Guidance

Independent Assessors for SLC Terms of Reference

Updated 2 December 2021

1. Independent Assessor Student Finance Appeals and Complaints

1.1 PURPOSE

The purpose of an Independent Assessor is to:

• review appeals and complaints from Higher and Further Education student finance customers; and
• provide the customer with an impartial view of their case and to make recommendations, or confirm there are no recommendations where appropriate, to the Student Loans Company (“SLC”) on the case. Recommendations will take account of either HM Treasury’s ‘Managing Public Money’ or Managing Welsh Public Money, guidance, and all financial clarification notes which The Department of Education (“DfE”), and/or The Department of Skills, Higher Education and Lifelong Learning (“DSHELL”) has issued to the Independent Assessor. The final decision rests with the Secretary of State (“SoS”) or Welsh Minister (“WM”) but the SLC will abide by Independent Assessor’s recommendation unless directed to do otherwise by DfE or DSHELL.

1.2 BACKGROUND

The SoS for Education, together with the WM for Education, wants customers to have access to an independent review route if they are dissatisfied with their student finance experience once they have exhausted the SLC’s internal processes.

A student finance customer may raise two types of dispute:

• an appeal against decisions on eligibility or entitlement to financial support, for England and Wales domiciled customers or,
• a complaint about the standard of SLC customer service, irrespective of domicile.

1.3 STATUTORY PROVISION

Section 23(4) of the Teaching and Higher Education Act 1998, in relation to functions delegated or transferred to the SLC, provides for the SoS, and Welsh Ministers, to “make arrangements for any person or body specified in the arrangements to exercise on his behalf, to such extent as is so specified, any function exercisable by him by virtue of regulations under section 22 (including any such function in relation to appeals)”. While the Independent Assessors have no legal powers to overturn decisions and their recommendations are not binding, the SLC will abide by their recommendation unless directed by the DfE or DSHELL to do otherwise. Ultimately the customer still has recourse to the courts to challenge decisions. Section 23(5) of the Teaching and Higher Education Act 1998 makes clear that “Any arrangements made under subsection (4) shall not prevent the Secretary of State from exercising the function in question himself.” The Governments remain ultimately responsible for ensuring the student finance regulations are applied correctly and, where judged appropriate, the SoS will make a final decision. This can include accepting the Independent Assessors recommendations.

Ministers have agreed that one person can consider both appeals and complaints cases.

Pursuant to section 23(4) of the Teaching and Higher Education Act 1998, Independent Assessors are empowered to take the actions set out in these Terms of Reference. The Independent Assessors’ personal term of service, conduct and duties are specified in their appointment letter, which they must follow in conjunction with these Terms of Reference.

2. Benefits Provided by an Independent Review

Ministers are accountable for what SLC does and dissatisfied customers may refer to Ministers for help. SLC has robust procedures to ensure customers’ concerns are resolved effectively; but if they are still dissatisfied, customers should be offered access to an independent body.

The Independent Assessor will provide the following benefits:

• additional assurance from a customer perspective that the process to consider appeals and complaints is sufficiently rigorous/ robust.
• may mitigate the risk of cases going to Judicial Review.
• (If the Independent Assessor upholds SLC’s original decision) provide an additional robust view of the decision, which may be considered by the courts, adding rigour to any future defence.
• supplement SLC’s continuous improvement process by feeding back recommendations for improvements to SLC’s procedures and decision making processes.

3. Functions of the Independent Assessor

The main functions of the Independent Assessor are to conduct impartial investigations into cases which have not been resolved by SLC’s internal review processes relating to:

Customer appeals: the Independent Assessor will consider SLC’s decisions relating to the assessment of customers’ entitlement to financial support. The Independent Assessor will not be able to consider appeals against the student support regulations; they can only examine how SLC has applied the student support regulations.

Customer complaints: which are about dissatisfaction with SLC customer service.

