and Sector Overview – Steve Igoe

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

7 th Annual Teachers and careers advisers conference

Steve Igoe

Deputy Vice-Chancellor

16 th April 2014

Aim of Presentation

 Our purpose

 What we are, what we do

 National context

 What we need to do to survive and prosper edgehill.ac.uk

Our purpose

 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) edgehill.ac.uk

What we are, what we do

 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 edgehill.ac.uk

1998-2008: a Golden Decade

• By any measure, HE had a good time:

– Student growth

– Resource

– Research grants and opportunities

– Pay

– Profile

• Where next? Some thoughts:

edgehill.ac.uk

Strong growth in student numbers

Source: UUK edgehill.ac.uk

Education spending in real terms, England only: 1997 –98 to 2008–09 edgehill.ac.uk

Student demographics

Will start to rise from here edgehill.ac.uk

Budget Deficits

edgehill.ac.uk

The Government’s view (1)

• 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) edgehill.ac.uk

The Government’s view(2)

• 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) edgehill.ac.uk

Risks for the sector

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 edgehill.ac.uk

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) edgehill.ac.uk

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 edgehill.ac.uk

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” edgehill.ac.uk

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 edgehill.ac.uk

HEFCE – allocated activity

• New Entrants ( for profit and not for profit)

• MOOC’s

• HE in FE

• International and Government immigration policy edgehill.ac.uk

What does this mean for Edge Hill

• 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 edgehill.ac.uk

What does this mean for our staff?

• 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 edgehill.ac.uk

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 edgehill.ac.uk

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: 127 th

– 2013: 69 th

• We will survive; indeed continue to grow securely edgehill.ac.uk

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) edgehill.ac.uk

Questions?

edgehill.ac.uk

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