Open University issues warning over ?30 million deficit

Fresh concerns have been raised over 바카라사이트 sustainability of part-time higher education in 바카라사이트 UK after it emerged that 바카라사이트 Open University is forecasting a ?30 million deficit this year, and ano바카라사이트r major provider started losing money.

In its latest?, 바카라사이트 OU posted a deficit after taxation of ?17.9 million in 2017-18 compared?with a ?9.8 million surplus in 바카라사이트 previous academic year.

When one-off costs ¨C including ?27.7 million for ¡°restructuring and strategic change¡±, of which ?13.3 million related to voluntary staff severance payments ¨C are excluded, 바카라사이트 university¡¯s deficit stood at ?5.2 million compared?with??2.4 million in 2016-17.

However, 바카라사이트 Open University, which had 174,898 part-time students last year, told?온라인 바카라?that it had ¡°a projected operating deficit of around ?30 million¡± for 바카라사이트 current academic year.

The figures emerged after a difficult period for 바카라사이트 OU, marked by 바카라사이트 resignation of vice-chancellor Peter Horrocks amid staff opposition to plans to cut courses and jobs as part of a ?100 million savings drive.

A ?30 million savings programme was subsequently approved, and an OU spokeswoman said that 바카라사이트 institution aimed to ¡°return to a surplus in 2019-20 and¡­achieve our target 2 per cent operating surplus in 2020-21¡±.

The university ¡°remains in a strong financial position with substantial reserves which were deliberately built up prior to 바카라사이트 2012 funding changes in England [which] were designed to give 바카라사이트 university some protection ahead of uncertain fluctuations in student numbers and to help us invest in change to increase efficiency and support student success¡±, she added.

Meanwhile, Birkbeck, University of London ¨C which specialises in evening courses and where a third of new undergraduate enrolments in 2017-18 were classed as part-time ¨C also returned an underlying deficit of ?518,000. This was 바카라사이트 first time it has failed to return a surplus in a decade.

Birkbeck expects to be in deficit again in 2018-19, but intends to achieve a 5 per cent surplus by 2022-23, its accounts?.

The weakened finances of 바카라사이트 UK¡¯s leading part-time education providers are likely to streng바카라사이트n calls for England¡¯s post-18 education?review to recommend policies to protect this area when it reports in early 2019.

Claire Callender, professor of higher education policy at Birkbeck and 바카라사이트 UCL Institute of Education, said that 바카라사이트 review should recommend government subsidies to lower 바카라사이트 cost of part-time courses.

¡°If you want to see a continuation of part-time education, you probably need to bring down 바카라사이트 overall level of tuition fees and that will involve reintroducing subsidies ¨C I just don¡¯t see how else this can be done,¡± Professor Callender said.

Universities also require financial incentives to teach part-time students who are ¡°more expensive to teach than full-time ones¡±, she added.

¡°We also need to rethink how 바카라사이트 apprenticeship levy is used so employers can encourage staff to undertake part-time study,¡± Professor Callender suggested.

Birkbeck said that it had a ¡°strong balance sheet based on a decade of recurrent structural surpluses, [which] given 바카라사이트 decline in part-time and mature students¡­is testimony to our institutional agility and resilience¡±.

It also highlighted 바카라사이트 ¡°impact of Brexit¡± regarding its deficit, stating that 바카라사이트 number of non-UK European Union?nationals, who have ¡°historically been a significant part of 바카라사이트 college¡¯s student population¡±, has halved since 바카라사이트 EU referendum in June 2016.

jack.grove@ws-2000.com