Transparency data

SLC Board meeting minutes: 31 March 2021

Updated 23 February 2022

1. Attendees

1.1 Present

• Peter Lauener (PL) - Chair (by videoconference)
• Paula Sussex (PS) - Chief Executive Officer
• Mary Curnock Cook (MCC) - Non-Executive Director (by videoconference)
• Simon Devonshire (SD) - Non-Executive Director (by videoconference)
• Charlotte Moar (CM) - Non-Executive Director (by videoconference)
• Gary Page (GP) - Non-Executive Director (by videoconference)
• 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
• Jacqui Smillie (JS) - Chief Financial Officer (by videoconference)
• Gary Womersley (GW) - Company Secretary

1.2 Also in attendance

• Sinead O’Sullivan (SOS) - DfE (by videoconference)
• Anne Spinali (AS) - DfE (by videoconference)
• Ailsa Harris (AH) - DfE (by videoconference)
• Lauren McNamara (LMC) – Scottish Government (by videoconference)
• Chris Williams (CW) - Welsh Government (by videoconference)
• Richard Leeman (RL) - NI Government (by videoconference)
• Stephen Campbell (SC) - CIO (by videoconference)
• Derek Ross (DR) - Executive Director of Operations (by videoconference)
• Bernice McNaught (BMC) - Executive Director of Repayments and Counter Fraud (by videoconference)
• Morven Spalding (MS) - Executive Director, People
• Helen Bogan (HB) – Head of Governance and Planning (by videoconference)
• Stuart Brydson (SB) - Board Secretary (Secretariat)
• Karen Gallagher (KG) – Executive Assistant (by videoconference)
• Nathan Glancy (NG) - Business Manager to the Office of the CEO (for Item 5.1 and 5.4 only) (by videoconference)
• Adam Treslove (AT) - Head of Corporate Affairs (for Item 5.1 only) (by videoconference)
• Angela Donaldson (AD) - Head of Finance (for Item 5.5 and 5.6 only) (by videoconference)
• Mark Cassidy (MC) – Head of Estates and Sourcing (for Item 6.2 only) (by videoconference)

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 AS who was attending her first Board meeting as the new lead DfE representative. AS noted that her responsibilities would encompass HE reform as a whole, in addition to leading on sponsorship of SLC. SOS was attending her final SLC Board meeting and PL thanked her for her constructive support.

Apologies had been received from PK and SG and were noted.

PL noted that he would need to step out of the Board meeting briefly around the time of the CFO report and therefore that CM would assume the Chair in his absence.

There were no declarations of interest.

4. Chair Update

4.1 Update from the Chair on relevant matters

PL welcomed the early timing of strategic items coming to Board, including the Company Business Plan FY 2021-22 which was presented for approval at the meeting today.

PL explained that the NAO Board Effectiveness Review (BER) was expected to be discussed at the April Board meeting. A workshop would be arranged in early June to further discuss the outcomes from the BER along with thinking on the Lifelong Loan Entitlement (LLE) and the implications this could have for SLC. ACTION: Secretariat to arrange a Board workshop on BER, LLE and future SLC in early June

5. Strategic items

5.1 CEO Report

AT and NG joined the meeting.

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

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5.2 Evolve

BMC noted that the recent Infrastructure and Projects Authority review had given Evolve an amber rating and that this was very positive. The review highlighted some organisational-wide recommendations which had been welcomed.

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5.3 Strategic Partner Procurement (SPP) – Lot 2

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The PDTS contract will provide long-term value, enhanced support to TG due to the contract’s provision of end-to-end services and remove or mitigate existing technical and commercial risks.

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CM noted the fantastic work that had been outlined in the March CEO Report and PL thanked PS and her team.

5.4 Interim Performance Pack

In respect of the Customer lens, GP noted that Repayment customer satisfaction scores were low. BMC explained that this was in part due to the fact that SLC surveyed the customers where there was cause to speak to them. For Repayment customers this was usually those being pursued for non-compliance or customers contacting SLC about an issue with their account. On this basis, repayment customer satisfaction scores could be expected to be low. DW noted that while it was unhelpful to compare Assess to Pay and Repay customer satisfaction scores at present, the new CX strategy would harmonise the range of surveys currently undertaken and bring consistency which would allow for comparison. He thanked Board members, and RR in particular, for their support in reviewing customer survey question sets and more broadly.

