Tag: Policymakers

• HEPI Director, Nick Hillman OBE, takes a look at why today’s landmark report on student maintenance from HEPI, TechnologyOne and the Centre for Research in Social Policy at Loughborough University is so important.
• Later today, HEPI will be hosting a free webinar with UCAS on this year’s admissions round – see here for details and to register for a free place.

A recent Wonkhe article by Will Yates of Public First noted, ‘It really was not that long ago that maintenance grants were the norm and student life was cheap and cheerful.’ We probably all know what he means.

When I went to the University of Manchester 35 years ago, I had no tuition fees and got to collect a grant cheque even though my parents were in secure middle-class jobs. Since then, life has become harder financially for students. Costs have gone up and grants have disappeared (in England). Meanwhile, the student body has diversified to include more people from disadvantaged backgrounds.

As if battling with the impact of COVID on their secondary schooling was not enough, today’s students face big financial obstacles. During my nine years as a Trustee of the University of Manchester (which sadly came to an end last month), I regularly ascended those same stairs I used to climb to collect my physical grant cheque in order to attend Board meetings at which we would discuss student poverty and its impact.

Will Yates’s conclusion needs qualifying of course. Just as it is true that there are today many poor pensioners alongside all the well-off ones who have cleaned up thanks to intergenerational inequities, so there have always been some students who struggled to survive on the maintenance support they received. I recently stumbled across the following exchange in Hansard from 1969, for example, on whether parents were making up the income of their student offspring in the way they have long been supposed to:

Mrs. Shirley Williams: I appreciate that students who do not receive the full parental contribution often suffer hardship. My Department recently wrote to local education authorities asking them to ensure that parents were made aware of the importance of making up the student’s grant. But I do not think it would be desirable or practicable to impose a legal obligation on parents to make their contributions. (Source: Hansard, 30 January 1969)

Plus ça change… Aside from the reference to local education authorities (which no longer have a role in student maintenance), the answer could have come from pretty much any one of the last seven decades.

These issues are topical in part because the threshold at which parents are expected to start contributing to their adult student offspring’s living costs has not increased for over 15 years – it was set at £25,000 for England by Gordon Brown (six Prime Ministers ago…). So parents in English households on just over £25,000 a year are expected to cough up – the situation is even worse elsewhere (just over £19,000 in Northern Ireland).

The recent HEPI / Advance HE Student Academic Experience Survey shows over two-thirds of full-time undergraduates now do paid work during term time, and often at a dangerous number of hours (‘dangerous’ in the sense of impacting their academic work). So what has changed is the proportion of students who feel wickedly under-resourced financially.

The biggest lie told about students today is that they are pathetic ‘snowflakes’ who melt on contact with real life; in fact, when financially challenged, they tend to confront the problem head on by going out and finding paid work. Norman Tebbit would have been proud.

While my generation of students were debating or politicking or going to gigs, today’s students are more often serving those who do have the money to go out. In the UPP Foundation / Public First research that Will Yates was writing about, the students said they thought ‘it was them (rather than the university, the government, the OfS or any other body) who took responsibility for ensuring that they could afford to study and socialise.’

In my view, one of the very best projects we do at HEPI is the HEPI / TechnologyOne Minimum Income Standard. This is completely different to the student money surveys that ask students what their income is and how they spend it. Those are useful but only up to a point because what if the income is not enough? Knowing I have X pounds and spend X pounds is only of modest value if I actually need 2X pounds in order to afford the bus to campus, join my favourite student society and buy personal healthcare items (on this, see HEPI’s recent report by Rose Stephenson on menstruation and learning).

So the Minimum Income Standard starts with a blank sheet of paper plus a tried-and-tested methodology developed by the Centre for Research in Social Policy at Loughborough University to consider how much students really need to live with dignity – the calculation is not for a plush lifestyle nor a monastic one, but rather for a fairly basic-but-safe one and is based on the extensive experience of the research team as well as detailed focus groups with multiple students around the UK.

This year, the second such study dwells upon first-year students in Purpose-Built Student Accommodation (university halls and privately-owned student accommodation blocks). So it supplements last year’s study of second and third-years in shared ‘off-street’ housing. (In my view, it should really be called ‘on-street’ housing as it tends to be on normal residential streets, but I digress.)

While TechnologyOne have generously funded this vitally important work, I must stress that neither they nor HEPI have had any editorial control over the core central numbers, which are entirely Loughborough’s work and based on what students have told them. HEPI’s input has included feeding in supplementary figures for accommodation costs , with the help of Student Crowd and Students, and thinking through the possible policy consequences of the research.

