An Update on HE in the current economic climate and Teesside’s Plans for the Future

Key Developments

• • • The HE Bill postponed (indefinitely) Implications – lack of scrutiny by the parliamentary process of actions taken by government in relation to HE. Does this matter?

• • Government is able to introduce /achieve the majority of its objectives; the main policy affected is the proposed expanded regulatory role for Hefce. Does this matter? – Yes

• • Because private providers will not be subject to the same QA system/processes. Will not be subject to capped SNC, as long as do not exceed the £6k threshold.

• In 2012/13 the government has already introduced a series of changes which will challenge parts of the sector as well as provide opportunities; to include - changes to the funding regime - ‘core and margin’ redistribution of student numbers - ‘unlimited recruitment’ of AAB students - introduction of fee loans for part-time students

• • Impact of these changes has affected recruitment for 2012/13 with a national reduction of some 7.4% increasing to 9.9% for modern universities. The NE has a small % market share (4.4%) of national applications to HE and there has been a 6.2% drop in North East applicants at this stage of the cycle (15/01/12).

• • Some subject areas (physics, maths and engineering) saw relatively small overall reductions, with increases in applications from UK students.

Others (for example, creative arts and design, and mass communications) shared significant reductions both overall and from UK students.

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‘Core and Margin’ Reallocation of Numbers

Essentially all HEIs were subject to a 8% reduction in their SNC and could only bid for ASNs if they met financial (an average fee £7.5k), plus demand and quality criteria. This has meant a net loss of numbers for NE universities as only Northumbria and Teesside submitted successful bids NB If do not recruit to ASNs awarded taken off universities)

‘Core and Margin’ Reallocation of Numbers

• If this exercise is repeated in subsequent year it could destabilise individual universities in terms of sustainability. There is a general belief that it will run again in 2013/14, to allow further redistribution to FE Colleges and private providers.

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AAB Students

This provides opportunities across the sector but will increase competition for these students who are an ‘uncapped’ stream.

Could potentially impact adversely on the WP/social inclusion agenda and skews the ‘playing field’.

Suggestion going forward that this may be lowered to ABB in 2013/14 – essentially moving to ‘Browne report’ position over time; causing greater market segmentation.

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Changes in the funding regime

HEIs will be challenged via ‘cash-flows’ under the new system of fees following students. Income will flow from the SLC at 3 points of the academic year. October (25% total), February (25% total), May (50% total), where the total equates to enrolled student numbers. So institutional financial health is crucial for sustainability and success in the first 2-3 years. What might be the consequences of institutional failures for the student, institution/staff and local economy?

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Other requirements on universities from 2012

Introduction of Key Information Sets (KIS data) to enable students to compare courses, particularly in relation to employability and earnings. (blunt instrument - ‘apples and pears’) A ‘risk-based’ QA regime Access Agreements for part-time students to be lodged and agreed by OFFA prior to September start. 2012/13 – currently no guidance other than HEIs will need to undertake ‘family income’ assessments in relation to NSP eligibility – (difficult/and time consuming)

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Emergent issues - postgraduates

Little focus on postgraduate education to date, but government acknowledging problematic, particularly in view of stated aim.

Enhanced national effort to make the UK the “best place in the world” for University industry collaboration.

Emergent issues – international students

• • • Dissonance between BIS and the Home Office Reduction in the number of students able to enter to study in the UK; and reduction/abolition of right to work for a defined period post completion of studies. Making the UK unattractive, will have negative economic and cultural impact nationally, regionally and locally – not only for universities but for the surrounding communities.

Emergent issues – co-funding for employers

• This funding stream is being withdrawn and will have implications going forward for the up-skilling, or re-skilling of workforces; and ongoing ‘customised’ CPD to support business and economic developments and given the current economic climate.

Teesside’s Plans for the future

• • We intend to continue building on our many successes and remaining constant to our mission and values. Partnership working with our FE Colleges and employer organisations remains a high priority for the University.

• Our focus will remain on enhancing our students experience and ensuring that they obtain high quality degree outcomes and realise their full potential.

• To support our graduates into employment and in their careers via a variety of means; work placements graduate internships career advice and guidance enterprise and incubation opportunities

• To continue achieving excellence across the enterprise and identified niche research areas • Supporting the local and regional economies

• To continue raising our profile nationally and internationally for the outstanding quality of our work across multiple and complex agendas.

• To continue to grow our numbers as opportunities arise of both home and international students.

• To succeed as a University that we can all be proud of

Some examples of recent achievements

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Incubated 96 companies last year; 138 digital companies in 3 years 2 nd most ‘co-funded’ in sector (15% of all UK numbers in 2010) 4 of 6 outstanding Knowledge Transfer Partnerships in our region in 2011

Top participating UK University in i-Barometer for 3 years (2008-10) Very good National Student Survey results for 7 years running 2 nd top Modern University in Times Higher Education Student Experience Survey for 3 years (next published in a few weeks) Accredited as a Skillset Academy (only one in the region) ‘Putting the Customer First’ accreditation IIP Gold for whole University (only 2 nd in UK)

Thank you