The Future of Higher Education

Written evidence from the University of Bolton

The Terms of Reference for the Inquiry are:

· The conclusions of the Browne Report and the content of the Government’s proposed White Paper on higher education (including the Government’s proposals for widening participation and access); and

· The role and future of state funding in higher education.

CONCLUSIONS

1. U niversity of B olton (UB) would like the White Paper to address the role of grant funding in supporting strategically important and priority subjects which may be vulnerable in a market environment; helping the sector to innovate where initial start-up costs may be a barrier to change; assisting institutions with the higher costs associated with supporting widening participation students .

2. UB would like the White Paper to consider how employers can be incentivised to invest in the development of their staff.

3. UB would like the White Paper to consider how the artificial distinctions between full and part-time study can be removed to enable more flexible study patterns to develop.

4. UB would like the White Paper to address how state funding can be used to maintain capacity in STEM and other priority subjects.

5. UB would like the White Paper to recognise the role of community-based institutions in meeting the needs of under-represented groups who are unable or unwilling to leave home to access higher education.

UB would like the White Paper to recognise the civic role played by provincial universities in their towns and communities and to recognise that in this respect the state funded institutions are significantly different to private providers.

6. UB would like the White Paper to give some indication of the longevity of WP premium/TESS and more importantly 'T eaching G rant ’ funding to build into our 3 year modelling.

7. UB would like the White Paper to indicate that the NSP allocation should reflect in some way the likely numbers of students eligible for scholarships a u niversity might have. This will be disproportionately high in small WP institutions like UB. This would be preferable to simple institutional ‘size only’ allocation criteria.

8. UB would like the White Paper to indicate that VAT issues for associated companies / shared services will be addressed

9. UB would like the White Paper to make provision recognising the importance of Capital Investments to Teaching Capacity.

10. UB would like the White Paper to clarify how the Government intends to ensure that u niversities can compete with private providers on the basis of a level regulatory playing field.

11. UB would like the White Paper to assist universities by recognising that part time programmes could be part funded by employers a s well as by students (using the loan package) but employers may need to be incentivised to support their employees.

12. UB would like the White Paper to address how institutions with a high proportion of part-time students can be assisted to maintain this provision, if they are unable (on market grounds) to charge higher pro rata fees especially with reference to CPD in the NHS.

13. UB would like the White Paper to include: c larity about full fee 'up-front' and 'off loan book' students and a de-restriction of them within the student number control. Ensuring that the very exciting contestable margin student numbers potentially to be floated in the White Paper are offered in the context of a fundable core for each institution that has a national minima level (to maintain the viability and critical mass of a university with a key provincial/civic position).

University of Bolton Key Points:

o University of Bolton (UB) is facing the challenges set by Government policy realistically and constructively.

o The UB has concerns regarding the impact of the progressive withdrawal of teaching funding from 2012.

o UB is working towards achieving high levels of efficiency savings, whilst focussing on student and employers' needs.

o UB has particular strengths i n STEM activity. This derives from its historic roots as a vocational and technical i nstitute serving the needs of the local community for higher level skills

o UBs intake significantly includes:

Ø 99% from State schools

Ø high levels of mature students ( 8 0%)

Ø those declaring from ethnic minority and faith groups (e.g. at least 20% Muslim )

Ø significant proportions of students declaring a disability ( 8 %)

Ø 46 % of intake comes from lower socio-economic groups

Ø more than half of UB students study part-time

Ø most UB students (including FT) come from withi n 50 miles of the U niversity (90% from the NW)

o UB has strong 4* 'high impact' research linked to business and industry particularly in the fields of engineering and material science.  

UB is a classic WP/access University. Its costs are low and it generates a very small operating surplus year on year.

o UB is seeking to:

Ø keep fees for 2012 affordable and sustainable

Ø loo k to use the NSP to the fullest advantage for the largest number of beneficiaries

Ø more than match the NSP allocation institutionally

Ø hav e a n access agreement which is fiscally efficient, beneficial to the student and minimally damaging (financially) to the university whilst targeting as a priority our retention issues.

o UB aims to:

Ø increase its commercial income

Ø adopt a new model of a low cost subsidiary "private" provider operation (with new ways of working) where we could potentially charge fees below £6000pa FT E

Ø work with its FE partners to offer lower cost degrees and we intend to retain its franchise links

The intention of this UB evidence submission, in light of the stated ‘Inquiry Terms of Reference’ is to inform the BIS Select Committee of how UB perceives the situation it currently faces and how as a University it is trying to respond constructively and realistically to the Government ’ s proposals . It therefore seeks to identify what UB would wish to see in the forthcoming Government White Paper on ‘The Future of Higher Education’.

1. Whilst we understand the fiscal context, we have concerns about the phased transfer of funding from HEFCE block grant to student tuition fee from 2012 onwards. At present, it is unclear at an institutional level what grant funding will be available from 2012 and the basis on which it will be distributed.

