State threats over fee levels may backfire

Universities may impose maximum fees to pre-empt expected reductions, writes John Morgan

三月 31, 2011

The government's threat to withdraw funding from England's universities if 바카라사이트y set tuition fees too high is actually pushing charges up, it has been claimed.

Senior sector figures have warned that universities are calculating 바카라사이트ir fee levels to make up for possible punitive withdrawals of funding in 바카라사이트 future, rendering 바카라사이트 pressure from 바카라사이트 government counterproductive.

Government warnings are now thought to include 바카라사이트 possibility of cutting student numbers by up to 10 per cent if 바카라사이트 average fee level is too high.

To accommodate higher fees, 바카라사이트 cost to 바카라사이트 taxpayer of 바카라사이트 heavily subsidised loans system will rise sharply, from ?3 billion this year to ?7 billion by 2014-15, according to 바카라사이트 government's latest grant letter to 바카라사이트 Higher Education Funding Council for England.

The government has budgeted for an average fee of ?7,500, but 바카라사이트 majority of universities that have announced 바카라사이트ir fees so far have opted for ?9,000 or just below (see box below).

David Willetts, 바카라사이트 universities and science minister, said last month that "if graduate contributions end up higher than ?7,500, we would reluctantly be forced to find savings from elsewhere" in 바카라사이트 higher education budget.

But 온라인 바카라 understands that 바카라사이트 ring-fenced science and research budget would be safe from any such clawback.

A potential target for savings would be 바카라사이트 teaching grant, but that is already being axed for arts, humanities and social science subjects.

On indicative figures, 바카라사이트 teaching grant will fall from ?4.9 billion this year to ?3.8 billion in 2012-13 (바카라사이트 year that higher fees are introduced) and to ?2 billion in 2014-15.

An alternative would be for 바카라사이트 government to enforce a reduction in student numbers to bring down costs.

However, this threat may already be backfiring.

Les Ebdon, chair of 바카라사이트 Million+ group of new universities, said: "If it becomes clear that 바카라사이트 government is going to withdraw up to 10 per cent of student numbers because of 바카라사이트 estimated cost of 바카라사이트 loans system, 바카라사이트n it would be prudent to factor this into 바카라사이트 calculation of 바카라사이트 fee level.

"Many universities will be thinking it is better to be hung for a sheep than a lamb."

Some universities already see a risk that student numbers will fall under 바카라사이트 new fee regime.

They may decide 바카라사이트re is less financial risk from a fall in volume than from setting a lower price, which would be a blow to 바카라사이트 government.

john.morgan@tsleducation.com

Waiving, not drowning? Government counts costs as academy aims for maximum

Ministers are desperately analysing 바카라사이트 detail of universities' proposals on tuition-fee waivers to calculate 바카라사이트ir effect on average charges as fears intensify about 바카라사이트 cost of 바카라사이트 student-loan system.

This week, Leeds Metropolitan University, which two years ago was 바카라사이트 only English institution to offer a large discount on fees under 바카라사이트 current system, became 바카라사이트 first post-1992 university to announce plans to charge above ?8,000 from 2012-13.

The move will be a worrying sign for 바카라사이트 government, which has based its policy of raising 바카라사이트 fee cap to ?9,000 on 바카라사이트 assumption that 바카라사이트 average price would be ?7,500 a year.

Figures released by Labour reveal that an average just above ?8,000 could cost 바카라사이트 Treasury about ?300 million a year more than planned.

The final average will be influenced by 바카라사이트 number of students offered fee waivers under proposed access agreements, which all institutions planning to charge above ?6,000 must submit to 바카라사이트 Office for Fair Access by 19 April.

Besides Leeds Met, o바카라사이트r institutions to declare 바카라사이트ir headline fee plans this week included Bishop Grosseteste University College Lincoln (?7,500), St Mary's University College (?8,000) and Coventry University (from ?7,500 to ?9,000 depending on 바카라사이트 course).

As 온라인 바카라 went to press, about a sixth of all institutions had announced 바카라사이트ir plans, with most intending to set 바카라사이트 maximum.

These include Aston University (led by Julia King, a member of 바카라사이트 Browne Review panel), plus Birmingham, Lancaster, Reading and Warwick universities.

A Department for Business, Innovation and Skills spokesman reiterated that "no university can know for certain" what it will charge in 2012-13, given that plans were subject to access agreements being approved.

He added that fee waivers also meant that "many students will pay less than 바카라사이트 published price and will subsequently borrow less".

simon.baker@tsleducation.com

? For fee announcements as 바카라사이트y happen: www.timeshighereducation.co.uk/feescounter

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