Select Committee on Education and Employment Minutes of Evidence


Examination of Witnesses (Questions 103 - 119)

MONDAY 10 APRIL 2000

PROFESSOR RODERICK FLOUD, PROFESSOR JOAN STRINGER, MR DAVID CALDWELL AND MR TONY BRUCE

Chairman

  103. Can I welcome Professor Floud, Professor Stringer, David Caldwell and Tony Bruce. Because time is so precious I am not going to stand on ceremony and ask you to introduce yourselves, we know all of you well. Can I start by asking you, you just heard the students giving evidence to this Committee, what do you think of their point of view?
  (Professor Floud) I think they gave a very coherent set of answers, if I may say, to your questions. In many respects, in particular on the need to maintain a unified higher education system in the United Kingdom and on the need to address the problems of under funding in the university system, we are in considerable agreement with them.

  104. Would anybody else like to comment on the evidence you have just heard?
  (Mr Caldwell) If I can add that from a Scottish perspective one of the interesting features of the debates that we had on Cubie, and subsequently the Scottish Executive's response to Cubie, is the extent to which COSHEP together with the NUS and indeed the AUT were able to share a common line.

  105. Although, interestingly enough, from the evidence we just heard when it came to the push they would adopt a Scottish system where the pain would still have to be contained within the system.
  (Mr Caldwell) I think there are some interesting aspects of the Scottish Executive's proposals in response to Cubie and it would be as well to say that there are two very good aspects of the proposals in our view. The first is that it is a genuine contribution to assisting students from poorer families to get into higher education. That is the first very important point. The second important point is that it preserves the principle that those who benefit from higher education should make a contribution towards the cost of it. A good feature of the Scottish outcome is that the contribution is made after graduation, when those that have benefited have started to earn. That is a very good aspect. The aspect, which I have to say causes us a little concern, is that it once again makes the institutions in Scotland very heavily dependent on the public purse for their funding. The independent income streams which tuition fees provided has gone. We have an assurance from the Scottish Executive that they will replace the income from tuition fees that is lost, and that is a very welcome reassurance in the short term. We do have to have some concerns about the long-term funding of institutions, it goes back to the debates in Dearing and Garrick about the serious under funding of the sector and the need to develop alternative income streams that address that difficulty. We are happy with the short-term assurances but we are concerned about the long-term position and in particular about whether there will be enough finance available for the necessary expansion in the system.

  Chairman: Thank you.

Mr Foster

  106. On the point about trying to lever-in some more independent sources of finance, do you believe that business and industry should contribute more towards the cost of higher education?
  (Professor Floud) Business and industry contributes already to a considerable extent in terms of funding research activities and funding individual students, particularly part-time students. They also contribute by providing sandwich course placements and other work placements for student and paying students to take advantage of those opportunities. Of course we would welcome further contributions from business and industry but we recognise that they have pressures on them to make profits and run their businesses, and so on, and that their contribution comes through means. I think we are not hopeful of the view that there is substantial extra cash to be levered-in for, if you like, the general purposes of university from business and industry.

  107. Have you had any discussions with any industrial or business representatives about ways of levering-in additional cash?
  (Professor Floud) We have regular consultation with the CBI and the Council for Industry and Higher Education about the link between business and the universities. We have not expected them and we would not expect them to fund the core activities of higher education institutions.
  (Professor Stringer) I think a similar situation arises in Scotland between the Scottish CBI and COSHEP in discussions. This was looked at quite considerably in the Dearing and Garrick committees and Dearing did recommend a compact between the main beneficiaries of higher education and indeed the Government. Beyond what Professor Floud has said, Dearing found it difficult to find ways in which additional funding could be levered-in to the system from business.

  Chairman: We have often heard people speaking to this Committee informally and formally wishing that the American system could be translated. It is a very different culture, is it not?

