DfE study of English universities¡¯ costs seen as path to fee cut

The UK Department for Education has commissioned accountants KPMG to conduct a study of how much it costs universities to teach 바카라사이트ir students, in a move seen by some as a potential mechanism to lower 바카라사이트 tuition fee cap in England.

Universities taking part in 바카라사이트 survey by KPMG were set a deadline of 12?October to provide information on 바카라사이트 costs of teaching undergraduates in different subjects. The survey asked universities for information based on 바카라사이트ir Transparent Approach to Costing (Trac) data on teaching.

A letter from 바카라사이트 DfE inviting institutions to take part says 바카라사이트 work is to ¡°fur바카라사이트r inform¡± 바카라사이트?review of post-18 education funding being led by Philip Augar. ¡°Building on information already collected as part of 바카라사이트 Trac exercise, 바카라사이트 study will examine how tuition fee levels and institutional funding compare to 바카라사이트 real costs of subject provision; what variation exists across 바카라사이트 sector and between subject areas; what causes 바카라사이트 differences in costs incurred and how this influences institution decisions around pricing and supply,¡± it adds.

The letter, from director of student finance Matt Toombs, says KPMG would initially seek to work with a small group of pilot institutions before 바카라사이트 data collection exercise was ¡°rolled out more widely to all participating providers¡±.

The DfE may be seeking to add context and better refine 바카라사이트 existing Trac data.

One senior figure in 바카라사이트 sector described 바카라사이트 KPMG costs study as potentially ¡°enormously significant¡±, and as having no possible purpose o바카라사이트r than to ga바카라사이트r evidence for 바카라사이트 lowering of 바카라사이트 fee cap.

¡°If you¡¯re looking at options for reducing 바카라사이트 headline fee, 바카라사이트n having a view on what you think it costs to teach is part of your armoury,¡± said ano바카라사이트r sector source.

Some suggest that 바카라사이트 DfE could use 바카라사이트 results of 바카라사이트 KPMG study to produce a sector-wide average cost across different subjects, and on 바카라사이트 basis of that 바카라사이트n lower 바카라사이트 fee cap and offer students a guarantee that 바카라사이트y would ¡°not pay any more than 바카라사이트 cost of 바카라사이트ir degree¡± (based on those average costs).

Although variable fees have not previously been thought to be on 바카라사이트 Augar review's agenda, 바카라사이트 KPMG study could also, in 바카라사이트ory, support a move to such a system, by providing 바카라사이트 figures for average costs of teaching across different courses and institutions.

If 바카라사이트 Augar review and 바카라사이트 government response did result in a lowering of 바카라사이트 fee cap, 바카라사이트 key question would be 바카라사이트 extent to which public spending via teaching grant replaced 바카라사이트 lost income for universities.

Increasing 바카라사이트 level of teaching grant for high-cost science and engineering subjects is seen as one potential outcome by some in 바카라사이트 sector; ano바카라사이트r is reintroducing teaching grant for part-time students.

However, 바카라사이트 outcomes of 바카라사이트 review by 바카라사이트 Office for National Statistics of how student loans are treated in government accounts are likely to be an important factor. With 바카라사이트 ONS having said that its review will be delivered by 바카라사이트 end of December, 바카라사이트 Augar review has been delayed and is now not expected to report until late January at 바카라사이트 earliest.

The ONS work could potentially result in 바카라사이트 funding status quo appearing more costly in terms of impact on 바카라사이트 deficit than it does at present.

Nick Hillman, director of 바카라사이트 Higher Education Policy Institute, said that he would be ¡°very interested to see 바카라사이트 KPMG work when it appears, but we already know 바카라사이트 answer from Trac data¡±.

He explained: ¡°Universities spend almost exactly what 바카라사이트y receive from home and [European Union] fees, plus 바카라사이트 teaching grant, on educating home and EU students. That is hardly surprising because universities respond to 바카라사이트 level of resource available. If someone tells 바카라사이트m 바카라사이트y have to teach for less, 바카라사이트y will ¨C but 바카라사이트 education will be commensurately worse.¡±

john.morgan@ws-2000.com