Higher Education and Research Act 2017

SCHEDULE 2 The fee limit

Section 10 Introduction 1 (1) This Schedule provides for the determination of the fee limit, for the purposes of a fee limit condition, applicable to a course year of a qualifying course. (2) There are two methods of determining the fee limit: the credit-based method (see paragraphs 1A to 1G) and the fixed method (see paragraph 1H). (3) Which method is to be used in a given case is to be determined by regulations made by the Secretary of State. The credit-based method: basic concepts 1A (1) For the purposes of this Schedule, “credits” are units used to signify the total amount of learning time that a student would ordinarily be expected to spend in order to complete a particular course or part of a course. (2) “Learning time” means time spent in any form of study, learning or assessment. The credit-based method: attachment of credits 1B (1) Regulations must, in relation to each course year for which the credit-based method is to be used, make provision about the circumstances in which the course year is to be regarded as having a number of credits attached to it for the purposes of paragraphs 1D and 1E. (2) Such regulations may, for instance, provide that the course year is to be regarded as having a number of credits attached to it if— (a) that number of credits is notified in relation to the year by the provider of the course to a particular person by a particular date; (b) in arriving at that number, a particular number of credits is used by the provider to denote each hour of learning time. (3) Regulations may, in relation to a course year for which the credit-based method is to be used— (a) provide for a particular description of activity to be undertaken during the course year to be “credit-differentiated activity”, and (b) make provision about the circumstances in which a number of credits, out of those that are regarded as attached to the course year, are to be further regarded as attached to the credit-differentiated activity. (4) Credits are not to be regarded for the purposes of paragraphs 1D and 1E as attached to a course year, or to activity undertaken during a course year, except by virtue of regulations under sub-paragraph (1) or (3). The credit-based method: maxima and defaults 1C (1) Regulations must, in relation to each course year for which the credit-based method is to be used, specify or provide for the determination of— (a) a maximum number of credits for the course year, and (b) a default number of credits for the course year (which may not exceed the maximum number). (2) Sub-paragraphs (3) and (4) apply in relation to a course year that includes credit-differentiated activity. (3) Regulations must specify or provide for the determination of— (a) a maximum number of credits, and (b) a default number of credits (which may not exceed the maximum number), for each credit-differentiated activity to be undertaken during the course year. (4) In relation to a given course year— (a) the total of those maximum numbers must not exceed the maximum number of credits for the course year, and (b) the total of those default numbers must not exceed the default number of credits for the course year. (5) This paragraph does not apply in relation to qualifying courses that are modules. The credit-based method: fee limit where credits attached 1D (1) If— (a) the credit-based method is to be used for a course year, and (b) credits are attached to the course year, the fee limit is to be determined in accordance with this paragraph. (2) Unless the course year includes credit-differentiated activity to which credits are attached, the fee limit is the amount produced by multiplying the chargeable number of credits for the course year by the per-credit limit. (3) For the purposes of sub-paragraph (2), the chargeable number of credits is— (a) the number of credits attached to the course year, or (b) if fewer, the maximum number of credits for the course year (see paragraph 1C(1)(a)). (4) If the course year includes credit-differentiated activity to which credits are attached, the fee limit is the amount produced by— (a) for each such activity, multiplying the chargeable number of credits by the per-credit limit, and (b) adding together the sums arrived at under paragraph (a). (5) For the purposes of sub-paragraph (4)(a), the chargeable number of credits is— (a) the number of credits attached to the activity, or (b) if fewer, the maximum number of credits for the activity (see paragraph 1C(3)(a)). (6) In relation to a qualifying course that is a module— (a) sub-paragraphs (2) and (4) do not apply, and (b) the fee limit is the amount produced by multiplying the number of credits attached to the course year by the per-credit limit. (7) The “per-credit limit” is the per-credit limit determined in accordance with paragraphs 1I to 3. The credit-based method: fee limit where credits not attached 1E (1) If— (a) the credit-based method is to be used for a course year, but (b) credits are not attached to the course year, the fee limit is to be determined in accordance with this paragraph. (2) Unless the course year includes credit-differentiated activity, the fee limit is the amount produced by multiplying the