Government reform of Higher Education - Business, Innovation and Skills Committee Contents


Written evidence submitted by UNISON

SUMMARY

—  The Browne report proposed radical changes that could undermine the current world class HE system, but produced little hard evidence to support them.

—  The Government has not fully accepted the Browne report and has put on some welcome limits, but concerns still exist about over reliance on a market model, levels of debts to students and the possibility of Higher Education Institutions (HEIs) failing financially.

—  Measures to widen access and participation are welcome, but may be counteracted by levels of debt and rapidly disappearing careers services.

—  The threats to arts and humanities courses caused by cuts in teaching grant funding.

—  There are alternative funding models. Suggestions that the UK should mirror the US have major risks.

—  Recognition of the role of business, but also the risks and importance of blue skies research and the role of HE in FE.

BACKGROUND

1.  UNISON is the largest education union in the UK with over 300,000 members from early years through schools and including tertiary settings. Of these around 50,000 work in Higher Education Institutions (HEIs), representing all grades of staff from manual staff to senior managers.

2.  We welcome the chance to give evidence on the future of higher education. However before we consider the proposed changes it is important to acknowledge how well HE is delivered in the UK. The THE world rankings, which were revised last year to take a wider world view, still showed that the UK was the second ranked country for higher education in the world. The THE has also just released another set of rankings based on reputations across the world and this also shows the UK in second place, This is a remarkable achievement for a comparatively small nation. It is in this context that we should look at the government's proposals. This does not mean that we should be complacent, but neither should we undersell or potentially damage our successes.

THE BROWNE REPORT

3.  UNISON was extremely disappointed with the Browne report. Its recommendations represented a fundamental shift to a market based system, yet there was little evidence in the report to justify their proposals or any detailed cost calculations.

4.  UNISON agrees with much of the analysis by Stefan Collini, Professor of English at Cambridge University, in his article for the London Review of Books in November 2010. This dissected the ideology and exposed the weaknesses within the Browne report. He described the proposals as moving HE from "…the provision of a public good, articulated through educational judgment…" to a "lightly regulated market in which consumer demand is sovereign"; accompanied by the retreat of state funding. He accepted weaknesses in the current system but queried whether students would act as rational customers in a new market. He also challenged the premise that the only relevant measure of teaching quality is "student satisfaction" - indeed he argued for certain kinds of student dissatisfaction "as a satisfied student is nigh on ineducable".

5.  Recently David Willets disputed Collini's analysis - saying that consumerism "should not jeopardise the relationship between teacher and student". Yet we can see from a number of HEIs in the United States that some fee paying students are using their role as "customers" in unintended ways; including seeking legal address when they do not receive the grades they believe they should have got. This is not to argue that students should not be more engaged - but the transference of education and resultant qualifications should not be a guaranteed financial transaction.

6.  David Willets also argued that "some students go to university as a route to the job". True - but to build a system around "some" is no better than the argument that HE should take no account of society or the taxpayers (currently) contributing towards it.

7.  UNISON agrees that students are not a homogenous group and what they want from HE Institutions will vary depending on their age, their life experience and their reason for choosing their particular institution. So those studying for a chosen vocation will differ from those studying to get a qualification in a subject that interests them, but have not yet decided on a career. Nonetheless we can surmise that all want a high quality education and will want it in a "safe" and supportive environment. The so called "student experience".

8.  It is important to note that the "student experience" covers more than just teaching. Some international students may want English language support and those with disabilities will require particular support mechanisms to assist them. Not all of these are the remit of academics but are vital to students achieving their potential. In particular support staff provide students with the necessary environmental context to feel safe. We have seem innovative models such as cleaners trained in counseling as they can be the first point of contact for new and lonely students when they clean student dwellings. In other institutions our security guards make sure that students are protected from outsiders who would seek to steal or abuse them and often are called to make sure they are safe.

9.  The dangers of focusing on cost alone could well impact on quality and the "student experience". A UNISON sponsored report "The business case for the living wage: the story of the cleaning service at Queen Mary, University of London" showed that a previous decision to outsource cleaning services at this HEI had led to problems with quality. When services were brought back in house the management, other staff and students acknowledged that the quality of services improved. Staff were also paid the London Living Wage, which gave them increased financial security and led to productivity increases and meant the staff were happier to take on a broader range of tasks. The overall increases of costs were marginal and the Chief Administrative Officer declared himself to be "perfectly happy" with the rises. UNISON is negotiating with other HEIs in London to introduce the London Living Wage- a concept that the Mayor of London Boris Johnson also supports. So far 10 HEIs have signed up to the concept.

10.  The Browne report recommended a complete lifting of the cap on fees. UNISON responded to a previous Select Committee consultation (when HE was under the province of the Department for Education) that "Lifting of the cap will extend the divisions and differences between the wealthy and poorer institutions". We have seen no convincing evidence to change our mind. When fees were first introduced all but one moved to charge the maximum as to charge less than a competitor was to indicate that their degree was worth less than others. Already under the new scheme we have seen the first HE institutions raising their fees to the maximum. It may be that this time that there will be some greater differential. However we would be surprised if any HEIs pitch their fees at £6,000. Those that undersell themselves could send a message out to students that they are second best.

