Transparency data

SLC Board Meeting Minutes 30 September 2021

Updated 23 February 2022

1. Attendees

1.1 Present

• Peter Lauener (PL) - Chair (Glasgow)
• Paula Sussex (PS) - Chief Executive Officer (Darlington)
• Mary Curnock Cook (MCC) - Non-Executive Director (by videoconference)
• Simon Devonshire (SD) - Non-Executive Director (by videoconference)
• Charlotte Moar (CM) - Non-Executive Director (Glasgow)
• Gary Page (GP) - Non-Executive Director (Darlington)
• Rona Ruthen (RR) - Non-Executive Director (by videoconference)
• Stephen Tetlow (ST) - Non-Executive Director (by videoconference)
• Andrew Wathey (AW) - Non-Executive Director (by videoconference)
• David Wallace (DW) - Deputy Chief Executive Officer (Glasgow)
• Gary Womersley (GW) - Company Secretary (Glasgow)

1.2 Also in attendance

• Anne Spinali (AS) - DfE (by videoconference)
• Ailsa Harris (AH) - DfE (by videoconference)
• Ian Ferguson (IF) – DfE (by videoconference)
• Lauren McNamara (LMC) – Scottish Government (by videoconference)
• Chris Williams (CW) - Welsh Government (by videoconference)
• Laura Irvine (LI) - NI Government (by videoconference)
• Stephen Campbell (SC) - CIO (Darlington)
• Chris Larmer (CL) - Executive Director, Business Operations, Darlington Office (Darlington)
• Derek Ross (DR) - Executive Director of Operations (by videoconference)
• Bernice McNaught (BMC) - Executive Director of Repayments and Customer Compliance (Glasgow)
• Morven Spalding (MS) - Executive Director, People
• Alistair Jarvis (AJ) – Chief Executive – Universities UK (for item 6.1 only) (by videoconference)
• Helen Bogan (HB) – Head of Governance and Planning (by videoconference)
• Stuart Brydson (SB) - Board Secretary (Secretariat)
• Karen Gallagher (KG) – Executive Assistant (by videoconference)
• Adam Treslove (AT) - Head of Corporate Affairs (for Item 5.1 only) (by videoconference)
• Nathan Glancy (NG) - Business Manager to the Office of the CEO (for Item 5.1 only) (by videoconference)
• Angela Donaldson (AD) - Head of Finance (for Items 5.2 & 5.3 only) (by videoconference)
• David Derrick (DD) – Financial Accounting Manager (for items 5.2 & 5.3 only) (by videoconference)
• Paula McEvoy (PMC) – Senior Business Improvement Manager (for item 8.1 only) (by videoconference)
• Madeleine Firth (MF) – Senior Manager, External Affairs & Strategic Relations

1.3 Apologies

• Paul Kett (DfE)
• Sinead Gallagher (Welsh Government)

2. FOI Notice

Where asterisks (*) appear, these sections have been excluded from the minutes before placing on the website as the subject under discussion falls within one or more of the exemptions contained in Part II of the Freedom of Information Act 2000 and can be reasonably withheld.

3. Chairman’s Opening Remarks / Directors’ Matters / Declarations of Interest

PL welcomed everyone to the meeting and especially IF who was attending as an observer, and LI who was attending for the first time. PL explained that AMC was only able to attend for the first part of the meeting.

PL explained that the meeting was taking place in both the Glasgow and Darlington Boardrooms as well as by Teams. Technology Group colleagues had done a fantastic job in facilitating the multi-site meeting. PL noted that the Teams chat bar would not be in use for the meeting.

Apologies were noted from PK and SG.

There were no declarations of interest.

4. Chair Update

4.1 Update from the Chair on relevant matters

PL noted that he had recently attended the Universities UK annual conference held at Northumbria University and that it had been good to hear delegates speak positively about SLC. PL had also attended a meeting at the University of West Midlands where he had spoken about SLC.

PL noted that he and PS had recently met the new Secretary of State for Education, Nadhim Zahawi.

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5. Strategic items

5.1 CEO Report

AT and NG joined the meeting.

PS introduced the CEO Report, noting her key areas of focus.

Blended Working

PS noted that blended working had been discussed at the recent RemCo meeting.

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PS explained that staff had chosen the term Blended Working and that the related intranet site was called Blend.

Responding to questions raised by the Board and limited time for discussion, PL asked for Blended Working to be on the agenda for the next meeting.

ACTION: Paper on Blended Working to be brought to the October Board.

Core backlog reduction

PS noted the effort that had been made to reduce the core backlog, and that the impact of this work could be seen in the Corporate Performance Dashboard. Staff from Repayments and PCER (Customer Relations Unit (CRU), Appeals and Customer Communications teams) had been redeployed to Operations since July. The CRU and Appeals colleagues had recently returned to PCER. PS welcomed how SLC was creating more flexibility in its resourcing.