Mr Marsden

  108. I would like to come back to Professor Joan Stringer on this point, really to express a slight concern on my part that your view about the possibility of gaining additional money from business is so fatalistic. You both mentioned Dearing, it is true that Dearing makes comments about the funding, with referral to part-time students, but that takes no account, does it, of the situation of those students in arts and the social sciences? Many would argue that those particularly miss out. Are you saying that the current system if it does not receive additional funding will address the needs of those students?
  (Professor Floud) We are certainly not confident that higher education is properly funded. What you are asking about is different methods of funding for higher education. With respect, drawing on the American experience can be rather facile. It is certainly true that there is a number of institutions in the United States, although relatively small compared to the totality of American institutions, which receive substantial funding from alumni and contributions from business. That has never been the position in this country, partly it may be because of the different tax regimes, although I know that is changing. The HE institutions in this country have made very substantial efforts over the past ten or fifteen years to raise additional funding from alumni and business. Those have been more or less successful in different institutions but not anywhere like the scale that has been secured by the ten or fifteen, and it is that out of several thousand HE institutions, in the United States. The majority of HE in the United States is funded by the state and by private tuition contributions. I do not think that on that basis we are really very sanguine that there are substantial extra funds to be levered-in for core activities. Obviously there are specific research projects and there are specific activities, named chairs, and so on, to carry out particular purposes but those are not going to make a substantial difference to the core.

  109. Would you extend the lack of sanguine-ness to the possibility of business contributing to student funding in the way that was discussed in the previous session with ILA?
  (Professor Floud) I believe that there is a substantial possibility for businesses to contribute in a variety of ways to student funding, particularly in the form of support for part-time students, which has been the case, but, as you know from your own experience, that has not always been the case, not all businesses have supported students in undertaking part-time training and actually in some cases have discouraged that. I think there is a lot that can be done by business to recognise the value of the kind of training that can be provided both by further and by higher education and to give very substantial support to that. Whether that will extend to the support of full-time students, if that is what you are suggesting, I think is much more dubious, it certainly has not been the case in this country. Businesses may well ask whether they should be concerned with the support of people who are not, and perhaps never will, working for them.
  (Mr Bruce) Over the last two or three years particularly universities, with the support of the Funding Council, have been giving much greater priority to understanding the processes of knowledge transfer between universities and businesses and increasing interaction between the two. In our submission to the Spending Review we have argued that those funds should be increased further. I would expect out of that increased interaction and increased understanding that funding benefits could flow. Once business becomes more aware of the kinds of products of universities, both in terms of individuals and research results, and their applicability to industry of all kinds can be demonstrated more clearly I think, and I hope, that more investment by industry will follow from that.

Chairman

  110. That is very interesting, it is something that is close to my heart. Can I go back to the really fundamental point that this particular line of inquiry is about, whether there is particular student hardship out there, whether there are real gaps in funding and help for students financially. Do you see this having an effect in your institutions? Is there a remarkable effect? Are we having real problems with students dropping out? What is your view of the gaps in student funding as at this moment? Is it a crisis?
  (Professor Floud) I would not describe it as a crisis. I think it is undeniable that there is substantial student hardship and that has been recognised by the hardship and access funds which we receive from Government and disburse on behalf of Government to students. Clearly the situation varies in different institutions. In my own institution, which caters particularly for students from London and particularly students from East London, that is London Guildhall University, we are experiencing a very large number of students worried about financial problems, a very large number, into the hundreds and indeed thousands, of enquiries each week to our student finance unit about student financial difficulties. I think one could not deny that there are difficulties. It is expensive being a student. Nor do we consider that the current access and hardship funds are fully adequate.

  111. Does anybody else want to join in on this?

  (Mr Caldwell) I was very struck by the NUS evidence about the amount of work being done by students during term time which I think is a trend which has been observed in institutions across the board. We do lose a certain number of students every year who drop out or who do not pass their exams. It is very difficult sometimes to demonstrate exactly what the reason is, whether it is for financial reasons or whether it is a simple case of academic failure or whether it is personal reasons. It is very often a complex mix between a range of factors. I think what is very significant is that the amount of work that some students are having to do in term time because they are short of money does seriously impact on their studies. I think we have evidence within Scottish institutions certainly that is a problem for a significant minority of students and I think that is one of the reasons why the outcome of the Cubie Inquiry is generally welcomed in that it does provide some welcome assistance for these students from the poorer off families.
  (Professor Stringer) I want to simply come in in support of my colleagues. Over the past ten years increasingly there has been a problem of student hardship and one of the difficulties with the introduction of tuition fees was the abolition of some form of maintenance grant for those students from less well off backgrounds in particular. I think the whole issue of fees, or the concentration on student tuition fees, rather lost sight of that and that is why we are particularly pleased in Scotland to see the re-introduction of some form of maintenance award that will enable those students who can access and can benefit from higher education to take advantage of that.
  (Mr Bruce) There is a problem with the perception of the cost of higher education. Successive studies have indicated that prospective students do not have a very clear understanding of what the cost of higher education actually amounts to. There is continuing confusion over the means testing arrangements and students who are not actually eligible to a payment think that they are. I think there is more work to be done both by the Department and other agencies to ensure that there is a greater understanding of what the costs of higher education are and how they can be met.