default number of credits for the course year (see paragraph 1C(1)(b)) by the per-credit limit. (3) If the course year includes credit-differentiated activity, the fee limit is the amount produced by— (a) for each such activity, multiplying the default number of credits (see paragraph 1C(3)(b)) by the per-credit limit, and (b) adding together the sums arrived at under paragraph (a). (4) The “per-credit limit” is the per-credit limit determined in accordance with paragraphs 1I to 3. The credit-based method: adjustments for transfer cases 1F (1) Regulations may provide, in relation to transfer cases, for a reduction in— (a) the chargeable number of credits for the purposes of paragraph 1D(2) or (4)(a), or (b) the default number of credits for the purposes of paragraph 1E(2) or (3)(a). (2) “Transfer cases” are cases in which a provider relieves a student of the need to undertake part of a course because of activity undertaken by the student other than as part of that course. The credit-based method: supplementary 1G (1) Regulations under paragraph 1B, 1C or 1F are to be made by the Secretary of State. (2) Such regulations may refer to matters determined or published by the Secretary of State or other persons (whether before or after the regulations are made). (3) If the fee limit determined in accordance with paragraphs 1D and 1E would, apart from this sub-paragraph, be an amount including a fraction of a penny, the fraction is to be disregarded. The fixed method 1H Under the fixed method, the fee limit is the fixed limit determined in accordance with paragraphs 1I to 3. Determination of the per-credit and fixed limits 1I (1) Paragraphs 2 and 3 apply for the purposes of determining both— (a) the per-credit limit (for the purposes of the credit-based method), and (b) the fixed limit (for the purposes of the fixed method). (2) References in those paragraphs to “the relevant limit” are to be read accordingly. (3) References in those paragraphs to “the course year” are to the course year in respect of which the fee limit is being determined. (4) Where an amount is prescribed or determined under either paragraph, the regulations or determination must specify whether the amount is prescribed or determined for the purposes of the per-credit limit or the fixed limit. (5) The power for regulations to prescribe different amounts for different cases or purposes by virtue of section 119(5)(a) includes power for regulations under paragraph 2 or 3 to prescribe different per-credit limits in respect of different credit-differentiated activity. Limits where the provider has an access and participation plan 2 (1) This paragraph applies if an access and participation plan approved by the OfS under section 29 in relation to the provider is in force, or comes into force, when the course year begins. (2) If the provider— (a) had a high level quality rating at the relevant time, the relevant limit is such limit, not exceeding the higher amount, as is provided by the plan ..., and (b) in any other case, the relevant limit is such limit, not exceeding the sub-level amount, as is provided by the plan .... (3) “A high level quality rating” means such rating or ratings given in accordance with arrangements made under section 25 (rating the quality of, and the standards applied to, higher education) as the Secretary of State determines to be a high level quality rating for the purposes of this paragraph. (4) “The relevant time” means at the time when the access and participation plan is approved. (5) “The higher amount” means such amount as may be prescribed for the purposes of sub-paragraph (2)(a) as the higher amount. (6) “The sub-level amount” means such amount as may be determined by the Secretary of State for the purposes of sub-paragraph (2)(b)— (a) as the sub-level amount in respect of the higher amount, or (b) where different amounts are prescribed as the higher amount for different cases or purposes by virtue of section 119(5)(a), as the sub-level amount in respect of each higher amount. (7) Different amounts may be determined under sub-paragraph (6) for different descriptions of provider. (8) Those descriptions of provider may be by reference only to— (a) whether a provider has or has not a rating given to it in accordance with arrangements under section 25, and (b) where it has such a rating, the level, type or other description of the rating. (9) Any amount determined as “the sub-level amount”— (a) must not exceed the higher amount, and (b) must be equal to or greater than the floor amount. (10) But any amount determined as “the sub-level amount” for a description of provider by virtue of sub-paragraph (7) must be equal to the higher amount where— (a) the description is of providers who have a rating given to them in accordance with arrangements under section 25, and (b) the amount is in respect of an academic year which begins before 1 August 2020. (11) “The floor amount” means such amount as may be prescribed for the purposes of this paragraph— (a) as the floor amount in respect of the higher amount, or (b) where different amounts are prescribed as the higher amount for different cases or purposes by virtue of section 119(5)(a), as the floor amount in respect of each higher