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Education United Kingdom

Britain's Universities in Existential Crisis? (prospectmagazine.co.uk) 229

Britain's university sector, a key contributor to the country's economy and global standing, is facing an unprecedented crisis that threatens its very existence, according to an analysis by Glen O'Hara, a professor of modern and contemporary history at Oxford Brookes University. Despite collectively generating over $61.1 billion in annual income and $28 billion in export earnings, universities across the UK are grappling with declining funding, widespread cuts, and internal divisions. The sector's annual losses stand at $2.55 billion, with one in four universities in the red.

Job cuts have become a daily occurrence, with institutions such as Coventry, Goldsmith's, Kent, and Lincoln slashing staff numbers. The downsizing is primarily occurring through retirements and voluntary severance schemes, but the long-term outlook remains bleak. Experts cited in an analysis by Prospect magazine warn that without fundamental re-engineering and strategic direction, the sector risks a gradual decline, with some universities potentially facing bankruptcy. The government's focus on the "culture wars" has further divided the public from their local campuses, while the real crisis lies in the finance and organization of the sector.

The frozen tuition fees for home students, coupled with unpredictable inflation, have left universities struggling to cover costs. Attempts to offset losses by recruiting more students in cheaper-to-teach subjects and attracting international students have reached their limits, with the latter now in decline. As the next government grapples with this crisis, stopgap measures such as small funding injections, slight fee increases, and encouraging university mergers may provide temporary relief.
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Britain's Universities in Existential Crisis?

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  • Any 'donations' are tax-deductible.

    • Why have you written charities in scare quotes. It's not like they return dividends to the shareholders. They are not run for the profit of their owners.

    • by shanen ( 462549 )

      Mod parent "funny", but the sad flip side of the joke is that education has become the joke.

      Or maybe that was inevitable because of the paradox? Teaching is about new things which implies change but the real goal is to prevent change.

      • Teaching is about new things which implies change but the real goal is to prevent change.

        Whose real goal is to prevent change? What specific change is to be prevented? I sense that you may be saying something worth considering, but damned if I can put my finger on just what your point is.

  • by omnichad ( 1198475 ) on Wednesday June 19, 2024 @11:03AM (#64561121) Homepage

    A university education may help with your career but that's not the purpose of higher education. The problem here is that it has been fundamentally repurposed and is no longer the net benefit to society it once was. The funding cuts are the result, not the cause.

    • ??? Seriously? (Score:5, Insightful)

      by rsilvergun ( 571051 ) on Wednesday June 19, 2024 @11:14AM (#64561141)
      You are seriously going to argue that advanced education is not a net benefit to society? JFC I know /. is low hanging fruit but come on man.... is this the level we've sunk too? Nerds love education. It's the only thing we were good at in high school. Christ we've turned into a bunch of mean, bitter old coots.

      For the record no, higher education didn't become a net negative to society. It's a net negative to our ruling class, who would very much like you to be a useful idiot thank you very much (fun media literacy fact: I used the phrase "useful idiot" because I know the audience I'm trying to convince, conservatives, would react positively to it!).

      And before you pile in no, we're not giving out "useless" degrees. Degrees awarded by major stats are online and if anyone could be bothered to look into them you'd find 78% is business, law, STEM and the rest is a smattering of teachers and marketers.

      And finally, tell me you don't know how wages outpace inflation w/o telling me you don't know how wages outpace inflation. Advanced education creates the productivity that keeps inflation at bay. Without it we don't have all those spiffy new inventions like the chemicals we pump into the ground to let it grow enough food to feed everyone (while still letting kids go hungry because reasons).

      Be better slashdot. Be better. Son, I am disappoint.
      • Re:??? Seriously? (Score:5, Informative)

        by omnichad ( 1198475 ) on Wednesday June 19, 2024 @11:30AM (#64561187) Homepage

        Way to misread.

      • by Bruce66423 ( 1678196 ) on Wednesday June 19, 2024 @11:31AM (#64561193)
      • Re:??? Seriously? (Score:5, Informative)

        by Computershack ( 1143409 ) on Wednesday June 19, 2024 @11:47AM (#64561241)

        You are seriously going to argue that advanced education is not a net benefit to society? JFC I know /. is low hanging fruit but come on man.... is this the level we've sunk too?

