23.06.09
Government faces choice: reduce student numbers or increase funding
At a major conference today (23rd June 2009), Professor Paul Wellings, Chair-elect of the 1994 Group and the Vice-Chancellor of Lancaster University set out the current funding challenges for universities:
“The Government and HE sector now faces a clear choice: reduce student numbers or increase funding for HE. It would be wrong to reduce volume, as this means reducing the number of student in HE and therefore the number of highly educated people that the country currently needs and will need in the future. The only viable option is that funding needs to rise to maintain quality to ensure that the HE sector can fulfil its role.”
Professor Wellings considered potential options for securing enhanced funding:
“To maintain quality, the fees cap needs to be high enough to bring in sufficient funding and enhance competition to further drive up quality. In addition, a sensible interest rate should be introduced on student loans, set at the current Government cost of borrowing, to rectify the huge subsidy that the Government currently pays.“
“The current system was never explained or communicated properly to users. It is essential to get the politics right and clearly communicate the benefits of the variable fees system, and universities have a key role in helping to do this. The message should be that HE is free to students. Whereas HE used to be paid for by a general taxation, it is now a personal contribution. It is payroll deduction, not a commercial debt.”
Professor Wellings explained why maintaining quality in HE is crucial to our future prosperity and well being:
“The 1994 Group’s primary concern is that quality is maintained so that universities are able to meet the nation’s needs – strengthening the economy, delivering novel solutions to major challenges through research and developing a world-class highly skilled workforce. In the current funding environment quality can only be maintained by either reducing volume or increasing funding. “
Notes to Editors
1. Professor Wellings was speaking at today’s (23rd June 09) national policy conference Sustaining Higher Education Funding 2009 at the Bloomsbury Hotel in London W1, organised by Neil Stewart Associates and supported by the 1994 Group.
2. The 1994 Group represents 18 of UK’s leading research intensive universities. It was established in 1994 to promote excellence in University research and teaching. www.1994group.ac.uk
3. 1994 Group members include 10 of the top 18 universities in the UK in The Guardian University Guide League Table published on the 12th May 2009; 11 of the top 25 universities in The Complete University Guide published in the Independent on the 30th April 2009; 9 of the top 200 universities in the world in the Times Higher Education World University Rankings 2008. 5 of the top 8 universities for student experience are 1994 Group Universities (2008 National Student Survey). The Times Good University Guide 2010 league tables published on the 3rd June 2009 put 1994 Group universities top in six regions of the UK
4. The 1994 Group represents: University of Bath, Birkbeck University of London, Durham University, University of East Anglia, University of Essex, University of Exeter, Goldsmiths University of London, Royal Holloway University of London, Lancaster University, University of Leicester, Loughborough University, Queen Mary University of London, University of Reading, University of St Andrews, School of Oriental and African Studies, University of Surrey, University of Sussex, University of York.
5. Press Enquiries or Interviews please contact Alistair Jarvis, Director of Communications, 1994 Group. Tel: 0207 872 5596 or 07779 232 731. Email: alistair.jarvis@1994group.co.uk