SUMMARY
The Government in their Plan for Growth attach great
importance to education and hi-tech industry in order to create
jobs and prosperity. The jobs of the future will increasingly
require people with the capabilities and skills that a STEM education
provides. However, there appears to be a mismatch between the
STEM graduates and postgraduates that higher education institutes
(HEIs) supply and the demand from employers, both in terms of
the number of students and the skills and knowledge they acquire.
We start this report by analysing the current definition
of STEM which uses the Joint Academic Coding System (JACS). We
found this definition unsatisfactory because it is too broad and
includes subjects that have not traditionally been considered
STEM. An implication of such a broad definition is that there
is a danger that a significant proportion of the growth in the
number of students studying STEM subjects is made up of courses
with little science content, thus hiding the true picture of the
level of STEM skills available to meet the needs of the economy.
The Government must work together with stakeholders to define
STEM by using a statement of the competencies and skills that
a STEM graduate and postgraduate should possess and the characteristics
that a STEM course should contain.
One aspect of STEM education that was flagged up
to us during this inquiry was the interface between schools and
higher education (HE), and maths. We are concerned that the number
of pupils studying maths post-16 is insufficient to meet the level
of numeracy needed in modern society, and the level at which the
subject is taught does not meet the requirements needed to study
STEM subjects at undergraduate level. The study of maths should
be compulsory for all students post-16 and maths to A2 level should
be a requirement for students intending to study STEM subjects
in HE. In addition, we urge HEIs to introduce more demanding maths
requirement for admissions into STEM courses as the lack, or low
level, of maths requirements at entry acts as a disincentive for
pupils to study maths and high level maths at A level.
Another issue with which we had to grapple was the
lack of reliable data on the supply and demand of STEM graduates
and postgraduates. This lack of data makes it very difficult to
assess whether there is in fact a shortage of STEM graduates and
postgraduates and in which sectors. This is critical because,
if it is not known whether there is a shortage, remedial actions
cannot be put in place. To this end, we believe that a single
body should be appointed to be a repository of information on
the supply of, and demand for, STEM graduates and postgraduates
with a view to providing comprehensive, real time data analysis
and a commentary with market intelligence of where STEM shortages
exist. These data will serve multiple purposes, such as aiding
the classification of shortage areas as Strategically Important
and Vulnerable Subjects (SIVS), or inform students on whether
the courses they are considering studying will equip them with
the skills needed by employers.
We analyse in this report how quality is assessed
in HE and the mechanisms for improving quality, given that the
mismatch in supply and demand for STEM graduates relates in part
to a lack of high quality graduates in many sectors, not necessarily
the overall number. These issues are complex and there are many
nuances that have to be taken into account. However, we concluded
that the remit of the QAA should be reviewed with a view to introducing
a system to assure quality, standards and benchmarks in HEIs that
is fit for purpose. We support accreditation of courses by professional
bodies as a way of signposting high quality courses. At the same
time we call on the QAA to ensure that employers are sufficiently
involved in setting standards and benchmarks, and promoting quality.
It is clear that STEM postgraduates play a significant
role in driving innovation, undertaking research and development,
and providing leadership and entrepreneurship. However, it appears
to us that, although the Government recognise the central role
that STEM plays in their strategies for growth, they fail to articulate
how they intend to convey to students the benefits of STEM postgraduate
study, to reduce the decline in STEM qualifiers in some STEM subjects,
or to improve our understanding about the demand for postgraduates
and the value they offer to the economy. Additionally, they fail
to make clear what support they will give to postgraduate STEM
provision in order to realise their vision. To remedy this situation
we call on the Government to set up an expert group, with substantial
employer involvement, to consider the supply and demand of STEM
postgraduate provision with the aim of formulating a strategy
for STEM postgraduate education in the UK which will underpin
the Government's strategies for growth.
Two recent policy reforms—on HE and immigration—are
likely to have a significant impact on the HE sector. Although
it is too early to assess their effect with accuracy, the evidence
that we received indicates a significant concern about the outcome
of the reforms. We support the role that the Government have given
to HEFCE to monitor unintended consequences and to intervene,
as appropriate, to protect strategic or vulnerable provision,
yet we are concerned that HEFCE may not have the funds to intervene
should it need to.
We believe that changes to immigration rules have
resulted in a perception that the UK does not welcome students.
This perception, in conjunction with the actual changes to the
immigration rules, may reduce the number of overseas students
coming to study to the UK and, in turn, the income that HEIs derive
from these students to fund other activities. This may result
in a reduction of provision of STEM courses that rely on this
income to make them viable. We call on the Government to make
a distinction in the immigration statistics between HE students
and other immigrants, and use only the latter category to calculate
net migration for policy-making purposes. This move would reconcile
contradictory policies from the HO, to reduce net migration, and
BIS, to expand the HE sector to promote economic growth.
There is a danger that the HE and immigration reforms
could have a compound impact on stand-alone Masters degree provision
producing a 'triple whammy' effect due to higher fees, lack of
student finance and a decline in the number of overseas students
choosing to study in the UK. By the time the effect of these reforms
is quantified and analysed, it may be too late to put remedial
action in place. The role of the expert group mentioned above
will be crucial in this regard.
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