Changing Funding for UK Higher Education

The UK has embarked on a new funding "regime" for higher education. It is really a big change and the first year of this new regime is about to start. My students begin classes a week from Monday. Unless you are an insider or a very well informed observer the nature of the changes may be a bit opaque.

I will try to explain the change and follow it up with some perspective and opinions at the end..

What has changed?

1) Most important is that University income per student is going up. If Universities keep their student numbers constant relative to last year, they will have more income.

2) The government contribution per student is going down.

3) Students and their families will be paying for both the increased money into the system AND for the reduced government contribution.

4) The distribution of income and power within Universities will change.

Teaching income for home students across UK universities has been set centrally for some time. A funding body known as HEFCE provided per student funds to universities in 4 price groups (often called bands) A through D.

Band A: clinical subjects medicine, dentistry, and veterinary science.

Band B: laboratory science (e.g.: biology, chemistry, and Physics). 

Band C: studio and field work subjects. 

Band D: class room teaching.

The government is removing funding from C and D and reducing Bands A and B. In academic year (2010/11) the Maximum Fee to students was £3290. In the year which is now beginning  (2012/13), the maximum fee will be £9000. How does this change the landscape? 

Consider the somewhat complicated table below.

	Old Regime (2010/11)	New Regime (2012/13)	Difference	% Change
HEFCE Band A	14494	9804	-4690
Student Fee Cap	3290	9000	5710	63.4
Total	17784	18804	1020	5.4
HEFCE Band B	5407	1483	-3924
Student Fee Cap	3290	9000	5710	63.4
Total	8697	10483	1786	17.0
HEFCE Band C	3826	0	-3826
Student Fee Cap	3290	9000	5710	63.4
Total	7116	9000	1884	20.9
HEFCE Band D	2641	0	-2641
Student Fee Cap	3290	9000	5710	63.4
Total	5931	9000	3069	34.

Table Notes: The amounts from the government are in italic, the amounts from students are in normal text. The amount in bold is the total amount per student to a university charging full fees. Data from: http://www.hefce.ac.uk/pubs/hefce/2010/10_08/10_08.pdf and from http://www.hefce.ac.uk/pubs/hefce/2012/12_08/12_08_1123.pdf.  Note: relative to 2011/12 funding for old regime students the increase is larger (nearly 58% for Band D subjects).

Conclusions: The facts are clear: there are winners and losers in this table. Clinical subjects are at the mercy of inflation. An increase in resource is likely for laboratory science, field work and studio subjects. The former Band D has very good times ahead.

The motivation for the restructuring, as I understand it, was that the UK government was running a deficit and alternative arrangements were needed. However, a consequence is that there is a danger of repeating the experience of a few years back when science (particularly chemistry) departments were being shut down. Universities are now businesses of a sort and any company that sold  something for £5931  last year which this year sells for £9000 will go do more of that. That same business will be less enthusiastic about another product that it can only get 5.4% more for when inflation is running at a similar (or greater) rate.

I doubt it was the intent of the people creating the restructuring to undermine the clinical subjects, provide marginal support for science and engineering, and deliver a bonanza elsewhere; I just think they didn't know any better. As a scientist, I do not want to begrudge those in band C and D their new found riches, however, knowing Universities as I do, I worry about the new internal political regime where subjects areas fight it out over who is subsidising who because of a poorly thought out "regime" change..

Fine Print: The data shown are to the best of my understanding correct. If you see an error or incorrect data please bring this to my attention.

There have been additional funds made available to strategic and vulnerable subjects. Prior to the change in regime, this was around £1000/student in Chemistry and Physics. I do not know the status of these funds.

Why the gap between 2010/11 and 2012/13 when constructing the table. The 2011/12 year had a slightly different regime where funds were cut in some places. It seemed a little unfair to figure the increase relative to the one year decrease rather than to the situation before change started. See the two linked documents for details.