Report blames Student Loans managers for "indecision and over-optimism"

Professor Deian Hopkin presents damning report that could see senior SLC managers fired

Students experienced delayed payments owing to "technical, management and services failure" of the SLC

Prolonged delays to student loans this autumn were blamed on "technical, management and services failure" in a review of the Student Loans Company (SLC) by Professor Deian Hopkin released today.

As a result, several senior managers at the SLC face the sack.

Hopkin's review said the SLC did not respond quickly enough when part of its computer system failed during the summer. The delay was attributed to " management indecision and over-optimism".

Following the review's presentation, higher education minister David Lammy gave a written statement to Parliament in which he said the company will continue to operate an IT-based centralised service, with students moving to online applications. He described the previous local authority-based process as "patchy".

The statement also said: "It was clear the service has fallen short of expectations," and demanded decisive action to change the service which would involve strengthening leadership in the company.

Lammy's statement added: “The chief executive and chair of the Student Loans Company have publicly apologised for the difficulties customers have suffered. As the minister responsible for higher education, I too have expressed regret for the unacceptable service parents and students have experienced.”

Liberal Democrat universities spokesman Stephen Williams described the report as "truly damning".

He also said that it revealed "a breathtaking level of incompetence but that new people at the top would make the necessary reforms easier to implement".

He concluded: "Ministers failed to ensure the SLC was delivering what was expected of it and must explain why they did not intervene earlier.”

David Willetts, shadow universities and skills secretary, said the government was warned about problems with the SLC system more than a year ago but failed to act. He added: “Ministers should hang their heads in shame, both for their serial failure and their attempt to pass the buck.”