Higher Education Funding

Baroness Wolf of Dulwich Excerpts

Thursday 12th September 2024 Lords Chamber

[Baroness Wolf of Dulwich (CB)]

My Lords, I add my congratulations to the noble Lord, Lord Krebs, on securing this debate and declare an interest as a professor at King’s College London, a trustee of the Council for the Defence of British Universities and a member of the Augar review of post-18 education and funding in England.

We are all very aware of the declining value of student fees, but I also emphasise to noble Lords the precipitous decline in direct government top-up funding for high-cost subjects. A university gets little more for a home student in chemistry or bioengineering than for one studying business or law, with horribly distortionary effects. We highlighted this in the Augar review with, I have to say, minimal effect. We have some special problems in this country, but this is a global issue, and that is what I shall say a little about now.

Countries everywhere have expanded student numbers, often at speed. They recognise citizens’ aspirations and the importance of graduate skills, but the background is sluggish growth. University is still a route to most of the best jobs, but the average return for a degree inevitably falls and government budgets are under increasing strain. The simplest response to this is always to reduce per-student funding. At the moment, England has higher levels of support per home student than any other part of these islands. Scotland has student number controls and has recently reduced the number of places it funds, and still spends markedly less per student than England. Northern Ireland has lower fees and lower funding. The Republic of Ireland is committed to demand-led enrolment without student fees, although it levies a so-called contribution. Its enrolments have risen, but its spending per student has gone down substantially. The European University Association confirms that this is the modal pattern: enrolment up, total government spending often up, spending per student down. In the USA many states are cutting funding for their public systems, and if you talk to Australian or Canadian vice-chancellors it feels like you are still at home. The challenges, the worries, the difficulties and the solutions that are not quite as attractive as they seemed are all the same.

So, with no easy answers on finance to be borrowed from elsewhere in the world, I agree with the noble Lord, Lord Krebs, that we really need to turn our thinking around a bit. We should start to think not just about how to top up funding but about what it is that we want to fund, and therefore how much and how we want to fund the different parts. What does it take to deliver what we recognise as high quality in engineering or law? When we look across the world at everybody cutting funding, cutting per-student funding, increasing class sizes, abolishing most personalised feedback in many of our institutions, what does this do? What happens? What do our students learn? How far are we charging students and taxpayers for what economists call “signalling”—which in this case is having letters after your name—rather than a transformative experience?

I do not think we know nearly enough about this and I do not think we know nearly enough about what makes different institutions more or less efficient in how they use their funding. With the current model running into the sand, not just in England but everywhere, we should be thinking much harder about what we want university education to be and what universities should be doing in a mass system where we want to respond to the desires and aspirations of the entire citizenry, and then we should think about what the different components cost and how we might best pay for them.