The Future of Higher Education

Submission from the 1994 Group

The 1994 Group welcomes the invitation from the Business, Innovation and Skills Select Committee to submit evidence to its inquiry on the future of higher education.

Executive summary

Our vision for the future of the higher education sector is one where universities are able to flourish, delivering social and economic benefits on an individual, national and global scale. Universities will be hubs of knowledge in the most modern sense, working internationally across networks to produce research which has global impact. They will be platforms for innovation, working interactively with businesses and industry to further the economic development of the UK. Importantly, universities will provide the stimulating student experience to produce new generations of innovative thinkers.

Higher education is integral to the UK’s intellectual, social and economic prosperity. The current period of intense change for higher education presents an excellent opportunity to shape the future of the sector. This document sets out the detail behind the 1994 Group’s vision for higher education and outlines the actions needed in four main areas: Research Excellence, Economic and Social Impact; Student Experience; Internationalisation and Sustainability to ensure that the sector can continue to prosper and return benefits to individuals, society and the economy.

Research Excellence, Economic and Social Impact

> Ensure that the funding system maximises opportunities for progression onto masters’ degrees and doctoral study and provides support for the development of new researchers.

> Maintain research concentration based on excellence by funding the very best research but not spreading resources so thinly that we risk damaging our world-class work within our research intensive universities.

> Direct research funding to ensure maximum economic and social impact both now and long term.

> Continue investment in world-leading research in arts, humanities and social sciences, alongside investment in STEM subjects. All disciplines are needed to address global challenges and ensure the UK’s future prosperity.

Enhancing the Student Experience

> Increase flexibility in terms of student numbers and provision to allow the sector to respond to demand, functioning as a true marketplace.

> Continue the autonomy of institutions to respond to their own individual profile in selecting the best widening participation provision and setting their own benchmarks. Targets and benchmarking should be broad based - including student retention as well as admissions.

> Place enhancing the student experience at the heart of strategy for Higher Education and work with universities to enhance graduate employability, especially by encouraging the involvement of employers.

> Strengthen the information available to all prospective students about the student experience and employability prospects at all universities, including the development of Student Charters.

> Ensure admissions processes are appropriate, efficient and applicant centered.

> Prioritize maintaining the academic quality of UK universities, extending this to new providers

> Increase the role of schools in engaging pupils with outreach activities and measuring the impact of these.

Supporting Internationalisation

> Support internationalisation and maintain the UK’s global reputation so that the UK can be at the forefront of research and teaching and so UK students benefit from engaging in an internationally rich learning environment .

> Limit the damage of any changes to the student migration system by ensuring other opportunities for international students to study with UK institutions are supported.

Sustainable funding issues

> Continue to provide incentives to boost private income streams such as the matched funding scheme for voluntary giving to universities.

> Maintain an appropriate provision of capital funding recognising the importance of reinvestment in the sector.

> Ensure the sector is supported in achieving environmental sustainability.

1994 Group Vision for Higher Education

1. Background

1.1 Our vision for the future of the higher education sector is one where universities are able to flourish, delivering benefits at all levels: economically; socially; nationally; globally; and to individuals. Universities will be hubs of knowledge in the most modern sense, with worldwide connections disseminating research which has global impact. They will be platforms for innovation, working interactively with businesses and industry to further the economic development of the UK. Importantly, universities will provide the stimulating student experience to produce new generations of innovative thinkers.

1.2 Higher education is integral to the UK’s intellectual, social and economic prosperity. The current period of intense change for higher education presents an excellent opportunity to shape the future of the sector. This document sets out the 1994 Group’s vision for higher education in four main areas: Research Excellence, Economic and Social Impact; Student Experience; Internationalisation and Sustainability. Universities occupy a pivotal role in our societies and we must not take this for granted. Higher education can and should continue to prosper, outlined here are some of the catalysts required for this.

2. Research Excellence, Economic and Social Impact

2.1 It cannot be denied that the contribution universities make to the economy is hugely significant. In 2008 this was estimated by Universities UK to be £59 billion, representing 2.3 percent of gross domestic product. Universities directly spent £23 billion and fuelled an additional £32 billion through their knock on effects on other industries. It should not be forgotten that universities are major employers, accounting for 315,000 full time jobs nationwide and generate a further 325,000 in connected sectors.

2.2 As centres of excellence for research, universities give British industry the cutting edge. Innovative research generates new ideas that boost business. Many of the fastest growing industries such as green energies and healthcare services are closely linked to current research. Universities provide the innovation which allows business to flourish and compete in a global marketplace and by generating a talented, forward-thinking workforce.

2.3 The Government has already outlined its commitment for research over the Comprehensive Spending Review (CSR) period. Announcements have been made regarding the further concentration of research funding on internationally excellent work. Research concentration on the basis of excellence is welcomed and should continue provided this does not spread resources so thinly to risk damaging our world-class research. Initiatives such as the Higher Education innovation Fund (HEIF) are vital in stimulating interaction between universities and industry. The continuation of this fund is most welcome and there may be additional initiatives needed in future to promote links further. As is commonly recognised, the breadth and depth of research carried out in the sector means industry needs easy routes to research expertise.

