Corporate report

Student Loans Company Framework Document - Annex A Memorandum of Understanding

Published 26 August 2022

MEMORANDUM OF UNDERSTANDING BETWEEN:

The Department for Education (‘DfE’)

The Directorate for Skills, Higher Education and Lifelong learning of the Welsh Government (‘SHELL’)

The Higher Education and Science Division in Scotland on behalf of Scottish Ministers (‘HES’)

The Department for the Economy in Northern Ireland (‘DfE (NI)’)

concerning

THE AGREED SPLIT OF THE STUDENT LOANS COMPANY Limited (“The SLC”) GOVERNANCE RESPONSIBILITIES BETWEEN THE FOUR DEPARTMENTS

1. This Memorandum of Understanding (MoU) is concluded between the Secretary of State for Education and the respective Ministers with responsibility for student loans in each of the Devolved Administrations listed above on behalf of their respective Departments and Directorates.
2. In accordance with paragraph 4.5.3 of the SLC Framework document this Memorandum of Understanding has been drawn up between the Departments to set out the division of governance responsibilities in respect of the Student Loans Company. Paragraph 4.5.3 provides:

4.5.3 Each Devolved Administration will liaise directly with SLC on certain bilateral issues. The division of governance responsibilities is set out more fully in a Memorandum of Understanding (“MoU”) between the Departments is attached at Annex A.

1. Words and phrases used in this Memorandum of Understanding shall have the same meanings as they have in the Framework Document for the SLC.

A. DfE and the Responsible Minister will lead on the following functions:

(i) Routinely, and without the need for consultation, on behalf of all Administrations:

• Sponsorship in Central Government (paragraph 4.5.1)
• Reviewing the SLC Chair’s Remuneration (paragraph 4.5.4)
• Accounting in the UK Parliament (paragraph 5.1)
• Approving the SLC Chair’s recommendation on Chief Executive annual remuneration reviews (paragraph 8.4.4)
• Reviewing the SLC’s audit strategy, periodic audit plans and annual audit report (paragraph 10.2.2)
• Appointment and monitoring of independent person(s) for review of complaints and appeals (paragraph 11.1)
• Defining delegated financial authorities in respect of administrative budgets (paragraphs 12.1.2, 12.1.3 & 12.6.1 – 12.6.7)
• Responding to the SLC’s requests under paragraph 12.6.2 relating to delegated financial authorities
• Agreeing SLC pay remit (paragraph 14.2)

(ii) Following consultation with and agreement by all Devolved Administrations:

• Recruitment, appointment and removal of SLC Chair and Non-Executive Directors (paragraph 4.5.4)
• Remuneration and terms of appointment of SLC Chair and Non-Executive Directors (paragraph 4.5.4)
• Approving SLC Board’s recommendations on CEO appointment and remuneration (paragraph 4.5.4)
• Coordinating revisions to or refreshing of corporate governance documents (paragraph 1.1 & 1.2)
• Determining the Purpose and Remit of the company (paragraphs 3.1-3.4)
• Capacity risk – moderating of competing demands (paragraph 3.3)
• Confirming approved functions and activities may be added to the Register of approved activities (paragraph 3.3)
• Setting strategic direction, including approval of Delivery Strategy and Annual Business Plan (paragraphs 4.2.1 – 4.2.3 and paragraphs 12.2.1 – 12.2.4)
• Designation of the SLC’s Accounting Officer (paragraph 5.1)
• Annual assessments of the Chair’s performance (12.5.3)
• Reviewing external audit reports and audited performance (paragraphs 9.5 and 10.3.2)
• Considering requests for the use of data held by the SLC (paragraph 12.5.6)
• Issuing Annual Performance and Resource Agreement letter (APRA) (paragraphs 12.2.5 – 12.2.7)
• Setting performance measures (paragraph 12.2.7)
• Conducting reviews of performance (paragraph 12.5.1)
• Responding to the SLC’s requests under paragraphs 12.6.2 relating to delegated financial authorities
• Approving changes to pension arrangements, and payments for redundancy or compensation for loss of office (paragraph 14.3.1 and 14.3.2)
• Conducting reviews of company status (section 15)
• Initiating any formal restructuring or wind up of company (section 16)
• Act to rectify significant problems in the SLC

With regard to A (ii) , in the event of a dispute between the parties, matters will be escalated to senior representatives in the Devolved Administrations concerned with a view to resolving the issue within one calendar month unless more urgent resolution is required. If necessary Ministerial correspondence can be entered into.

B. Individual Departments, will undertake the following functions bilaterally with the Student Loans Company:

• Ensuring that delegated statutory functions and requests for SLC to perform related activities are set out in written instructions (paragraph 3.2)
• Commissioning initial feasibility work on new potential areas of activity (paragraph 3.3)
• Accounting to, and advising Ministers, Devolved Parliaments/Assemblies and Accounting Officers for matters set out in paragraph 5.4 and ensuring arrangements are in place to fulfil the responsibilities set out in paragraph 5.5.

Review of this Memorandum of Understanding

This document will be reviewed annually at one of the set meetings of the Student Finance Biannual meeting or successor groups.

WE AGREE TO ENTER INTO THIS MEMORANDUM OF UNDERSTANDING ON THE TERMS STATED ABOVE:

Anne Spinali

Director for HE Reform and Funding

Signed and dated 04 August 2022

(On behalf of the Secretary of State for Education)

Roddy Macdonald

Deputy Director of Higher Education and Science Division (HES)

Signed and dated 04 August 2022

(On behalf of the Higher Education and Science Division of the Scottish Government)

Sinead Gallagher

Deputy Director of Higher Education Division

Signed and dated 03 August 2022

(On behalf of the Skills, Higher Education and Lifelong learning Directorate of the Welsh Government)

Trevor Cooper

Director of Higher Education Policy and Finance

Signed and dated 01 August 2022

(On behalf of the Department for the Economy in Northern Ireland)