Morning, Friday, 22nd November 2024
Online
This conference will discuss the financial stability, resilience and sustainability of the UK HE sector.
With the recent Government announcement that tuition fees will rise in line with inflation to £9,535 from October next year for new and existing students, it will be an opportunity to discuss the impact of this increased income generation on the financial stability of HE institutions.
The conference also follows the publication of updated analysis from the Office for Students, Financial sustainability of higher education providers in England, outlining concerns surrounding university recruitment of both home and international students. The analysis anticipates a net income reduction of £3,445 by 2025-26, with a sector level deficit of -£1,636m, with up to 72% of providers being in deficit, and 40% having low liquidity. Stakeholders and delegates will assess the impact of these figures on long-term financial planning in HEIs and priorities for sector stability moving forward.
Bringing stakeholders together with policymakers, sessions will consider concerns that the increased funding received will be cancelled out by the increase in employer national insurance contributions announced in the recent Budget, and that some universities might not be able to receive the higher rate of tuition fee for existing students due to contractual differences.
Following the Government also announcing it will bring forward wider proposed reforms for the HE sector next year, and with calls from the sector for a more long-term solution to addressing financial challenges, delegates will discuss potential opportunities for HE funding changes in next year’s spending review and the future for tuition fees beyond 2025/26.
With the Secretary of State for Education emphasising that increased income generation from tuition fees next year should be used to improve university access and increase efficiencies within HE institutions, delegates will explore options and strategies for utilising extra income. We also expect discussion on the impact of fee increases on people applying to attend university, with universities expressing concern of rising fees acting as a deterrent to potential applicants, and the role of maintenance loan increases in supporting effected groups to be able to afford to attend university.
The conference also follows the recent announcement that the role of the Office for Students will be refocussed to prioritise the financial stability of the HE sector, alongside delivery of improved quality and outcomes for students. It will be an opportunity to examine key issues and the unprecedented challenges facing the sector in the context of the recently published Fit for the Future: Independent Review of the Office for Students, led by Sir David Behan. The report made recommendations for the OfS, Government and HE sector to consider, including on the development of sustainable funding models, transparency, support for at-risk institutions and enhanced financial oversight.
It also comes with the publication of University UK’s Blueprint for the future of the HE sector, which argued for a hybrid system to secure the immediate financial future of the sector and over the longer-term. It also calls for reviews of teaching models and university research, greater use of AI, new group structures based on the University of London model and increased collaboration to save costs.
We also expect discussion on implications for financial stability in the HE sector of findings in:
- the Higher Education Statistics Agency’s key financial indicators for 2022/2023 - showing a significant number of HEIs are now in deficit
- HEPI’s Undergraduate fees revisited report, which proposes a 10-point plan to strengthen the system, including introducing a 20-year repayment term on student loans and a minimum student loan repayment of £10 per week after graduation
Delegates will assess what is needed from regulators, government and the sector itself to effectively identify and respond to emerging financial risks, and develop regulatory frameworks that provide clarity on the conditions for intervention and support, as well as options for future funding settlements that work for universities, staff, students and the taxpayer.
Further sessions bring out discussion on next steps for UK HEI business models, and latest developments in wider initiatives aimed at restructuring and diversifying income streams to improve the sector’s resilience, including approaches to strategic business partnerships and the commercialisation of research.
We also expect discussion on further priorities for the sector as HEIs seek to address financial concerns, including:
- student numbers: strategies and best practice for sustaining enrolment levels - impact of increased tuition fees on student recruitment - role of increasing maintenance loans in line with inflation in supporting effected groups to afford university
- UK HE in a global market: maintaining the UK’s competitiveness as an international study destination whilst reducing reliance on international students
- regulation: options for working with government and the regulator to reduce regulatory burdens and develop a future funding settlement
- risk management: establishing an improved early warning system for identifying emerging challenges
- sector collaboration: proactive sharing of intelligence and data between institutions
- economic pressures: mitigating impacts of inflation and wider pressures on operating costs
- HE estates: latest thinking on improving cost-efficiency for estates maintenance and development, and investment to reduce carbon emissions
- future policy: options for long-term funding reform - opportunities for next year’s spending review - future for tuition fees beyond 2025/26
All delegates will be able to contribute to the output of the conference, which will be shared with parliamentary, ministerial, departmental and regulatory offices, and more widely. This includes the full proceedings and additional articles submitted by delegates. As well as key stakeholders, those due to attend include officials from DfE; DBT; Department for the Economy, NI; NAO; DSIT; IPO; GO-Science; Home Office; and the Welsh Government.