        Here in the UK the percentage of school leavers going to university is just over 50%. It's led to a significant shortage of people doing apprenticeships in building trades, vehicle mechanics etc causing serious problems with things like house building in a nation that's suffering a serious shortage of homes. It's also meant lots of people leaving university with no graduate positions to go to and either facing unemployment or taking low and unskilled minimum wage work because their degrees didn't give them any skills or qualifications that are needed for the semi-skilled and skilled jobs that are screaming out for workers. It's at a point where I earn more driving 44 tonne semi-trucks in the UK than I can earn with a BEng.

        • nothing to do with they got rid of most apprenticeships becauswe they cost money to run and that hits the ceos bonuses/
        • Re: (Score:2, Informative)

          by thegarbz ( 1787294 )

          LOL talking about the mouse while ignoring the elephant in the room. It's okay man this is an American site, you can mention the B word without Farage deporting your arse. Maybe you'd have more skilled labourers if you didn't close the doors to a massive number of them with Brexit. Maybe you'd have more tech options for students if you didn't force other countries to close the doors to them with Brexit. Maybe it wasn't a good idea to transition the UK economy into a services economy, providing financial, bu

          • LOL. You shouldn't comment about things you know nothing about. Like most Americans what you know about the UK, and especially Brexit, would fit on the face of a postage stamp with room to spare. May I suggest you actually do some reading from some actual authoratitive sources from the UK and the EU rather than whatever bullshit you're getting from NBC and Faux News?
        • by HiThere ( 15173 )

          IIUC, in the 19th century British universities were mainly places where youth of the upper class could mingle and get to know each other. As academic learning became more economically significant, the incentives changed, but the universities barely did. Now...the folks going to the university are not just the upper classes, and academics is more important.

          The economics have changed. The incentives have changed. And the students rebel against harsh discipline (even by the upperclassmen).

          This implies that

          • Wasn't there a bit of push back when the Tories suggested more students should go into apprenticeships instead of universities? Ie, the optics seemed like the party favored by the elites was reminding the working class about working class.

            I find a contrast of "places where youth of the upper class" to America. American colleges and universities, in the early days, were mostly founded as seminaries. A bit later more colleges were intentionally for the purposes of agriculture or mining or teacher training.

        • In addition, with places for 50% of the population, there is less competition for valuable HE places,
          and a corresponding lack of pressure for students to take full advantage of those rare HE places.
          There are many aspects to how 'university for all' has devalued the degree.

        • by AmiMoJo ( 196126 )

          In addition to what rsilvergun said, the reason for declining apprenticeships and trades is because nobody wants to pay for it. Companies want to take on skilled people and put them to work immediately, not train them up.

          If the jobs and paid learning was there, they could take graduates and give them the practical skills they need.

          The same applies to graduate level jobs. Employers actually want people with specific skills in their business, not a general education in the subject, and are unwilling to train

          • In the US the days of training are dead because the days of long term employment loyalty are dead because pensions are dead so there's no incentive to stay in one place for life for employees anymore.

            Replacing pensions based on longevity with 401k (and some match money at many places) was the trigger for this series of bad events that got us to this point.

            Pensions are expensive to the bottom line so they're not coming back to the private sector. I see no other solution to get employees to stick around and

      • 78% is business, and a smattering of teachers and marketers, 2 of those three are the very definition of a useless degree ( hint it's not teaching)!
      • by Osgeld ( 1900440 )

        MBA's and Lawyers ... yea the planet needs more of those

      • by SendBot ( 29932 )

        My love of education is a major factor in my disgust for "higher education". My very first class in college dedicated the whole time to having us form groups to solve a remedial algebra problem, the kind where you thought students wouldn't be admitted without having mastered previously. Oh, and there's a high school student there to get college credit too.

        No, I went there for "higher" education and found out that it was really just an expensive tool for driving class division.

        Then later in the workforce, it

      • You are seriously going to argue that advanced education is not a net benefit to society?

        No. You are making a straw-man argument.

        Education is important to society, but not everyone needs to go to university.

        Let the university system downsize to where it serves those who benefit from it. Build OTHER EDUCTION OPTIONS for those who don't need a university education.

