If Lionel Robbins – author of the first major review of higher education in 1964 – could have glimpsed the future, he would no doubt have been pleased with much of what he saw.
Back then, only about five per cent of young people attended university. His ambition was to extend opportunities to all who could benefit from a degree – and much of what he envisioned has come to pass.
Yet after years of expansion, universities are in a funding crisis, students are struggling with costs, many question the benefit of a degree, and both international and domestic student demand is under threat.
This is why I now find myself frequently debating how best to measure the value of higher education – for fear we may lose what we have failed to adequately value.
In research
The value of university research is perhaps the least disputed aspect. The UK, home to just one per cent of the world’s population, produces six per cent of global research output and over 13 per cent of the most highly cited articles, according to Universities UK. Over 60 per cent of this research involves international collaboration, and a third of academics come from abroad.
Whether measured by citations, publications, Nobel Prizes, or the ability to attract international talent, UK research performs strongly and is undeniably valuable. At the Leverhulme Trust, we certainly appreciate this. We receive far more outstanding ideas than we can support, and the research produced is extraordinary.
However, university research is not a standalone activity. In many, though not all, institutions, research and teaching are intertwined – and not only in a financial sense. Research informs teaching, and teaching shapes research.
Connectedness
Without a strong flow of talented students, the future of UK research looks bleak. This is why, with our mission to support research, we invest a lot in doctoral students. Calculations of value (and indeed policy) need to take this connectedness into account – tricky with different government departments responsible for research and teaching, and a one-size-fits-all funding model with cross-subsidy of research built in.
The sector’s status as a major export industry is also undeniable, contributing around £27 billion to national exports. But HE’s contribution to the national accounts does not capture its broader social impact, and I suspect Robbins might have been most heartened by the strides made to widen access.
Putting a value on this is tricky, but opportunities for individuals from working-class backgrounds to attend university have improved dramatically. Despite setbacks in recent years, it is noteworthy that nearly 30 per cent of students eligible for free school meals now progress to higher education. Remarkably, around half do in London. More than 60 per cent of Black students go on to university. The fact that the system is far more open to all students is of great value and worthy of celebrating.
Perceptions
But what about the value for students in this expanded sector? Various metrics have been employed to assess the worth of a degree: student satisfaction surveys, employment rates, job quality and wages. Each of these measures is limited in different ways. However, with taxpayers’ money funding a significant portion of costs, even such imperfect measures of value are necessary and informative.
On average, graduates earn more than their non-graduate peers, but averages are not helpful in understanding the scepticism among some students about the value of their degree. In regions lacking investment, transport and thriving industries, there is insufficient demand for graduate skills. Therefore, many graduates who are unable to relocate do poorly in the labour market.
Earnings and employability, particularly measured early in a graduate’s career, do not, of course, capture the full value of a degree. This is perhaps most obvious for those in jobs with high social value, such as nurses, or those in low-paid but creative jobs.
Demands
Nonetheless, in repeated surveys, students and graduates report concern about their job prospects. Many are struggling to find graduate jobs.
At the same time, there continue to be skill shortages in some fields. Skills England has the difficult task of addressing national skills needs, including any mismatch between supply and demand, and this must include consideration of graduate skills. Helping students make informed choices and ensuring that all degrees, irrespective of discipline, equip them with a broad, adaptable skill set is crucial. But we need to acknowledge that even in tough labour markets, this will still not ensure great jobs for all.
It is in those left behind areas with weak labour markets that assessing the value of universities for their local communities and economies is more difficult but vital. Universities can catalyse local growth – the evidence on agglomeration effects is substantial. Some institutions contribute nationally; others drive local innovation and regeneration.
In deprived areas, universities serve as social anchors and must help retrain adults for emerging jobs. Some universities in struggling regions have played critical roles not only in equipping students with skills for the modern economy but also in providing a sense of community and purpose during periods of industrial decline and economic hardship.
Risks
In the short term, as the UK grapples with its economic challenges and the sector with the funding crisis, we need to be alert to the risks of a shrinking HE system. Loss of teaching capacity will lead to loss of research capacity, and vice versa. If we are to preserve the sector’s strength, we need to recognise the varied roles that institutions play across teaching, research, local development and social mobility.
Looking forward, universities will continue to make a crucial contribution to economic growth by developing the skills of the workforce, but only if accompanied by other types of investment.
Above all, with such a diverse sector, a one-size-fits-all approach cannot work. Policy needs to actively shape the system and enable different universities to focus on where they can add the most value.
