Libby Hackett comments on an article looking at possible cuts to widening participation funding.

‘The transfer of £875 million in the medical education and research budgets to the Department of Health to meet spending review targets would be a “box-ticking exercise”, according to Labour’s shadow universities and science minister.

‘And it would leave further savings of up to £500 million still required from the Department for Business, Innovation and Skills’ budget, exposing widening participation funding to cuts, sector figures fear.

‘Libby Hackett, chief executive of the University Alliance, said she would “strongly advise” the government not to cut widening participation and retention funding, particularly given that the coalition has “tied itself so closely to social mobility”.’

Read the full article.

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Other nations are expanding their higher education systems, says Libby Hackett of University Alliance. Why not the UK?

‘We talk a lot about the importance of UK students and graduates making well-informed decisions about their futures – but does education policy governing the future of our universities follow that same advice?

UK higher education cannot predict or plan for the future with any certainty. However, we do know that much is changing in the world around us: how we work, create, share and receive knowledge; how we deliver value; and how we connect to communities around the world. Our education system needs to adapt to this rapid pace of change, as individuals and the economy place new and changing demands on how and what higher education delivers.

This means seriously considering the evidence on the need for, and value of, graduates to ensure that decisions we make are well informed, not made in a short-term vacuum. It also raises inevitable questions about the affordability of our current funding system, which needs to be looked at. The consequences of not doing so could be detrimental to all our futures.’

Read the full article.

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Libby Hackett discussed cuts to widening participation funding in the Huffington Post. 

‘Reports that some universities are lobbying for cuts to government grants that help disadvantaged undergraduates stay on and succeed at university are deeply worrying. At a time when youth unemployment in the UK has reached nearly 1.4million (18.9% of the youth population) and more jobs than ever now require a higher education qualification, it is inconceivable that a government that has championed social mobility would remove critical funding to support students from poorer backgrounds.

‘Government has worked hard to ensure higher fees have not deterred large numbers of students from applying to university. But what is the point of getting them through the door without an equal commitment to supporting the work that helps these same students to succeed and get a good job? Even in terms of economic efficiency this makes no sense; students that drop out would be much less likely to repay their loan.

‘There is a lot of talk about making access to university fair for all. Of course, this is essential for economic efficiency and social justice. But increasingly evidence shows that simply getting into university does not ensure graduate success: the ‘best’ graduate jobs remain closely linked to the socio-economic and education status of ones parents’ and skewed according to ethnicity, gender and type of schooling.’

Read the full article here.

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Why is a diverse university sector important?

1. A diverse and excellent UK university sector supports a vibrant society and an innovative economy.
2. To prepare for the new economy and a changing global jobs market, we need to harness the excellence that exists in different types of universities right across the UK.
3. We need to maintain a healthy balance between research-intensive universities and our leading professional and applied institutions.

Examples of excellence

Excellence exists across the sector and across the country. The following case studies demonstrate how universities are critical to future economic growth and support our international position as a place people want to live, work and invest.

Supporting regional economic growth

Universities are important for their own sake, as centres of enquiry and learning, yet the UK’s higher education sector also has a vital role to play in the UK economy. Universities right across the sector generate and transfer commercially useable knowledge.

• Start-ups from Alliance universities account for over half of the turnover of university start-ups.
• Alliance universities have led over one-third of all knowledge transfer partnerships, worth over £6.5m per institution.
• De Montfort University boosts the East Midlands economy by around £32m each year through business support and start-ups
• University of Huddersfield set up a £12m Enterprise and Innovation Centre to generate jobs and prosperity for the region
• Plymouth University leads the Growth Acceleration and Innovation Network comprising of some £100m of innovation assets in the region
• University of Salford in partnership with the BBC at MediaCity UK provide vital professional development to support the North West’s £16bn digital and creative sectors
• Oxford Brookes is the 8^th largest employer in Oxfordshire and over £19m of its annual spend goes to local suppliers
• Northumbria University has created more than 200 business start-ups in the past 5 years
• Cardiff Metropolitan University has worked with 5,000 companies and brought over 500 new products to market over the past 10 years
• The award winning Coventry University Technology Park encourages and supports  the start up and development of innovation-led, high-growth, knowledge-based businesses and is currently home to 63 businesses.
• With more than 2,500 staff, Kingston University is one of the town’s largest employers, contributing around £500m annually to the local economy

Attracts inward investment to support UK innovation

Universities are international organisations, operating internationally and forming partnerships with global business. As one of the UK’s major export industries, universities have the capacity to leverage investment for the benefit of the regional economy.

