Funding of higher education
Section 88: Financial support to specified providers for higher education
278.This section allows the Commission to fund certain categories of providers who are registered with the Commission under Part 2 of the Act, for the purpose of supporting higher education provided by or on behalf of such providers.
279.The categories of registered providers eligible to receive funding from the Commission under this section will be specified in regulations made by the Welsh Ministers.
280.A registered provider receiving funding under this section may pass funds to a collaborating body. The passage of funds will allow the funded provider to work collaboratively with a range of partner organisations (including those outside Wales) engaged in the provision of higher education.
281.A provider funded by the Commission who is collaborating, has collaborated or who proposes to collaborate with another organisation to provide higher education needs the consent of the Commission to pass funds to the collaborating organisation. The Commission will not have a direct relationship with the collaborating organisation and therefore the provider funded by the Commission remains responsible for the funding. Section 108 contains procedures to be followed when the Commission is deciding whether or not to give consent.
282.The Welsh Ministers are enabled to make regulations about the circumstances in which funding must not be provided in respect of courses of initial teacher training. Such regulations could, for example, require that such courses must not be funded by the Commission unless they are accredited by a specified body.
Section 89: Financial support for higher education courses specified in regulations
283.This section makes provision about courses of higher education which may be funded by the Commission in addition to higher education supported by the Commission under section 88.
284.The Welsh Ministers may make regulations to specify particular courses or descriptions of courses which may be funded by the Commission; “eligible courses”. The regulations may specify courses by way of reference to, amongst other matters, the requirements to be met by the course; the description of the person providing the course; and the qualification to which the course leads. The ability for the Commission to fund eligible courses would permit gaps in provision for particular subjects or locations to be addressed.
285.Gaps in provision may arise due to a lack of specified providers (as defined in 88(1)) being able to fulfil an identified need. For example, a need for a specialist course to be delivered in Wales or to be undertaken by small numbers of students ordinarily resident in Wales, which may not be cost effective for specified providers to deliver.
286.This section provides that the Commission is able to fund providers to deliver eligible courses wholly or mainly in Wales and courses provided to students who are ordinarily resident in Wales. A provider receiving funding under this section may pass some or all of those funds to a collaborating body including providers outside Wales, for example, funding to support an eligible course where the majority of the course is provided by a provider in Wales, but particular modules are delivered by a provider in England, where the provider in England is working in partnership with the provider in Wales.
287.A provider funded by the Commission who is collaborating, has collaborated or who proposes to collaborate with another organisation to deliver a particular higher education course or courses needs the consent of the Commission to pass funds to the collaborating organisation. The Commission will not have a direct relationship with the collaborating organisation and therefore the provider funded by the Commission remains responsible for the funding. Section 108 contains procedures to be followed when the Commission is deciding whether or not to give consent.
Section 90: Financial support under sections 88 and 89: terms and conditions
288.This section provides that the Commission may impose such terms and conditions as it considers appropriate to funding it allocates for the purpose of supporting higher education. In particular, such terms and conditions may require the repayment of funds (including with interest) if the purposes for which the funding is allocated are not complied with. However the Commission may not impose conditions that relate to funding derived from other sources, for example income generated from providers’ own activities including tuition fees, funds from industry or donations from benefactors.
289.Where the Commission allocates funding to providers for higher education courses specified in regulations under section 89(1), who are not included in the register (i.e. unregistered providers) then the Commission must impose terms and conditions that require such providers to:
have a learner protection plan approved by the Commission in place (subject to the Commission having given notice of this requirement) and to give effect to the plan;
comply with the requirements of the extant Learner Engagement Code published by the Commission under section 129 if they are a tertiary education provider in Wales; and
have regard to advice or guidance given by the Commission to the provider.
Section 91: Financial support under sections 88 and 89: supplementary
290.This section places the Commission under a duty, in the exercise of its higher education funding functions, to have regard to the desirability of not doing anything which would discourage providers from seeking or maintaining funding from other sources (for example from industry, commerce, benefactors, alumni, or other funding sources).
291.The Commission is also required, in exercising its higher education funding functions, to have regard to the desirability of maintaining any distinctive characteristics of any provider to which it provides financial support. It is a matter for the Commission to determine what it considers to be an appropriate balance of support in light of any other relevant considerations. Such characteristics may include, for example, the religious character of a provider or the specialist nature of its provision.
Section 92: Financial support by Welsh Ministers for certain higher education courses
292.This section enables the Welsh Ministers to fund a limited range of “relevant higher education courses”. Such courses must fall within the definition of paragraph 1(g) or 1(h) of Schedule 6 to the Education Reform Act 1988. Courses which may be funded include those in preparation for professional examinations, for example courses which are not degrees and lead to qualifications accredited by professional bodies. The Welsh Ministers may make financial support available from their resources or arrange for others to provide resources on their behalf, or their own resources.