2.4 The economic importance of higher education is clear, the sector has provided an excellent return on public investment. The wider intellectual and social benefits of education are of equal importance. Universities drive positive social change that benefits individuals, the nation and the world. By investing in research we can make great strides towards solutions to global and national challenges such as combating climate change, improving health and wellbeing and building global security. Although typically harder to quantify, it is right that there is now an increased focus on evidencing social benefits including the use of impact assessments in the Research Excellence Framework (REF).

3. Supporting Internationalisation

3.1 Universities and the academy are international in nature, reflecting their fundamental purpose in advancing and disseminating knowledge without restriction to the origins of ideas. Internationalisation is embedded within all aspects of a university; the research undertaken, recruitment of the most talented staff from around the world, a diverse multi-cultural student body and teaching which is globally informed and made available to students around the world. Internationalisation to this degree brings great benefits at all levels and should be promoted at every opportunity. For example, international research partnerships link expertise across the globe to generate new knowledge. The UK’s participation in international research and partnerships ensures we can be at the forefront of innovation bringing the associated advantages for the economy and society. The whole is greater than the sum of its parts and to reach new heights of understanding we need to be part of the global academic community.

3.2 The catalysts for internationalisation are varied and interlinked. Recruitment of the brightest and best staff globally is vital for world leading research and ensures international perspectives in teaching. Attracting leading staff to the UK starts with being able to recruit the best international students who choose to continue their career in, or connected to, the UK. The UK’s global reputation underpins both of the above. A stimulating internationalised curriculum and international student community on campus equips students with the knowledge and skills to function in a global market place. Without this future students would turn elsewhere. This is an oversimplified model but the significance is clear, damage any of the matrix of elements which make an institution international and the effects could be critical.

3.3 UK universities are world renowned for their academic excellence and we have been able to contribute to university education overseas. UK higher education has been extended overseas with innovations in distance learning, though learning partnerships and by welcoming international students. To try to quantify the value of this provision, it has been estimated that higher education generated approximately £5.3 billion in 2008 through both tuition fee income and the additional spending of international students. By way of comparison this is greater than the export sales of alcoholic drinks, the cultural and media industries and others making higher education one of the UK’s most successful export industries. There are currently 340,000 overseas students registered at UK universities and with the right investment this could double over the next two decades as demand grows.

3.4 Higher education is an increasingly global marketplace. Given the rising quality of HE provision from new domestic and overseas HE providers the international market is set to be increasingly challenging. Whilst currently the UK attracts many of the world’s brightest and best international students this could easily be jeopardised by visa restrictions. As indicated above the potential implications of this for the international nature of universities could be huge. New ways must be sought to maintain the international dimension and competitiveness of the sector and new commitments made by the Government to support this.

4. Enhancing the Student Experience

4.1 Higher education is one of the leading ways of promoting social mobility and the sector embraces this role. Universities offer an experience which delivers enhanced life opportunities and earning prospects. Universities are committed to widening opportunities for students from all backgrounds and at all levels of study. Higher education institutions already engage in outreach and widening participation work and this will be strengthened with the introduction of variable graduate contributions. Finance should never present a barrier to able students attending university. Our vision for higher education is a sector which represents the full diversity of society, this requires a flexible higher education system.

4.2 Though barriers have been broken down between full time and part time study with the introduction of student loans for part-time students, more needs to be done to allow a diverse and accessible HE system. We propose that students should be able to change from full to part-time mode of studying, or change course or university, or take time out from their studies. Institutions should determine how flexible they wish to enable their programmes to become. The example of the US Higher Education system teaches us that incentives will need to be put in place for institutions to push students to graduate rather than focusing on obtaining modules only. These measures would make an important contribution to the UK HE sector and the widening participation agenda.

4.3 Higher education institutions (HEIs) must have the autonomy to respond and develop according to student need and their own unique student profiles. Regulation should be kept to a minimum. The requirements placed upon universities charging above £6000 in terms of Widening Participation through OFFA Access Agreements have been indicated. It is good that these are not blanket requirements and that institutions will have the autonomy to be involved in developing their own targets in accordance with their own unique position and have choice over the best form of widening participation provision to suit their own profile. The National Scholarship Programme (NSP) likewise gives institutions some choices over the direction of the scheme. Being newly introduced it is understood that OFFA Access Agreements and the NSP will be subject to review, it is essential that these schemes allow institutions the autonomy to make the best choices for them and that a wide range of widening participation measures are taken into account. Any move to impose sector wide regulations would be strongly opposed.

