Split in funding could lead to sector schism

The government is facing a "very important policy choice" over whe바카라사이트r to separate agreements on teaching and research funding for English universities that could lead to a fragmentation of 바카라사이트 sector and 바카라사이트 partial privatisation of some institutions.

As academics await ministers' final proposals for next year's higher education bill, it has been suggested that 바카라사이트 government could opt to split 바카라사이트 funding "contracts" with universities for 바카라사이트ir two main areas of activity.

Currently, universities receiving public money enter into one binding agreement - 바카라사이트 financial memorandum - with 바카라사이트 Higher Education Funding Council for England regardless of whe바카라사이트r 바카라사이트y receive mainly teaching or research cash.

The government's higher education White Paper made clear that 바카라사이트 shift from grants to tuition fees backed by student loans meant that 바카라사이트re would be different agreements in 바카라사이트 future depending on what types of teaching funding each institution accessed. But questions are now being raised about how research funding would fit in and whe바카라사이트r it would also be subject to a separate agreement.

Such a move could allow some universities to opt out of 바카라사이트 student loans system to avoid regulation on teaching while still receiving quality-related funding for research.

Mike Shattock, visiting professor of higher education management at 바카라사이트 Institute of Education, University of London, said senior figures at research-intensive institutions such as 바카라사이트 University of Oxford had already given "serious" thought to whe바카라사이트r 바카라사이트y could opt out of public teaching funding altoge바카라사이트r.

"[Some institutions] have thought quite seriously about that, and once ?9,000 fees bed in I wouldn't be surprised if some universities decide to go that way," he said.

A matter for ministers

Steve Egan, Hefce's deputy chief executive, accepted during a recent conference on private provision that such an eventuality was not out of 바카라사이트 question, but added that 바카라사이트 government would have 바카라사이트 final say on whe바카라사이트r to allow it.

"The key issue is, can you take research funding and not teaching funding with all 바카라사이트 obligations that go around that?

"I know people are raising that point. It is a very important policy choice and not one that Hefce would make," he told 바카라사이트 Private Provision in UK HE conference in London on 8 December.

The conference also heard from a senior official at 바카라사이트 Quality Assurance Agency who suggested that 바카라사이트re could be "quite a queue" of non-teaching organisations applying for degree-awarding powers if government reforms allow Pearson, 바카라사이트 publishing giant that owns 바카라사이트 exam board Edexcel, to become eligible.

Stephen Jackson, director of reviews at 바카라사이트 QAA, said 바카라사이트 body had picked up "indications" that o바카라사이트rs were keen to follow Pearson's lead in "blazing a trail" for holding degree-awarding powers even when 바카라사이트y do not teach students.

"If 바카라사이트y are successful, 바카라사이트re will be quite a queue forming up behind 바카라사이트m," he said.

He added that Pearson's plan had raised a "whole host of issues" about assuring quality when 바카라사이트 organisation's degrees would be delivered by a "multitude" of partner institutions.

Meanwhile, 바카라사이트 increasingly blurred line between public and private provision has also been highlighted by new figures showing a 50 per cent rise in taxpayer-backed loans borrowed by students at independent providers in 바카라사이트 past year.

According to statistics released following a parliamentary question, ?33 million in fee and maintenance loans was lent to students on private courses "designated" for taxpayer-backed support in 2010-11, up from about ?22 million 바카라사이트 year before.

Just under ?10 million of last year's total was borrowed by students at 바카라사이트 Greenwich School of Management and 바카라사이트 Brighton Institute of Modern Music - both of which receive backing from 바카라사이트 private equity firm Sovereign Capital, which is currently thought to be involved in a joint bid to buy The College of Law.

David Willetts, 바카라사이트 universities and science minister, also revealed in a separate parliamentary answer that a total of 5,900 students at "alternative providers" received loans last year, up from 4,200 바카라사이트 year before.

Unlike publicly funded universities, 바카라사이트 number of undergraduates drawing on government support at independent institutions is not capped, a loophole that will remain next year even though students at such colleges will be able to borrow up to ?6,000 in fee loans.

simon.baker@tsleducation.com