University tuition fees in England should be cut to 6000 a year report

University tuition fees in England should be reduced to £6,000 a year to make post-18 education “more equitable” for students, a think tank has said.

The Government should remove the “distortions and biases” in the funding and oversight of post-18 education that favour full-time degrees over other routes, according to an EDSK report.

It comes as Labour has pledged to create a “secure future” for higher education as it recognises that the funding settlement “does not work” for the taxpayer, universities, staff or students.

University leaders have been calling on the new Government to raise the annual tuition fee for domestic students in line with inflation to help institutions struggling financially.

The previous Government raised the cap on university tuition fees in England to £9,000 a year in 2012 but it has been fixed at £9,250 since 2017.

The paper from the education think tank said many colleges and independent higher education providers are only allowed to charge around £6,000 a year for university-level courses.

“It is a clear indication of how provision within HE (higher education) settings has been prioritised above alternative options to date,” the report said.

The paper also highlights that students in higher education can access more financial support than their peers on higher-level further education courses.

It calls on the Government to establish a new body – the National Tertiary Education Council (NTEC) – to create a single approach to the funding and regulation of all post-18 education.

The report adds that a “single unified system” of maintenance support should be introduced for all tertiary provision and the tuition fee cap should be reduced to £6,000 a year for universities, colleges and independent providers.

“A reduction in the fee cap to £6,000 would significantly reduce the income of HE providers if nothing else changed,” the paper acknowledged.

The think tank has called for a new £5 billion “Teaching Support Fund” (TSF) to be created to “make up the shortfall in funding”.

Tom Richmond, director of EDSK and author of the report, said: “Our post-18 education system will never reach its full potential in terms of driving economic growth and productivity if full-time university degrees continue to be placed on a pedestal above other qualifications and courses.

“Vital as universities are for delivering education and training, it is time to end the enduring bias towards higher education in the way that we fund institutions and students.”

Mr Richmond, a former ministerial adviser at the Department for Education (DfE), added: “While the political focus on the financial health of universities is understandable, the Government would be much better off using its resources to build an integrated higher education, further education and apprenticeship system so that learners of all ages and at all levels can find the right pathway for them.

“Devolving powers over post-18 education to combined authorities offers the perfect vehicle for this integration because local leaders can bring universities, colleges, apprenticeship providers and other institutions together in a collective effort to create a more skilled workforce.”

A Universities UK (UUK) spokesperson said: “The universities sector works hand in hand with further education and other vocational training, and recognises the enormous financial pressures that these providers are facing. However, the response to this cannot be the defunding of a world-leading higher education system.

“Universities have been doing more with less for years, and current fee caps mean that they are operating at a loss of over £5 billion on research and £1 billion on teaching each year.

“Universities are central to the economy both locally and nationally, and a long-term, sustainable funding system is absolutely necessary to deliver the growth and opportunity this country needs.”

Published: 24/07/2024 by Radio NewsHub

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