Mary Curnock Cook CBE’s Post

One under-appreciated aspect of the funding crisis for UK universities (see latest round up from Phil Baty here https://lnkd.in/e2xMkyvM ) is how it is opening up unprecedented differences in funding for UK students at different types of universities. We’ve combined Times Higher Education course fee information with UCAS data on recent entrant numbers and type to estimate this in the graph. What is going on? Higher tariff (i.e. high entry grades, like Russell Group of Universities) universities have the twin advantages of (1) high proportions of higher fee students and (2) being able to command a high tuition fee in that market markets. By growing the share of international students in their intake, and increasing their fees, this has mean that higher tariff universities have stopped the key measure of real-funding-per-student-on-course weakening too much. But medium and lower tariff universities don’t enjoy this advantage. So they have been more fully exposed to the erosion of the value to the fee cap. This means that UK students going to these universities will be getting meaningfully less funding per student (about 25%) than their peers – paying the same fee – going to selective universities. All universities are really struggling in different ways through this funding crisis, but this new differential funding dynamic makes it harder and harder for medium and lower tariff universities to offer what students want and so to attract the numbers they need.

Universities UK published its key report, 'Opportunity, growth, and partnership: a blueprint for change from the UK’s universities' yesterday, setting out how the UK faces a "clear choice" between success or decline for the country's universities. In case you have missed it, you can access the web summary and the full report here: https://lnkd.in/emDccBef #Universities #FinancialSustainability #HigherEd

The marketisation of the universities is producing a very predictable crisis: The out-of-control administrative overheads, the over-leveraged spending on infrastructure, the over-reliance on international students, are coming together to create a perfect storm. While crisis in confidence in the universities is not new, this time it may be different. The marketisation has produced a generation of university leaders who have lost sight of what a university is meant to be, the globalisation has weakened its bond with local communities, the consumerisation of education undermined the campus cohesion and the commercialisation of admissions has made the universities lose sight of who their students are. The road to recovery isn't through business as usual, but require a fundamental rethinking of what a university is for. https://lnkd.in/evuDvzFB

There is a lot of discussion presently around the University space and need for change. A new report ‘Opportunity, growth, and partnership: a blueprint for change from the UK’s universities’ published today sets out a bold package of reforms to widen opportunity and boost the sector’s contribution to growing the economy. “Universities are essential to economic growth. For every one pound spent on them, the government makes 14 pounds in return. But we face a choice. We can take the path which leads to better and stronger universities, delivering on the new government’s missions, and doing more to open up opportunities to a broader range of people, or we can let them slide into decline. We must choose the former path. This is not just government’s responsibility. It is a shared responsibility with universities themselves, and one which we are taking head on with this blueprint. Professor Dame Sally Mapstone FRSE #university #blueprintforchange #economygrowth #reed

Two of my four kids have gone to university, the younger two are likely to attend also. However, this debate regarding University fees has to be seen in the light of how much teaching actually happens within UK universities. One of my kids had on average 8 contact hours per week (teaching or assessments) over a 3 year period. The other had around 20 hours a week (that was considered too much!). Russell Group Universities such as Oxford and Cambridge only have three 8 week terms. Thats only 24 weeks a year! Some others have up to 38 weeks a year. Thus the per-hour fee per student can actually be eye wateringly high even when considering the 'marking' time needed. Other courses are more intense, such as medicine are practically full-time. So my question here, is whether the UK University fees are too high, or should go up pro-rata to the course time-requirement. Or conversely, that certain courses should be free (because the country needs those skills such as STEM). Living costs for students is a whole other ballpark of pain... for another post. Thoughts? https://lnkd.in/eyktCWT8

The bloated university operating model is long overdue for review, radical reform and transformation. Successive UK governments have ducked this issue, running scared of the significant soft political power wielded by Universities UK, the Russell Group of Universities and their influential alumni networks. Higher education institutions and their support ecosystems are full of demonstrably very clever people, who are to be congratulated for mounting a spirited and well executed defence of the increasingly indefensible status quo. But the uncomfortable economic truth is that the amount of money invested in higher education that actually trickles through into learning outcomes for students is pitiful. It would be great if all universities were forced to publicly quote their all-up fee per learner contact hour (including all hidden subsidies) alongside each course in their prospectus, for example. That transparency would inform student choice and increase competition. Given the labyrinthine complexity of UK Higher Education, the government faces a major practical dilemma. Who should be tasked with carrying out an impartial and independent review of opportunities to reform the operation of this monstrously inefficient ecosystem of institutions? The University sector would doubtless prefer a panel of august academics with predictable and conservative suggestions for tinkering with inconsequential matters. The government is quite likely to prefer a review by private sector professional services firm like EY or PwC which focuses on simply making the current unaffordable arrangements more affordable. As a preparatory step, I would propose that a panel of learning technology experts is convened to reconsider the medieval era assumptions upon which the University system in this country is based and propose large scale transformation. Is mandated pilgrimage and residency at a seat of learning covering many acres of land genuinely the best way to serve the needs of students and wider society in the 21st century? It’s time for change! #universities #highereducation #edtech #educationpolicy #learningtechnologies

UK universities are facing financial pressure due to a decline in their international student intake. A number of them have been compelled to cut staff, reduce courses, and consider shutting whole departments. Dependent's ban, which bars international students from bringing families with them, decreased demand from key markets drastically. Furthermore, tution fees at universities do not keep up with inflation, adding to operating costs for universities. This is a serious financial crisis. With 40% of England's universities now expected to run budget deficits this year – presaging potential closures and mergers. According to the University and College Union, some 66 universities are in distress, with many slashing staff and courses, especially in the humanities and creative arts. With the UK government spending less on higher education compared with other countries, the universities have become dependent on international student fees. It is the latest dependant ban that deals another blow to the already reduced number of international applications, putting at stake the future of higher education in the UK unless the government does more in support.

This is an interesting update on where we are with university finances. According to the Office for Students, the financial problems look set to get worse with a senior official stating “Cash flow is down, surpluses are down, liquidity is down, international student numbers are down. The only thing that’s up is the number and size of deficits - and both are expected to rise.” What is also noteworthy that there will be an update soon on a report it published on financial sustainability in May this year which means we will have some idea of the challenges facing universities in England (but not Wales unfortunately). Hopefully, this will finally force the UK Government to address the serious issues facing higher education. https://lnkd.in/eVbiwj7Q

Why are tuition fees soaring? The financial health of universities is under strain, with concerns growing over how institutions can continue to support quality education. Universities UK, representing 141 universities, warns that to cover teaching costs, fees need to reach around £12,500 annually. ⚠️ Inflation is eroding the value of current fees, leading to potential cuts in staffing and courses, with fewer international students contributing to the funding gap. 📊 The Office for Students reports that 40% of universities expect to run a deficit this academic year. While the government has urged universities to "manage their budgets," Education Secretary Bridget Phillipson highlights the "severe financial challenges" facing higher education due to years of frozen fees and real-terms income decline. For students, this likely means higher costs and fewer resources unless sustainable funding solutions are found.

It’s good to see the announcement on increased funding for universities, which sends a strong statement that the government is committed to safeguarding the future of higher education. As Vivienne Stern from Universities UK has said, this will have been a difficult decision but it is the right one. Universities play a crucial role in developing the skills that are essential for the country and for regions, and they recognise the responsibility they have to their local communities. Increased funding will help our universities to continue their transformative work in preparing graduates to meet the future needs of society. We also look forward to a funding settlement for the long term, which is fair for students and universities, and recognises the holistic value of higher education. https://lnkd.in/eCu3NkfH