CIPP submits response to the consultation on support for postgraduate study
29 May 2015
The CIPP has submitted its formal response to the Department for Business, Innovation and Skills following the consultation on support for postgraduate study.
The response was based on the replies to an electronic survey, addressing only the elements of the consultation document affecting payroll, which was issued to CIPP members.
Summary of key findings
- 73% of respondents believe the proposed loan will bring benefits for both employers and employees;
- 52% of respondents do not feel that they will incur financial costs following the introduction of this loan;
- Of those who do think they will incur financial costs, 80% suggest this will be from upgrading their software and 75% think this will be due to HR and payroll staff time spent operating the system;
- There are concerns that there will be confusion about the interaction between undergraduate loans and postgraduate loans;
- Respondents were also concerned about the arrangements if an employee leaves employment whilst repaying a loan;
- Many respondents suggested that the repayment process should follow that of existing student loans and that deductions should be prioritised using a similar process to that in place for Attachment of Earnings Orders (AEO) or Deduction of Earnings Orders (DEO); and finally
- The overwhelming message from respondents was that the repayment process must be kept simple.
The majority of CIPP members who responded to the survey agreed that the proposal to offer loans to postgraduate students would bring benefits for both employers and employees; however there were concerns amongst some respondents that this will have a financial impact on employers. Yet the strongest message emerging from the survey was that this additional loan brings the risk of complexity and confusion which could be avoided by ensuring that existing processes from the current student loan and AEO / DEO regimes are incorporated into any new structure.