The Independent Assessor will be required to:

a) review the original decision and examine all available evidence, or seek further written evidence where necessary, in order to provide an independent view.

b) provide clear, credible, equitable and defensible decision-making.

c) give an independent view as to whether SLC staff accurately applied student support regulations.

d) identify and make recommendations on areas where the quality of decision-making and customer service standards can be improved.

e) meet the performance measures set out in their appointment letter and as specified by the DfE and DSHELL; and

f) provide an annual report, in liaison with the other appointees, to Ministers and the SLC Board for the year ending 31 March summarising the year’s activity and making recommendations about areas for improvement.

Any disputes for Mortgage Style loans should refer the customer to the Financial Ombudsman Service.

4. Conduct of Investigations

In conducting investigations, the Independent Assessor shall:

a) provide decisions that are transparent, and fair.

b) consider any relevant written evidence and representations submitted by the customer, SLC, DfE and DSHELL. The Independent Assessor shall not conduct oral hearings but may seek expert advice if judged appropriate (e.g., Home Office on residency status).

c) document justification to support their review and recommendations.

d) take account of service standards as specified in their appointment letter e.g., aim to meet targets on submitting written decisions to customers.

e) provide copies of all their papers on each decision to the SLC for retention and storage.

4.1 Scope - Exclusion from Investigation

1.The Independent Assessor shall not investigate where.

a)the appeal or complaint is, in their view, frivolous, or vexatious.

b) the action complained of is currently under judicial consideration (subjudice).

c) the action has been the subject of legal proceedings in which a judgement on the merits has been given.

d) the SLC internal procedures have not been invoked or has not been exhausted. However, in exceptional circumstances this procedure may be cut short, and a case ‘fast-tracked’ to an Independent Assessor, if specifically requested by SLC, DfE or DSHELL

e) the appellant/complainant has delayed unduly before bringing the matter to the Independent Assessor’s attention.

f) the action occurred outside the United Kingdom.

g) the Independent Assessor has already investigated and reported on the appeal and/or complaint and no new evidence has been presented.

h) The complaint refers to a decision made by the Secretary of State under regulation 3(3) (c) of the Education (Teacher Student Loans) (Repayment etc) Regulations 2002.

2.For the purposes of paragraph 1(d) the internal procedures shall not be treated as having been exhausted unless

a) the appeal and/or complaint has been made to the SLC’s offices, and

b) either

(i) the SLC has communicated a final decision on the appeal/complaint to the appellant/complainant, or

(ii) more than three months have elapsed since the appellant/complainant invoked the procedure without an acceptable solution being reached and they make a formal request for referral.

3.For the purpose of paragraph 1(e) undue delay means that at least six months have elapsed since the matter came to the appellant/complainant’s knowledge. In calculating that period, there shall be left out of account any period during which the SLC was considering the complaint under its internal complaints procedure (whether or not that procedure could be treated as exhausted by virtue of paragraph 2(b) (ii)).

4.The Independent Assessor shall not question any decision taken by:

a) the SLC with reference to the taking or conduct of legal proceedings to enforce its rights; or

b) the SoS acting in person (as opposed to the SLC acting on his behalf) in relation to his responsibilities

5.Independent Assessors shall exercise independent judgement after conducting an investigation. They may recommend the SLC to take or desist from taking such steps as they specify. They may recommend that the SLC award, by way of compensation, an ex-gratia sum of up to £5,000, for any documented loss or expense, or up to £500 for an unreasonable degree of inconvenience suffered by the appellant/complainant. They shall communicate their final reports in writing to the SLC and the appellant/complainant. They shall not disclose any information or opinion furnished in confidence to themselves or to the SLC for the purpose of the investigation.

4.2 Allocation of Cases

The SLC shall refer cases direct to the Independent Assessors, bearing in mind respective workloads.

4.3 Reimbursement of Cost

The SLC is committed to pay on a case by case basis at the chargeable rate of £500 (or part thereof) per day. The Independent Assessor will invoice monthly in arrears direct to the SLC.

Information regarding timescales that Independent Assessors are required to adhere to can be found in the Service Level Agreement.