5 results
Date Name

Placing Borrowing at the Heart of the System

A few days after the Autumn Statement, Martin McQuillan considers the Osborne plan to expand student numbers based on questionable finances that the IFS have labelled ‘economic nonsense’ and have slowly started to unravel. This short-termist policy may have big implications in years to come as BIS will have to make up any further shortfall in the HE budget – a budget already under extreme pressure. With so many risks ahead, the HE sector needs to take a long and detailed look at this scheme.

Interesting questions raised by OU’s 5k fees

Yesterday, The Open University announced plans to charge £5000 fees. A THE story claims that it puts OU in ‘pole position’ to snap up the 20,000 places that are being made contestably available for institutions charging less than £7,500. But these 20,000 places are for full time undergraduate students – currently all of OU’s students are counted as part-time, even if they are studying at a rate of 1FTE.

Where things get complicated are with OU-validated degrees in further education colleges. By putting these 20,000 places aside for low-cost courses, it is the intention of BIS to expand provision in FECs – either validated through a body like OU, or even funded directly. What no one knows for sure is the true extent of the demand for these courses. It must be remembered that these 20,000 places are just theoretical lines on a spreadsheet – they will not necessarily become students unless there is sufficient demand for the low-cost courses in the mix.

Off-quota places – another unforced HE policy error?

This morning David Willetts took the airwaves to float the idea of ‘off-quota’ places at university. Not a new idea by any means, but an interesting indication of the direction of travel for the HE White Paper which most now expect in the first half of June. On the one hand, there is a sound political argument for leaking out policy initiatives in this way; it can have the effect of softening up the ground for when the big one drops later on.

But David Willetts has underestimated the toxicity of a policy like this which touches a very raw nerve indeed. Still wounded by the fees and funding settlement, this policy will feel like a kick in the teeth to those still clinging on to the idea that access to HE should never depend on the ability to pay. The ‘free at the point of use’ principle, still hanging on by its finger-nails, ensured that there was always going to be the greatest strength of feeling against the deep cuts to the teaching grant. The ensuing high fees for many felt like the sad, but necessary consequence of this – softened by continued commitment not to charge up-front fees.

MarginCore and the dumb hand of the market

So, the hints coming out of the HEFCE annual conference regarding university funding were, firstly, the imminent appearance of the much delayed White Paper, and, secondly, further tweaks to the Willetts-Browne funding model to avoid the now universal embarrassment that this model costs substantially more than the current one.

What we seem to be blindly heading towards is something called a core/margin model, and that I’m going to call MarginCore. This should come as no surprise to readers of my blog, as we called it back in December. We also said it wouldn’t be a very good idea.