By Jaimie Kaffash
19 March 2010
The Student Loan Company did ‘not enjoy value for money in 2009’ and was beset by problems with processing applications, a damning report by the National Audit Office has shown.
The auditors’ review of the Customer First Programme – established in 2006 to centralise the applications process – was published today. It says the Student Loans Company, which is in charge of implementing the programme, ‘underestimated the risks and did not do enough to mitigate them’.
Processing of student loans was slower for 2009/10 than the previous academic year , the auditors found – 46% of students this year received their loans before the term started compared with 63% in 2008/09.
The Department for Business, Innovation and Skills also receives criticism from the auditors for its ‘light-touch’ monitoring of the SLC and its acceptance of the ‘company’s over-optimistic view that it would deliver a good service in 2009’. The department only became aware of problems at the company after a customer complaint in August 2009.
The NAO added that the processing of applications for the Disabled Students Allowance was particularly inefficient, with only 24% of applications being processed by the start of 2010.
Amyas Morse, head of the NAO, said there could be greater problems in the next academic year. ‘The question must be asked how the SLC, given its failure in 2009, will deal with twice as many applications in 2010, when it becomes responsible for applications from both first and second year students,’ he said.
In response to the report, higher education minister David Lammy commissioned PricewaterhouseCoopers to conduct a review of the SLC and announced extra funding of £16m to the company.
He said: ‘It is clear that the service offered by the Student Loans Company last summer fell well short of expectations. It is important that we can be confident students and their families receive the service they deserve from the SLC throughout the rest of this year. This is why I have commissioned PwC to carry out this health check.’
President of Universities UK Steve Smith said he welcomed Lammy’s announcement.
19 March 2010
The Student Loan Company did ‘not enjoy value for money in 2009’ and was beset by problems with processing applications, a damning report by the National Audit Office has shown.
The auditors’ review of the Customer First Programme – established in 2006 to centralise the applications process – was published today. It says the Student Loans Company, which is in charge of implementing the programme, ‘underestimated the risks and did not do enough to mitigate them’.
Processing of student loans was slower for 2009/10 than the previous academic year , the auditors found – 46% of students this year received their loans before the term started compared with 63% in 2008/09.
The Department for Business, Innovation and Skills also receives criticism from the auditors for its ‘light-touch’ monitoring of the SLC and its acceptance of the ‘company’s over-optimistic view that it would deliver a good service in 2009’. The department only became aware of problems at the company after a customer complaint in August 2009.
The NAO added that the processing of applications for the Disabled Students Allowance was particularly inefficient, with only 24% of applications being processed by the start of 2010.
Amyas Morse, head of the NAO, said there could be greater problems in the next academic year. ‘The question must be asked how the SLC, given its failure in 2009, will deal with twice as many applications in 2010, when it becomes responsible for applications from both first and second year students,’ he said.
In response to the report, higher education minister David Lammy commissioned PricewaterhouseCoopers to conduct a review of the SLC and announced extra funding of £16m to the company.
He said: ‘It is clear that the service offered by the Student Loans Company last summer fell well short of expectations. It is important that we can be confident students and their families receive the service they deserve from the SLC throughout the rest of this year. This is why I have commissioned PwC to carry out this health check.’
President of Universities UK Steve Smith said he welcomed Lammy’s announcement.
