University funding model to become unsustainable as demand soars, study warns
2 min read
The current higher education funding model will become unsustainable as hundreds of thousands of new university places will be needed by 2030, experts have said.
The Higher Education Policy Institute (HEPI) has said a rise in the number of 18-year-olds, combined with a continuing increase in demand for further education suggests at least 300,000 more places will be needed at English universities.
The organisation added that the number would put significant strain on the Government’s education budget and a cap on student numbers may be needed.
A boom in the number of young people set to move into higher education on its own would mean that 50,000 more university places would be needed.
However, the study also found that if participation increases over the next 12 years at the same rate as the average of the last 15 years, then a total of 350,000 more full-time places will be needed by the end of next decade.
That figure could be offset by Brexit however, with fewer students coming in from the European Union, which could mean that numbers reduce by around 56,000.
The findings come after Theresa May pledged a fresh look at the funding of universities in England, including considering lowering the price of some degrees for students.
The HEPI report said their latest analysis has “serious implications for higher education policy” and that numbers would need to be constrained were the current system maintained.
“Present arrangements imply an open-ended government cheque book since recruitment is unconstrained, and each student recruited is entitled to a loan that is subsidised by taxpayers,” they said.
“A driver of the review of post-18 education that has recently been established is concern over the high cost to graduates of loan repayments.
“It is difficult to see how that will be addressed without additional government expenditure.
They added that “even if the circle is somehow squared” and some graduates pay more to offset Government subsidy for others, given the anticipated numbers, it is “highly unlikely that the present open-ended government cheque book can be maintained.”
A Department for Education spokesperson said: “We want anyone with the talent and potential to have opportunity to go to university, which is why we lifted the cap on student numbers and reduced barriers that people face.
“We are conducting a major review of post-18 education to ensure that the system provides genuine choice for young people, and students and taxpayers are getting value for money.”
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