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Higher Education : The end of a golden age and the beginnings of a real marketplace

7th Annual Teachers and careers advisers conference

Steve IgoeDeputy Vice-Chancellor16th April 2014

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Our purpose What we are, what we do National context What we need to do to survive and prosper

Aim of Presentation

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The University’s core responsibility is for the ‘student experience’

Within this, the University’s core activities are teaching and learning and research. The vast majority of this University’s income comes from the former of these activities

Both undertaken in a competitive environment It is the aim of all staff to be part of these academic

endeavours and to support each other We also play a role (direct and indirect) in the local and

regional economy (these include (under-developed) activities)

Our purpose

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HE in the UK is a world leader, both in quality of teaching and learning and assurance of teaching quality, and in research output

We can be proud of what we do: we have noble aims We have no shareholders, we are a collective,

surpluses get ploughed back into the University The University is its staff and student community We are also a business in a highly competitive sector

What we are, what we do

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• By any measure, HE had a good time:–Student growth–Resource–Research grants and opportunities–Pay–Profile

• Where next? Some thoughts:

1998-2008: a Golden Decade

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Strong growth in student numbers

Source: UUK

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Education spending in real terms, England only: 1997–98 to 2008–09

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Student demographics

Will start to rise from here

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Budget Deficits

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• To cut public expenditure and the deficit, indeed to eradicate it

• Feel universities are too comfortable, and do not provide value for money to the taxpayer or the student

• There are huge cuts in HEFCE, TA, SHA income which will leave large cuts even after rise in student fees (+ no indexing)

The Government’s view (1)

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• Current systems fail to sufficiently recognise different roles for different universities (“our best universities”)

• Some believe that there are too many universities, that we can only prove that there is a real market if a number fail

• Too much research at too low a level• Quality of teaching needs significant improvement

(weak evidence base)

The Government’s view(2)

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Likely implications for the sector• We live in unprecedented times• There are significant cuts in HEFCE, SHA, NCTL funding• There will be a shift to student self-funding

– Student debt has not deterred FTUG students – but has destroyed PG, PT, mature markets

– Key driver appears to be reputation and attractiveness of the University• There will be cuts in government research grants

– Increasing emphasis on partnership with private enterprise for funding– Continued government funding will contract towards STEM only

• Some universities will close • Greater Government intervention• Greater Competition

Risks for the sector

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Government intervention• DBIS ‘hands-off’ micro-management (!) to assure the quality

and reputation of UK HE– Introduction of the UK Quality Code for HE (mandatory aspects)– Requirement to make public a wide range of (comparative)

Institutional data– Retention of external scrutiny mechanisms to ‘check on us’

• Quantitative judgements (Institutional Audit 2016/17)– ‘Risk-based’ mantra driving QAA’s external scrutiny of

Universities, eg:• Large overseas or e-learning portfolios might increase the intensity of

scrutiny• Change in Institutional ownership would trigger an external scrutiny

event

• Emergence of more national league tables• Mechanisms for stakeholders to raise concerns to QAA (and

for subsequent action)

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Dfe and NCTL

• Ideology over evidence• Schools direct and threats to Secondary ITT• PGCE vs UG• Demand 2013/14 : The security of supply• The end of PPD• Allocations and Ofsted

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DH and Health commisioning

• 2010-13 Commissions

• New structures for social work

• Tensions: Market demand , spending reviews and election politics

• A new purchasing structure

• And from whom

• But what of the “Hard Truths”

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HEFCE – allocated activity

• HEFCE : Funder or Regulator• HE – A Veblen good• Student funding : Realities and perceptions• The future of learner support• The shifting of responsibility :ALF,DSA ,SOF• Scholarships and bursaries – Are they worth it ?• REF and HEIF : A closed shop ?• The abolition of the SNC and 60,000 more students

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HEFCE – allocated activity

• New Entrants ( for profit and not for profit)• MOOC’s• HE in FE• International and Government immigration policy

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• Tough times ahead, doing more for less, working smarter, working harder

• But we have the following advantages:– Attractive campus– Rising popularity– Good scores in NSS (needs renewing annually)– Very strong financial position (but limited

endowments/realistic assets)– Increasing staff numbers bring changing (and

positive) student-focussed, academic and research culture

What does this mean for Edge Hill

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• We must all own the problems and seek their solution

• Demographics and new fee regime means we must further enhance reputation

• We must continue to invest in the campus• Build our research capacity• Improve our NSS standing • Continually revise our provision

What does this mean for our staff?

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Edge Hill University Of our 22,000 students around 9,500 on FT

programmes Three Faculties: Arts and Sciences, Education

and Health Main campus at Ormskirk, others at Chorley

(Woodlands), University Hospital Aintree Other satellite sites, outreach centres; e.g.

some health in Manchester The University has a long and successful

history

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Edge Hill University• We’ve benefitted from the £9000 fee

– Met student number control– Increasing numbers of ABB students (650 + in 2013)– Signs of increasing reputation (+40 places, Times/Sunday Times

(2006 – 2013))• £120m turnover (and increasing)

– £20m surplus– Building real estate– Will build reserves (2014/15)

• League tables:– 2006: 127th

– 2013: 69th • We will survive; indeed continue to grow securely

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Edge Hill Reputation• Turnover

• Has more than doubled in 7 years• Surplus of around £19m last year• Investment of over £180m in new campus facilities in last 7 years

• One of the biggest providers of teacher training/education in the UK• Had a very good QAA Institutional Audit in 2010 and an OFSTED

inspection with 33 grade 1 scores• Good, and improving NSS outcomes• Amongst the best student employability (93.5%) in the sector• REF entries more than doubled since 2008• Attracting staff from entire HE sector, especially at entry, professorial

and reader level• Amongst top 20 places to work in the public sector (Times 2010)

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Questions?