        The world needs doctors. It also needs engineers... and technicians... and plumbers... and builders... and artists... and mechanics... and shopkeepers... etc.

      • by hey! ( 33014 )

        I think the picture on higher education is complciated. There's no question that universities' mission is critical to the functioning of our society. They're not just ther to supply the economy with workers with technical skills like engineers and doctors. Universities are the only level of education in our society which tries to teach critical thinking and research skills like checking original sources.

        But just because the mission of universities is critical to the functioning of our society doesn't mean t

      • Christ we've turned into a bunch of mean, bitter old coots.

        Who is 'we'? You got a turd in your pocket?

        For the record no, higher education didn't become a net negative to society. It's a net negative to our ruling class, who would very much like you to be a useful idiot thank you very much (fun media literacy fact: I used the phrase "useful idiot" because I know the audience I'm trying to convince, conservatives, would react positively to it!).

        Who is the "ruling class" exactly? Every time I ask this nobody ever seems to give a concrete example. Though when you see the world in terms of Marxian classes, then I think the 'bitter old coot' description is quite apt.

        Regardless, as you probably haven't noticed, higher education has gotten a lot more expensive, and it's not for the purpose of advancing education, rather it's more for the purpose of making universities more closely resemble Animal House by addin

    • Kids, this person is a moron. Education is power. Don’t let anyone tell you differently. Republican politicians from Ivy League universities like Harvard telling people they don’t need an education?

    • The repurpose is often just funding. Ie, universities in US mostly get the profits from 1) football, or 2) research arms. A few elite universities do 3) exhorbitant tuition targeted at the wealthy. It does lead to a problem when universities become accustomed to a certain level of funding but then there's a revenue shortfall with the football or research :-) The actual education sometimes seems like it's a side job.

      Football seems pretty solid, anyone visiting a state in the southeast knows that it's pri

    • A university education may help with your career but that's not the purpose of higher education. The problem here is that it has been fundamentally repurposed and is no longer the net benefit to society it once was. The funding cuts are the result, not the cause.

      Thank you. I've been saying, literally for decades now, that higher 'education' is devolving into mere job training. Any endeavour which doesn't either serve short-term economic growth, or promise to provide huge economic gains in the long term, is viewed as frivolous.

      We seem to have forgotten that the economy is simply a means to several valuable ends. Instead it is viewed as an ultimate good - a desirable thing in its own right, independent of both the advantages it confers and the damage it causes. Educa

    • A university education may help with your career but that's not the purpose of higher education. The problem here is that it has been fundamentally repurposed and is no longer the net benefit to society it once was. The funding cuts are the result, not the cause.

      Speaking of purpose, a four-year degree isn’t usually a necessity for the job itself. Because of that, the cost of a university education should be on those who demand it. Employers.

      I will advise anyone to take no more than two years and then find an employer who will sponsor the rest. If they want you educated enough, they can pay for it. Otherwise OJT can and will suffice for the overwhelming majority of jobs.

      Sorry, but that’s the hard truth. And don’t point at scholarships. They

      • by omnichad ( 1198475 ) on Wednesday June 19, 2024 @01:48PM (#64561617) Homepage

        The purpose of a degree is not for a career. I do have a technical related degree from a liberal arts style school so I may be biased on that.

        And before you say anything, actually read what liberal arts means. It means a broad based education that touches on all areas of thought and knowledge. Not just an understanding of one technical area, but an understanding of the world as a whole and how your own work fits in that whole.

        This is why a lot of highly skilled programmers are terrible at understanding use cases. And UI design.

        A lack of higher education and proper critical thinking skills makes people very bad at detecting propaganda and partial truths. That's a societal and voting problem, not an employer problem.

        • by jabuzz ( 182671 )

          Degrees in most of the UK are three years. They are only four years in Scotland. It because Scotland does a one year higher rather than two year A level to finish your education.

