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The Future of Higher Education

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The Future of Higher Education House of Commons Education and Skills Committee The Future of Higher Education Fifth Report of Session 2002–03 Volume I HC 425-I House of Commons Education and Skills Committee The Future of Higher Education Fifth Report of Session 2002–03 Volume I Report and formal minutes Ordered by The House of Commons to be printed 23 June 2003 HC 425-I Published on 10 July 2003 by authority of the House of Commons London: The Stationery Office Limited £0.00 The Education and Skills Committee The Education and Skills Committee is appointed by the House of Commons to examine the expenditure, administration and policy of the Department for Education and Skills and its associated public bodies. Current membership Mr Barry Sheerman MP (Labour, Huddersfield) (Chairman) Mr David Chaytor MP (Labour, Bury North) Valerie Davey MP (Labour, Bristol West) Jeff Ennis MP (Labour, Barnsley East & Mexborough) Paul Holmes MP (Liberal Democrat, Chesterfield) Mr Robert Jackson MP (Conservative, Wantage) Ms Meg Munn MP (Labour, Sheffield Heeley) Mr Kerry Pollard MP (Labour, St Albans) Jonathan Shaw MP (Labour, Chatham and Aylesford) Mr Mark Simmonds MP (Conservative, Boston & Skegness) Mr Andrew Turner MP (Conservative, Isle of Wight) Powers The committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the Internet via www.parliament.uk. Publications The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the Internet at www.parliament.uk/parliamentary_committees/education_and_skills_committee.cfm. A list of Reports of the Committee in the present Parliament is at the back of this volume. Committee staff The current staff of the Committee are David Lloyd (Clerk), Annabel Jones (Second Clerk), Sara Eustace (Committee Specialist), Pam Fisher (Committee Assistant) and Catherine Jackson (Secretary). Contacts All correspondence should be addressed to the Clerk of the Education and Skills Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone number for general enquiries is 020 7219 6181; the Committee’s email address is [email protected] Footnotes In the footnotes of this Report, references to oral evidence are indicated by ‘Q’ followed by the question number. References to written evidence are indicated in the form ‘Ev’ followed by the page number. The Future of Higher Education 1 Contents Report Page Summary 3 1 Introduction 5 Background 5 The White Paper 5 2 Research 7 Further concentration of research funding 9 Dual support system for research 11 Review of the Research Assessment Exercise 11 Concentration of funding: a science model 13 Regional strength 13 The link between quality of teaching and research 14 Conclusions and recommendations 15 3 Higher education and business 21 Knowledge transfer 21 Foundation degrees 24 Conclusions and recommendations 24 4 Teaching and learning 26 Academic pay 27 Excellence in teaching 29 The Teaching Quality Academy 30 Qualification for university status 30 Conclusions and recommendations 31 5 Expanding higher education 33 Expansion through foundation degrees 34 Progression from foundation degrees 35 Higher education in further education 36 Conclusions and recommendations 38 6 Fair access 41 Raising aspirations 42 Access premium 43 Student retention and drop-out rates 44 Mature, disabled and part-time students 45 The access regulator 46 Conclusions and recommendations 48 7 University funding and student support 52 University funding 53 Differential fees 54 2 The Future of Higher Education Graduate tax 55 Deferred payment of fees 55 The £3,000 cap 56 Different fees for different courses 58 Student support 59 Maintenance grants 60 Education Maintenance Allowance 61 Eligibility for the maintenance grant 61 Assistance with payment of tuition fees 62 Student debt 63 The interest rate subsidy for student loans 64 Conclusions and recommendations 65 University funding 65 Student support 67 8 Higher education in the future 71 Conclusions and recommendations 74 Annex 80 Higher education institutions invited to contribute to the Committee’s inquiry 80 Formal minutes 83 Witnesses 97 List of written evidence 99 List of unprinted written evidence 101 Reports from the Education and Skills Committee since 2001 103 Volume II, Oral and written evidence, HC 425-II The Future of Higher Education 3 Summary In this report, we examine the proposals in the White Paper The Future of Higher Education and the implications of the large investment in higher education over the next three years, with spending rising from around £7.5 billion in 2002–03 to almost £10 billion in 2005–06—a real terms increase of more than 6% each year. It is our aim to make a positive contribution to improving the Government’s White Paper. We seek to remind the Government that UK higher education has a strong international reputation and that students are eager to study here. Universities are vital to the future successful