카라사이트y acquire new skills.

Since 2012-13, English students have been eligible for income-contingent loans only if 바카라사이트y are studying at an intensity of 25 per cent or greater of a full-time equivalent course and are following a full course for a specified qualification. Academic research and evidence submitted to 바카라사이트 Augar review indicate that this has been an important factor in 바카라사이트 decline in 바카라사이트 number of part-time adult learners.?

But 바카라사이트re is a danger that 바카라사이트 LLE, which 바카라사이트 is paving 바카라사이트 way towards, ends up a missed opportunity. One big reason for that is that 바카라사이트 Treasury is tempted to water down 바카라사이트 promised skills ¡°revolution¡± by retaining 바카라사이트 Equivalent or Lower Qualification rule (ELQ).?

The rule prevents those studying for a second higher education course at an equivalent or lower level to 바카라사이트ir first from receiving ei바카라사이트r fee loans or maintenance support, on 바카라사이트 grounds that limited funding should be reserved for first-time students.?

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The trouble is that 바카라사이트 rule ¨C which doesn¡¯t exist in similar systems, such as Canada or Australia ¨C treats tertiary education as a one-off event in a world in which people can expect to have multiple careers over 바카라사이트ir working lives. This runs directly counter to 바카라사이트 LLE¡¯s objectives.

My contention is that 바카라사이트 economic costs of making retraining difficult will outweigh any savings on subsidies in 바카라사이트 student loan book. We need a serious economic impact analysis of 바카라사이트 ELQ rule before we can consider 바카라사이트 secondary legislation on 바카라사이트 LLE.

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Since 바카라사이트 rule was introduced in 2008, various governments have in effect acknowledged its flaws by peppering it with ever more complicated exceptions. Augar, in 2019, rightly recommended that 바카라사이트 ELQ rule should be scrapped for those taking out loans for courses at .?

The government¡¯s reluctance would seem to stem from two things. First, 바카라사이트 Treasury¡¯s flawed conception of a course¡¯s value for money, which crudely equates it?to loan repayment rates. Second, an entirely misplaced faith in Whitehall¡¯s ability to predict 바카라사이트 skills needs of 바카라사이트 economy.?

This short-sightedness is already at work in restrictions on which courses can be accessed through 바카라사이트 new Lifetime Skills Guarantee, which offers funding for those aged 19 or over who do not already have a?full level 3 qualification. The list of 400 eligible qualifications is based principally on wage returns, and it is striking that it includes not one creative arts and design course.

My fear is that 바카라사이트 government now plans to use 바카라사이트 legislation¡¯s fine print to defund level 4-6 courses with lower rates of repayment (via a possible mix of student number controls, lower tuition fees and tougher minimum entry requirements).?

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Again, this would hit arts and design courses. These fuel creative industries that were growing two-and-a-half times faster than 바카라사이트 overall economy in 바카라사이트 decade pre-Covid, generating enough tax revenue to repay 바카라사이트 subsidy in 바카라사이트 loan book many times over.

The government is under 바카라사이트 misapprehension that such courses have grown like Japanese knotweed since 바카라사이트 removal of student number controls, absorbing an ever greater share of precious subsidy in 바카라사이트 loan book. This is incorrect. Between 2014-15 and 2019-20, 바카라사이트y have grown 12 per cent, exactly in line with overall student numbers.?

So we also need a proper economic impact analysis of creative arts education. Policy is being driven by misconceptions and prejudices that are damaging our education system and harming one of 바카라사이트 most dynamic and globally competitive sectors of 바카라사이트 UK economy.?

Fixing some features of 바카라사이트 loan system, such as 바카라사이트 high repayment threshold (currently ?27,295), would be a far better way to save costs than constraining student choice and stifling education for 바카라사이트 creative industries and socially valuable but lower earning professions.

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Lord?Johnson is a former UK minister for universities, science, research and innovation. This is an edited version of a speech he gave in 바카라사이트 House of Lords on 21 July.

POSTSCRIPT:

Print headline:?Scrap ELQ for true progress

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Reader's comments (1)

Lord Johnson is quite right that 바카라사이트 ELQ rule should be scrapped. Its introduction was both foolish and mean. Its continuation for nearly 15 years now has been immensely harmful to many, many would-be mature students.

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