In respect of the Frontline Service lens, AW noted the value of non-compliant overseas debt.

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The Debt Management Strategy had been refreshed and BMC would bring this to a future Board meeting. ACTION: Secretariat to add Repayments Deep Dive to the Board schedule.

PL left the meeting, with CM taking over as Chair until his return.

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AT and NG left the meeting.

5.5 CFO Report

AD joined the meeting.

JS introduced the CFO Report.

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Further work would be carried out to learn lessons for the future approach to budgeting and forecasts which would be led by both Finance Business Partners in their own Directorates and also the Finance Directorate internally. This would look at what SLC could do better but would also examine processes between DfE and SLC. AD would chair a workshop with the Finance team and Finance Business Partners in May, with the outcomes to be reported to the ELT and the Board. ACTION: Outcomes from the May budget forecasting lessons learned workshop to be reported to the Board.

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DW explained that the ELT had already started the process of improving financial forecasts, particularly in relation to movements late in the financial year.

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BMC explained that the recent IPA report on Evolve had recommended that Change finance be managed at portfolio rather than project level and that this would now be implemented. PS noted that she was keen to continue the discussion with DfE about a different funding method.

Board noted the CFO Report.

5.6 SLC Budget FY 2021-22

JS introduced the SLC Budget FY 2021-22, noting that DfE had confirmed SLC’s 2021-22 funding position (excluding HE Reform) as set out in the early draft APRA letter.

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JS explained that SLC had proposed, and DfE had agreed to, the removal of the DfE ring fence budget control for Evolve for 2021-22. In its place, DfE had agreed to set a minimum spend total for Evolve but it would not include a breakdown at Admin, Programme or Capital level.

AH noted that although there were placeholders in the APRA letter, the budget and the targets would not change, and that following discussion at the recent ARC meeting, expectations around SLC GDPR accountabilities would be made clearer. AH also noted that in line with work to update the Framework Document, write-off and special payment limits were more generous. In terms of next steps, the final version of the APRA letter would need to be reviewed and agreed by Ministers in each of the Devolved Administrations and this was expected to be completed by mid-April.

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AH noted that shareholders were looking to have their priorities delivered while PS noted that the APRA letter was draft and SLC had not yet had the opportunity to review it.

ST mentioned the HMRC presentation to Board in 2019 in relation to the customer journey on repayments and noted that it would be helpful to know if the non-cashable benefits had been discussed with HMRC and how they were linked to what SLC was doing and its relative priorities. AH agreed to take this point away and report back. ACTION: AH to consider repayments-related work with HMRC.

AD noted that the delegated budgets had been prioritised by the SLC’s Star Chamber process and that the Activity Based Management model to apportion costs to each government administration was being completed. Some new Operating Expenditure requirements and Change related ‘New Demands’ that had not been able to be prioritised for inclusion in the budget had been deferred for consideration at Q2 pending budget availability or re-prioritisation at that stage.

Board approved the SLC Budget FY 2021-22 and noted their desire to have a signed APRA by mid-April.

AD left the meeting.

5.7 Corporate Performance Dashboard

NG joined the meeting.

PS introduced the Corporate Performance Dashboard including agreed APRA measures and targets for FY 2021-22, noting that targets were deemed to be achievable despite the challenges of COVID-19 and Evolve.

PL re-joined the meeting as Chair.

ST noted the Frontline lens Core Processing backlog figures and PS explained that the updated forecast was outlined in the Operations Planning paper.

ST noted that it would be beneficial to see the customer contact figures in relative terms to identify trends DR explained that contact trends vary throughout the year relative to backlog volumes and are better when viewed against the entire previous twelve-month period.

