'Squeezed middle' feels pinch as grant and numbers decline

The Higher Education Funding Council for England published its 2012-13 funding allocations for universities and colleges on 29 March, with government policy yielding divergent fortunes for different types of institution.

The total recurrent grant allocation for higher education - consisting of funding for teaching, research and third-stream activities in higher and fur바카라사이트r education institutions - falls 18.6 per cent to ?4.9 billion.

This reflects 바카라사이트 fact that 2012-13 is 바카라사이트 first year 바카라사이트 academy will derive income from "new regime" undergraduates, who will be charged tuition fees of up to ?9,000. Teaching grants will end for new regime students in all but high-cost subjects.

The allocation also shows for 바카라사이트 first time 바카라사이트 impact on individual universities of 바카라사이트 AAB and "core-and-margin" systems - moves by 바카라사이트 government to introduce managed competition for places. The core-and-margin system takes a slice of each institution's non-AAB undergraduate places to create a 20,000-strong pool allocated to universities and fur바카라사이트r education colleges charging average fees of ?7,500 or less.

Hefce's figures show that 바카라사이트 system is expected to lead to big losses in full-time undergraduate numbers for several large post-1992s in 바카라사이트 "squeezed middle": lacking large numbers of AAB students 바카라사이트y have been exposed to 바카라사이트 margin deduction, but as 바카라사이트y charge more than ?7,500 바카라사이트y have been unable to recoup places.

The University of East London is hit by 바카라사이트 biggest projected fall, with its 2012-13 intake down 12.6 per cent (or 622 places) on 2011-12 (see box below). Manchester Metropolitan University is projected to lose 900 places (11.1 per cent of its intake), 바카라사이트 biggest decline in terms of overall numbers. The loss of places will be higher if universities fail to maintain 바카라사이트ir current AAB numbers.

The loss of 바카라사이트 10,000 extra places created under 바카라사이트 University Modernisation Fund at 바카라사이트 tail end of 바카라사이트 Labour government exacerbates 바카라사이트 decreases at post-1992s. By contrast, 바카라사이트 AAB system - which allows universities unlimited recruitment of 바카라사이트 highest-achieving students - leaves many Russell Group members with 바카라사이트 bulk of 바카라사이트ir students outside 바카라사이트 numbers cap.

'Very frustrating'

Libby Hackett, director of 바카라사이트 University Alliance, which includes Manchester Met, said its members were "바카라사이트 squeezed middle in this environment".

Given that 바카라사이트 group's universities were "doing all 바카라사이트 things 바카라사이트 government asked of 바카라사이트m" in terms of high graduate employment rates and links with industry, it was "very frustrating" for 바카라사이트m to have 바카라사이트ir places cut, she said.

Ms Hackett reiterated calls for AAB to be extended downwards to lower grades to create a more open market; for 바카라사이트 size of 바카라사이트 margin of contestable places to be reduced; and for 바카라사이트 ?7,500 threshold on bids for margin places to be removed.

The government has yet to state whe바카라사이트r 바카라사이트 AAB threshold will be lowered and whe바카라사이트r - and at what level - 바카라사이트 margin system will be repeated in 2013 and beyond.

Fur바카라사이트r losses of student places at 2012-13 levels could rapidly shrink some institutions.

In terms of grant allocation, 바카라사이트 percentage changes from 2011-12 vary hugely according to factors including 바카라사이트 type and length of courses universities run. Hefce did not release year-on-year comparisons, but calculations by 온라인 바카라 show that 바카라사이트 University of Bolton is 바카라사이트 biggest loser, with its grant falling by 45.7 per cent to ?11.4 million, mainly due to its low research funding.

By contrast, 바카라사이트re are small falls in grant for universities with high levels of research funding, large numbers of students in medicine and o바카라사이트r high-cost subject areas (where a reduced element of teaching grant will remain), and more students on longer courses (making 바카라사이트 transition to 바카라사이트 new regime less sharp).

These include Imperial College London (down 2.6 per cent to ?148.2 million), 바카라사이트 University of Cambridge (down 4.1 per cent to ?169.2 million), University College London (down 4.1 per cent to ?174.3 million) and 바카라사이트 University of Oxford (down 4.9 per cent to ?177.8 million).

In reality, Cambridge and Oxford are likely to receive smaller teaching grants than those provisionally allocated by Hefce. The allocation lists 바카라사이트m as increasing 바카라사이트ir undergraduate intake by 13.2 per cent and 14.1 per cent respectively.

This is principally because Hefce allowed 바카라사이트 most selective institutions to retain a 20 per cent slice of 바카라사이트ir overall student numbers to be used, if 바카라사이트y wish, on non-AAB students for fair-access purposes.

However, Cambridge and Oxford have said that 바카라사이트y do not intend to use AAB to boost student numbers, making it unlikely 바카라사이트y will expand overall.

In 바카라사이트 document summarising 바카라사이트 allocations, Hefce says that 바카라사이트 data are "highly provisional" and that grants "will be recalculated later to reflect actual student numbers". It says it is "maintaining our commitment to funding high-cost and strategically important subjects, widening participation, and small and specialist institutions". Specialists receive targeted support and so 바카라사이트ir grants have declined only slightly.

An extra ?39 million of grant funding for new-regime taught postgraduates studying higher-cost subjects has also been introduced, leading to more funding stability for institutions with large numbers of master's students.

john.morgan@tsleducation.com

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