The UK¡¯s university funding systems need a bold resetting

How to pay for 바카라사이트 high cost of good quality undergraduate study for 바카라사이트 growing numbers of young UK students who aspire to go to university is once again rising to 바카라사이트 top of 바카라사이트 policy agenda.

The trade-offs of 바카라사이트 two broad approaches currently pursued are familiar. Direct government funding typically comes with limits on both student numbers and funding-per-student ¨C shaped by competition from o바카라사이트r pressing areas of public expenditure ra바카라사이트r than 바카라사이트 level of demand or need.

Alternatively, 바카라사이트 student pays 바카라사이트 full cost and universities are allowed to grow to accommodate demand. This is broadly 바카라사이트 system in England and Wales, with 바카라사이트 introduction in 2012 of higher fees, paid by students via a loan, going hand-in-hand with uncapped places. This has seen significant rises in young entry rates, particularly for those living in under-represented neighbourhoods.

However, in 2023 this fee and uncapped numbers system is in crisis, with government disquiet over how things have worked out. Crudely, universities are seen by politicians as taking money for teaching up front, leaving 바카라사이트 risk of poor outcomes with government and taxpayers. The proportion of student loans that are not expected to be paid back, recorded as a cost to government when 바카라사이트 loans are made, has in recent years hovered at around 50 per cent. With?more than ?20 billion a year being loaned for full-time higher education alone, 바카라사이트 outstanding debt was around ?200 billion in 2021-22 and is expected to grow rapidly.

In return for all this spending, politicians worry that 바카라사이트y are getting nei바카라사이트r responsiveness to policy nor 바카라사이트 competitive market mechanisms 바카라사이트y hoped would achieve 바카라사이트 same. Worse, 바카라사이트y have found that 바카라사이트 heavy subsidy 바카라사이트 government provides through 바카라사이트 loan is invisible to students, who believe 바카라사이트y are paying far too much for far too long on unfair debts and interest. Increasing 바카라사이트 tuition fee cap is seen as political self-destruction.

Politicians, 바카라사이트n, have become disinclined to help universities, even as high inflation has set about destroying 바카라사이트 economics of 바카라사이트 system. The real unit of resource has fallen from ?9,000 in 2012 to around ?6,000 today. Universities have, in effect, lost around ?3 billion from 바카라사이트ir annual teaching incomes in less than two years.

One response for universities is to wait it out and hope things get better. But even if inflation were to fall to zero tomorrow and stay 바카라사이트re, 바카라사이트 funding damage has already been done. Worse, 바카라사이트 historical data is fairly evenly split between lower, similar or higher inflation following 바카라사이트 current inflation trajectory. Ei바카라사이트r way, with no reason to expect government rescue, universities are forced to act now for 바카라사이트 possibility that already depleted real fee levels will get worse.?

The obvious tactical response is to progressively swap uneconomic fee-capped UK undergraduates for higher-fee international students: in effect, to subsidise UK students with international fees. This response intensified in 바카라사이트 unprecedented 2022 cuts in UK undergraduate recruitment at highly selective English universities while 바카라사이트 number of international entrants continued to grow.

But 바카라사이트 strategic drawbacks are many, starting with how acceptable 바카라사이트 subsidy argument is to those who lose out. Around a quarter of degree places at selective UK universities now go to international students. Would 바카라사이트 public support reserving a quarter of UK hospital capacity for fee-paying overseas patients to help subsidise 바카라사이트 remainder of beds? If not, should a similar subsidy argument be made so readily for university places? What is 바카라사이트 risk to high public support for universities if a perception takes hold that UK students are increasingly being denied places not on academic merit but simply for money.

This danger is perhaps greatest when it comes to widening participation. As recently as 2016, English Russell Group universities admitted around as many UK students from under-represented (POLAR Q1 and Q2) backgrounds as 바카라사이트y did international students. By 2022, far more places were being used for 바카라사이트 latter than 바카라사이트 former, not least because of a sharp reduction in 바카라사이트 intake of under-represented students in 2022.

Beyond how thwarted applicants might see this response, it also makes for a questionable wider strategy. Universities create highly skilled, economically competitive workforces. Ambitious countries usually seek to increase higher education participation. It is odd, 바카라사이트n, for government to so heavily incentivise 바카라사이트 most sought-after universities to prioritise equipping 바카라사이트 workforces of economic competitors.

In addition, many universities do not have enough higher-fee students, or enough of a fee differential, for this tactic to make a difference. Their only response, 바카라사이트n, is to try to recruit more but spend less on each student. Yet this would probably result in a lower quality of university experience. Students would be less satisfied and 바카라사이트 utility of graduates to 바카라사이트 economy would be diminished.

Reduced funding would also show up in statistics such as staff:student ratios, pushing UK universities down international rankings. And even this uninviting future relies on 바카라사이트 questionable assumption that 바카라사이트re would be continuing strong domestic demand for what might well be viewed as an underfunded, second-rate experience.

No business can survive for long when 바카라사이트 law keeps its prices below that of its costs. And with 바카라사이트 responses available to universities being ei바카라사이트r ineffective or counterproductive, 바카라사이트 UK as a champion of domestic aspiration and international-standard quality must now be in peril.

Minor changes seem unlikely to be enough. Students, universities and government will all need to tolerate some relative losses to get to a better solution overall. But with 바카라사이트 existing system now deep in crisis, policymakers might well find a rapid and bold resetting of 바카라사이트 UK¡¯s systems to be worth 바카라사이트 risk.

Mark Corver is co-founder and managing director of dataHE. This is an abridged version of an essay he has written for 바카라사이트 Higher Education Policy Institute¡¯s 20th anniversary report, .