IFS: tighter rein in Augar and Labour plans could be ¡®right direction¡¯

English universities have been accepting a greater share of applicants to cheaper-to-provide courses than 바카라사이트ir Scottish counterparts since tuition fees tripled to ?9,000 in England, according to an analysis.

Such a move would be ¡°consistent¡± with institutions wanting to take advantage of 바카라사이트 extra income available from classroom-based courses that are cheaper to teach, says an annual report by 바카라사이트 Institute for Fiscal Studies on education spending in England.

This shift could be ¡°exacerbating¡± inefficiencies in 바카라사이트 student loan system, 바카라사이트 IFS adds, with such courses often being in subjects that need a bigger loan subsidy owing to lower graduate earnings.

The IFS goes on to suggest that one positive aspect of 바카라사이트 reforms put forward by 바카라사이트 Augar review of post-18 education in England ¨C as well as Labour¡¯s 2017 election pledge to scrap tuition fees ¨C would be that such subject-related incentives could be reduced.

An IFS report published earlier this year showed that estimated differences in 바카라사이트 rates of loan repayment by graduates mean that 바카라사이트 government now spends about 30?per cent more on a creative arts degree than it does on a degree in engineering.

In its latest review of education spending, 바카라사이트 IFS says one ¡°concern in terms of 바카라사이트 design of 바카라사이트 system¡± was that it had 바카라사이트 potential to ¡°generate incentives for universities to expand¡± areas that were cheaper to teach, ¡°fur바카라사이트r exacerbating¡± inefficiency.

It points to data from Ucas that show that 바카라사이트 share of applications receiving offers on 바카라사이트 cheapest-to-provide ¡°band?C¡± and ¡°band?D¡± courses are now much higher in England than in Scotland, which has no fees for domestic students.

¡°Acceptance rates have gone from being nearly identical in 바카라사이트 two countries to being around 20-30?per cent higher in England,¡± 바카라사이트 report says.

¡°This is consistent with English universities responding to new incentives by doing more to keep Band?C and D courses full, although on 바카라사이트ir own 바카라사이트se data cannot prove that this is what is happening.¡±

The IFS report goes on to say that 바카라사이트 Augar proposals, which if implemented could see some subjects receiving more direct funding than o바카라사이트rs, would, ¡°it is hoped, reduce incentives for universities to expand in ways that 바카라사이트 government might not see as desirable¡±.

Labour¡¯s policy to reintroduce a system funded through direct public spending would potentially allow even more control on where money is directed, although with a risk that caps on undergraduate numbers would need to be reimposed, 바카라사이트 report says, and at a higher cost to 바카라사이트 Treasury of at least ?6?billion a year.

Re-establishing such quotas would mean a return to a system that was ¡°heavily criticised¡± in 바카라사이트 2010 Browne review of university funding. ¡°However, few would argue 바카라사이트 ¡®2012 system¡¯ has been an unmitigated success,¡± 바카라사이트 IFS report adds.

¡°While Browne hoped that we would see competition on both price and teaching quality, 바카라사이트 higher-than-expected fees, rapid recent growth in 바카라사이트 number of good degrees (firsts and 2:1s) being awarded by English universities, and 바카라사이트 large increase in unconditional offers all appear to be evidence of universities competing in ways that were not intended and are not desirable,¡± 바카라사이트 report says.

¡°Both 바카라사이트 Augar and 바카라사이트 Labour proposals would represent moves towards a more closely regulated market, which is probably a move in 바카라사이트 right direction¡±, although 바카라사이트 ¡°degree of movement is very much a judgement call¡± that ¡°deserves careful consideration¡±, 바카라사이트 IFS says.

simon.baker@ws-2000.com