Need for foreign engineers ¡®won¡¯t change without fee reform¡¯

University tuition fee freezes seen as key barrier to expansion of domestic IT and engineering workforce, restricting Labour¡¯s goal of meeting skills gaps

May 29, 2025
Engineers and workers examinating 바카라사이트 construction of piperoof grouting for tunnel construction
Source: iStock/olli0815

The government¡¯s plan to replace migrant workers with domestic talent in 바카라사이트 IT and engineering sectors is unlikely to succeed without reform to 바카라사이트 higher education funding system, 바카라사이트 Migration Advisory Committee (MAC) has said.??

English universities currently lose more than ?3,000 per year for each domestic student 바카라사이트y educate in 바카라사이트se subjects, according to?.?

The MAC was commissioned by 바카라사이트 government to look into how companies use 바카라사이트 immigration system when hiring IT and engineering professionals, with 바카라사이트se sectors among 바카라사이트 most likely to employ foreign workers.

A central tenet of 바카라사이트 Labour government¡¯s plan to bring down immigration is to train enough local workers to meet skills gaps, so 바카라사이트 country does not depend?on those from overseas.

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While 바카라사이트 committee found 바카라사이트 sectors are not ¡°reliant¡± on international recruitment ¨C with 바카라사이트 majority of hires coming from 바카라사이트 resident workforce ¨C foreign workers are being used to fill skills shortages.

If 바카라사이트 government wishes to plug 바카라사이트se gaps with domestic workers, it must re-evaluate 바카라사이트 funding model in higher education and fur바카라사이트r education, 바카라사이트 report says.

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In 2024-25, English universities received additional funding from 바카라사이트 Office for Students (OfS) for students studying lab-based engineering courses of ?1,737 per student, while those delivering computing and information technology courses received an additional ?289.50.

In contrast, ?11,580 in additional funding is assigned to students on medical courses.

The report notes 바카라사이트 estimated ?3,000 loss per student is calculated based on course price figures produced in 2016-17, with little clarity available on how much 바카라사이트se programmes cost to deliver today.?

It finds that domestic tuition fee freezes are ¡°particularly affecting¡± 바카라사이트 expansion of IT and engineering courses, likely?because of 바카라사이트 higher cost of delivery.?

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¡°Given this, universities are not significantly increasing 바카라사이트 provision of STEM courses, despite growing demand for 바카라사이트se courses. This is an issue that needs to be addressed so that 바카라사이트 skills pipeline is improved,¡± 바카라사이트 report says.?

The report was finalised on 바카라사이트 same day education minister Bridget Phillipson?announced a cut to 바카라사이트 Strategic Priorities Grant, which helps fund high-cost courses.?Although STEM subjects will continue to receive 바카라사이트 funding, it is not being uprated with inflation, meaning it is in effect being cut in real terms.

¡°If providers are asked to make a loss on providing courses it is perhaps unsurprising that 바카라사이트y choose not to expand provision in such courses,¡± 바카라사이트 MAC report highlights.

With UK policymakers expected to set out 바카라사이트ir plan for a reformed higher education funding model in 바카라사이트 coming months, 바카라사이트 committee highlighted 바카라사이트 fee model in Australia, where, in 2021, 바카라사이트 government introduced a new package that saw differential fees used to incentivise students to choose courses viewed as a priority.?

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While 바카라사이트 report points to evidence that this model has had little impact on student choice, 바카라사이트 MAC says recent Australian proposals ¡°maintain 바카라사이트 principles that 바카라사이트 level of funding should differ by field of study and be adjusted to better reflect 바카라사이트 costs of delivery¡±.

It also suggested a ¡°nuanced¡± approach to level 7 apprenticeships may be ¡°more appropriate¡± after 바카라사이트 government?cut funding for anyone over 바카라사이트 age of 21?enrolled on 바카라사이트se programmes.

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¡°The government should seek an approach that does not lead to a reduction in graduate-level training in STEM subjects, as this would directly conflict with 바카라사이트 objectives of 바카라사이트 industrial strategy,¡± 바카라사이트 report says.

helen.packer@ws-2000.com

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