21 January 2008
University think-tank Million+ - Analysis of HE Funding Settlement for England 2008-2011
The University think-tank Million+ has applauded the Government’s aspirations to widen higher education participation but expressed some surprise at the balance of funding outlined in the settlement letter to the English Higher Education Funding Council published by the Secretary of State, John Denham, today (21 Jan 2008).
Pam Tatlow from the University think-tank Million+ said “Universities will want to think carefully about what this settlement means in practice. The Secretary of State makes it clear that the Government wants this settlement to fund an additional 20,000 students in 2008/09, an additional 35,000 students in 2009/10 and an additional 60,000 students by 2010/11 (the end of the Comprehensive Spending Review period). These student numbers are to be achieved at the expense of the public funding of ELQ students and by 2011, 100M will be removed from the teaching of students who wish to re-skill with a higher education qualification.
The HE Minister Bill Rammell has also stated in evidence to the IUS Inquiry on the withdrawal of funding from ELQ students, that he expected that many of the additional 20,000 full-time student numbers allocated in 08/09 would in fact be filled by more students participating on a part-time basis. Part-time students must pay fees up-front and many universities are unable to charge pro-rata fees for part-time students thus reducing the institutional fee income which they receive. In view of the additional student numbers and the expectation that part-time provision will increase, Universities might reasonably have expected that the unit of funding for teaching would have increased. In fact the opposite appears to be the case and the percentage increases in research funding again outstrip the allocation for teaching.
This differentiation would be of less relevance if research activity had been supported equally across the sector. This is not the case and universities which specialise in teaching and research and which educate the majority of higher education students will not reap the same financial benefits from this settlement as those institutions which focus on research rather than teaching. One can only hope that the Government will re-dress the balance and consider how research capacity can be supported in all universities from the increased funding for research.”
Notes to Editors
The settlement in 2008/09 allows for a 3% increase in teaching funding but requires the teaching of an additional 20,000 students. Research funding in the same year increases by 3.95%. This differentiation continues in 2009/10 when an increase of 3.5% in teaching funding will have to support the teaching of an additional 35,000 students but research funding increases by 4.5%. The final year of this settlement envisages an increase in the teaching allocation of 4.5% but an additional 60,000 students while research will benefit from an 8.8% increase in the same year (2010/11).
ENDS
For further information and comment contact Pam Tatlow, Chief Executive of Million+ on 07795 645241 / 020 7717 1655