amount. (12) Where different amounts are prescribed as the higher amount for different cases or purposes by virtue of section 119(5)(a)— (a) the reference in sub-paragraph (9)(a) to the higher amount is to the higher amount in respect of which the sub-level amount is determined, and (b) the reference in sub-paragraph (9)(b) to the floor amount is to the floor amount prescribed under sub-paragraph (11) in respect of that higher amount. (13) “Prescribed” means prescribed by regulations made by the Secretary of State. Limits where the provider has no access and participation plan 3 (1) This paragraph applies if an access and participation plan approved by the OfS under section 29 in relation to the provider is not in force, and does not come into force, when the course year begins. (2) If the provider— (a) had a high level quality rating within the meaning of paragraph 2 at the relevant time, the relevant limit is the basic amount, and (b) in any other case, the relevant limit is the sub-level amount. (3) “The relevant time” means on 1 January in the calendar year ... in which the course year begins. (4) “The basic amount” means such amount as may be prescribed for the purposes of sub-paragraph (2)(a) as the basic amount. (5) “The sub-level amount” means such amount as may be determined by the Secretary of State for the purposes of sub-paragraph (2)(b)— (a) as the sub-level amount in respect of the basic amount, or (b) where different amounts are prescribed as the basic amount for different cases or purposes by virtue of section 119(5)(a), as the sub-level amount in respect of each basic amount. (6) Different amounts may be determined under sub-paragraph (5) for different descriptions of provider. (7) Those descriptions of provider may be by reference only to— (a) whether a provider has or has not a rating given to it in accordance with arrangements under section 25, and (b) where it has such a rating, the level, type or other description of the rating. (8) Any amount determined as “the sub-level amount”— (a) must not exceed the basic amount, and (b) must be equal to or greater than the floor amount. (9) But any amount determined as “the sub-level amount” for a description of provider by virtue of sub-paragraph (6) must be equal to the basic amount where— (a) the description is of providers who have a rating given to them in accordance with arrangements under section 25, and (b) the amount is in respect of an academic year which begins before 1 August 2020. (10) “The floor amount” means such amount as may be prescribed for the purposes of this paragraph— (a) as the floor amount in respect of the basic amount, or (b) where different amounts are prescribed as the basic amount for different cases or purposes by virtue of section 119(5)(a), as the floor amount in respect of each basic amount. (11) Where different amounts are prescribed as the basic amount for different cases or purposes by virtue of section 119(5)(a)— (a) the reference in sub-paragraph (8)(a) to the basic amount is to the basic amount in respect of which the sub-level amount is determined, and (b) the reference in sub-paragraph (8)(b) to the floor amount is to the floor amount prescribed under sub-paragraph (10) in respect of that basic amount. (12) “Prescribed” means prescribed by regulations made by the Secretary of State. Accelerated courses 4 (1) The power for regulations to prescribe different amounts for different cases or purposes by virtue of section 119(5)(a) includes power for regulations under paragraph 2 or 3 to prescribe different amounts as the higher amount, basic amount and floor amount in the case of an accelerated course. (2) An “accelerated course” means a higher education course where the number of academic years applicable to the course is at least one fewer than would normally be the case for that course or a course of equivalent content leading to the grant of the same or an equivalent academic award. Procedure 5 (1) The Secretary of State must— (a) notify the OfS of initial and subsequent determinations made under— (i) paragraph 2(3) (meaning of “a high level quality rating” for the purposes of paragraph 2), (ii) paragraph 2(6) (meaning of “the sub-level amount” for the purposes of paragraph 2), or (iii) paragraph 3(5) (meaning of “the sub-level amount” for the purposes of paragraph 3), and (b) publish those determinations. (2) No regulations may be made under paragraph 2 increasing the higher amount unless— (a) the Secretary of State is satisfied that the increase is no greater than is required to maintain the value of the amount in real terms, or (b) each House of Parliament has passed a resolution that, with effect from a date specified in the resolution, the higher amount should be increased to an amount specified in the resolution, and the increase is an increase to the specified amount with effect from the specified date. (3) For the purposes of sub-paragraph (2)(a), the Secretary of State is to have regard to such index of prices as may be specified in, or determined in accordance with, regulations made by the Secretary of State under this sub-paragraph. (4) In sub-paragraph (2)(b), effect “from a date” includes effect in relation to a course year beginning on or after a date.