RR suggested that SLC could look at ‘time to approve as a A2P metric – outlining the time to respond to an application and connecting the dots via customer complaint analysis. RR also noted that various factors could have affected the absence metric during the pandemic period.

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CM asked that the DA’s were satisfied with the Dashboard. CW noted that he had been involved in the process and was pleased with the outcome.

Board approved the Corporate Performance Dashboard including the APRA measures and targets FY 2021-22.

5.8 Company Business Plan FY 2021-22

PS introduced the Company Business Plan FY 2021-22, thanking HB and her team for the work on this and the Corporate Performance Dashboard. PS noted MCC’s previous point on the potential for flagging policies that had not yet been announced and agreed that this document would be reviewed accordingly. ACTION: HB to review Company Business Plan in relation to policy announcements.

PL explained that although the Company Business Plan FY 2021-22 would not come back to the Board, any material drafting suggestions could be emailed to SB for consideration. ACTION: Board members to provide drafting suggestions to SB by close on Tuesday.

There followed discussion on the level of ambition displayed in the Plan. PS noted that the Plan was indeed challenging and that SLC was operating at capacity.

RR noted that the Plan refers to ‘borrowers’ and suggested that language might be reconsidered, with ‘customers’ being more appropriate and future -facing.

SOS noted that high on her list of priorities was the completion of CEM and Evolve noting that potential timing risks on benefits realisation had not been included in the Plan. BMC explained that there was transparency around the tracking of CEM and that budgets set for this year included the benefits from the programme.

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PS mentioned that the Plan did not usually receive much feedback, and that from this year SLC had started to distribute it to partners as part of its publication and wider communication.

Board approved the Company Business Plan FY 2021-22.

AS left the meeting.

6. Directors’ Reports

6.1 Operations Planning – 2021/22 Application Cycle

DR introduced the Operations Planning – 2021/22 Application Cycle, noting that the increase in student funding applications compared to the same point in the previous year could largely be attributed to the SLC’s successful promotion of the need for early applications. AW noted that although EU applications were down 40% this year, UK applications were up by more than 10%.

MCC noted that peak contact levels were on Mondays. DR explained that SLC was already open at weekends to divert some of this peak.

The Board noted the potential for CEM delays may have an impact on Operations planning. BMC explained that she had discussed the impact of potential CEM delays on Operations planning with DR at ‘away days’. Contingency plans were in place to rebalance resource if necessary.

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In relation to paragraph 4.4 of the paper RR asked what an acceptable level of service impact was considered to be. PS explained that all indices on customer sentiment would be carefully monitored.

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DR noted that the published timeline for applications is 6 weeks. LMC noted that SAAS take a pre-emptive approach to customer interaction by engaging transparently around contact backlogs.

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Board noted the Operations Planning – 2021/22 Application Cycle.

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7. Papers for Noting / Reports from Committees

7.1 ARC Chair Report

CM introduced the ARC Chair Report, noting that the ARA 2020-21 was on track, and that the GIAA 2021-22 plan had been approved.

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CM explained that there had been a Deep Dive on cyber security and data information at the recent ARC meeting which had been attended by the new CISO and the GDPR Programme Manager.

PL noted that NAO had given a positive assessment on the ARA progress.

Board noted the ARC Chair Report.

7.2 March QSM Notes

AH noted the ongoing work to revise the SLC Framework Document. Work also continued on the new QSM terms of reference and it had been agreed that the meeting would be twice yearly, rather than quarterly.

AW left the meeting

8. Minutes of Previous Meetings and Matters Arising

8.1 Minutes of the meeting held on 25 February 2021

The minutes of the SLC Board meeting held on 25 February 2021 were approved as a true and accurate record.

8.2 Matters arising from previous meetings

The matters arising document was approved as accurate. HB noted that MB 481 may come to the Board later than April due to Deep Dive prioritisation.

9. Any other business

PL again thanked SOS, this being her final SLC Board meeting.

10. Date of Next Meeting

10:00 am, Friday 30 April 2021, The Boardroom, 100 Bothwell Street, Glasgow G2 7JD and remotely.

There being no other business the meeting ended at 12:35 pm.