Student Loans
Investigation into oversight of the Student Loans Company’s governance 15 May 2018
Following the dismissal of the chief executive of the Student Loans Company, the National Audit Office investigated the oversight of the Company’s governance, and management of its former chief executive.
Background to the report The Student Loans Company (the Company) administers loans and grants to students at universities and colleges across the UK. It processes around 1.8 million applications a year, and has more than 8 million customers repaying or due to repay loans totalling over £100 billion. The Student Loans Company appointed Mr Steve Lamey as its chief executive officer on 1 June 2016. Two members of Company staff made formal allegations about Mr Lamey to the Department for Education (the Department) and Company in May and July 2017. Following internal processes, including a hearing panel and an appeal, the Company dismissed Mr Lamey, without compensation, on 7 November 2017 for gross misconduct in public office, including breach of four of the seven Nolan principles and failure to adhere to HM Treasury’s Managing Public Money guidance.
This investigation describes the events surrounding Mr Lamey’s appointment and dismissal. It sets outs the Department’s role in oversight of the Company and how it responded to the concerns raised by the two Company staff.
The Department is reviewing the governance and structure of the Company, with the first phase to be completed by June 2018. In phase one, the Department is working with UK Government Investments to examine how the current governance arrangements are operating, whether they work well, and whether they could be improved in the short to medium term. The Department has not yet set out the detailed scope of phase two, during which it intends to examine the Company’s longer-term operating model. The Department is also reviewing its relationships with all of its arm’s-length bodies, which it aims to complete by January 2019.
Read the full press release from the National Audit Office.
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Student loan start notice (SL1) deductions already started 21 June 2018
HMRC has published the latest Agent Update 66, packed full of useful information including a change to the distribution of student loan start notices (SL1).
Student loan start notice (SL1) deductions already started There is an upcoming change to the student loan system which means that for all new employments (where deductions are applicable) an SL1 will be sent to the employer even if they send in a Full Payment Submission showing they have already started taking deductions. If an employer receive an SL1 for an employee who is already having deductions taken then they should: • check the student loan plan type to ensure there has been no changes • update their payroll software, if there has been a change to the plan type • file the SL1 away.
Employers do not need to inform or return the SL1 to HMRC.
HMRC will have further information in a future edition of Agent Update.
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