Advanced Learning Loans (24+) Assessing the Impact on Greater Manchester Learning Providers

Survey of Learners

Aged 24+ studying Level 2

2013-14

DRAFT

October 2013

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Contents

Page

1.0Introduction

2.0Background Information on the Learner

3.0Participation Costs and Learner Characteristics

4.0Aspirations to Progress

5.0Views on Advanced Learning Loans

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1.0Introduction

Aims of the Research

1.1New Economy is undertaking research to evaluate the impact of the introduction of Further Education (FE) loans on Greater Manchester. This research is being carried out on behalf of the Greater Manchester Colleges Group and the Greater Manchester Skills and Employment Partnership. The study includes an assessment of:

  • The impact on the Greater Manchester key skills priority of increasing the availability and take-up of Level 3+ provision including Advanced Apprenticeships
  • The impact on the Greater Manchester key skills priority of promoting progression through from Level 2 programmes (Apprenticeships and other) to higher levels of study;
  • The impact on employers being able to access the provision they need for their business;
  • The impact on the profile (education history, employment status, gender, age etc) of individuals aged 24 and above who are accessing Level 3 and above provision;
  • The impact of the potential introduction of FE loans at Level 2; and
  • How the impact varies across different skills sectors

Background to the Learner Surveys

1.2New Economy commissioned QA Research to undertake three learner surveys on their behalf. Approximately 1,200 learners were surveyed exploring background characteristics, learner motivations, and views on taking out loans. Three surveys were carried out, including:

  • A survey of Level 3+ learners who studied in the 2012/13 academic year, prior to the introduction of Advanced Learning Loans
  • A survey of Level 3+ learners who are currently studying in the 2013/14 academic year, after the introduction of Advanced Learning Loans
  • A survey of Level 2 learners who are currently studying in the 2013/14 academic year to explore the impact on progression, after the introduction of Advanced Learning Loans

1.3This report analyses the responses of Level 2 learners who are currently studying in the 2013/14 academic year, after the introduction of Advanced Learning Loans.

Survey Sample

1.4Three of the ten Greater Manchester Colleges (in the Greater Manchester Colleges Group) provided access to their learner contact databases: The Manchester College; Salford College; and Bolton College. The number of learners who participated in the survey, by institution were as follows:

Table 1.1: Responses by Institution

College / Number of Responses / % of Total
Bolton / 76 / 18.9%
Manchester / 247 / 61.4%
Salford / 79 / 19.7%
Total / 402 / 100%

1.5Each of the contact databases provided only included learners as enrolled at the institution as of the 1st August 2013 (i.e. the 2013/14 academic year).

1.6The Skills Funding Agency (SFA) Data cube was analysed to identify the characteristics of Greater Manchester learners which could be used to inform the sample of the learner surveys. The sample frame sought to be representative of Level 2 learners aged 24+ in Greater Manchester, which included:

  • 43% female and 57% male
  • 73% white and 27% non-white
  • 25% aged 25-30; 58% aged 31-49; 16% aged 50-64; and 1% aged 65+

Comparison with National Research

1.7Ipsos Mori and London Economics were commissioned by the Department for Business, Innovation and Skills (BIS) to undertake a detailed analysis of the benefits associated with Further Education (FE) and Skills, paying particular attention to the economic impact and wider benefits associated with learning and qualification attainment. This study, ‘The Impact of Further Education Learning’, undertook a telephone survey of 4,000 learners representative of the wider population of learners. Amongst other things, the survey explored attitudes towards loans in Further Education; willingness to pay for Further Education; and what might have happened in the absence of publicly funded training. The findings of the research were published in BIS Research Paper Number 104 in January 2013 (i.e. before the introduction of Advanced Learning Loans) and provides a useful benchmark for specific questions targeted in this Greater Manchester research.

1.8In comparing the two sets of results it is important to note that the national research is exploring views prior to the introduction of Advanced Learning Loans, whilst the results of this survey explore views after the introduction of Loans. It is also important to note that the sample for the national research focused on learners aged 19+ who studied in the 2010/11 academic year and included qualification levels entry, 1, 2, 3, and 4. In contrast this particular Greater Manchester survey focuses on learners aged 24+ who are studying at Level 2 and in the 2013/14 academic year.

