Dani Payne, Senior Researcher at Social Market Foundation, said:
“The announcement this afternoon for a one-off inflationary rise to tuition fees and maintenance loans is a sensible and necessary step given the financial pressures facing institutions and students, but must come hand-in-hand with greater financial accountability from universities. With over a third of providers reporting deficits, and growing concerns about the potential of institutions collapsing entirely, it is right that the government has stepped in to stabilise the sector.
The increase in maintenance loans is particularly welcome. The government has committed to supporting the aspiration of any person who is academically able to attend university. Unfortunately, for too long disadvantaged young people have either been priced out of higher education, or go to university but have a much thinner experience than their more affluent peers because they have to work hours incompatible with a full-time education. The university experience should be a broad and enriching one – that includes being able to afford transport to lectures, attend extra-curricular activities, and take part in student leadership roles. All of this requires students to have adequate maintenance support to meet their basic needs.
But the government will need to take a firm hand with a sector that has been afforded more autonomy than its counterparts in other countries. Previous analysis by the SMF has shown that England has the most expensive system in Europe and one of the most expensive in the world [see notes]. And the disparity across the sector in spending is huge: upcoming analysis from the SMF will show that many institutions are spending substantially less than they are charging in tuition fees. Unfortunately, the sector has failed to respond to calls to increase transparency around cost and spend. If universities want to retain the freedom they have previously enjoyed, they need to be more accountable and efficient with students and taxpayers’ money.
Otherwise, there is a risk that universities will just be back, cap in hand to the government again next year.”
Notes
Contact
- For media enquiries, please contact Impact Officer Richa Kapoor, at richa@smf.co.uk
ENDS