• The School of Engineering at University of Lincoln is a joint £37m project with Siemens – keeping a large employer and investment in the region
• The University of Hertfordshire raised over £10m to develop one of the UK’s largest bioscience incubation facilities
• Teesside University has brought £130m investment on a friendly town campus, bringing renewal to the heart of Middlesborough.
• De Montfort University’s Product Development Centre has a world-class reputation designing products for Adidas, Berghaus and Guinness and other leading brands
• Glasgow Caledonian University‘s partnership with the multinational engineering firm Doble will create a £1.2m Centre for Innovation anchoring Doble’s presence in Scotland for the first time

Leading cutting edge science

Around the world, policy-makers agree on the big issues that need tackling by our finest minds. Universities across the sector, through their world-leading research, advance our knowledge and understanding of these issues and solve many of the problems that drive them. Businesses big and small, charities and governments also have their own sets of challenges that universities are uniquely able to answer. Universities work with partners from around the world on research and innovation that is making a difference today.

• University of Huddersfield researchers are developing a safer nuclear power which could transform the UK’s energy independence
• The University of the West of England, which has been a centre of excellence in biosensor research for 20 years, is using gene technology to develop a rapid predictive test to enable tailored chemotherapy for cancer patients
• The University of Plymouth is home to the largest Marine Institute in Europe – with £25m recently invested in a new world class facility
• University of Portsmouth has one of the leading groups in the next generation of cosmology experiment which aims to uncover the mysterious nature of dark energy and dark matter
• The John Geest Cancer Research Centre at Nottingham Trent University leads on interdisciplinary research into cancer detection, monitoring and immunotherapy
• Research at the University of Greenwich on the tsetse fly was named by Universities UK as one of the eight most important discoveries made in a UK university over the past 60 years.

Transforms lives with new opportunity

Fostering social mobility and inclusion is both a social and economic need. With 80% of new jobs in high-skill areas it is vital that we have a system that enables all those who have the ambition and ability to succeed at university to do so. Universities make a major contribution to social mobility in the UK. With over 25% of all students, Alliance universities take a diverse range of students, offer them a research-informed and highly focussed learning experience, enhance their employability skills and, as a result, their graduates have some of the highest rates of graduate-level employment.

• At University of Bradford 52% are from low socio economic groups and 76% are on low income with bursaries and they are number one in Yorkshire for getting their graduate students into graduate-level employment
• With 43% of Manchester Metropolitan University students from low income backgrounds, it adds £147m per year in social value by contributing to social mobility and improving the quality of life of thousands
• Bournemouth University graduate employment rate is 91%, one of the highest in the UK

Prepares a generation for the world of work

A rich and diverse supply of graduates is increasingly critical in our changing, global economy. Growth of new sectors means we need different graduates to meet the different needs of the economy. The Creative Industries sector employs 1.4m people in UK; has 10.6% of UK exports; and contributes 3.2% to UK GVA (by comparison the Aerospace industry employs 133,000; has a global market share of 17%, and contributes only 0.4% to UK GVA).

• Bournemouth University is recognised as the only Centre for Excellence in Media Practice in the UK and graduates from the National Centre for Computer Animation have worked in Hollywood on such films as Lord of the Rings, Gladiator, Star Wars, Madagascar and King Kong.
• Over half of all students enrolled on sandwich courses are at Alliance universities.
• Sheffield Hallam University works with around 60 professional bodies, and with business and industry leaders including Sony, BP, NHS, Network Rail, Cisco, SAP and Microsoft preparing their graduates for work
• 75% of FTSE100 companies have sponsored their staff to study with the Open University
• Liverpool John Moores University‘s World of Work Programme integrated across the curriculum is endorsed by leading businesses including Airbus, NHS, GKN Aerospace, Siemens and Sony and the CBI
• The University of South Wales hosts a £1.5m aerospace centre which features an energy-efficient aircraft hangar complete with a BAE Jetstream 31 commercial jet, a fully instrumented wind-tunnel, a flight simulator and control laboratories.

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While it is true that for some universities their record on access is, frankly, shocking, it is not true to say that less people should be going to university or that most university courses are a bad deal for students.

Firstly, there is no evidence that the rise in fees has deterred poorer students from applying to university.

And even if that were true the UK will actually need more graduates, not less, to meet the challenges of the future. More jobs than ever before now require a higher education qualification, whereas the number of jobs for non-graduates are declining. If poorer students are not going on to higher education there is a good chance they will never access the top jobs of the future.