2.0Background Information on the Learner

Key Findings:
  • A high proportion of 24+ learners at Level 2 have dependencies to care for, with 58.7% saying they were a parent or legal guardian of a child/ren under the age of 19. A further 16.7% also have health problems or disabilities that significantly affect their daily activities. These issues highlight the support needs that mature learners are likely to have.
  • Learners are more likely to be full-time students, work part-time or be unemployed (than they were before they began their studies). This indicates that their personal income is likely to have decreased as a result of participating in further education. A significant number still work full-time or part-time which highlights the need for course provision to be flexible to fit with work commitments.
  • Most learners fall into the low income category, with 47.3% earning less than £7,000 per annum and before tax prior to their course starting. Only a minority (12.2%) earned more than £21,000 per annum. This illustrates the challenge of this cohort being able to personally finance their course if grant funding was no longer available.
  • Most of the learners were seeking to improve their qualifications, with 54.1% only holding Level 2 or below prior to undertaking their current course. Some may be refreshing their skills or changing their career, with 16.7% already holding a Level 3 qualification and a further 16.7% holding a Level 4 qualification.

2.1Overall 402 responses to the survey were achieved. This section of the report explores the characteristics of the learners.

2.2Figure 2.1 illustrates the age distribution of respondents. Those aged 31-49 account for the majority of respondents, at 60.2%, followed by 25.6% aged 24-30.

Figure 2.1: Age Distribution of Respondents

Source:New Economy

2.3The gender split of respondents was 45.5% female and 54.5% male.

2.4All respondents answered the question about how they would describe their ethnic group, it can be seen in Figure 2.2 that white learners account for 76.1% followed by 10.2% Asian learners and 8.2% Black learners.

Figure 2.2: Ethnic Distribution

Source:New Economy

2.5The survey asked whether participants were a parent or legal guardian of a child or children under 19. Of the 402 people who answered the question, 236 answered in the affirmative (58.7%) which indicates the level of dependency amongst the learner cohort.

2.6Participants were also asked if they have any health problems or disabilities that are expected to last for more than a year (i.e. something which ‘significantly’ affects their daily activities). Of the 401 respondents who answered the question, 67 said ‘yes’ to this question, accounting for 16.7% of the total.

2.7The survey asked about current and previous employment status. It is apparent that the proportion of full-time working has decreased, whilst the proportion of part-time work has increased. Similarly, the proportion of learners who are now ‘full time students’ has increased as has the proportion of learners who are ‘unemployed’. This gives an indication that the relative personal income is likely to have decreased as a result of participating in further education.

Figure 2.3: Current and Previous Employment Status

Source:New Economy

2.8Participants were asked what their usual take home pay was before the course started (per annum and before tax).

Figure 2.4: Usual Take Home Pay before the course started

Source:New Economy

2.9It is apparent that the majority of participants earned less than £7,000 per annum and only the minority (12.2%) earned more than £21,000 per annum.

2.10The survey asked the learners what was the highest qualification they had obtained before undertaking their current course.

Figure 2.5: What level was your highest Qualification before undertaking this course?

Source:New Economy

2.11The majority of learners had achieved Level 2 or below (54.1%) whilst a reasonable proportion had achieved above this with 16.7% holding Level 3 and a further 16.7% holding Level 4 or above. Table 2.1 illustrates the breakdown by qualification type.

Table 2.1: Highest qualification before undertaking this course

Highest Qualification / Number of Respondents / % of Total
Advanced award/certificate/diploma / 15 / 3.7%
Award/Certificate/Diploma / 2 / 0.5%
Foundation degree or other degree / 29 / 7.2%
GCE A Level / 13 / 3.2%
AS Level / 19 / 4.7%
City & Guilds / 4 / 1.0%
BTEC / 52 / 12.9%
GNVQ / 21 / 5.2%
NVQ / 91 / 22.6%
GCSE / 6 / 1.5%
Key Skills / 3 / 0.7%
Other / 45 / 11.2%
None/No qualification / 58 / 14.4%
Don’t know/no answer / 44 / 10.9%
Total / 402 / 100%

Source:New Economy

Key Implications for the Study:
  • The characteristics of 24+ Level 2 learners shows that a high proportion have dependencies and caring responsibilities. Health problems or disabilities also feature amongst this cohort. These learners therefore have specific support needs which require tailored solutions including financial support, advice and guidance to enable them to progress their study and to continue to a higher level.
  • Low income earners are also a strong feature of this cohort. The fact that grant funding is still available for mature learners at Level 2 is therefore a positive, however looking ahead it may have an impact upon their ability to progress to higher levels of study. It highlights the importance of ensuring learners are fully aware of the different financial support (including Advanced Learning Loans) on offer. Given the high number of learners with dependent children there needs to be a focus on childcare support to ensure this is not a barrier to learning.

