Tag: Englands

  • 43% of England’s universities face deficits

    43% of England’s universities face deficits

    The latest report from the Office for Students (OfS) paints a stark picture of mounting financial pressures across the higher education sector.

    The analysis suggests that 43% of institutions now forecast a deficit for 2024/25, in contrast with optimistic projections made by institutions that had looked to an improvement in financial performance for the year.

    The key driver is lower-than-expected international student recruitment, according to Philippa Pickford, director of regulation at the OfS.

    “Our independent analysis, drawn from data institutions have submitted, once again starkly sets out the challenges facing the sector. The sector is forecasting a third consecutive year of decline in financial performance, with more than four in ten institutions expecting a deficit this year,” she said.

    “We remain concerned that predictions of future growth are often based on ambitious student recruitment that cannot be achieved for every institution. Our analysis shows that if the number of student entrants is lower than forecast in the coming years, the sector’s financial performance could continue to deteriorate, leaving more institutions facing significant financial challenges,” said Pickford.

    We remain concerned that predictions of future growth are often based on ambitious student recruitment that cannot be achieved for every institution
    Philippa Pickford, Office for Students

    Total forecasts continue to predict growth of 26% in UK student entrants and 19.5% in international student entrants between 2023/24 and 2027/28. However, in its report, the OfS said that “at an aggregate level, providers’ forecasts for recruitment growth continue to be too ambitious”.

    Speaking to The PIE News on the topic, David Pilsbury, secretary to the International Higher Education Commission (IHEC), said that university target setting is, and has been for many years, “disconnected from reality”.

    “There are not enough people that really know what their recruitment potential really is and how to deliver it, not enough people who push back on finance directors and university executive groups that see overseas recruitment as a tap that can simply be turned on to fill the funding gap, and not enough people developing the compelling business cases that put in place the infrastructure necessary to deliver outcomes,” he said.

    IHEC recently released a landmark report urging action across several areas of UK higher education, including international student recruitment.

    Pilsbury described the need to build “coalitions of the willing” between universities and with private providers – of data, admissions services, recruitment and beyond – to drive innovation, execute new models and establish different outcomes for the UK sector. The IHEC report warned that “failing to secure the future of international higher education in the UK would be an act of national self-harm”.

    Data for 2023/24 from the UK’s Higher Education Statistics Agency (HESA) reflects the uncertain environment for international students lately, caused by tightened dependant rules, uncertainty about the UK’s Graduate Route and unwelcoming messaging from the previous Conservative government. 

    Total international student enrolment in the UK fell from 760,000 in 2022/23 to 730,000 last year. Currency devaluations in markets such as Nigeria and Ghana contributed to the decline, with Nigerian student levels dropping most dramatically by 23%. 

    Pickford does not expect to see multiple university closures in the short-term, but said that the “medium-term pressures are significant, complex and ongoing”.

    “Many institutions are working hard to reduce costs. This often requires taking difficult decisions, but doing so now will help secure institutions’ financial health for the long term. This work should continue to be done in a way that maintains course quality and ensures effective support for students,” she said.

    “Universities and colleges should also continue to explore opportunities for growth to achieve long-term sustainability. But some superficially attractive options, such as rapid growth in subcontractual partnerships, require caution,” Pickford warned.

    Against a challenging operating environment, the OfS said it welcomes the work of Universities UK’s taskforce on efficiency and transformation.

    The taskforce was announced earlier this year and was set up to drive efficiency and cost-saving across universities in England through collaborative solutions, including the exploration of mergers and acquisitions.

    The report comes as UK stakeholders brace for the government’s imminent immigration white paper which is expected to include restrictions on visas from some countries and also changes to the Graduate Route.

    Source link

  • Any possible tertiary future for England’s post-18 system must lean into college-based HE

    Any possible tertiary future for England’s post-18 system must lean into college-based HE

    The Lifelong Education Institute’s latest report – “Taking Higher Education Further” – shines a spotlight on the contribution of FE colleges to England’s higher education sector.

    In partnership with the Mixed Economy Group of colleges – a group representing the 43 colleges with a strategic interest in HE – we have explored the rationale for college-based higher education, analysed some of the barriers holding it back from expansion, and suggested ways in which policymakers could support its growth.

    The report could hardly come out at a more interesting time for FE/HE relationships. After a decade or more of relative stasis following the introduction of the £9,000 undergraduate student fee cap in England, the tectonic plates of post-18 education are shifting rapidly towards an as-yet-unknown end state. There are three key drivers behind this potential re-setting of the status quo between the college and university sectors.

