From Louis Coiffait at the Pearson Centre for Policy

Policy briefing: some thoughts on HE

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is where Cambridge came in the 2010 QS World University Rankings

Some context – UK HE by numbers1.8

millionstudents are enrolled in the UK higher

education system33

0.7

1 billion

1

5

% of UK 18 year olds that go on to higher education

% of GDP invested by the UK in HE, against a 1% OECD average

pounds that Cambridge raised through the 800th anniversary campaign (first such sum outside the US)

% increase in applicants missing out on university places this year (188,697, 27%) compared to last year (139,520, 22%)

Massive shift from public to private funding

Teaching budget for HE (not research funding) falls from £7.1 billion to £4.2 billion (40%/£2.9 billion reduction by 2014-15)

To be funded by a revised HE fees system (building on the Browne Review), with a shift from public to private funding, mainly from individuals and ad-hoc corporate involvement

Ring-fencing of some funding for Science, Technology, Engineering and Mathematics (STEM) subjects.

A new £150m National Scholarship Fund to support students from disadvantaged backgrounds will be set up by 2014-15

The CSR headlines for HE

Different universities able to charge variable fees (currently £3.3k in England)

Browne proposed graded levy on fees above £6k, e.g. 75% of any fee above £12k paid by the university to the government (deterring high fees, potentially taxing rich to help the poor)

A new (market-based) HE funding model

Fee cap set at £9k, ‘better’ universities charging more must meet strict quality and access conditions

£7k is the figure that the Sutton Trust and others claim to be a deterrent to many from applying to university at all

To make this new market work students need better info e.g. # of contact hours they’ll receive, exactly who will teach them

Students apply for government loans to pay their university fees, repaying when in work

Repayments are 9% of salary once income passes a newly raised threshold of £21k (was £15k)

Rate of interest changes from inflation (0%) to the government borrowing rate (2.2%)

Maintenance loans and grant system to be simplified and more generous, little detail yet

Part-time students (with an FTE of a quarter or more) potentially offered the same deal as full time students

2012: The new loan system?

Maintaining the science budget in ‘flat cash’ terms (effective 8.9% cut), so £4.6 billion a year by 2014-15. With BIS ring-fencing some investment in science and research

Reform of the HE Innovation Fund

Large chunk of research funding going on existing capital projects, including £220 million for the UK Centre for Medical Research Innovation

£69 million will be provided for the Diamond Synchrotron…

STEM funding ‘protected’ to some extent

The Diamond Synchrotron!

Some corporate sponsored degrees, more in the pipeline.

Morrisons to sponsor 20 Food Manufacturing degrees at Bradford Uni management school; paying fees, £15k allowances and guaranteeing a job but expecting 3+ years service, handling applications outside UCAS, minimal annual leave and ‘proper’ working hours, instead of usual uni hours

GSK to sponsor a module on Nottingham chemistry degrees

Harrods planning 2 year sales degrees with Anglia Ruskin

Tesco sponsors a pre-degree foundation course in retail with Manchester Met and University of the Arts London

HE to becomes more and more commercial

The swing from public to private funding is hugely controversial, with no real debate or consultation

“This spending review looks an entire generation in the eye and says ‘you’re on your own’” Aaron Porter, NUS President

It’s a massive gamble to attempt a more diverse, privatised market to these timescales

It’s also a huge assumption that the market is an appropriate mechanism for determining where students go to university, teaching standards and quality

Some “heroic assumptions” (1/2)

Tough trade offs of price vs quality in a differentiated market

A differentiated fee system may leave some providers vulnerable: “the apparent absence of any recognition of public interest in the health and well-being of those universities is to be regretted” Higher Education Policy Institute

Markets come with the prospect of failure, some may not be able to charge enough or provide a quality service

Browne’s suggestion of growing the number of students by 10% is confusing; on the one hand liberalising (e.g. cap on university numbers removed), on the other restricting (budget constraints, minimum UCAS points for entry)

Some “heroic assumptions” (2/2)

Impact of new immigration cap on lucrative foreign students?

Access / social inclusion agendas? Rising expectations of students? Value of HE beyond £? Eligibility of loans and providers? How to cap student numbers?

Some big outstanding questions...

“If you’ve got any ideas do let us know...”

The devil, as ever, will be in the details: March White Paper

Pearson Centre for Policy and Learning book forthcoming in April; The future of Higher Education. Short essays from ten leading thinkers. Suggestions, input and collaboration very welcome.

Comments or questions?

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From the Pearson Centre for Policy and Learning

Thank you and have a happy Christmas!

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