million+ calls on Government to take a loan from Europe to tackle the crisis in funding of university places
The university think-tank million+ is today (Tuesday) calling for the Government to use a loan from the European Investment Bank (EIB) to avoid students being turned away from university in September because of a shortage of funded places. In a briefing to MPs, million+ has provided a detailed analysis of the mismatch between supply and demand of university places and the cost of additional student places in 2009 and proposed that the Government bridge the funding gap by taking out a loan from Europe’s Investment Bank.
Figures from the University and College Admissions Service (UCAS) have already confirmed that demand for university places from people of all age groups will outstrip supply, with an overall 8.8% increase on the number of applications received by the same point last year. If estimates from UCAS prove correct, there could be only 16,000 places available in clearing in August 2009. This compares unfavourably to the 43,000 places which were filled in clearing in 2008 and does not account for part-time students who apply directly to universities. If the trend continues million+ estimates that up to 40,000 people could be left without a university place in September.
Pam Tatlow, Chief Executive of the university think-tank million+ said, “The recession and a peak in the number of 18 year olds has led to an unprecedented rise in applications which universities currently are not funded to meet. As employment rises to 3 million, this demand will continue into 2010. The Government has a choice – either invest in more people studying at university in 2009 or spend money by letting would-be students join the dole queue. Additional funding for a range of provision from full-time, part-time to foundation degree places is needed but with less than 6 weeks to clearing, the Government needs to act fast to avert the crisis.
“The European Investment Bank is already funding a student support scheme in Hungary. A loan from the Bank might be one way of funding the spike in demand in 2009 and 2010. In the middle of a recession, the Treasury and the Department of Business Innovation and Skills cannot let people down who want to study at university in 2009 and 2010. If the EIB has the means, Ministers should not hesitate to take it’.
ENDS
Notes to Editors
- million+ estimates that if the same level of funding (£655m) that has been used to fund 54,000 additional places for 16-19 years olds in schools, colleges and training were also applied to higher education, at least 30,000 additional places would be created in universities in 2009 / 2010.
- European Investment Bank objectives include extending the knowledge economy and social inclusion. The Bank has already provided a loan to Hungary’s Government and to one of the German Lander for student support schemes.
- The Government had originally planned to fund an additional 15,000 student places in 2009. This was reduced to 10,000 additional places by the former Department of Innovation, Universities and Skills (DIUS). Even if the 15,000 places had been funded, demand has far exceeded supply.
- Universities and the Higher Education Funding Council (Hefce) are being threatened with financial penalties if they over-recruit.
- To read the full briefing: million+ calls on Government to take a loan from Europe to tackle the crisis in funding of university places
- For more information please contact Gemma Tumelty Public Affairs Officer on 0207 7171655 or 07900 277819