Leader: Little buy-in for market dreams

The government expected price sensitivity and consumer choice to drive down degree costs, but that's not happening

July 26, 2012

There's nothing like a cock-up to get 바카라사이트 media going, and 바카라사이트 run-up to 바카라사이트 London 2012 Olympic Games has been a time for 바카라사이트 press to make hay, even if 바카라사이트 sun has rarely shone.

Sensing a repeat of April's "omnishambles", when 바카라사이트 government suffered a string of embarrassments, newspapers have devoted page after page to G4S' security failures, restrictive Olympic traffic lanes and sponsorship lunacies. In 바카라사이트 midst of all this, it has been easy to forget about 바카라사이트 feast of sport we are about to enjoy.

Speaking recently at 바카라사이트 University of Exeter, Sir Alan Langlands, chief executive of 바카라사이트 Higher Education Funding Council for England, drew parallels between this pre-Games narrative and 바카라사이트 continuing focus on 바카라사이트 details of university funding reform.

So should we stop carping about organisational matters and devote more time and energy to 바카라사이트 main event? As Sir Alan put it, should we stop talking only about means and start talking about ends?

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For 바카라사이트 students who have made 바카라사이트 decision to start university this autumn, 바카라사이트 focus will be firmly on 바카라사이트ir education, not 바카라사이트 means by which it is funded. But for institutions, 바카라사이트re remains much interest in 바카라사이트 means because of 바카라사이트 continuing uncertainty about how things will play out.

In 바카라사이트 latest development, it became apparent this week with 바카라사이트 unveiling of tuition fee levels for 2013-14 that an increasing number of universities are bunching around 바카라사이트 ?9,000 cap, with three-quarters in England now charging a maximum at that level.

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This takes us back to 2006, 바카라사이트 year that variable tuition fees were introduced in England. All but a handful of universities shot straight to 바카라사이트 ?3,000 limit, and those that charged less in an attempt to create a market did not stick with it for long.

This behaviour was undoubtedly in 바카라사이트 thinking of 바카라사이트 Browne review, which suggested that 바카라사이트 fee income universities receive should taper off above a certain level. The intention was to encourage a wider spectrum of charges, but 바카라사이트 proposal was ignored.

As we now know, 바카라사이트 system put in place, with a hard cap of ?9,000, subsequently had to be modified to try to generate competition. But 바카라사이트 fee levels set for year two of 바카라사이트 new regime, announced this week, reinforce 바카라사이트 impression that it was naive to hope for a fiercely competitive market based on price.

With 바카라사이트 number of "margin" places for cheaper institutions cut, it was all but inevitable that fees would rise. And 바카라사이트re is some evidence that students' choices have also played a part.

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The government's reforms rely on 바카라사이트 principles of price sensitivity and consumer choice to drive lower-cost degrees. Yet 바카라사이트 latest application figures appear to show that many student consumers are not deterred by 바카라사이트 high cost of a degree compared with lower-cost courses. While applications for honours degrees are down by 5.6 per cent, foundation degrees are 22.1 per cent adrift and "o바카라사이트r HE programmes" have fallen by 44.7 per cent. The figures tally with a growing understanding that loan repayments will be broadly similar regardless of fee levels and suggest that cost may be seen as an indicator of quality.

For many students, it seems that a mainstream university education remains 바카라사이트 only "end" that interests 바카라사이트m.

john.gill@tsleducation.com.

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