    First is the dramatic shift in the financial situation of universities and colleges, with many higher education institutions now facing the sort of cost-cutting that further education colleges have endured for years and needing to come up with new, more efficient business models to sustain themselves financially. Following the consolidation of many smaller colleges into large groups, there are now several colleges with larger annual turnovers than smaller universities, and the balance of power between FE and HE is moving steadily away from the traditional template of senior/junior partnership.

    Second is the move towards universities having place-based strategies, with civic university agreements proliferating in all parts of the country. This has partly been driven by the rise in influential devolved authorities across England, and partly by the increase in take up of degree pathways in a range of public sector professions, such as nursing, policing, and social work, which are vital to local communities and tend to recruit from local populations.

    Rising cost of living pressures have also played their part, with commuting students becoming an increasingly important segment of the HE student market. The introduction of degree apprenticeships has also pulled many universities into much more active engagement with local employers and much more of a focus on local skills development. Colleges, which have always had fairly tight catchment areas, now find themselves working their patches alongside local universities, and in some cases, through the network of 21 Institutes of Technology, offering higher technical qualifications and high level short courses directly in partnership with HE institutions.

    Third, and most importantly, the arrival of a new government is rapidly moving the political paradigm away from competition towards collaboration. Education ministers have taken every opportunity since the general election to drive home the message that partnership, cooperation and coordination have now replaced markets, competition and institutional individualism as “the default way of working across all providers,” in the recent words of skills minister Jacqui Smith. We are promised a white paper this summer setting out a comprehensive strategy for post-16 education and skills, and at the same time a “radical” package of HE reforms which will also emphasise the role of HE in collaborating around local and national skills priorities.

    Is the future for England tertiary?

    HE/FE collaboration has tended to be relatively transactional and fluid in England, and there is no standard blueprint for forging partnerships. A small number of colleges can now claim to be tertiary institutions, having been granted degree awarding powers, although with the Office for Students having currently suspended the application process until August, it’s now far from certain how quickly this number will grow in future. There are four universities which by virtue of having absorbed a failing FE college have become tertiary – Derby, London South Bank, Greater Manchester (formerly Bolton University) and the University of West London. But this is the result of specific local circumstances, not national policy.

    Arguably, these institutions are a microcosm of exactly what the government is trying to achieve at a national level. Tertiary institutions are able to develop coherent progression pathways from basic to undergraduate level for students of all aptitudes, embracing both academic and technical education routes without competition between them. David Phoenix, vice chancellor of London South Bank University, has been an articulate advocate for this model, and his vision, as set out in his November 2023 report “Connecting the dots: the need for an effective skills system in England” has been highly influential in Labour-leaning circles.

    It’s possible the government will introduce much greater incentives for universities and colleges to consider merger, and even be prepared to act as “matchmaker” for reluctant or hesitant brides and grooms. It would certainly make it much easier to develop integrated apprenticeships, higher technical qualifications and Lifelong Learning Entitlement offers if there were more tertiary providers.

    The Taking Higher Education Further report is generally supportive of greater tertiary integration, but with several important reservations. To begin with, although most FE colleges are appreciative of the relationships they have with universities – mostly still based on validation agreements – there are many who are critical of the cost and in some cases one-sided nature of the partnership, with some having experienced the disruption caused by an HE institution deciding unilaterally to withdraw from the agreement. Another concern has been the proliferation of foundation years at many universities, which was seen as unwelcome competition for Level 3 students and met with dismay by many in the FE sector. This has abated considerably since the introduction of a much reduced fee cap for foundation years.

    While some institutes of technology have strengthened FE/HE relationships, others have struggled to bridge the gap between the two sectors. One aspect of that gap – the difference in pay and conditions between FE and HE lecturers – has proved particularly troublesome. But those institutes of technology which have been successful have demonstrated that joint working between FE and HE can be highly effective. Overall, despite the caveats, the FE leaders consulted as part of the research for the report were generally positive about the idea of working more closely with HE.

    In a political climate where economically relevant skills and wider access to job-related skills are now central to the government agenda, college-based higher education has both issues at its heart. The HE students who study in FE colleges are overwhelmingly, adult, very local and from disadvantaged backgrounds. The courses they take are typically directly related to opportunities in the local labour market and focused on career progression. Whereas the student loan system has tended to incentivise HE institutions to prioritise three year degree courses, FE colleges offer a much more incremental approach, with multiple entry and exit points and a high proportion of part-time and modular options. This could be a significant advantage as colleges prepare for the implementation of the Lifelong Learning Entitlement in 2026–27.

    In summary, the report is a plea for government to give more support to the expansion of HE in FE, but is not in any way antagonistic towards the HE sector. The aim is to strengthen the relationship between colleges and universities, not to weaken it. As the foreword says, “Working together, colleges and universities can open up accessible opportunities and make a real difference to people’s lives.” In this, FE and HE share a common purpose.

    Source link