        • actually read what liberal arts means. It means a broad based education that touches on all areas of thought and knowledge. Not just an understanding of one technical area, but an understanding of the world as a whole

          That might be the theory but it is oh so far from the practice. Just look at the current student protesters on campuses around North America. Do any of them sound like they have "an understanding of the world as a whole"? Note, I'm not asking whether or not you agree with them just whether they sould at all like the picture you are trying to paint of students who have a broad and balanced understanding of the whole world because to me they sound narrow minded, focused on one side alone with zero knowledge

          • Your own knee-jerk reaction about the protests doesn't even seem to be very nuanced. While here are certainly some anti-semitic people involving themselves in these protests, there are some very real concerns with Israel that are prompting these protests. Blindly supporting either side of this conflict would be a mistake.

            • Your own knee-jerk reaction about the protests doesn't even seem to be very nuanced.

              How is it a "knee-jerk reaction" when it is based on evidence and observation? By all means you can have a different opinion to me but you can hardly claim mine is a position without some reasoned thought behind it. I'm not in any way arguing that there are not valid concerns about the actions of both sides - indeed I never even said which side I favour only that the protestors were not balanced. When you hear people refusing to acknowledge the horrendous atrocities that started the whole conflict were tru

        • I would partially agree with this. A college degree shows a future employer that you can show up, complete a task, be dependable for at least a length of time, and hopefully have enough of a background in a field to learn what you need to do to fill a set of tasks an employer needs completed.
    • Over Education (Score:5, Interesting)

      by Roger W Moore ( 538166 ) on Wednesday June 19, 2024 @03:36PM (#64561871) Journal

      The problem here is that it has been fundamentally repurposed and is no longer the net benefit to society it once was.

      I'd state it more as the benefit has remained roughly the same but the costs of higher education have skyrocketed without any increase in net benefit. The problem started when the UK government masively increased the scope of higher education in a misguided attempt to increase the number of those getting university degrees from 25% of the population to 50%.

      This necessitated calling a lot of polytechnics universities despite nothing really changing academically and pumping up enrolment everywhere. The huge increase in cost was supposed to be paid for by the higher earnings of university graduates but of course what happened was that graduates just started earning less because the number of jobs did not magically increase despite the surging numbers of graduates. Instead, jobs that never used to require a degree suddenly started requiring one.

      The problem could be solved by increasing academic standards at schools and reducing the number of unviersity places back to the original ~25% level and use polytechnics and tradeschools to provide the qualifications that they used to. It would be much cheaper for both the government and students and people would get the education they need to succeed without wasting time and money on a degree that many largely do not need and in some cases really struggle to get. Perhaps a crisis like this might create the conditions to allow this to happen although it would take an intelligent, driven politician to effect useful meaningful change like this and you don't see any like that today...probably as a result of the damaged education system.

      • The problem could be solved by increasing academic standards at schools and reducing the number of unviersity places back to the original ~25% level

        At least in the US, the bar is too low in primary school - which is the main reason so many people would benefit from secondary education. It's amazing how little depth of understanding is taught in US high school. You might learn the sequence of events for historical wars and political division, for example, but never the motivations of the people on both sides and the historical context. And usually, it just paints a rosy picture of the "good guy" and glosses over any nuance. It's propaganda to breed

  • by oldgraybeard ( 2939809 ) on Wednesday June 19, 2024 @11:15AM (#64561143)
    They should be managing their money better? After all, they are supposed to be the sharpest tacks in the box.
    • If the whole sector is losing 3B a year, then Oxford and Cambridge could bail the sector out without stressing. They have 21B in assets

      However there are too many universities, too many admins and so the sector needs a clearout anyway. Especially Oxford Brookes. Let the 25% go bust and see what the effect on national income are . Nothing at a rough guess.

  • The UK funding model (Score:5, Interesting)

    by Bruce66423 ( 1678196 ) on Wednesday June 19, 2024 @11:25AM (#64561169)

    Introduced after 2010, the system loans undergraduates £9,500 or so as fees which are to be paid back by an extra charge on their income tax. The new system injected a lot of new money into the sector, with the result there was a building boom, but subsequently this figure for fees has not increased. With inflation it is now proving inadequate. Note that foreign students are charged far more - which has kept the sector alive despite the funding freeze.

    This has been in the context of a massive rise in the proportion of the age cohort going to university - something like 50%. This has had a number of effects. One has been to devalue having a degree - employers need to pay less of a premium to get someone with a degree. Another is that employers use having a degree as a way to eliminate applications - so it is often necessary to have a degree to get considered. This has led to an 'arms race' - with more and more staying on to do a Masters, a one year course in the UK, to impress prospective employers.

