If I just pick up on the point of those two surrenders to begin with, we always, in every year, see some awarding bodies surrender their recognition for one reason or another, and some awarding bodies gain recognition. In fact, at the moment we've got 96 awarding bodies that are recognised, which is a relatively stable figure over the last couple of years. We've had a couple in and a couple out each year, so to speak. The most common reason why an awarding body will surrender its recognition is because it's got a low level of business in Wales—so, it hasn't got many learners and isn't awarding very many certificates. If you haven't got much or any business, then there's an overhead associated with remaining a regulated body, and, for them, there's an overhead without a return in terms of any learners that are taking their qualifications. The most common reason why an awarding body will surrender recognition is it doesn't have business in Wales, and we have a condition in our rulebook that says, in order to retain recognition, you have to be certificating learners over a two-year period. So, in effect, they just don't have the business. That's the most common reason.
So one of the awarding bodies last year surrendered on that basis—that it didn't have awards going through. It had a few learners that were still in place, and what we did was we, in effect, worked with the awarding body to see safe completion for those learners before recognition was surrendered. The other awarding body was part of a merger with another awarding body. So, in effect it's a bit of a phantom surrender, because it surrendered its recognition but all of its qualifications were transferred over to another body that had, in effect, bought it out.
So, we don't have concerns on the basis of those two surrenders last year. I think where we do have a concern about awarding body stability is the impact of the pandemic. It's been difficult for everybody in society and we know it's been particularly difficult in education. So, with things like furlough, we know that many awarding bodies have used furlough to furlough staff where certifications have gone down and where they've moved to things like centre-determined grades or, as they're known in VQs, TAGs, teacher-assessed grades. So, there's been an impact on them in that respect, but also there've been reduced fees. So, if we think about WJEC as an example, they reduced their fees last year so that—. They reduced their fees by 42 per cent, and then there was an additional 8 per cent supplement put in by Welsh Government. So, in effect, schools paid 50 per cent of their fees. Now, a lot of the overheads remain the same in terms of staffing, buildings and the like. So, those sorts of things can, over time, start to erode financial stability.
Now, I don't want to set any hares running on the basis of WJEC being the example, because we think they've got good, sound finances, but what we are doing is we're looking closely at the financial viability of awarding bodies as part of our statement of compliance process. We did a special element of that in the statement of compliance last year. We're doing it again this year, and if there are any awarding bodies that are generating any concerns in terms of financial viability, then we're going into a close monitoring process. Now, of those 96 awarding bodies, most of them—in fact, I think probably all of them—are also regulated by the Office of Qualifications and Examinations Regulation, and Ofqual has an interest in this area. So, it's an area where we collaborate with Ofqual, to work with them on monitoring thee financial viability of awarding bodies. So, it's something that we're concerned about and we're keeping a very close eye on.