Charlotte Atkins

  112. I wanted to ask whether there was a particular problem, as evidenced by the NUS, with medical students, particularly medical students coming from poorer backgrounds?
  (Mr Bruce) I am not aware of any particular difficulties in that area.

  113. I think the NUS were saying that one of the problems is they have less capacity to take on part-time work because obviously they do more contact hours. I am sure that is certainly the case for other students as well but medical students were particularly raised as an issue. Certainly in my own constituency I have found some students from non-traditional backgrounds who have found it daunting to go into the medical profession.
  (Professor Stringer) I think instinctively one might concur with that as a view but I am not quite sure that the evidence exists to suggest that there are significantly greater problems other than what we heard just now from the NUS about students undertaking those disciplines than others. I think it is just as difficult for students from less well off backgrounds, less traditional backgrounds, to undertake higher education whatever the discipline and there is this issue of perception of cost acting as a deterrent.

Mr St Aubyn

  114. As you may have seen today, according to research by the Sutton Trust, Britain's universities have become even more exclusive since the Government came to power. Do you think this is primarily due to changes in the funding for students? Do you think, particularly bearing in mind Professor Stringer's comments, that the abolition of the grant in conflict with Dearing's recommendations is also in conflict with their stated aim to widen access?
  (Professor Floud) I am not sure that I accept that interpretation of the Sutton Trust proposals which, like most of us, I have only seen in The Times rather than having seen the document. It is undeniable that different universities in a diverse system have concentrated on different types of students. Some universities have far more students from disadvantaged backgrounds than others. However, I believe very strongly that we have a national system of higher education with national systems of quality assurance which provide that the education that students are receiving at all those different universities, despite the different social mixes of those universities, remains the same and that seems to me to be the crucial issue.

  115. You think that whatever university you go to the quality of the course is pretty comparable to any other university?
  (Professor Floud) I believe that very strongly. That is assured by at least two features of our current system. First of all we have, and have had for many years, a very strong external examiner system by which external examiners from different universities right across the spectrum look at examination papers and certify to the university authorities, certify to me in my case, that the standard of the awards is appropriate and that of the rest of the university system. On top of that in the past few years, as you know, we have had an extremely rigorous system of quality assessment and audit through the Quality Assurance Agency and its predecessor bodies. I think we can certainly claim that the British higher education system has a more rigorous system of quality assurance than any other system in the world, including the United States. What that has shown is with very, very few exceptions, a very small proportion of cases where there have been problems, the quality of the education that is being provided is being maintained.

  Mr St Aubyn: And yet in the marketplace—

  Chairman: I want to keep to student finance, we are straying.

Mr St Aubyn

  116. But in the marketplace different universities, different degrees, are rewarded, if you like, differently in terms of salaries, so could it not be said that you are perpetuating social disadvantage and those who do not have access to some of the best co-ordinated universities in the marketplace are going to carry on being less well off than those who are lucky enough to do so?
  (Professor Floud) I would be foolish to deny that there are perceptions about the quality of the education that is provided by different institutions and these perceptions affect employment and recruitment from those institutions, of course that is true. All I am really pointing out is that I think it is a mistake to infer from that that there are indeed very significant differences in the quality of the education that is provided. Let me say one other thing, it is also certainly true that the whole nature of the student experience is very diverse across the country and has changed very greatly across the country. I think when I was fortunate enough to go to university in the 1960s, to one of the elite universities, I was very well supported by the state and educated in a very attractive and beautiful environment. The experience of students in many of our universities today is very different from that and you should not deny that fact. What I am saying is the quality is maintained by the efforts of university staff and university students to make up for the very significant decline in the unit of funding which is taking place, particularly over the last decade. Therefore students and staff are having to work that much harder and work for money that much harder in order to maintain the quality of the learning experience.