11.  UNISON believes that the government's funding policy will dissuade many students from pursuing HE, particularly those from poor backgrounds. The wealthy will not have a problem with paying the increased fees and the proposals will support some at the very bottom. However others will be saddled with massive debts with many in the "squeezed middle" trying to tighten their belts to cover the costs. It is therefore likely that those who will suffer most are some in the middle classes and the group sometimes referred to as the "aspiring working classes". These groups, courted by the previous conservative government and who were a focus of Alan Milburn's report "Fair Access to the Professions will have limited resources and may well be discouraged by high levels of debt".

12.  It also seems odd that at a time when the government is seeking to reduce national it seems happy to encourage young people to start their working career with huge debts, even before they look to add to it with mortgages etc. Students may also be forced to stay at home by the debt; counteracting the "student choice" they are supposed to be taking advantage of.

GOVERNMENT'S RESPONSE TO THE BROWNE REPORT

13.  We are pleased that the government has rejected significant parts of the Browne report. Whilst we would have preferred no increase to fees at least the government has introduced some caps and is seeking a more interventionist role in the market than the report proposed. However the government's introduction of greater competition could mean that some HEIs might be left to fail. Unfortunately it is likely to be those that have been more successful in widening access that will struggle - undermining the government's stated aim of widening access and participation in HE.

14.  There have been three recent reports on the finances of the Sector. UNISON has been most closely involved in the recently issued Joint National Committee for Higher Education Staff (JNCHES) interim report on "The Financial Health and Sustainability of the HE sector". JNCHES is the national negotiating body which includes both HE employers and (for this report most) HE unions. The interim report which takes a UK wide view of funding was drawn up by Jim Port, a respected HE financial analyst. It recognises that financial health of the sector was good in 2007-08 and 2008-09 with improved operating surpluses. Nonetheless problems lie ahead and that for HEIs "maintaining financial health and sustainability is significantly more challenging than in the last decade"; that financial health is "now more problematic than it was in 2008, because of the significantly higher financial risks and threats it faces"; and that "this level of financial strength may prove inadequate for the more demanding and unstable future conditions." Finally "we conclude that the sustainability of the sector, which was assessed as problematic in the 2008 report, would now have to be assessed as in a worse position in 2010, despite the partial relief of two to three years of relatively good financial performance."

15.  A report by the National Audit Office report concurs with this. It recognises improvements in the finances of most HEIs, however it also suggests that some universities could be put at risk of bankruptcy as a result of cuts and changes to funding. It notes that many HEIs have improved their finances but that there will be an increase in the level of risk, noting that 7 HEIs were classified as "higher risk" in December 2010. Such institutions tend to be newer universities who are at the forefront of widening access. Again this raises the question: will the government allow HEIs to fail especially if it knocks a hole in its access plans? The third report; by the HE Funding Council for England (HEFCE) unsurprisingly tries to paints a somewhat rosier picture suggesting that the "projected performance in 2010-11 is sound overall, but not as strong as 2009-10". However they state that although the overall financial results showed a healthy position, the sector-wide picture encompasses a wide range of results. "Of the 129 universities and higher education colleges in the English HE sector, 20 institutions recorded real-terms reductions in income compared to 2008-09…" And Sir Alan Langlands Chief Executive of HEFCE states: "the outlook for 2010-11 (despite further in-year reductions to recurrent funding) is manageable" he also adds "for the vast majority of institutions".

16.  In another report "The Independent Review Of HE Funding: An Analysis" published in October 2010, the Higher Education Policy Institute (HEPI) stated that the government appeared "strangely unconcerned with the effect of its proposals on universities whose market position may not be strong…the reason they may not be strong in the market place may have nothing to do with the quality or their standards…the apparent absence of any recognition of public interest in the health and well being of those universities that may not thrive in the marketplace is to be regretted".

17.  Unsurprisingly the Government accepted Browne's recommendations to increase links to business, with a view to improving the economy. This is important but needs to be handled carefully as too close links could be a double edged sword. Current businesses are likely to be focused on the market as it is rather than the future. Many new ideas come out of wider research and "blue skies thinking" which could challenge current business models. UNISON's campaign to introduce "safer needle devices" into the NHS saw significant initial resistance from larger manufacturers, who saw a threat to their business model. This disappeared as these manufacturers got their products ready for the market.

18.  We welcome moves to widen access and participation, although we worry that OFFA will not have the resources to monitor the agreements it is being asked to police. We also feel that to blame HE institutions for access problems that are mainly a result of disadvantages introduced at a much earlier age, is highly unfair. Significantly strengthened careers services for state schools could help to address lack of knowledge and expectation. Unfortunately the current funding cuts by local authorities that are decimating the Careers and Connexions workforce and the lack of identified funding for careers advice in schools does not bode well.

