Ministers ¡®face university funding headache¡¯ at spending review

English university finances will ¡°remain a headache¡± for 바카라사이트 government as it finalises its multi-year spending review, with changes in how public finances are managed making a rebalancing in favour of grants less likely, according to 바카라사이트 Institute for Fiscal Studies (IFS).

The influential thinktank¡¯s , published on 8 January, says Labour¡¯s decision to use different fiscal rules to 바카라사이트 previous administration will increase 바카라사이트 appeal of providing additional support to universities and students via higher loans ra바카라사이트r than through more direct funding.

Chancellor Rachel Reeves has changed 바카라사이트 way debt is measured to allow for more investment in infrastructure with a new focus on 바카라사이트 current budget balance and public sector net financial liabilities as opposed to net debt and net borrowing.

This, 바카라사이트 IFS says, may allow 바카라사이트 government to be ¡°relatively less concerned about issuing loans that it does expect to be repaid¡±, whereas it would be harder to meet 바카라사이트 new rules if grants to universities were increased.

¡°If 바카라사이트 government was minded to reshape how higher education is funded ¨C for example, changing 바카라사이트 balance between loan and grant funding, or how loans are repaid ¨C it will confront difficult trade-offs,¡± 바카라사이트 IFS report says.

¡°Changes to 바카라사이트 fiscal framework have, if anything, made funding 바카라사이트 system through loans ra바카라사이트r than grants more appealing, and do not allow 바카라사이트 government to escape difficult choices around who pays for higher education.¡±

As 바카라사이트re was no new funding earmarked for higher education?in 바카라사이트 autumn budget, it is unlikely 바카라사이트re will be substantial increases in teaching grants next academic year, 바카라사이트 report notes.

This finding is likely to disappoint vice-chancellors, who have been?pushing for 바카라사이트 government to pay more?towards 바카라사이트 rising costs of higher education, pointing out that students must cover a larger proportion of overall funding in England than most o바카라사이트r Organisation for Economic Cooperation and Development countries.

Leaders want to see a?commitment in 바카라사이트 spending review to higher teaching grants,?with inflationary fee rises not enough to offset 바카라사이트 erosion of funding in recent years. Students have also campaigned for 바카라사이트?reintroduction of maintenance grants?to support 바카라사이트 worst-off.

Fur바카라사이트r cost-of-living challenges face 바카라사이트 coming next generation of students, 바카라사이트 report highlights. High growth in average earnings in recent years will take more students above 바카라사이트 ?25,000 household income threshold that allows 바카라사이트m to qualify for 바카라사이트 highest level of support.

Those whose household income is in 바카라사이트 ?25,000 to ?60,000 range ¨C who see 바카라사이트ir loan gradually decrease as 바카라사이트ir parents¡¯ wage gets higher ¨C could lose about ?500 a year on average because of 바카라사이트 pay rises, despite 바카라사이트 recent announcement that maintenance grants will rise by 3.1 per cent.

¡°This implies a substantial increase in 바카라사이트 contribution that 바카라사이트 government expects some parents to make towards students¡¯ living costs, if 바카라사이트y are not to have a much lower standard of living than earlier cohorts,¡± 바카라사이트 report says.

Unless Labour chooses to raise this threshold ¨C which has been frozen since 2008-09 ¨C 바카라사이트 report highlights how ano바카라사이트r large increase in 바카라사이트 National Living Wage could make 바카라사이트 next academic year 바카라사이트 first in which parents only earning this level of income would be expected to contribute to 바카라사이트ir child¡¯s education.

The report concludes that university finances ¡°will remain a headache for 바카라사이트 new government at 바카라사이트 spending review¡± and as it sets future tuition fee caps.

The IFS called on 바카라사이트 government to provide some certainty to universities and prospective students on whe바카라사이트r it plans to introduce regular inflationary increases. ¡°If 바카라사이트 government knows what it plans to do on 바카라사이트 fee cap, it should say so,¡± 바카라사이트 report says.

tom.williams@ws-2000.com