Showing posts with label CMA. Show all posts
Showing posts with label CMA. Show all posts

Monday, 15 August 2016

That 2.8% - an update

I blogged a couple of weeks ago on where the 2.,8% fee increase came from.

Eagle-eyed Sweeping Leaves reader Nick Catterall identifies a plausible source. Says Nick:
"I have been working away at our CMA related updates and as a result have spent quite some time going over the recent CMA findings report. One point within this talks of clearly showing what index the inflation rate is linked to when notifying students of our ability to vary fees in keeping with inflation, using RPI as the example. With the RPI index in mind, looking at the Statista website, it shows the Office of Budget Responsibility figures as 2.8% RPI forecast for the 2nd quarter of 2017. The published forecast is from November 2015..."
And indeed the OBR November 2015 forecast does show this.  Moreover, the RPIX (RPI excluding mortgage interest payments) forecast is 2.8% for the whole of 2017. You can see all of the supporting data in the 'economic and fiscal outlook supplementary economy tables' spreadsheet. The timing fits with the policy development framework, and in particular any behind-the-scenes lobbying in relation to fees.

So it looks like the mystery about the provenance of the 2.8% may be solved. Of course this doesn't address the larger questions - is this in line with the commitments made about no automatic increases at the time of the 2010 changes? (thanks to Aaron Porter for reminding me of this) and also how exactly Universities will follow CMA guidance and indicate the inflation rate to be applied?


Friday, 13 March 2015

Chwarae teg (fair play)

One of the many wonderful things about Wales (where I'm based) is the language, and chwarae teg – or fair play – is a phrase you’ll see a lot (in both languages!). And it’s apposite this week as the Competition and Markets Authority has published extensive guidance to universities on how they must play fair with applicants.

Undoubtedly fair play is about to take place
This has been coming for a while: back in April 2014 I blogged about the Office of Fair Trading’s review of universities terms and conditions. The basic finding of the first review was that universities have much more power than applicants and students, and need to be careful about how that power is expressed through regulations and practices, if they are not to fall foul of consumer protection law.

It was a balanced report, recognising that universities were not typically cavalier about this, and that the student-university relationship is more complex than that of customer-provider. But it did presage a greater concern with the contractual relationship, and the CMA’s new guidance fulfils that promise.

It’s a lot of advice – 69 pages of it, carefully worded. Not to be skimmed. The summary has 38 separate paragraphs, or sub-paragraphs, detailing specific things that universities must do to comply.

There's one other things that universities must obviously do – take it seriously. The Open Letter to HE Providers from the CMA makes clear that universities are expected now to:
  • Review publications, policies, rules and regulations
  • Make and necessary changes promptly, including clearing any internal hurdles, and if material is already published, make amendments clear
  • Think about how you ensure that all the different faculties and departments within the university are aware of the requirements and the guidance
  • Make sure that relevant staff know, and act upon that knowledge, as the HE institution is liable for actions carried out by its staff

And this is to be followed by a review – starting in October 2015 – to
"Assess compliance with consumer protection law. As part of that review we will analyse any information which has been submitted, including via our compliance reporting mechanism. Where necessary, we may also request certain information from some HE providers and ask them to demonstrate their compliance with the law. 
Should serious infringements be identified, either through monitoring or during the course of the compliance review, the CMA or another consumer enforcement partner may decide to take action, including before the compliance review has concluded."
So that’s universities put on notice: a clear list of things to check; a timetable for implementation (and quite a demanding one, given how long the recruitment cycle is and the need in many universities to get Senate or Academic Board approval for changes to regulations); a steer that actions in faculties and departments will be checked; a statement that staff ignorance will not be an excuse; and a warning that action may be taken.

The CMA guidance is a long read, but it is important that someone in every university is doing that reading, and taking action. And fair play to the CMA, at least they’ve been transparent.

Wednesday, 6 August 2014

On regulating student behaviour

Mike Ratcliffe has been posting some wonderful photos on twitter, from Freiburg University’s 1497 student regulations.

