The qualifications market
Last updated on: 10/03/2008
Ofqual as an overseer of the market
Uniquely in this country we have a market for qualifications. This means, simply, that there are qualification sellers (awarding organisations) and qualification buyers (schools, colleges, training providers, businesses and individuals).
The qualifications market isn't simple. The government plays a key role in determining the qualifications bought with public money, awarding organisations are often businesses with a wide range of objectives that range beyond qualifications provision, and buyers of qualifications are usually not the final consumer.
In our role as overseer of the qualifications market we need to understand how the market works, we need to identify problems in the market and propose, and sometimes implement, solutions to these problems. We also need to provide information so that others can operate effectively in the market. We recognise that we are also a player in the market, and that our behaviour influences both buyers and sellers. Our actions to secure qualification standards are a cost in the system, albeit outweighed by the benefits.
Our work in this area is at an early stage. It is in the process of commissioning the first full efficiency study of the qualifications system. This major study will help develop a better understanding of how the qualifications system operates and will focus on improving the efficiency of the qualifications market. We plan to have a final report for early 2009. This study will provide a basis for Ofqual's work as overseer in the market – it will highlight the need for any focused action or reviews of specific parts of the system. In most markets prices are a critical factor. We already know that in the qualifications market the fees charged (the prices) are probably less important to the buyer than other factors such as the suitability of the qualification to the candidate or indeed the ready availability of teaching resources to match the qualification. Nevertheless, in a time of increasing pressure on costs in the system the spotlight has turned to qualification fees.
There has already been some work on the factors affecting the fees of the newly revised A levels as well as a commissioned study on A level and GCSE fees. A piece of work will shortly begin to provide a better understanding of the factors that affect the fees of other widely used qualifications. We will report on our findings in early 2009. The planned removal of the NVQ levy has prompted a study to ensure that any cost savings due to the levy removal is passed back to the system and, finally, studies are planned on the fees for other qualifications including the new Diploma.
A critical part of our work in the market will involve transparency. Necessarily some of the work, particularly where it involves commercial considerations, will be confidential. Nevertheless, we are committed to publishing the results of our studies; the additional information provided will help both awarding organisations and qualifications buyers to make better decisions and in so doing will help the market work more efficiently and in the interest of the consumer – that has to be the overriding aim of Ofqual's work in the territory.
A full list of reports published can be found in the Reports section of the website.