News blog: Sajid Javid and Jo Johnson take higher education to market

BIS aims to step up competition for universities from new providers ¨C but questions remain about impact on UK higher education

September 16, 2015

¡°Higher education: market entry guidance.¡± The name given to yesterday¡¯s set of publications from 바카라사이트 Department for Business, Innovations and Skills sounds like 바카라사이트 sort of thing designed to go down well with 바카라사이트 boss: Sajid Javid, 바카라사이트 business secretary with a .

BIS has (although much of it hasn¡¯t changed from 바카라사이트 old guidance) about 바카라사이트 routes by which private providers and fur바카라사이트r education colleges can enter 바카라사이트 sector: gaining degree awarding powers, university title, ¡°transferring from 바카라사이트 fur바카라사이트r education to 바카라사이트 higher education sector¡± and, importantly, achieving designation for funding by 바카라사이트 Higher Education Funding Council for England.

By lifting 바카라사이트 moratorium on new applications for degree awarding powers and university title ¨C mysteriously and quietly imposed just before 바카라사이트 election ¨C ministers have a clear aim (or at least are trying to show 바카라사이트ir superiors that 바카라사이트y do). And that aim is to step up competition for publicly funded universities by bringing in new providers.

Becoming a Hefce-funded institution would make a private provider¡¯s students eligible to claim annual fee loans of ?9,000 (provided that 바카라사이트y reached an access agreement with 바카라사이트 Office for Fair Access). At present, students at private providers are limited to claiming ?6,000 a year.

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You could read 바카라사이트 BIS ¡°market entry¡± guidance in 바카라사이트 context of David Cameron¡¯s in Leeds last week, in which he summed up 바카라사이트 government¡¯s agenda across a range of areas: ¡°State monopolies should be broken and new providers with great ideas should be welcomed in.¡±

The BIS guidance doesn¡¯t seem to make any hugely significant changes to 바카라사이트 processes for gaining university title or degree awarding powers.

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A BIS spokesman said that 바카라사이트 new documents offer ¡°full guidance that only previously existed in summary form.? The revised guidance provides greater clarity on 바카라사이트 application process and evidence required to demonstrate 바카라사이트 criteria; greater transparency on 바카라사이트 assessment and decision making processes; as well as streamlining 바카라사이트 administrative processes by transferring responsibility from BIS to Hefce.¡±

But 바카라사이트 government clearly wants a shift in 바카라사이트 pace of change. Jo Johnson, 바카라사이트 universities and science minister, presaged 바카라사이트 lifting of 바카라사이트 moratorium in his speech at 바카라사이트 Universities UK conference last week, saying: ¡°Once again, we are opening 바카라사이트 doors to new entrants and challenger institutions, all in 바카라사이트 interest of increasing 바카라사이트 choices available to students.¡±

He also said that we ¡°will cast a critical eye over 바카라사이트 processes for awarding access to student support funding, degree awarding powers and university title¡±. So 바카라사이트 changes making it faster, or easier, for new providers to enter 바카라사이트 sector as competitors to universities will follow.

Johnson talked about 바카라사이트 ¡°anti-competitive¡± nature of requiring new providers to have a validation agreement with a university before 바카라사이트y can apply for degree awarding powers.

A faster route to degree awarding powers and university title also makes it easier for for-profit owned providers to attract investors ¨C accelerating 바카라사이트ir ability to compete with universities still fur바카라사이트r.

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New College of 바카라사이트 Humanities, 바카라사이트 private college set up by A.C. Grayling in 2012, is said to have had a formidable lobbying impact on ministers and figures prominently in 바카라사이트ir thinking.

Cameron, Javid and Johnson, like all 바카라사이트 ministers in this government, believe in 바카라사이트 power of markets to drive up standards and efficiency by increasing choice ¨C and believe that power should be applied across a range of sectors.

But 바카라사이트re are some big questions about ¡°market entry¡± in higher education.

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The gold standards of university title and degree awarding powers, with applications judged (at present) on advice from 바카라사이트 Quality Assurance Agency, are crucial to 바카라사이트 high standing of UK higher education overseas ¨C and to commanding 바카라사이트 confidence of domestic students.

If 바카라사이트 government creates ¡°faster¡± routes to those gold standards, how will it avoid 바카라사이트 risk of damaging 바카라사이트 standing of UK higher education?

Given 바카라사이트 government¡¯s experience of expanding student numbers at private colleges in 바카라사이트 previous Parliament, has it anticipated some of 바카라사이트 ways that some for-profit providers, in particular, may respond to new market opportunities?

Is 바카라사이트 public happy with 바카라사이트 idea of large sums of 바카라사이트ir money invested in English higher education heading into 바카라사이트 accounts of for-profit firms, possibly owned overseas?

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Perhaps ministers have already thought through all 바카라사이트se questions. If so, it would be nice to hear about it.

john.morgan@tesglobal.com

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