Thanks to Mike Ratcliffe for letting me use this image
I’ll leave you to look at the other pictures themselves in Mike’s Twitter feed, but here’s some of the text of the regulations:

No one shall have the right to open locked doors and windows in the house of wisdom
Dice, cards and sticks for casting lots and all games of chance are forbidden. Disregard of this rule will be punished with the loss of wine for a week. Chess, however, is allowed
So clearly Freiburg in 1497 had a problem with people sneaking into locked rooms, and gambling. If in doubt, rule it out. Or get them to play chess instead.

Universities are steeped in this tradition.  The ancient universities had Papal Bulls and Royal Charters which gave them legal autonomy from the towns and cities in which they were located. This gave the university meaningful legal power over its students.  Universities were corporations, in the same way that medieval towns and cities were corporations with charters.

And as Spiderman’s Uncle Ben says, "with great power comes great responsibility": not only could universities discipline their students, they were responsible for their students’ behaviour and therefore had a positive duty to intervene.

But the presence of a rule does little to enforce it. Consider this from the Rule of St Benedict (the regulations for another medieval corporate body with responsibility for its own members):
This order of Matins is to be kept on Sundays in both the summer and winter seasons– unless by chance they get up late (which should not happen) and some abridgement of the readings or responsories has to be made. But great care should be taken that this does not happen, but if it does, the person whose carelessness it has occurred must make adequate satisfaction to God in the oratory.
The legacy of these kinds of rules is still to be found in universities today. There’s all sorts of apocryphal stories about Oxbridge students demanding free beer at exams, and the like, but more modern foundations also have student disciplinary regulations, with clauses like:
Any act or omission, whether occurring on University premises or elsewhere, which improperly interferes with the functioning or activities of the University or of those who work or study in the University, or otherwise improperly damages the University or its reputation, shall constitute misconduct under these Regulations, including but not limited to the following:
d.      Violent, indecent, disorderly, threatening, intimidating or offensive behaviour or language;
(These are taken from a UK university’s student regulations, but as it’s to make a general point I’m not saying which one.)

When you think about it, this isn’t really that far removed from Freiburg’s wish to prohibit the unlocking of doors and windows.  But Freiburg had the legal power to do something about it.

The Office of Fair Trading’s reports – in the last throes of its existence before the Competition and Markets Authority (SMA) took over its functions, had a fair amount to say about this. Let’s pull together two of the strands.

First, who has the power?  The OFT thought that
Generally undergraduate students can be considered vulnerable and in a relatively weak position compared to the university. Some are likely to have limited experience of contracts …
(This comes from the OFT’s February 2014 report on Universities' terms and conditions - OFT 1522. I can't find a working web link, I'm afraid)

And yet to allow a student to enrol, universities often seek to bind them to an entire regulatory framework: that is, when they sign on to study they are agreeing to be bound by regulations which cover a broad range of matters.

Secondly, what service is being provided?  Again, from the OFT February 2014 report:
We have concluded that use of and reliance upon contract terms that allow the university to withhold graduation or progression or otherwise to exclude students from tuition for non-payment of ancillary services, in a blanket fashion and regardless of the circumstances, is open to challenge as potentially unfair under the Unfair Terms in Consumer Contracts Regulations 1999 ('UTCCRs') and/or may be unreasonable under the Unfair Contract Terms Act 1977 ('UCTA').
This is beginning to sound threatening. To unpack it a little, the OFT thought that the bundle of services which a university provides for its students (for instance halls of residence, libraries, IT as well as tuition) cannot automatically be considered as one whole package, in the way that university regulations often seek to, at least in abstract.

Now, let’s be clear. The OFT wasn’t saying that universities cannot have disciplinary codes. Nor were they saying that it wasn’t ok to have library fines and the like.

What they were saying was that universities need to sort out their contractual relationship with students. That means a university understanding clearly what is covered by its educational offer; and having a clear contract for that (which students can understand and which they can access if they want to). And understanding what other (ancillary, to use the OFT’s word) services it provides, and recognising that these are a separate contractual matter from a student’s registration at the university.

This sounds like a more consumer oriented approach, which will sit badly with the culture of higher education and the classroom. But it has the virtue of relating to today’s legal framework, not that of 15th century Freiburg. Perhaps it’s time for universities to review their student contracts and the framework within which they sit.