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Student Loans Company chief suspended pending investigation Student Loans Company chief suspended pending investigation
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The head of the Student Loans Company – which administers the government’s burgeoning portfolio of tuition fees and maintenance loans – has been suspended pending an investigation, the company has confirmed.The head of the Student Loans Company – which administers the government’s burgeoning portfolio of tuition fees and maintenance loans – has been suspended pending an investigation, the company has confirmed.
Staff at the SLC’s offices in Glasgow were informed earlier this week that Steve Lamey had been suspended as chief executive and that another senior official was ordered to take “gardening leave”.Staff at the SLC’s offices in Glasgow were informed earlier this week that Steve Lamey had been suspended as chief executive and that another senior official was ordered to take “gardening leave”.
The SLC said: “On 11 July 2017, the Student Loans Company, in consultation with the Department for Education, took the decision to suspend the chief executive pending an investigation into concerns which have been raised. The suspension is a neutral act and does not imply wrongdoing. As the matters leading to suspension are now subject to an independent investigation, it would be inappropriate to comment further at this time.” The SLC said: “On 11 July 2017, the Student Loans Company, in consultation with the Department for Education, took the decision to suspend the chief executive pending an investigation into concerns which have been raised.
“The suspension is a neutral act and does not imply wrongdoing. As the matters leading to suspension are now subject to an independent investigation, it would be inappropriate to comment further at this time.”
Lamey joined the SLC as its chief executive in June 2016, having previously held senior positions at HM Revenue & Customs, including chief operations officer and chief executive of its tax credits and child benefits division.Lamey joined the SLC as its chief executive in June 2016, having previously held senior positions at HM Revenue & Customs, including chief operations officer and chief executive of its tax credits and child benefits division.
Before joining the SLC, Lamey was briefly a director of the outsourcing corporation Serco, providing “business development support for central government opportunities”. He graduated with an engineering degree from Cardiff university in 1978.Before joining the SLC, Lamey was briefly a director of the outsourcing corporation Serco, providing “business development support for central government opportunities”. He graduated with an engineering degree from Cardiff university in 1978.
The DfE has been approached for a response to Lamey’s suspension and related events at the SLC. The DfE said: “We can confirm that the Student Loans Company board in consultation with the DfE has suspended its chief executive officer.”
“The matters leading to suspension are currently subject to an independent investigation and it would be inappropriate to comment while this is ongoing.
“We are confident that SLC operations will not be detrimentally affected a result of this issue.”
The suspension comes at an embarrassing time for the government, with controversy swirling over the future of university tuition fees and the scrapping of maintenance grants for disadvantaged students and trainee nurses.The suspension comes at an embarrassing time for the government, with controversy swirling over the future of university tuition fees and the scrapping of maintenance grants for disadvantaged students and trainee nurses.
A recent report by the Institute for Fiscal Students found that graduates from deprived backgrounds were racking up the largest loans, reaching an average of £57,000 by the time they left university. A recent report by the Institute for Fiscal Studies found that graduates from deprived backgrounds were racking up the largest loans, reaching an average of £57,000 by the time they left university.
Several senior politicians and vice chancellors have called for radical reform of the fee and loan regime under which tuition fees have risen to an annual maximum of £9,000.Several senior politicians and vice chancellors have called for radical reform of the fee and loan regime under which tuition fees have risen to an annual maximum of £9,000.
Staff report that the SLC’s finance director has been placed on administrative leave but the company said: “We do not comment on the leave arrangements for any member of staff.”Staff report that the SLC’s finance director has been placed on administrative leave but the company said: “We do not comment on the leave arrangements for any member of staff.”
Since its inception, the senior leadership of the SLC has been dogged by disputes and management turnover, with the top spot in particular something of a revolving door.Since its inception, the senior leadership of the SLC has been dogged by disputes and management turnover, with the top spot in particular something of a revolving door.
A previous SLC chief executive, Ed Lester, left the organisation in 2013 in the wake of controversy over tax avoidance, after he was revealed to have negotiated to be paid through a private company, potentially allowing him to avoid tens of thousands of pounds in income tax.A previous SLC chief executive, Ed Lester, left the organisation in 2013 in the wake of controversy over tax avoidance, after he was revealed to have negotiated to be paid through a private company, potentially allowing him to avoid tens of thousands of pounds in income tax.
In 2014, the then chair of the company offered to resign after SLC was found to be using fake letters that threatened to take legal action against graduates who were behind in their payments. Regulators forced the SLC to change the wording on the letters, which appeared to come from an independent debt collection agency, Smith Lawson & Company Recovery Services. In 2014, the then chair of the company offered to resign after SLC was found to be using fake letters that threatened to take legal action against graduates who were behind in their payments. Regulators forced the SLC to change the wording on the letters, which purported to come from an independent debt collection agency, Smith Lawson & Company Recovery Services.
In 2010, the then chief executive, Ralph Seymour-Jackson, resigned following a high-profile scandal involving late or failed payments to thousands of students, leaving many undergraduates without cash and forcing universities to resort to distributing emergency funds.In 2010, the then chief executive, Ralph Seymour-Jackson, resigned following a high-profile scandal involving late or failed payments to thousands of students, leaving many undergraduates without cash and forcing universities to resort to distributing emergency funds.
Two other senior executives resigned in 2009 when the SLC failed to cope with more than 1m applications for loans after taking over responsibility for the payments from local authorities.Two other senior executives resigned in 2009 when the SLC failed to cope with more than 1m applications for loans after taking over responsibility for the payments from local authorities.