1. For our Future Presentation and discussion: University of Glamorgan 24 September 2010 Jim Cowan, Head of HE Strategy and Sponsorship www.cymru.gov.uk

2. HE in Wales: basic facts 12 institutions (including OU) Annual turnover: £ 1.1bn Grant from Assembly Govt: £ 450m 130,000 students experience HE in Wales annually –research income –knowledge exploitation –business generation Calls for Change by Ministers Better use of the funding it receives from Govt Calls for stronger contribution to Welsh economic performance through: –programmes relevant for workforce development: eg short progs; part time –More innovation and commercialisation –Better research performance to generate wealth and global reputation Calls for stronger contribution by HE to social justice through: –wider access to narrow the gap in opportunities –civic role of HE as employers, corporate and community citizens –cultural contribution to communities and Wales Capacity to face strong international competition in HE Capacity to face other change: demographics, finance, fees

3. HE review June 2008-April 2009 – HE Review -Phase 1: Student finance Sept 2008 -Phase 2: Mission, purpose, role and funding April 2009 23 June plenary statement 25 November - Announcement of HE Strategy and Plan “ For our Future ”

4. Key messages: Status quo not an option Radical change in HE focus and organisation Stronger strategic targeting of funding Greater emphasis on accountability Coherent but differentiated HE Community Many more must experience HE, but in different ways more suited to their needs

5. Strategic use of funding to modernise the HE model Responsive to national, regional and local education needs – coherent and differentiated Equipped to compete internationally by building greater capacity in areas of strength Adaptable and sustainable to meet changing need and demand Strengthened Welsh medium opportunities Coherence, sustained partnership and collaboration to maximise opportunities Not ruling out further mergers

6. Targeting economic performance Workforce development – flexible, adaptable, tailored, relevant Foundation Degree strategy Knowledge exploitation – improved business links, innovation, joint public/private research Developing the postgraduate community – future academic community; engagement in innovation; business start ups; linked to UK postgraduate review Interwoven with Economic Renewal Programme in terms of objectives and emphasis on change- selective and strategic targeting

7. Targeting Social justice Renewed widening access strategy Completion – stronger focus on helping learners achieve objectives Targeting student financial support (including national bursary framework) The student voice – student engagement in strategy and operations HE Community ’ s Civic responsibility: -as employers -in the cultural life of communities -sustainability and environment

8. Implementation Pace has intensified in 2010 Moved to near the top of Ministers ’ priorities Merger of institutions is a major Cabinet aim £ 450m of annual public funding as lever (38.5% of HEIs ’ income) HEFCW as the main agent of delivery Ministerial annual remit letter to HEFCW Close Ministerial interest in the HEFCW Corporate Strategy (de facto action plan) Establishment of WAG cross-departmental Project Board chaired by SHELL and reporting to the Minister.

9. Size of Welsh HE institutions (HESA 2008/09 FTEs, excl OU)

10. Turnover of Welsh HEIs (2007-08)

11. HEFCW Corporate Strategy 2010-11 – 2012-13 Challenging targets for raising : proportion of HE participation from Communities First and Heads of the Valleys Completion rates Welsh medium participation International student participation Employability of leavers Part time participation Sustained spin out companies Research income Student satisfaction

12. One target for cutting: The number of institutions : At least 75% of the Welsh higher education institutions will have an annual income in excess of the UK median (currently 36%) with no institution to be below the lower quartile by 2012/13 (currently 4 are) Institutions will be put under strong financial pressure to merge

13. Action in 2010: Regional strategies for HE: South East; South West and North-Mid Wales (November 2010) Reviewing funding methodologies for recurrent, capital and research (for introduction starting 2011-12) Tougher criteria for research funding from 2011-12 based on size of department and quality New student finance regime commencing (September 2010), including absorption of national bursary scheme into statutory framework (from 2011) Rapid action to identify where to shift resources from back office to front office Review of HE Governance

14. Other factors affecting higher education: It is going to get very tough UK Comprehensive Spending Review – concerns over severe cuts to budgets UK Science Policy/Research funding policy – changes could have profound consequences for research in Wales Competition for funds is going to get VERY intense HEIs must compete through scale and quality – integration, sustained collaboration and merger. Size and quality will be everything