There are also significant economic benefits of attending university: individuals receive an earnings premium of £115,000 over their lifetime, the government gets £94,000 benefit through financing an undergraduate degree and UK higher education exports are estimated at £8.7 billion! Not to mention the fact that those with higher levels of education tend to live longer and healthier lives.

While students now have to borrow more money to attend university they only pay it back in proportion to their income (income contingent loans). So if they graduate from university and don’t find a job they do not have to repay their student loan. And if they graduate into a low paid job – like starting as a nurse on £21,000 per year they still pay nothing back on their loan. It is only when they start earning over £21,000 that they begin to pay back their student loan, and even then they can be paying as little as £5 per week on a salary of £25,000.

In addition university does not have to mean choosing between academic study and practical learning. Many university courses offer the opportunity to spend a year in industry as part of the course. For example, Nottingham Trent University’s LLB (Hons) Law is a sandwich course which allows students to spend their third year on a paid placement with a law firm. Students are able to take advantage of Nottingham Law School’s strong links with the legal profession and put their learning into practice.

I agree that higher education should always be about people choosing the right course for them. And for some people this will not necessarily be choosing to go to university at age 18. But there are all sorts of different routes in and through university, with other experiences to be gained – from meeting lifelong friends, to trying your hand at student radio, to spending time working at the BBC’s Media City alongside a degree at Salford University.

University is not for everyone. But misinformed articles such as this one only serve to discourage non-traditional students from applying.

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England should adopt a dual higher education system split between public-funded courses on the one side and a market-driven, employer- focused sphere of private provision on the other.

The University Alliance’s Vision for Higher Education Funding report also argues that undergraduate loans should be made more sustainable by having graduates repay them within five to 10 years, generating the funds needed to reintroduce direct grants and reduce tuition fees.

Libby Hackett, chief executive of the group, said: “We want to work collaboratively with people and build consensus across the sector with students, employers and in the corridors of power to build something that works and can ultimately be adopted by government.”

The University Alliance paper warns that England has a “one-size-fits-all” funding system for undergraduate education, creating problems such as the “unsustainable and unaffordable” new loans system and the cap on student numbers.

It adds: “A dual system would allow us to operate a publicly subsidised system on one side, with a much more flexible demand-led and entirely market-driven system running in parallel, designed to support alternative providers and with employers and the professions in mind.”

Read the full article

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University Alliance are today (6 June) announcing plans to look at fundamental reform of the higher education funding system in order to meet the future needs of the economy.

The university group has developed a framework for building a robust funding system that aims to put higher education on a sustainable and flexible footing.

The proposed funding system suggests:

1. Re-directing government funding back into teaching, resulting in lower fees
2. Reform of student support to target those most in need
3. Increasing access and support for students who learn while in employment
4. Using a progressive, income-contingent repayment system
5. Ending the one-size fits all approach
6. Introducing a single regulatory system
7. A genuinely flexible, expandable and market-driven – able meet the needs of our future economy
8. Re-establishing the Government–student contract
9. Introducing a cost-efficient system for Government

Libby Hackett, Chief Executive of University Alliance, said:

“When you look beyond the next few years it is clear that we need a serious redesign of our funding system for higher education. So much is changing in the world around us and we know that for the UK to remain globally competitive we need more graduates in the economy. How we pay for that is the difficult question that our funding proposals will seek to tackle.

“We want to look at systems that will flip the way government funding for higher education is directed. Currently government is spending the majority of its HE budget in writing off student loans that won’t get paid back. We want to explore ways to put that money back into teaching so there is a more explicit sharing of cost between students and Government. We want to explore ways of reforming the repayment system to achieve a 5 to 10 year repayment period similar to that of Australia rather than the UK’s unpopular 26 year average repayment period. We want to remove the unpopular lifetime burden of contribution and enable Government to invest directly into teaching rather than loan subsidies. Looking at other systems around the world, this seems highly achievable.

“To put it starkly, we either need to grasp the need for more radical reform or we risk operating an expensive funding system, designed primarily around young undergraduates, constraining our ability to meet the diverse needs of individuals, society and the economy in future decades.”

Professor Steve West, Chair of University Alliance, said: 

“Our job as universities is to educate and empower individuals and create and deliver knowledge. We cannot get into a position in the UK where we are unable to afford to do this. The current system does unfortunately put us in this position.