19.  If we do widen participation further then students may need additional support and appropriate specialist staffing and resources to deliver this. As well as academics to lead the learning and research, specialist support staff with back up welfare, IT, library and information services. This needs significant investment to ensure that hardware, books and web based services are up to date to allow students to work at the forefront of technology.

THE ROLE AND FUTURE OF STATE FUNDING OF HIGHER EDUCATION

20.  UNISON believes that the state has a vital role in funding HE and not just as a prop for the most expensive science and technology courses. An unfettered market will not necessarily provide the skilled workforce that we need. The removal of the requirement to teach modern languages in schools had a disastrous impact on the numbers learning foreign languages and we would not want to see similar gaps open up at tertiary level Handing over complete control to students might also mean that we have an overabundance in some areas - would another series of the BBC TV programme "Silent Witness" mean another increase in demand for courses to become criminal psychologists?

21.  We also have grave concerns around the withdrawal of teaching grant funding for arts and humanities courses. David Willets made a spirited defence of the proposals in a recent speech at the British Academy arguing that the cuts in funding was across the board and was a "scrupulously neutral policy". Unfortunately HEIs are already looking at long term plans to deal with current funding cuts and so planning will inevitably take into account the potential viability of courses. Thus courses without some guaranteed income could be seen to be more risky compared to STEM subjects which continue to receive a subsidy. Additionally whether it likes it or not the government is sending a clear message to potential students by taking teaching grants away from arts and humanities courses; allied to a call for employer focussed HE.

22.  UNISON opposed the introduction of fees for students and continues to believe in the provision of free education. There are alternative financial models on view across Europe where governments' are increasing state funding, recognising the need to compete in global markets. The Scottish National Party has re-stated that it will not introduce fees for students from Scotland if it gets into power, and whilst students from the EU would also be exempt it is possible that they will charge students living in England. Plans for Wales feature strong commitments to widening access and increased regional co-operation as opposed to isolated competition.

23.  The US, although often portrayed as a full blown champion of the HE free market has a major and recently increased commitment to state funding, notably in California. Those calling for a similar mixed market in the UK, who suggest privatisation of the Russell Group Universities, fail to acknowledge the huge differences in funding models. For instance there are significant cultural differences in their alumni willingly making contributions and their huge investments which underpin their funding regime, which our HEIs would not start off with. These investments are also open to risk, with recent stock market crashes wiping millions off the reserves of the Ivy League Universities leading to huge job cuts and course closures, notably at Harvard.

24.  We have concerns at the open language around student finance in the education bill. The 1998 Teaching and HE Act introduced "income-contingent repayment loans", linked to inflation. The new act says that loans will be "lower than those prevailing on the market or no higher than those prevailing on the market, where the other terms on which such loans are provided are more favourable to borrowers than those prevailing on the market". This means at least commercial rates of interest and possibly higher if associated conditions are preferable. Under the 2008 Sale of Student Loans Act, the government has the power to sell post-1998 loans to third party, private providers without the borrower's consent and without notice to the borrower. In 2007, outstanding debt was already over £18 billion. This could now be handed over to others in the future

25.  We are pleased that the government has protected research funding, but as we have pointed out above there needs to be a significant amount of money allocated for "blue skies" thinking, the spin offs of which are the life blood of innovation. We believe that the UK has not taken full advantage of EU research funding and that work needs to be on the forthcoming 8th EU Research Framework. UNISON, working with sister unions from Ireland and Denmark, has had a series of meetings with MEPs and the EU commission to highlight difficulties that administrative, technical and other support staff have with the current procedures.

26.  The government also sees expanding the provision of HE in the FE sector as a way of saving money. We welcome it if it promotes foundation degrees which provide opportunities for young people who might not otherwise have them, providing them with gateways to honours degrees. However we have concerns around resources available to FE colleges, especially with tightening budgets and their need to raise additional funding from students - who are often from the poorer parts of society. Particularly in libraries, where there are issues over stock and staffing and restricted opening hours. We have had reports that some FE colleges currently have access to their local HE institution library for students on courses that are validated by them and concerns have been expressed that if colleges validate their own degrees these might not be withdrawn. Staff in FE also report concerns around staff training and unsustainable increased demands.

27.  The government has seen fit to call for pay restraint in HE. We would remind them that the welcome increases over the last decade were in response to the Bett report. This acknowledged that pay in the sector had fallen well behind other sectors and needed addressing to ensure quality staff remained in the sector. Increases also reflected the need to update old grading structures that did not meet equal pay requirements. However it is also important to note that last year's national pay award was 0.5% and this year 0.4% is being implemented. This is hardly profligate and linked to the proposed cuts to pensions we could see the return of the brain drain.

28.  The government is taking a reckless and unnecessary gamble with Higher Education funding. It risks undermining the world class service we provide and does so based on ideology and lacking an evidence base.

29.  We would be happy to give oral evidence if required.

14 March 2011


 
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Prepared 10 November 2011