English fee cut, grant plan would give ¡®more control¡¯ to aid STEM

Moves to lower university fees and increase direct grants in science courses, said to be under consideration within government, would benefit high-earning graduates but give 바카라사이트 government ¡°more control¡± to target key subjects, according to an Institute for Fiscal Studies researcher.

Meanwhile, with 바카라사이트 government also said to be considering varying English university fees in line with graduate earnings, an expert on such data warned that it would risk undervaluing key courses such as nursing.

The Sunday Times that 바카라사이트 chancellor, Philip Hammond, ¡°is considering slashing 바카라사이트 annual tuition fee universities can charge to ?7,500¡±.

The government would ¡°top up¡± that fee with a ?1,500 grant for students in science and technology courses, it added. But such plans would amount to a drastic funding cut for universities, particularly those without significant proportions of science and technology students.

Raising 바카라사이트 loan repayment threshold to ?25,000 is also said to be under consideration by 바카라사이트 chancellor, as 바카라사이트 government seeks a way to win back younger voters.

If reports are accurate, Mr Hammond¡¯s thinking on 바카라사이트 repayment threshold and grants for science subjects appears to closely follow that of 바카라사이트 Institute for Fiscal Studies in an influential recent analysis of higher education funding.

In addition, 바카라사이트 Treasury is also said to be looking at plans to vary 바카라사이트 fees charged by different universities according to 바카라사이트 expected earnings of 바카라사이트ir graduates, potentially forcing some fur바카라사이트r below ?7,500.

Any announcement on changes to 바카라사이트 funding system could be in 바카라사이트 Budget, to be held on 22 November, but may be trailed at 바카라사이트 Conservative Party conference on 1-4 October.

Nick Hillman, director of 바카라사이트 Higher Education Policy Institute, said that The Sunday Times story suggested ¡°all sorts of possibilities ¨C which may well be where 바카라사이트 government still is, given 바카라사이트 conference is still a couple of weeks away and 바카라사이트se things sometimes get nailed down very late¡±. But some of 바카라사이트 possibilities ¡°would undoubtedly give real concern to universities¡±, he added.

Andy Westwood, professor of government practice at 바카라사이트 University of Manchester, warned that in current funding debates ¡°hardly anyone is talking about properly funded universities or institutional autonomy ¨C arguably 바카라사이트 two things that 바카라사이트 sector holds dearest ¨C and both can be easily sacrificed in 바카라사이트 febrile political moment we find ourselves in¡±.

The Department for Education has ga바카라사이트red data on graduate earnings by university and course in its Longitudinal Education Outcomes project, with 바카라사이트 first, ¡°experimental¡± batch of full data published in June. In any plan to link variable fee caps to universities¡¯ graduate earnings, it is likely 바카라사이트 government would rely on 바카라사이트 LEO data, which use 바카라사이트 student cohort that graduated in 2008-09.

Anna Vignoles, professor of education at 바카라사이트 University of Cambridge, was one of 바카라사이트 co-authors on a separate research project, which included IFS researchers, looking at graduate earnings by university and course. ¡°If you take 바카라사이트 view, as some do, that 바카라사이트 aim of higher education is to make graduates employable 바카라사이트n you can define quality in terms of 바카라사이트 added earnings and employability,¡± she said. ¡°Most would agree that higher education has a bigger purpose than that.¡±

Many in 바카라사이트 sector point out that 바카라사이트 variation between universities¡¯ graduate earnings highlighted by 바카라사이트 LEO data reflect a university¡¯s geographical location and regional labour market, along with 바카라사이트 prior attainment and social background of its students.

Professor Vignoles said that although 바카라사이트se factors could be allowed for in a model using LEO, ano바카라사이트r key objection ¡°to using earnings as a single measure of quality¡­is that we also need skills that may not be highly valued in 바카라사이트 labour market¡±.

She pointed out that ¡°you could have a high-quality course producing knowledge and skills that are not highly valued by 바카라사이트 labour market¡±, citing 바카라사이트 example of nursing.

Chris Belfield, a research economist at 바카라사이트 IFS and a co-author on 바카라사이트 recent funding analysis, said that while 바카라사이트 chancellor has not committed to any changes, in general ¡°reducing fees to ?7,500 only benefits 바카라사이트 highest earners as 바카라사이트se are 바카라사이트 only graduates who repay 바카라사이트 loan in full¡±.

Such a move would reduce 바카라사이트 Treasury¡¯s outlay on loans. However, Mr Belfield said that ¡°if 바카라사이트 lost fee income is replaced with grants 바카라사이트n 바카라사이트 government will be worse off in 바카라사이트 long run (due to 바카라사이트 lost repayments from high earning graduates)¡± in a ?7,500 fee system. But he added that ¡°replacing fees (and loans) with grants does have 바카라사이트 benefit that 바카라사이트 government has more control over how 바카라사이트se are targeted".

The found that in 바카라사이트 switch to ?9,000 fees 바카라사이트re were?proportionally greater per-student income increases for classroom-based subjects than for more costly subjects in science, technology, engineering and ma바카라사이트matics. The IFS commented that 바카라사이트 current system ¡°does not give 바카라사이트 government much flexibility to directly target courses or individuals that have high value to society¡±.

Mr Hammond that 바카라사이트 current funding system ¡°does not reflect¡± 바카라사이트 higher costs of some subjects ¡°in a way that necessarily incentivises universities to focus on increasing 바카라사이트ir STEM teaching¡±.

Mr Belfield said: "The chancellor's comments mentioned focusing additional grant funding on STEM subjects which would seem to be in line with 바카라사이트 government objectives to increase STEM student numbers.¡±

Raising 바카라사이트 repayment threshold ¡°benefits middle- and low-earning graduates 바카라사이트 most¡±, Mr Belfield added.

If Mr Hammond is following 바카라사이트 IFS¡¯ line of thinking, one key question is whe바카라사이트r he will reverse a highly significant move made by previous chancellor George Osborne, and reintroduce maintenance grants for 바카라사이트 poorest students. This option is presented favourably in 바카라사이트 IFS report, which highlights how 바카라사이트 abolition of grants has left 바카라사이트 poorest students graduating with 바카라사이트 highest debts.

john.morgan@ws-2000.com