development of the potential of individuals and society as a whole. They are at the very heart of the maintenance of an intellectually vigorous and civilised society. They are also essential to the future prosperity of our nation. We remind the Government that UK universities are attractive because of their reputation for quality and excellence, much of which is rooted in their unique blend of teaching and research. We warn the Government that not understanding the distinctive nature of our university system or failing to maintain its quality would be a fundamental mistake. In recent years, Government investment in higher education has lagged well behind the resources devoted to early years, schools and further education. Universities are expensive, and we believe that those who benefit—society, the individual student and the employer— should all make a fair contribution to their cost. We suggest that employers should either invest a significant proportion of their turnover in research and development, or be required to contribute to a research fund for universities. We are convinced that substantial benefits derive from universities having diverse funding streams: too great a reliance on funding through taxation will inevitably lead to greater Government control of the sector and less independence for universities. We believe from the evidence given to us that it would be very unwise to proceed with a much greater concentration of research funding in a few institutions, that the flame of research endeavour should be kept alight in all universities and that each region of the UK should have within it a focus for the highest quality, internationally competitive research. While we consider the question of fair access to be of great importance, we believe that the Office for Fair Access is unnecessary and that responsibility for monitoring fair access should remain with HEFCE. We believe that there should be enhanced and better targeted support for students from low-income families, to be funded by the abolition of the undifferentiated interest rate subsidy for student loans. This could provide maintenance grants worth as much as £5,000. The Government is committed to a substantial expansion of higher education. The evidence suggests that this target will be achieved with less difficulty than previously envisaged. We believe that the Government’s linkage of the 50% participation target to foundation degrees is unwise. 4 The Future of Higher Education Universities are their staff. High quality universities must be able to attract and retain staff of the highest calibre. University salaries, particularly in the early years of academic life, are woefully low. Urgent action must be taken to improve pay and conditions, especially for those in the early years of the profession. The White Paper provides an historic opportunity to establish a higher education system in this country that is of the highest quality, is well funded, and can be accessed by all those who have the requisite talent, but more needs to be done to achieve those aims. We urge Ministers to adopt the changes we propose. The Future of Higher Education 5 1 Introduction Background 1. This report follows our report last session on Post-16 Student Support1 which in turn arose from the Government’s review of the same issue, announced by the Prime Minister in October 2001. The reason the Government gave for undertaking a review was public concern about student debt articulated during the last election, and it delayed its response to our report until it had concluded this review. Publication of the review was postponed once by Estelle Morris MP when she was Secretary of State for Education and Skills, and again by Charles Clarke MP when he took over as Secretary of State in October 2002. The White Paper The Future of Higher Education2 was finally published on 23 January 2003. The Government provided a response to our previous report on 7 February 2003.3 The White Paper 2. The White Paper proposals are not confined solely to issues relating to student support and the funding of higher education, but relate to all areas of universities’ activities. At the outset, the Government acknowledges the successes of the system: “We can be proud of our universities. The number gaining degrees has tripled in the last two decades while safeguarding quality. Completion rates for students are among the best in the world. More overseas students are studying here. Our research capacity is strong and, at best, world class. Recent years have seen a dramatic increase in the number of new companies spun out of universities’ innovation.”4 The paper then sets out what the Government sees as the challenges facing the higher education sector: “The challenge from other countries is growing. Higher education is under pressure, and at risk of decline. We face hard choices on funding, quality and management: • Higher education must expand to meet rising skill needs.
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