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3.0Participation Costs and Learner Characteristics

Key Findings:
  • Mature learners studying Level 2 continue to receive grant funding in 2013/14. However, not everyone is eligible but 75.6% did not have to contribute personally. Only 21.4% had to make a financial contribution.
  • Of those who did have to make a contribution, the majority (80.2%) are paying less than £1,000 towards course fees. Comparing personally paid by Level 2 mature learners in Greater Manchester with the national research shows that Greater Manchester learners are more likely to contribute more in monetary terms to their course provision, however, they are less likely to have had to pay anything at all (75.6% did not have to contribute in Greater Manchester compared with 50.2% nationally). Greater Manchester Level 2 learners are more likely to have their course paid for by Government/SFA than the national average (+10 percentage points). However, they are less likely to have their course paid for by their employer.
  • Learners in Greater Manchester are more likely to pay in instalments than in a lump sum compared to the national average. This may reflect a lower rate of disposable income to pay in a lump sum in Greater Manchester.
  • Improving job prospects, learning something new/gaining new skills, personal interest in the course, improving ability to do current job, and to go on to further or higher learning are the main motivations for those studying.

Costs and Payment of Learning

3.1The survey asked about the costs of participating in learning activity and how participants have paid for it.

3.2Courses at Level 2 for those aged 24+ continue to receive grant funding in the 2013/14 academic year. However, not everyone is eligible so the survey asked if they had personally made any financial contribution towards the course fees for their qualification. This includes if parents had paid for them, or if they took out any sort of loan to pay for it.

3.3In most cases, as shown by Figure 3.1, most participants have not had to personally pay for their course fees (75.6%). Overall, 17.7% are paying for ‘some of it’ and only 3.7% for ‘all of it’. This reflects the grant funding which continues to be available to this cohort.

Figure 3.1: Personal contributions towards Course fees

Source:New Economy

3.4When asked how much they would personally have to pay to complete the course, it is apparent that the majority of participants who answered the question are contributing less than £1,000 towards course fees (80.2%). Only 4.7% of those having to contribute are paying more than £3,000 to participate.

Figure 3.2: Scale of Personal contributions towards Course fees

Source: New Economy

3.5Comparing the cost of what learners paid for their course in 2010/11 nationally, versus 2013/14 in Greater Manchester shows that nationally learners are more likely to pay a lower contribution (57% making a personal contribution paid less than £300 compared with 43% in Greater Manchester).

Figure 3.3: Personally Paid Comparison between Greater Manchester and National Research

Source: New Economy & BIS Research Paper 104

Personally Paid Greater Manchester Base: 86 / Personally Paid National Base: 1,983

3.6Greater Manchester learners are more likely to contribute more i.e. 37.2% of learners in Greater Manchester contributed between £300 and £1,000 compared to 28% nationally.

3.7When asked if the Level 2 learner personally made any financial contribution towards their course fees the Greater Manchester survey found 3.7% of participants had paid for all of their course, with a further 17.7% paying for some of it. This compares with 29.7% and 19.4% respectively from the national 2010/11 survey. Nationally, 50.2% of learners did not pay anything personally towards their course, which compares with 75.6% in Greater Manchester. This suggests that whilst those Greater Manchester Level 2 learners who have to personally contribute may pay more, they are less likely to have to pay anything at all.

3.8The survey asked those who made a personal contribution towards course fees which method of payment that they used. This can be compared with the findings from the national research carried out in 2010/11. It is apparent that on average, those learners in Greater Manchester are more likely to pay in instalments than in a lump sum. This may reflect a lower rate of disposable income to pay in a lump sum in Greater Manchester than the national average.

Figure 3.4: Method of Payment to Pay for Course

Source: New Economy & BIS Research Paper 104

Greater Manchester Base: 85 / National Base: 1,982

3.9Those who did not have to pay for the full costs of the course (as shown in Figure 3.1) they were asked why they did not have to pay.

Figure 3.5: Why do you not have to pay the full cost of the course?

