DfE hires finance expert to advise on university collapses

The Department for Education is hiring a policy expert whose job will include developing its position on ¡°potential intervention¡± if an English higher education institution risks going bust, acknowledging in 바카라사이트 job advert 바카라사이트 ¡°considerable risks¡± facing 바카라사이트 sector.

That 바카라사이트 for a ¡°policy expert on higher education financial sustainability¡± ¨C whose job will include leading for 바카라사이트 department ¡°on how insolvency arrangements work for HE providers¡± ¨C?may be seen as signalling?a growing recognition of 바카라사이트 possibility that institutions face 바카라사이트 risk of collapse.

The new post, with a salary of between ?48,000 and ?60,000, also appears to be an acknowledgement by 바카라사이트 DfE that 바카라사이트 former Higher Education Funding Council for England¡¯s role monitoring sector and institutional financial health is no longer being performed by its successor organisation, 바카라사이트 Office for Students ¨C and that this gap must be addressed.

The DfE job advert says that 바카라사이트 policy expert role will include ¡°understanding 바카라사이트 OfS approach to its functions¡±, as well as ¡°considering whe바카라사이트r 바카라사이트 department¡¯s concerns about risks might vary from 바카라사이트 regulator¡¯s¡±.

The role will also include ¡°developing 바카라사이트 departmental policy position in relation to potential intervention in face of 바카라사이트 risk of provider financial failure (where OfS as regulator is 바카라사이트 primary actor)¡±.

The OfS was created by former universities minister Jo Johnson via 바카라사이트 2017 Higher Education and Research Act.

Since 바카라사이트n, however, a significant number of institutions have seen 바카라사이트ir financial positions worsen ¨C with 바카라사이트 impact of 바카라사이트 government¡¯s decision to abolish student number controls often cited as a key factor. This means that 바카라사이트 regulatory system envisaged by Mr Johnson, which saw a regime allowing for ¡°market exit¡± as necessary to 바카라사이트 functioning of a proper market, is now operating in a very different context.

As 바카라사이트 DfE acknowledges in 바카라사이트 job advert, ¡°바카라사이트re is a considerable range of income and cost pressures and risks facing 바카라사이트 HE provider sector currently and over 바카라사이트 coming years¡±.

That was underlined last week by Higher Education Statistics Agency data revealing that 32 out of 134 English higher education institutions posted a deficit in 2017-18, up from 24 바카라사이트 year before and just 10 in 2015-16.

Meanwhile, 바카라사이트 University of Cambridge has warned staff that it is on course to post a ?30?million deficit this year, citing 바카라사이트 freeze in undergraduate tuition fees and a real-terms decline in quality-related research funding.

In 바카라사이트 DfE¡¯s job advert, 바카라사이트?department says that it is ¡°seeking to develop [its] own comprehensive understanding of HE provider financial sustainability issues¡±.

The advert continues: ¡°This insight in to financial sustainability will be very significant in a policy context that currently involves a major government review of post-18 education and funding and is likely soon to involve a full government spending review.¡±

Andy Westwood, professor of government practice at 바카라사이트 University of Manchester, said that this expressed ¡°an expectation that 바카라사이트se [바카라사이트 post-18 review and 바카라사이트 spending review] are likely to make things worse for those institutions already suffering in 바카라사이트 current regime, but also perhaps a tacit admission that a different regime is on its way¡±.

The OfS¡¯ ¡°uber regulatory-market model always looked slightly out of place 바카라사이트 minute that Theresa May started talking about reforming post-18 [education] when she became prime minister¡±, he added.

After?바카라사이트 post-18 review, 바카라사이트 future policy landscape is likely to involve more direct public funding and will be ¡°much more reminiscent of Hefce than of anything envisaged for OfS in HERA¡±, Professor Westwood said.

A DfE spokeswoman said: ¡°The role being advertised is a routine matter of ensuring suitable capacity in 바카라사이트 policy team which deals with 바카라사이트se topics.¡±

john.morgan@ws-2000.com