“Evidence suggests that the current system is a potentially unsustainable and unaffordable system in the long-term. It places a cap on student numbers despite the need for more graduates in our economy. And there is a complete lack of financial support for post-graduate and second chance students, which cannot be easily resolved undercurrent loan conditions. These issues, along with others, mean we must go back to the drawing board and look at ways of reforming the system. Without a healthy and growing higher education system we will simply lose out to our international competitors.

“We owe it to future generations to consider how to create an affordable and sustainable future. This is about choices and futures. As a country we need to compete on a global stage and win. Education is a key to economic recovery and prosperity.”

Notes for editor 

Press contact: Andrew Henry | 0207 839 2757.

Our funding framework can be found here.

Over the next few months we will be holding sessions to engage as many people as possible to explore a funding system for the UK that is fit for the future. If you would like to be involved please let us know.

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We need to rethink how we fund higher education

The world is changing fast: how we work; create, share and receive knowledge; deliver value; and connect to people around the world. Our higher education system and the way we fund it needs to adapt to the rapid pace of change as individuals and the economy place new and changing demands on how and what it delivers.

We have developed a framework for building a robust funding system that puts higher education on a sustainable and flexible footing. Our proposed funding system will:

1. Re-direct government funding back into teaching, resulting in lower fees
2. Reform student support to target those most in need
3. Increase access and support for students who learn while in employment
4. Use a progressive, income-contingent repayment system
5. End the one-size fits all approach
6. Introduce a single regulatory system
7. Be genuinely flexible, expandable and market-driven – able meet the needs of our future economy
8. Re-establish the Government–student contract
9. Be cost-efficient for Government

Read the full framework here.

We will be developing our framework collaboratively with Vice-Chancellors, economists and experts from across the sector and outside HE, in the UK and overseas.

Over the next few months we will be holding sessions to engage as many people as possible to identify a funding system for the UK that is fit for the future. If you’d like to be involved please contact us.

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Equipping Graduates for the World of Work

For many young people, part of the lure of higher education is the idea that success at university translates to success in the workplace. But while many of the so-called ‘top’ universities focus on the theory of academic subjects, students do not get the opportunity to apply their knowledge in a practical, work-related context. And while employers regard a university education highly, they look upon it even more favourably if coupled with great work experience. So how can universities find the balance between academics and practical application, to ensure the best possible opportunities for their students?

Combining Higher Education with Work

Organisations like University Alliance are taking steps to close the gap between higher education and the world of work, bringing together ‘24 of the most innovative and enterprising universities in the UK, focusing on delivering for the professions, business and the community’. Their partner universities draw links between academic education and work, to ensure better opportunities for students and consequently longer term public and economic benefit. For example, Liverpool John Moores University (LJMU) is the largest postgraduate provider in the North West. It introduced WoW (World of Work), a programme designed with major blue chip companies and with student assessment undertaken by employers, which aims to make LJMU graduates valued by employers and equip them for self-employment. It is schemes like this which help to ensure that after higher education, graduates have the best chances of gaining relevant employment.

Starting Early with Enterprise Education

At Enabling Enterprise, we believe that work related learning should start early. That’s why we have partnered with 25 top businesses to bring the world of work into the classroom through innovative lesson time projects, challenge days and trips to businesses. So in Maths a team of Year 8 students might design their own board game, working out scoring, probabilities and shape and space, through a project supported by Hamleys. Applying their curriculum objectives in a practical way, they also put their learning into a professional context as they then visit Hamleys and learn about the toy industry from one of its leading companies. Or in English a Year 10 class might take on the role of lawyers as they plan and perform persuasive speeches for a mock trial, supported by top law firm Freshfields.

To give today’s young people the best chances for their future, let’s embed the world of work right through school and higher education, to ensure that we make the most out of our bright young minds.

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In response to the Heseltine Review, the government invited Sir Andrew Witty to lead a review to explore how universities can work with Local Enterprise Partnerships (LEPs) and other local organisations to support growth.

The review will consider the government’s industrial strategy and seek to establish which universities are globally competitive in research relevant to the sectors and technologies of the industrial strategy. The review will start by looking at relevant research questions:

• which universities are world leaders in their specific fields?
• how can we determine that they genuinely are?
• what do we need on the ground to build on what is already happening?
• how can we organise financial and incentive flows to make the most of these strengths, given the economic power of the activity of these universities?

Our response

Given the key role Alliance universities play within their local economies we were delighted to contribute to the Review of universities and growth. Throughout our response, we provide many examples of how Alliance universities are delivering economic growth.

See our response - University Alliance Witty Review response.

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