2. Memorandum submitted by Universities
UK
There's much that is positive in the White Paper.
We're pleased that the Government has acknowledged the recurrent
and investment needs of the sector and, in the outcome of the
2002 spending review, has taken the first steps towards closing
the gap. £3.7 billion is a very substantial sum and the Government
acknowledges that more is needed.
Increased graduate contributions will also add
new recourses to the sector (but not until 2006) particularly
if most universities decide to charge the full fee, or close to
it, and especially as the Government will pay when the student
enters.
We welcome the fact that the new arrangements
require no up-front payments from students, and support the reintroduction
of maintenance grants for poorer students, but a much higher maximum
figure is needed if finance is not to remain a barrier to access.
Universities UK remain fully committed to the
aim of widening access to those from lower socio-economic groups,
who should be able to go to the institution of their choice. We're
pleased that the access premium will increase to 20% to support
this. But the heart of the access problem is the low staying on
rates at the age of 16. It's in this context that we need a better
understanding of the role and purpose of the access regulator
and what its added value might be. The sector is happy to work
with the new regulator but the bureaucracy needs to be kept to
a minimum.
The substantial overall increases in funding
conceal a difficult outcome for the funding of teaching. Once
new activity—in the form of earmarked initiatives—is
stripped out there is no real terms increase—indeed probably
a decrease—in the funding of teaching over the next three
years, making it difficult to complete the work in modernising
pay structures, for either academic or non-academic staff.
Similarly, substantial increases in research
funding will have a highly differential impact on the sector when
proposals in the White Paper to concentrate research further are
implemented. UUK remains concerned about increasing levels of
concentration of research funding, which is already more highly
concentrated than in any other country including the United States.
February 2003
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