The purpose of the inquiry was to consider the funding of Higher Education Institutions (HEIs) in Wales, the financial impact of the Welsh Government’s tuition fee grant policy on HEIs and students in Wales, and whether the Welsh Government is delivering value for money in this area.

The new part time Higher Education funding policy did not come into effect until 2014 and therefore this inquiry focused on full time Higher Education funding.

The Finance Committee’s terms of reference covered three broad income streams of HEI funding plus the role of finance in choices made by students:

• Research – How effective are HEIs in securing research income including Welsh Government (WG) funding of research via HEFCW.
• Tuition fee income and support – What has been the financial effect of the new tuition fee policy introduced in 2012 which allows HEIs to charge students up to £9,000 per annum for HE courses and what are the financial implications of the WG’s tuition fee grant?
• Other income opportunities or threats – How important is the income stream to Welsh HEIs from tuition fees received from students domiciled outside Wales including overseas students and what are the financial consequences, now or in the future, of other changes in the HE marketplace including the entry of private providers ?
• Student choices – What financial considerations do students take into account when deciding whether to go into HE and what impact the WG’s tuition fee grants have on an individual’s choice?