Helen Jones

  117. Can we look in a bit more detail at the amount of paid work being undertaken by students and what you attribute that to? I think it was said earlier there is a lot of confusion about the costs of going to university and the financial support available to students. Would I be correct in saying you cannot attribute the increase in paid work simply to tuition fees, particularly when you are talking about the most disadvantaged students, because they do not pay tuition fees? To what do you attribute it and has it increased substantially in recent years? What guidance is given to students on the amount of paid work they should undertake?
  (Professor Floud) I think it has increased over the past twenty or thirty years very substantially. I think it is an inevitable feature of recruiting from a wider range of social groups in this country. We are now recruiting from people whose parents and whose families do not have the financial resources that were common/normal, if not absolutely true in all cases, with students twenty or thirty years ago. You are dealing with students who are having to live at home in order to save money, having to find jobs in order to support themselves because their resources are not such as to enable them to do otherwise. In terms of how much it is, I think it varies a great deal, again according to the financial resources of the student. In my university we believe that approximately 80 per cent of the students are undertaking work during term time and that ranges in terms of hours from five hours and in some case up to twenty hours a week. That is obviously undesirable in the sense that one would like students to concentrate on their studies, however we recognise it is a necessity and an inevitable consequence, I believe, of widening the range from which we recruit.
  (Professor Stringer) Just to add to that, I think that over the years obviously one has seen a gradual decline in the amount of support available to students through the reduction in the maintenance grants in real terms and also in the introduction of loans. If one looks back over the past ten or fifteen years, gradually there has been an erosion in the amount that is available in support for a student to support themselves with. The issue of costs is an interesting one in terms of costs of maintaining themselves whilst at university, which is not always the same as expenditure. Cubie actually did a lot of work looking at both costs and expenditure of students while they were at university and I think probably came up with figures not dissimilar to the ones that we had from the NUS here today. I think that one of the issues that Cubie did try to tackle was how much does a student need to live on whilst they are at university, what is the total package and try to come up with the combination of loans and bursaries and so on that would enable a student to access higher education without having to undertake paid employment if at all possible. In other words, to provide more choice for students while they were at university. I think one might regard that as an ideal. Certainly I think it is an aspiration that many would look for.

  Chairman: We thought that was a valuable exercise.

Helen Jones

  118. Can I take you a little further on that? I would like to know what evidence you have, if you have any, that it is largely the students from the poorer families who are undertaking the largest amount of paid work. To follow on from that, if you wanted to solve that, what sort of level would you have to set a maintenance grant, bearing in mind that maintenance grants were always means tested? Speaking as a steelworker's daughter whose parents had to pay towards the maintenance grant, how would that resolve the problem of recruiting more students from what you call non-traditional backgrounds?
  (Professor Stringer) Can I just add one thing, which picks up on what I previously said? I think there is a difference between costs and expenditure. Students do make choices while they are at university and it is definitely not just students from less well-off backgrounds that undertake paid employment. Students from better-off backgrounds choose to take employment. I think the key word there is choice. I think quite often those from less well-off backgrounds do not have that choice.

Mr Marsden

  119. What is abundantly clear on this whole issue is, rightly or wrongly and for whatever reason, a substantial amount of students are undertaking a substantial amount of paid work. When you add that to the needs of other part-time students in terms of child care, woman particularly during the day, and mature students coming in this is a significant shift in the pattern of the student experience. What I would like to know is to what extent the universities' memberships of CVCP have adjusted themselves in terms of their working day and their teaching structure and everything else. I know of some good examples from colleagues in the new universities—it would be invidious to name them—but I would like an overview from you.
  (Professor Floud) Universities are faced with very different situations and have adapted differently to the circumstances you describe. You are dealing predominantly with a student body that is housed in halls of residence on campus in areas of the country where it is difficult to get paid work. Then another factor comes in, the availability of work for students. Then you have to make less adjustments to these particular problems than you do if you are in a big city university. It may be invidious but I can mention my own university and say that in the centre of London we have to adapt ourselves to the commuting patterns of students because 85 per cent of our students do not live in halls of residence, we have to adapt ourselves to the timing and the use of particular forms of travelcards. Above all, we have to adjust ourselves through having modular structures and flexible structures which allow students to combine study with work for both part-time and full-time students.



 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2000
Prepared 31 May 2000