Universities at risk over increase in fees, warn vice chancellors

Oct 15 2010 By Jonathan Walker

The future of some West Midlands universities have been put at risk following the dramatic increases in student fees, experts have warned.

While the most prestigious universities will benefit from the possible increase in tuition fees, others could struggle to raise funds from students.

Concerns are prompted partly by fears that the increase in student fees will be offset by a dramatic cut in central government funding, to be confirmed in the Comprehensive Spending Review on October 20.

It will mean that the new funding scheme does little to increase the amount of money going into the system, but amounts instead to a shift from state funding to funding by individuals.

Nigel Thrift, vice chancellor at the University of Warwick, warned that some universities would face “stark choices”, while Madeleine Atkins, vice chancellor of Coventry University, warned: “We are very worried that the eventual outcome will deter those who are less well-off from going to university.”

The Government has announced it is considering a new tuition fee level of £7,000 per year – more than double the current cap of £3,290.

It follows the publication of Lord Browne’s review of student funding, which proposes the most radical shake-up of higher education funding for years. The review called for the cap to be lifted entirely, raising the prospect that institutions could charge as much as £12,000 a year for some courses.

By pushing the concept of a market in higher education, with leading universities charging more, the policy threatens to widen the funding gap between the elite colleges and the rest, including former polytechnics.

The less prestigious universities also tend to attract students from poorer families, who will be less confident about taking on debts to pay tuition fees and unable to ask parents to pay for their studies.

Prof Thrift said he expected Warwick to do well under the new system, but other institutions would not be so lucky.

He said: “Clearly we can expect that the Comprehensive Spending Review will include deep cuts in the funding of England’s universities.

"These cuts will pose a significant challenge for our sector, particularly as it has long been accepted that the Higher Education system is actually in need of substantially more investment rather than cuts.

“Currently universities have few, if any, options available to them to cope with such a significant cut other than the option outlined in the Browne review.

"Many commentators expect that universities will have little choice but to charge an undergraduate student fee of at least £6,000 simply to cope with the expected cut in university funding.

“If that is what we face then we can expect significant changes to the higher education landscape. Many institutions will not be as able to charge a fee level that would cover their reduced funding and will face stark choices.”

Prof Atkins added: “Our main concern is for prospective students and their families. We are very worried that the eventual outcome will deter those who are less well-off from going to university, and will therefore limit their life chances and opportunities for a professional career.”

The tuition fee hike also poses a dilemma for Liberal Democrat MPs, who signed a National Union of Students pledge before the election to vote against any increase.