    The hard question is: how many graduates do we need. The data here points to a massive proportion of graduates in non-graduate roles by the standards of the government statistical office - of the order of 30%

    https://www.ons.gov.uk/employm... [ons.gov.uk]

    Yet despite this employers claim there is a skills shortage and demand the right to allow migrants to fill roles

    https://www.pwc.co.uk/press-ro... [pwc.co.uk]

    Personally I would like to see a 25% cut in undergraduate numbers overall, with STEM protected and areas such as performing arts subject to massive cuts; we churn out vast numbers of actors and musicians who never make a career in those fields. Unfortunately such suggestions are condemned as 'Philistine' by the fans of culture whose approval the establishment crave... Certainly there is no serious discussion of this mess in the current general election campaign.

    • by AmiMoJo ( 196126 )

      The problem is you can't select the ones who will go on to make really valuable contributions to the arts, or to any other sector, at age 18. You can make sure they are educated to the level needed to complete the course, but you can't know which of them will go on to greatness, which will make some profound discovery or advancement. The accuracy of your guesses will be low.

      So either you accept that your entire country is going to have less exceptional and important contributors, or you offer education to e

    • But here in America companies use degree requirements as a way of saying they can't find talent so they can demand more high skill work visas from their government.

      I know the UK has a similar program to the American H-1B visa program, which is our high skill visa program, and given the history of the UK economy mirroring all the bad decisions of the American economy I'm going to go out on the limb here and say that those companies aren't demanding degrees because there's a flood of college-educated Brits
      • by ghoul ( 157158 )
        Most work H1Bs do an Indian High School kid can do. Almost all Indian schools start coding classes in Primary school and almost all take school leaving exams with Computer Science as a subject. If companies were allowed to hire H1Bs without a degree there would be far more coders available. I would suggest instead of increasing H1Bs, US let foreign undergrads studying at US universities to take off campus coding jobs. The average Indian high schooler admitted to a US undergrad codes at a level he/she can ea
  • Good. About time. (Score:4, Insightful)

    by cliffjumper222 ( 229876 ) on Wednesday June 19, 2024 @11:51AM (#64561255)

    This phrase is a problem: "key contributor to the country's economy" - tertiary education shouldn't be a key contributor to the country's economy any more than secondary or primary education. The obsession with making money out of higher education is an infection that is rightly being excised. The key performance indicator for universities should be whether they are educating UK students well or not. It can be argued that foreign students bring diversity, so having some can make sense, but once universities become a product to be sold to the world, with billions of pounds of revenue, then you have to stop and ask how we got to this point. What I see is a much needed shake out.

    • Re:Good. About time. (Score:5, Interesting)

      by thegarbz ( 1787294 ) on Wednesday June 19, 2024 @12:52PM (#64561431)

      I think you may be parsing that incorrectly. I don't think they are talking about universities as a financial contributor to GDP. $61bn is fuck all, much less "key contributor". Rather the role universities play in the economy is generally huge and you attribute virtually all high tech, medicine, and engineering portions of the economy to it. Universities are absolutely key contributors to a country's economy.

    • by ghoul ( 157158 )
      Its called specialization and competitive advantage. A high GDP country is going to produce a more educated workforce. In fact an over educated workforce. So either they go abroad to work where the skills are in shortage or they become teachers to teach the skills to the rest of the world's students. The second model has the advantage that both the teacher and the student get to stay in their own countries (eventually once the student goes back). If UK did not have an education export business it would need
    • You don't see a benefit to having well-educated people in positions of power in other countries having a beneficial view of the UK as a benefit to the UK? It is _vastly_ cheaper to the UK to have foreign students come here, get educated, and go home, than it is to deal with the effects of not doing so.

      That 'obsession with making money' (they don't, they are charities) is actually massively subsidising the cost of educating British kids. There's a reason why all of the key people behind the current culture-w

  • needs an injection of unlimited student loans that the bank or the schools are not on the hook for!
    And extend them all the way to post PHD / med school.