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AT and NG left the meeting.

5.2 CFO Report

AD and DD joined the meeting.

AMC introduced the CFO Report, highlighting the central adjustments and the movement from the June forecast, and the accounting standard change and its impact on the current forecast outturn.

AMC explained the initial budget funding allocation.

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AMC noted that SLC was currently working on the Q2 reforecast, challenging all cost centre and project forecasts to ensure that there would be robust Q2 forecasts to submit to DfE. There would also be recognition, within the Q2 reforecast, that there was uncertainty over projects that had not yet entered delivery phase.

PL, CM and AH noted the uncertainties and potential for an underspend in the context of current capacity constraints and PL reminded Board colleagues that he and CM would take part in a detailed Q2 review prior to the October Board meeting.

AD explained that several projects had been highlighted that were causing a lag in the admin cost burn rate. Many projects were being delivered through commercial routes and partners and would be challenged as part of P6. Even so, the burn rate level did not yet warrant highlighting as an admin underspend risk.

AD noted that with new standard operating procedures in place, the forecast was very tight, and this gave more confidence in forecasting.

GP noted that the paper did not pinpoint an over or underspend. AMC explained that there was still work to be done and close focus and attention to ensure that there was neither an overspend or underspend come the year end. Finance had met with each directorate and reviewed their plans in detail, which AMC took assurance from. Management were also considering a range of levers that could be applied to ensure budgets were met within agreed tolerances.

The Board took assurance from the CFO Report but would want to apply close scrutiny to the Q2 forecast of spend.

AMC left the meeting.

5.3 Comprehensive Spending Review Update

PS introduced the Comprehensive Spending Review (CSR) Update noting that it was aligned with SLC’s strategy but had a focus on future HE/FE reforms, including LLE, and the cost of these reforms. PS noted that SLC was confident in its projections and that there was a strong value for money narrative as SLC had absorbed more work (increased application volumes over and above that forecast) without seeking additional funding. PL noted that he and CM had reviewed the submission in detail and felt that it was very rigorous.

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PL noted that the Board would revisit discussions on the CSR and SLC’s strategy in the context of the next Corporate Plan. The Board took assurance from the CSR Update.

AD and DD left the meeting.

6. External Partner Reports

6.1 Universities UK Update

AJ joined the meeting.

AJ introduced the Universities UK (UUK) Update noting that he had previously attended an SLC Board in January 2020, and that a lot had changed since then.

AJ outlined the current work and planning of UUK, including the international dimension following Brexit, and the post-COVID recovery. AJ noted the recent Cabinet reshuffle, and the expected student funding reforms.

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The Board noted the Universities UK Update.

AJ left the meeting.

7. Reports from Committees

7.1 ARC Chair Report

CM introduced the ARC Chair Report noting the Risk Management Policy, which ARC had approved and was attached to the Board papers, and the GDPR Deep Dive.

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The Board took assurance from the ARC Chair Report.

7.2 RemCo Chair Report

AW introduced the RemCo Chair Report. The Blended Working RemCo paper was appended to the Chair Report and AW welcomed that the Board would discuss this further at its next meeting.

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The Board took assurance from the RemCo Chair Report and approved the ToR document.

8. Directors’ Reports

8.1 Repayments and Customer Compliance Strategy

PMC joined the meeting.

BMC introduced the Repayments and Customer Compliance Strategy. BMC picked up on the flexible resources point from the CEO Report noting that around 70 of her staff were redeployed to Operations.

PMC talked to the slides noting that the current strategy aimed to build on the successes of the previous strategy. PMC explained that by providing digital services to reduce paper and phone calls, there had been around £6m of savings in the previous three-year strategy. PMC explained that the automation of the clawback recovery service had delivered benefit and that other campaigns had increased yield by a further £20m.

PMC highlighted areas aligned to the focus on customer experience including customer journey improvements, unverified customers, the campaigns function, international trace, and automation strategies.

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SD applauded the strategy and noted the importance of the Board having visibility of repayments. PL and CM both noted that the positive repayments story needs better communicated to wider audiences in DfE and Treasury.

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Regarding metrics, BM noted that Excellence in Data is critical and that the new Head of Data would present his thinking in due course.

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PL noted that regular updates on Repayments and Customer Compliance work would be helpful.

ACTION: Regular updates on Repayments and Customer Compliance work in relation to the strategy to be brought back to Board. Executive to determine if this should be in the CEO Report or an annual or biannual RCC strategy update.

The Board noted and endorsed the Repayments and Customer Compliance Strategy item.

PMC left the meeting.