The top-level finding is that first-year students living in halls need £418 a week – over £20,000 a year and double the maximum maintenance support package in England. Even if a student (in England, living away from home and studying outside London) is in receipt of the maximum maintenance loan, they need to work 20 hours a week throughout the year to earn enough money to hit the Minimum Income Standard. Remember, these are people on full-time courses. As a society, we are now expecting people to do full-time study and half-time paid work and then we wonder why young students struggle to feel a sense of belonging to their institution…

People should look carefully at the methodology and conclusions to see if they agree with them. As a think tank, our job is to make people think; we can identify the main challenges and propose solutions but we are not a lobby group, so we would never claim we have all the answers. There may be elements of the Minimum Income Standard for Students that people want to pore over, challenge and improve.

Some of the issues people may want to consider on the back of the MISS include:

1. As the report makes clear, student life is generally a temporary phase that lasts no more than three or four years. So is it reasonable to apply the same methodology as is used for defining the basic minimum income for someone in work or in retirement? It is valid, in my view, because three years still represents a substantial proportion of a young person’s life up to that point and undergraduate study is often the first period of real independence for people – plus some other phases of life for which the minimum income methodology has been applied are also not always very long term. For example, someone on a ‘living wage’ is likely to hope to rise above it in due course as they gain experience. Besides, in one sense, no phase of life is permanent.
2. A second important question is whether letting students define their own minimum standard of living via focus groups will always tend towards larger monetary sums. The Minimum Income Standard for Students assumes students are likely to have gym membership, a short UK holiday and other costs (like wireless headphones, a modest alcohol budget and food for takeaways) that some people may deem to be non-essentials or at least not things that should be subsidised by taxpayer-funded income-contingent student loans (though, on the other hand, we only include very small sums for study-related costs). The MISS also includes some costs than some people might deem relevant only to a minority of students (such as paying to store items between terms). But the MISS is about having enough money for every student to live reasonably, with dignity and safety; it is not designed to be a ‘bare minimum’ or to represent the lifestyle of an ascetic. This is one of a number of reasons, further explored below, why we studiously avoid ever saying we think the Government should automatically set the maximum maintenance package at exactly (or even roughly) the level of the MISS. Moreover, students are not spendthrift – one interesting change this year compared to last, for example, is that they no longer deem a TV Licence as a must-have item so it has been removed from the calculation.
3. What we call a ‘minimum’ is also an ’average’; some cities are notably more expensive than others – London aside, we generally ignore this in the calculation and so the MISS might look too high or too low depending on where someone is studying and their own personal circumstances. For example, this means some of the freebies – such as prescriptions and bus travel – enjoyed by many Scottish students are ignored.
4. Should we be looking to reduce costs by giving applicants and students better information? A modest amount of the first-year premium (the extra costs that first-years seem to accrue) comes from being unused to budgeting and feeding themselves. The MISS for first-year students even includes a small additional sum for the first 12 weeks while students settle down and get used to things like eating up food before it goes off. Would better information of the students are crying out for fix at least some of the need for this? Similarly, would better information on the different consequences of different accommodation preferences shape better decisions, which in turn could shape the supply of student accommodation, and lead to a reduction in the MISS?
5. One particular policy challenge is explaining how any extra student maintenance support that could be offered now or later is likely to be spent in practice. Ministers will be less likely to give students improved maintenance packages if they think they will be entirely swallowed up by higher rent levels. One real challenge here, as so often, is that student accommodation tends to fall through the cracks in Whitehall, so it is not always clear who should be approached for these conversations.

Above all, HEPI is a policy body so for us the key question is always: what are the possible policy ramifications? On this, and notwithstanding the important fact that the report gives a clear indication of a preferred direction of travel, we are still working them out.

For example, the report concludes that the maximum maintenance package is only half of what students need to live. It clearly needs to be higher and available to more people. It would be absurd (literally absurd) to think parents could easily fill in the gap from their take-home pay unless they are on very good salaries indeed. It is similarly absurd, however, to think the Government can easily fill the whole gap, given the fiscal situation and the much larger number of students than in the past.

So what level of paid employment is it reasonable to assume students might do (and in holidays or term-time or both)? Or should students opt for a more basic standard of living (no en suite perhaps or more shared rooms, as in the United States)? Or should more students live at home as commuter students but at the cost of experiencing a full traditional student experience? These are difficult questions and, again, the answers will be different in different cases. Nonetheless, we welcome all thoughts in response.

As I sometimes say when speaking in schools, if and when it comes to my own children going to higher education, I will tell them three things:

1. good social spaces are more important than things like en suite facilities – if you are living a full student lifestyle, you may spend less time in your room than you originally expected;
2. taking a temporary full-time job in the holidays is generally preferable to doing a high number of hours of paid employment during term time, if you’re lucky enough to have the choice; and
3. in general, it tends to be better not to be a commuter student, unless there are specific individual reasons for being one.

Yet like most parents, I will also have to accept they will take what I say with a large pinch of salt and then find their own way.