  • my university (Bournemouth) and many like it spent all their money on buying land and buildings that hold 0 value to the students and the majority of which stand barely used and mothballed in order to boost their investment portfolios and show fancy numbers on the balance sheet whilst offering a substantially declining standard of education.
  • by Hercules Peanut ( 540188 ) on Wednesday June 19, 2024 @01:12PM (#64561497)
    I cannot speak to British universities but as a former employee of a couple of American universities, my first thought goes to administrative overhead. I was on the university budget committee of a State university and administrative overhead was well ~ 60% of its entire budget. That is to say that the cost of a professor, classroom, and supporting equipment comprised about 40% of the total expenditure. The other ~60% of the budget covered management, IT support, groundskeeping, etc.

    By weight of comparison, my experience in the private sector saw companies with 14-15% administrative overhead struggle to compete, and the stronger businesses ran at 4-5%.

    I wouldn't suggest that universities could or should operate at those lowest levels, but 60+% is unreasonable to the point of incompetence.

    Again, these are multiple US experiences, but I can't help but wonder if it is uniquely American.
    • by godrik ( 1287354 ) on Wednesday June 19, 2024 @02:00PM (#64561641)

      I am a faculty in an American university. And I see similar level of administrative overheads.

      From what I see, the reason why overhead are so high are linked to two core issues:

      1/ Universities in the US are administered as public non-profits while being operated as-if they were for profit entities. The universities need to compete with one another to hire faculty and to enroll students. Most of their budget are derived from student enrollment (either a tuition or as a state funding based on enrollment). So universities need to attract students. And it is very hard to attract student on abstract concept like quality of the instruction because it is so hard to define. But it is much easier to attract them based on how nice the dorms look, how pretty the quad is, or how many swimming pool there are. So lots of the universities budget have turned to making the campus attractive on non-educational aspects because it makes business sense.

      2/ Universities are forced to abide by state rules that don't make sense. Very often states make rules that are sensible in theory but not in practice. (When they are not explicitely written to make universities life harder by state cngress who want public institution to function poorly to justify privatising them.) Ensuring compliance with these rules requires administrative support to parse and interpret these complex often non-sensical rules. But because these administrators (the ones at the low level) are not well paid they do not give a shit about how to apply the rule, they apply a stupid rule and they go home. This often create layers of processes and accountability for something that really should not need it and would be cut in a company. I give you one particular example. When university personnel is on travel, it takes extra paper work to stay at an airbnb rather than staying at a hotel. Why? Because there is a state law that airbnb are not hotel, they are private housing rental and therefore they do not fall under the guidelines of hotels, and you have to prove that it is cheaper than 3 neighboring 3-star hotels. Note that you do not need to do that if you book a hotel, you could pick the most expensive hotel in the city and they would not care. But for airbnb, you have to. Now, there is a much simpler rule which would be "as long as it is under the federal perdiem rate for housing, I'm not going to care; if it is over, you'll need approval". The state has declined to change the rule with no explanation.

    • by jabuzz ( 182671 )

      The main immediate problem has been a collapse in the number of overseas students. It's twofold COVID and an anti-imigration stance.

      The longer term problem has been sending far to many children to University to do "useless" degrees. Noting that the current government has been refusing to increase the number of places in medicine for example in the same time period because apparently asset striping third world countries of their doctors, nurses and dentists is the way forward.

  • Waste of money (Score:5, Informative)

    by TJHook3r ( 4699685 ) on Wednesday June 19, 2024 @02:18PM (#64561673)
    OK, so clearly a further education is good for society, the problem is with the numbers. Encouraging 50% of school leavers to go to university hasn't lead to jumps in productivity or salaries - in fact the UK has shocking productivity and average wages that haven't kept pace with inflation. We already see a shortage of trades and practical skills - encouraging tens of thousands in debt for admin jobs is ridiculous, we need vocational training
  • Formerly known as Oxford Polytechnic. It is one of the many ‘new’ universities that came about in 1992 due to the Further and Higher Education Act. Until this time only a select group went to university and obtained a degree, some went to polytechnic colleges, some went to a vocational college of further education. The majority ended their education after 2 years of A levels and some simply left school after compulsory education ended at 16.

    The changes to education that started in the 90s, made

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