8.2 Operations – Next Steps

CL introduced Operations – Next Steps noting that the Operations Directorate had been mobilising the new operating model (Ops 2.0) with assistance from the People team. Additionally, CEM had reached a major milestone in August with the launch of self-service in private beta mode. The SLC mission was to build a modern and sustainable customer operation which would deliver an outstanding customer experience, create best value for money for shareholders, and be a great place for colleagues to work. CL noted his view that the direction of travel for Operations was right and that the 20% increase in productivity achieved through the shift to multi-skilled colleagues was an early proof point.

AW left the meeting.

GP and ST asked about culture from the perspective of blended working and ongoing change. PL added to this by asking how success would be tracked and measured as CEM moved out of Evolve.

BM noted the business readiness change survey as a mechanism for ongoing tracking of CEM, and that Ops 2.0 would be tracked via this mechanism in due course. CL noted that office and home working had been proven to work and that the task now was to manage the shift to blended. He noted that involving colleagues was key to success.

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PL recorded that the Board had noted and fully endorsed the update given by CL and that he was keen that a further update was provided when appropriate.

8.3 Stakeholder Mapping

DW introduced Stakeholder Mapping.

MF explained that work to develop a stakeholder strategy coincided with the Board Effectiveness Review recommendation to consider how Non-Executives could support SLC’s stakeholder relationships.

To achieve the strategic goal of being a trusted delivery partner, SLC’s Corporate Strategy had set out an intention to develop and implement a proactive external affairs strategy. In late 2020, SLC’s External Affairs Team conducted a stakeholder mapping exercise. Although most stakeholder relationships had been considered ‘amber green’ or ‘green’, a small number had been identified as requiring proactive steps to address gaps. Following the conclusion of the exercise, a number of recommendations had been made, including the adoption of a SMT level relationship owner model, specifically for more operational matters, which were agreed by the ELT.

MF noted that the stakeholder engagement strategy would include the Non-Executive Directors, and that if they already had contacts or relationships with stakeholder organisations, they were invited to contact MF. MF noted that SLC was keen to find the balance between asking too much of Non-Executives and potential impact that relationships at this level could make.

ACTION: NEDs to share any links that they may have with stakeholder organisations.

MCC noted that it would be helpful to find out what stakeholders think of SLC and suggested that a CRM was needed to underpin stakeholder management. MF noted that SLC planned to carry out stakeholder sentiment research.

MF noted that this year SLC had established two customer panels and that these included customers eligible for DSA.

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The Board noted and welcomed the Stakeholder Mapping.

8.4 Independent Assessor Annual Report

DW introduced the Independent Assessor (IA) Annual Report noting that the IAs provide an important service to SLCs customers. DW noted that MF would shortly be taking responsibility for managing the IAs and was already responsible for CEO and MP customer complaint escalations.

The board noted the theme of unfair outcomes that was highlighted and DW confirmed that the vulnerable customer strategy and unfair outcomes would both be covered within the Customer Experience item that was scheduled for the October Board meeting.

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Following a suggestion from DW, PL agreed that it may be beneficial to invite a senior IA to the Board annually to give them the opportunity to present their report.

ACTION: Consideration to be given to inviting a senior IA to the Board to present the IA Annual Report.

The Board noted the Independent Assessor Annual Report.

8.5 Modern Slavery Statement

DW introduced the Modern Slavery Statement.

Board approved the Modern Slavery Statement for publication.

9. Governance

9.1 Minutes of meeting held on 30 April

The minutes of the SLC Board meeting held on 30 July 2021 were approved as a true and accurate record.

9.2 Matters arising from previous meeting

HB noted that all except five matters arising were recommended for closure.

The matters arising document was approved as accurate.

9.3 Any other business

In relation to the Board Schedule, CM noted that the May 2022 ARC proposed date should be the 26th.

PL noted that his proposed physical meetings for 2022-23 would be June 2022 in Llandudno, September 2022 in Glasgow, November 2022 in Darlington, and March 2023 in Glasgow.

PL noted that it was the final Board meeting for AD, who was leaving SLC after 18 years. PL thanked AD for her valuable contribution.

PL invited IF to offer his observations. IF noted that he took strong assurance from what was presented and discussed at the meeting and praised the item on repayments, which was of particular interest to IF as the DfE ARC Chair, and the Risk section of the CEO Report. He urged SLC to better communicate the savings made via the Repayments Strategy.

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PL thanked HB, SB and MC for facilitating the meeting and urged Non-Executive colleagues to respond when SB issued a feedback form.

10. Date of the next meeting

The next meeting was confirmed as being at 10:00 am on Friday 29 October 2021 via Teams.

There being no other business the meeting ended at 13:50 pm.