England's universities face serious financial challenges because
there are pressures on three of their main income streams – a
flat undergraduate fee cap, unsustainable research funding and
pressures on international student recruitment. It is well-known
that this is imposing tough choices on individual universities,
but too little attention has been paid to what this means in the
long run for the size and shape of the university sector.
As the general election campaign takes full flight, a new HEPI
Report sponsored by the Policy Institute at King's College
London, Four futures: Shaping the future of higher education
in England, looks beyond individual and short-term funding
challenges to consider the long-term future of higher education.
The author, Professor Sir Chris Husbands, is the former
vice-chancellor at Sheffield Hallam University (2016-23). He
develops four plausible scenarios for the future of English
higher education and looks at what they could mean for students,
universities and government.
-
Scenario 1 considers what happens on the
current funding trajectory.
-
Scenario 2 looks at what a higher education
sector fully funded for high participation, research and
innovation might look like.
-
Scenario 3 explores the implications of a
tertiary system.
-
Scenario 4 considers what a more
differentiated system might look like.
A table outlining further key elements of the four scenarios
is below.
These four scenarios are used to illustrate the main choices for
an incoming government, and the ways universities and their
leaders might constructively try to influence the policy debate
on higher education.
Professor Sir Chris Husbands, the author of the report,
said:
‘There is no realistic way through the issues facing English
universities without thinking about the future shape and size of
the sector.
‘The shape of higher education in 2024 is a consequence of
previous interactions between universities and policy. It could –
and will – change.
‘Whoever wins the election on 4 July will need to think hard
about the higher education the country needs and is willing to
support.'
In his Foreword to the Report, Professor Shitij Kapur,
Vice-Chancellor & President of King's College London,
writes:
‘UK universities are held in high esteem all over the world –
envied for their excellence and widely emulated. But despite
their stellar reputation, they are currently experiencing some of
the greatest funding challenges and most strident questioning of
their role that they have ever faced. Against this backdrop, and
with a general election around the corner, this report could not
have arrived at a more important moment. …
‘The paper is vital reading for those who want to understand how
fine the balance is between a sector that will spend the next
decade reacting haphazardly to recurrent crises in institutional
finances and purpose, and one that is able to forge a path
towards being a key part of the UK's future success. At its core,
the paper highlights how different the outcomes could look
depending on how urgently and actively any new government engages
with universities in reimagining the sector.'
Note for Editors
- HEPI was founded in 2002 to influence the higher education
debate with evidence. We are UK-wide, independent and
non-partisan. We are funded by organisations and higher education
institutions that wish to support vibrant policy discussions, as
well as through our own events. HEPI is a company limited by
guarantee and a registered charity.
- On Wednesday, 5 June 2024, HEPI will
be hosting a webinar jointly with the Australian James Martin
Institute, on ‘What lessons are there for the UK from Australia's
Universities Accord?', with Professor Mary O'Kane, Chair of the
Australian Universities Accord Panel, and others
- On Wednesday, 12 June 2024, HEPI will
be hosting a pre-embargo in-person media briefing on the HEPI /
Advance HE 2024 Student Academic Experience Survey. For
more information or to book a place, please contact Emma Ma at
admin@hepi.ac.uk. The HEPI
Annual Conference – ‘Higher education on the cusp of the general
election' – takes place the following day, on Thursday, 13 June
2024, in central London and there are still a few free places
available for media representatives.
The Main Elements of the Four Scenarios
|
UK undergraduate funding and experience
|
International students
|
Research & Innovation
|
Scenario 1:
The evolution of the present
|
- Undergraduate fees frozen at £9,250
- Portfolios are trimmed
- Student applications and retention fall
- Higher education participation falls, especially
pronounced amongst the least well-off
- University retrenchment, institutional mergers and
failures become common
|
- Visa restrictions remain or are tightened
- UK loses international market share
- While the most elite institutions thrive, most
institutions focus on their UK mission
|
- Costs of maintaining research investment become
increasingly onerous and quantity of research falls
|
Scenario 2:
Delivering the 2010 vision
|
- Undergraduate fees increased over time back to 2010
real terms
- Student maintenance grants re-introduced
- Student loan repayments began at much lower threshold
with stepped repayments
- Sustained investment in widening participation and
individualised student support creates a more inclusive
system
|
- New international student strategy envisages growth
to 30% above 2019 strategy levels
- New markets are opened, and UK universities enhance
their global influence
|
- Public research funded at 90 per cent FEC, within
planned budget
- Revised tax credit regime to support charity and
industry-supported research
|
Scenario 3:
A place-based tertiary system
|
- Undergraduate funding modularised on the basis of the
Lifelong Loan Entitlement for Levels 4 to 6, supporting
part-time and flexible provision which drives wider
participation amongst under-represented groups
- Regional Tertiary Education Councils co-ordinate
provision and establish local and regional credit
transfer arrangements
- Apprenticeship levy re-framed as a retraining fund in
the hands of Tertiary Education Councils
- Undergraduate recruitment becomes more local across
the UK
- Development of new FE/HE institutional forms
|
- Long-term growth based on agreements with Tertiary
Education Councils
- Development of linked between UK regions and defined
regions in other countries to build partnerships beyond
student recruitment
|
- National research infrastructure maintained and full
economic cost funding of UKRI research
- Regionalisation of Innovate UK funding supported by
generous tax credits to build translational research
partnerships
|
Scenario 4:
A differentiated system
|
- Sharp differentiation between a small number of
research institutions and teaching institutions
- Triennial institutional agreements for student
numbers & access
- Institutional agreements require universities to
focus attention on student access and study support;
focus on graduate employability strongest in technology-
and vocationally focused universities
- Triennial agreements require transfer arrangements
- Undergraduate fees indexed from 2024
- Direct teaching grant for strategic subjects
|
- Planned modest growth from 2024 levels across both
research and teaching institutions.
|
- Institutional threshold for QR
- Full funding of research in a small number of
research universities
- Innovate UK funds translational research universities
|