Universities in the United Kingdom (UK) face challenges similar to those in South Africa, particularly in securing sufficient government funding. They have therefore introduced some measures to address the declining state funding, according to Dr. Dajana Dzanovic, Head of Global Research and Innovation Policy for Universities UK (UUK).
Delivering her address online during the session of the 3rd Higher Education Conference on Higher Education Funding and Financial Sustainability, Dr Dzanovic (right) underlined the need to increase advocacy for government support to ensure financial stability. She noted that university funding in her country has significantly declined since 1997, resulting in a deficit of approximately £5.3 million (around R120 billion).
To address this challenge, UUK introduced an educational blueprint at the beginning of October, the primary objective of which is to establish financial stability. The blueprint is pushing for tuition fees to be adjusted in line with inflation while seeking to increase public funding through restored teaching grants. Currently there is an estimated funding shortfall of £3,000 (R69,660) per student, primarily due to the absence, in the past, of fee indexing– a practice of adjusting tuition fees over time in line with inflation or other economic indicators.
The blueprint also sets an ambitious throughput target, aiming to boost completion rates (at level 4 and above) of 25-year-olds from the current 49% to 70% by 2040. It also seeks to boost participation rates among disadvantaged 18 and 19-year-olds from 30.5% to 50%.
Historically, universities in the UK have relied on various income sources including government funding, private research funding, and student fees. Over time, there has been increasing dependence on international student fees to boost universities’ revenue, thus mitigating the decline in state funding.
She said unlike in South Africa, education in the UK is not free for disadvantaged students. The average cost of a degree is approximately £9,600 (around R220,000) per student, annually. UK universities therefore intentionally attract international students, who contribute significantly to their income stream. Dr Dzanovic noted that these students pay between £11,400 (R230,000) and £38,000 (R850,000) annually. This has led to public criticism, as international students are perceived to be occupying postgraduate positions that could otherwise be available to local students.
In another measure to address decreasing state funding, UUK is also calling for long-term reforms, such as streamlining teaching methods, concentrating research initiatives, and leveraging artificial intelligence to enhance efficiency.
In yet another initiative aimed at encouraging government funding, UUK has launched the “100 Faces” campaign. Developed in collaboration with private organisations, this campaign showcases the experiences of first-generation students and graduates. “The campaign amplifies their voices by exploring their backgrounds, current pursuits, and the transformative effects of attending university,” Dr Dzanovic stated. “These case studies, along with newly commissioned data, highlight the value of universities and the urgent need for additional maintenance funding from the government.”
To achieve these desired ends, UK universities are also proposing reinstating maintenance grants (funds intended to cover living costs of full time students, such as accommodation and living expenses) and increasing maintenance loans to align with inflation, and enhancing career support for graduates, Dr Dzanovic said. “The blueprint also suggests a more consistent approach to contextual admissions and the establishment of a tertiary education opportunity fund to support collaborative programmes,” she explained.
She emphasised the need to reduce universities’ reliance on international student fees to fund research. Recommendations include increasing quality-related funding in real terms, requiring businesses to fully cover the costs of industry-sponsored research, and lowering universities’ contribution to match-funded projects.
Ultimately, the blueprint also advocates for a new global strategy for universities that extends beyond merely recruiting students, focusing instead on enhancing the global reach, reputation, and impact of UK institutions.
“We have realised that we must stop working against one another and, instead, focus on collaborating by sharing ideas and resources,” Dr Dzanovic concluded.
UUK serves as the umbrella organisation for 144 universities across England, Northern Ireland, and Scotland.
Yolanda Lemmer is a contract writer for Universities South Africa.
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