4.4 With the introduction of variable graduate contributions higher education will function as a marketplace to a greater extent. The competitive market place relies on prospective students being able to make informed decisions based on accurate data on the student experience and graduate prospects. There are concerns that the Key Information Set (KIS) which HEFCE is currently consulting on will not fulfil this need. Commitments will need to be made to students in additional ways including through student charters, as advocated by the Group. Research has shown that graduate prospects rely on the overall student experience not on academic experience alone. Co-curricular activities and awards as offered by 1994 Group members have been found to be extremely valuable in developing the employability of graduates. The involvement of employers in the development of these awards is particularly valuable and incentives need to be provided by the Government to encourage employers to play a more active role and work in collaboration with universities to ensure graduates are well equipped for the employment.

4.5 There should be no barrier to able students progressing to postgraduate level qualifications. Given the increase in undergraduate contributions the effect upon postgraduate study is potentially grave. Post graduate provision has become embedded in the development of staff in both the public and private sectors and post graduate researchers are vital for the future prosperity of UK research. With increased graduate contributions, measures should be proactively taken to prevent any negative impact upon continuation to post graduate study. As acknowledged by the Smith Report ‘One Step Beyond’ there are already access issues at postgraduate level. It would be unwise to postpone the development of measures to mitigate any effect on post graduate study as the threat posed by a loss of capacity at this level would be severe. We therefore welcome the reconvening of the Smith Review panel ensuring the continued focus on postgraduate level study.

4.6 The original Smith Review called for more targeted approaches to postgraduate provision, and the provision of doctoral training centres funded by ESRC, EPSRC and HEFCE has duly come about. This approach should be maintained to provide the best support for our postgraduate researchers. Postgraduate taught provision has thus far been a mass market activity and should be treated separately to postgraduate research provision which as research has shown is better provided by research intensive institutions.

4.7 The intention of the Coalition Government has been to create a marketplace, however it is essential that the Government fulfil their commitments to a market led sector by removing regulations which will otherwise impede development. The regulations on student numbers must be lifted, whilst maintaining an overall cap on student numbers greater flexibility should be introduced to allow providers to respond nimbly to the market. Flexibility in student numbers should be on the basis of demonstrable and consistent quality and demand for places rather than any arbitrarily imposed formula.

4.8 In the higher education marketplace new providers can be expected to emerge. It is paramount that the world-class quality of the UK higher education system is preserved. Therefore the same quality assurance requirements of existing higher education institutions (HEIs) should be extended to all new providers. In future, as now, there is likely to be a finite number of student places dues to the restraints of the student finance system. Therefore there will be opportunities for traditional and private HE providers to work in partnership; these opportunities should be harnessed to produce great efficiency and competitiveness in the sector.

5. Sustainable Funding

5.1 The case for investing in the academy is compelling; economic growth is driven by investment in research and development. We recognise the fiscally challenging environment but investment is needed to boost fast growing industries and to maintain quality whilst meeting greater student demand. It is therefore more important than ever for universities to boost their income streams through voluntary giving and industry connected activities. Incentives are vital to successful fundraising which is why the continuation of the match funding scheme is much welcomed and should be secured for future.

5.2 World class universities and research units require the best facilities. The reduction in capital funding from 2011-12 means universities are likely to look to graduate contributions to replace lost teaching capital. Whilst this is logical, funding for research capital is in a much more vulnerable position. High specification research facilities are needed for the continuation of world leading resources and a strong case must be made for reinvestment in research assets.

5.3 Highly ambitious carbon reduction targets have been set for the sector. Universities are committed to reducing emissions and environmental sustainability issues and have already taken large steps in improving facilities and reducing energy consumption. Universities should be supported in achieving their environment targets set rather than being required to purchase carbon credits under the Carbon Reduction Commitment (CRC). There are currently many financial pressures upon the HE sector and the purchase of carbon credits represent are a punitive approach rather than empowering universities.

6. Conclusion

6.1 Our vision for the future of the higher education sector is one where universities are able to flourish and contribute further to the economic development of the UK, to new research developments which make a global contribution, to the individual experience of university and to society as a whole. To do this universities need the freedom to operate in the newly created marketplace, the best and brightest researchers, continued investment and the ability to connect globally.

11 March 2011

Appendix 1

The 1994 Group represents 19 of UK’s leading student-focused research-intensive universities. It was established in 1994 to promote excellence in University research and teaching.

12 of the top 20 universities in the Guardian University Guide 2011 league tables published on the 8th June 2010 are 1994 Group members.  In 17 major subject areas 1994 Group universities are the UK leaders achieving 1st place in their field (THE RAE subject rankings 2008). 57% of the 1994 Group's research is rated 4* 'world-leading' or 3* 'internationally excellent' (RAE 2008, HEFCE). 10 of the top 200 universities in the 2010-11 THE World University Rankings are 1994 Group members.

The 1994 Group represents: University of Bath, Birkbeck University of London, Durham University, University of East Anglia, University of Essex, University of Exeter, Goldsmiths University of London, Institute of Education University of London, Royal Holloway University of London, Lancaster University, University of Leicester, Loughborough University, Queen Mary University of London, University of Reading, University of St Andrews, School of Oriental and African Studies, University of Surrey, University of Sussex, University of York.