UB would like the White Paper to address the role of grant funding in supporting strategically important and priority subjects which may be vulnerable in a market environment; helping the sector to innovate where initial start-up costs may be a barrier to change; assisting institutions with the higher costs associated with supporting widening participation students

2. We welcome the emphasis upon the demand side for Higher Education and funding 'following the student’; the importance of the 'competitive edge' for Higher Education Institutions is also well received. We are working towards achieving high levels of efficiency savings, whilst focussing on student and employers' needs. More than half of our students study part-time and although we welcome the extension of student loans to part-time students, we are concerned that part-time students will not benefit from the same terms and conditions for repayment as full time students.

UB would like the White Paper to consider how employers can be incentivised to invest in the development of their staff.

3. UB would like the White Paper to consider how the artificial distinctions between full and part-time study can be removed to enable more flexible study patterns to develop.

4. UB has significant STEM activity, deriving from our historic roots as a vocational and technical Institute.

UB would like the White Paper to address how state funding can be used to maintain capacity in STEM and other priority subjects.

5. UB is a very special University and has high levels of mature students, those declaring from ethnic minority and faith groups, and significant proportio ns of students declaring a disability. 99 % of our students come from state schools and 4 5 % of our intake comes from lower socio-economic groups. Almost half of our students are part-time, and most of our students (including FT) come from within 50 miles of the university.

UB would like the White Paper to recognise the role of community-based institutions in meeting the needs of under-represented groups who are unable or unwilling to leave home to access higher education.

UB would like the White Paper to recognise the Civic role played by provincial universities in their towns and communities and to recognise that in this respect the State Funded Institutions are significantly different to private providers.

6. We have strong 4* 'high impact' research linked to business and industry particularly in the fields of engineering and material science.

We are, in a nutshell, the classic WP/access University. Our costs are lo w and we generate very small operating surpluses year on yea r .

UB would like the White Paper to give some indication of the longevity of W idening P articipation premium/TESS and more importantly 'T eaching G rant' funding to build into our 3 year modelling.

7. We are trying very hard to meet the agenda the Government ha s set for the Sector, by: keeping fees for 2012 low but sustainable; looking to use the NSP to the fullest advantage for the largest number of beneficiaries; more than matching the NSP allocation institutionally; having a proposed access agreement which is fiscally efficient, beneficial to the student and minimally damaging (financially) to the U niversity whilst targeting as a priority our retention issues .

UB would like the White Paper to indicate that the NSP allocation should reflect in some way the likely numbers of students eligible for scholarships a u niversity might have. This will be disproportionately high in small WP institutions like UB. This would be preferable to simple institutional ‘size only’ allocation criteria.

8. We aim to increase our commercial income, and moreover to adopt a new model of a low cost subsidiary "private" provider operation (with new ways of working) where we could potentially have fees below £6000pa FT. We are working with FE partners to offer lower cost degrees and we are working with FE partners to offer lower cost degrees and we are retaining our franchise links.

UB would like the White Paper to indicate that VAT issues for associated companies / shared services will be addressed

9. What UB is doing now at its main campus is to radically streaml ine its provision, (proposing for example 2 year degrees) lowering costs and aiming to set the fee charged (reflecting UBs cost base) to our 2012 students at a level that will contribute positively to keeping the sector average at or below £7,500pa FT. To do this with almost 80 % of our provision in higher cost subjects Groups B and C) will be impossible without some confidence in the provision of Teaching Grant funding for STEM and WP going forward and Capital Allocations to institutions.

Similarly, given our low income student profile and the desire to give them scholarships to incentivise them to participate means that the proportion of the national allocation of the NSP funds that goes to us as a small institution will be critical.

UB would like the White Paper to make provision recognising the importance of Capital Investments to Teaching Capacity .

10. UB would like the White Paper to clarify how the Government intends to ensure that u niversities can compete with private providers on the basis of a level regulatory playing field.

11. On the issue of part-time student fees, UB has welcomed the eligibility for loans. However if we align what are historically lower module fees for part time study with the FT prices (at even £6kpa pro rata) we expect vast numbers of employers to limit their sponsorship and students to consequently withdraw.

UB would like the White Paper to assist universities by recognising that part-time programmes could be part funded by employers and students (using the loan package) but employers may need to be incentivised to support their employees.

12. UB would like the White Paper to address how institutions with a high proportion of part-time students can be assisted to maintain this provision, if they are unable (on market grounds ) to charge higher pro rata fees especially with reference to CPD in the NHS.

13. Other beneficial policy considerations :

UB would like the White Paper to include: c larity about full fee 'up-front' and 'off loan book' students and a de-restriction of them within the student number control. Ensuring that the very exciting contestable margin student numbers potentially to be floated in the White Paper are offered in the context of a fundable core for each institution that has a national minima l level (to maintain the viability and critical mass of a university with a key provincial/civic position).

11 March 2011