Source: New Economy & BIS Research Paper 104

Greater Manchester Base: 310 / National Base: 2,919

3.10Greater Manchester Level 2 learners are more likely to have their course paid for by Government/SFA (+10 percentage points) than the national average. However, they are less likely to have their course paid for by their employer or to have part of their fees waived.

Reasons for Studying

3.11The survey asked the main reasons why participants chose to study their course. This was a multiple choice question with participants scoring all reasons that applied.

Figure 3.7: Main reasons given for studying your course

Source: New Economy & BIS Research Paper 104
Greater Manchester Base: 402 / National Base: 4,000

3.12It is apparent that improving job prospects, learning something new/gaining new skills, personal interest in the course, to improve my ability to do my current job, and to go on to further or higher learning are the main motivations for studying Level 2 courses in Greater Manchester. Nationally, factors such as ‘to learn something new/gain new skills’ ‘improve my job prospects’ and ‘personal interest in course’ featured strongly.

Table 3.4: Main Motivations for Studying compared with Learner Characteristics
Main Motivations for Study / Learner Characteristics
Improve my job prospects/get a new job or new career /
  • Most likely to be younger (66.2% aged 24-30)
  • Most likely to be Asian (61%) or Black (81.8%)
  • Most likely to be female (66.1%)
  • More likely to earn under £21,000 (60.4%) compared to 30%

To improve my ability to do my current job /
  • Most likely to be 31-49 years (13.2%)
  • Most likely to be White (13.7%) or Asian (12.2%)
  • More likely to be male (16.4%)
  • More likely to earn over £21,000 (23.9%) than 20%

To learn something new/gain new skills /
  • Most likely to be younger (30.1% of 24-30 year olds)
  • Most likely to be White (27.5%) or Asian (26.8%)
  • Most likely to be Male (30.6%)
  • Most likely to earn under £21,000 (27.1% compared to 23%)

Personal interest in the course /
  • Most likely to be older, with 28.3% of 50-64-year olds and 75% of 65+
  • Most likely to be White (23.5%) or Asian (19.5%)
  • Similar male/female split
  • More likely to earn over £21,000 (24.4%) than 19.6%

Main Motivations for Study / Learner Characteristics
To go on to further or higher learning /
  • Most likely to be 31-49 years old
  • Similar ethnic split
  • Slightly more female representation (8.2%) than male (7.8%)
  • More likely to earn under £21,000 (9.2%) than 1.4%

Source: New Economy

3.13‘Other’ main reasons given for studying the course were varied and included:

  • “Change of career”
  • “To better myself”
  • “To get into University”
  • “To get a better life”

Key Implications for the Study:
  • The research on course costs suggests that Greater Manchester is a less affordable place to study than the national average. It would be useful to develop a better understanding of this issue and to benchmark course costs in Greater Manchester institutions with others in surrounding sub-regions to ensure Greater Manchester is maintaining cost competitiveness and is not at risk of losing mature students to competing institutions. This will help to increase student numbers.
  • When considering alternative methods of finance open to mature learners, flexibility in payment schedules should be an option to reflect that Greater Manchester students are more likely to consider paying in instalments than a lump sum.
  • The main motivations for studying amongst this cohort i.e. improving job prospects, learning something new/gaining new skills, improving ability to do current job, and to go on to higher and further learning can be used in marketing campaigns to promote course and loan take up.

4.0Aspirations to Progress

Key Findings:
  • Overall, 50.8% of Level 2 learners surveyed hope to continue to a higher level of study or to undertake further learning or training. Females are more likely than males to seek this outcome.
  • In contrast, males are more likely to seek a pay rise, promotion or greater responsibility in their current job.
  • Asian, Black and White ethnic groups are most likely to seek to continue to a higher level of study.
  • The propensity to continue to a higher level of study decreases with age.
  • Those with dependent children are more likely to seek to progress to a higher level of study than those without.
  • Those earning less than £21,000 are more likely to seek to continue to a higher level of study which reflects the lack of disposable income that these learners may have if balancing home and family responsibilities with education
  • There is a lack of awareness of Advanced Learning Loans amongst those wanting to progress to a higher level of study where they will be directly impacted (71.2% not heard of ALL or not sure)
  • Of those learners wanting to continue to a higher level of study, 49% are interested in a low cost loan.

4.1The survey asked the learners what their current plans were after they had completed their current qualification. This can be used to assess progression and the extent to which it may be influenced by the change in funding environment.