Higher Education in Transition (Part 1: The Problem)

Introduction

The think tank Policy Exchange published its report on the UK Higher Education system on the 9^th June this year. The title may be a portent of things to come: Tarnished Towers – Fixing England’s Broken Higher Education System. The report recognises the unsustainable business model which prevails throughout the sector, provides an analysis and suggests a range of policies to resolve the situation (to be discussed in Part 2). It is appropriate to acknowledge that this research organisation is often referred to as a ‘right wing’ think tank. A realistic observation is that with the current Labour government it is unlikely this analysis or the solutions produced will be adopted. However with potentially two and a half years for these ideas to be discussed and gain momentum by the next General Election, there is ample space for the development and ‘mainstreaming’ of this view of Higher Education.

The rationale for the growth of Higher Education

The thinking supporting the expansion of Higher Education to in excess of 50% participation rates has three drivers.

Driver 1: Participation in Higher Education improves individual lives, careers and incomes.

Driver 2: The economy of a nation state benefits from large numbers of university educated individuals.

Driver 3: It is arguable that there are non-economic benefits which accrue both to individuals and society from an educated citizenry. An educated individual experiences an enhanced quality of life which is separate from any economic benefits derived from their skills and knowledge. Meanwhile the public sphere benefits because the facilitation of social mobility means decision making positions are achieved on the basis of merit rather than the ability to pay.

Consequence 1: Unfortunately as the supply of graduates increased the cachet associated with a university degree was diluted. “A third of graduates are not in graduate jobs” and “only 57% of graduates are in full time work within 15 months of graduation and the Millburn Review found that 13% of young NEETs have a degree or other higher education qualification”.[1]  In addition the average debt those graduates carry is in excess of £50,000.[2] The proposition that mass higher education benefits individuals appears to be open to question.

Consequence 2:  Unfortunately, and this may be counter intuitive but; “data from OECD countries shows a minimal correlation between the proportion of people going to higher education and either GDP or GDP growth.”[3]

Consequence 3: These articulated public and private benefits are genuine. However the legitimation consequences of participants in higher education not being able to obtain graduate level employment are significant and not commonly discussed. If an individual does all of things they were told to do: worked hard at school, passed examinations, gained a place at university, worked hard and passed more examinations – that person may have reasonable expectations that years of deferred gratification, may, should, will lead to a graduate job and entry to an elite. When this fails to happen, what is often referred to as the ‘social contract’ starts to breakdown.

Conclusion

The challenges facing the sector are irrefutable. The solutions, many are recommended in the Tarnished Towers report, constitute fertile ground for debate. The tide of history however does not look as if it will leave the current structure of Higher Education within the UK intact. The following passage is from the recent Policy Exchange report and offers a succinct overview of what might reasonably and honestly be referred to as a crisis. “Job losses, course closures and restructuring initiatives are spreading across the sector – while rampant grade inflation and falling standards are raising fundamental questions about the quality of a UK degree. With a typical graduate now needing to make £66,000 a year just to cover the interest on their student debt, increasing numbers are questioning whether university is really worth it. The latest British Social Attitudes Survey found that 34% believe a university education ‘just isn’t worth the time and money it usually takes’ – up from 14% in 2005 – while only 36% believe people who go to university end up being a lot better off financially, down from 50%.”[4]

[1] https://policyexchange.org.uk/wp-content/uploads/Tarnished-Towers_.pdf

[2] https://www.theguardian.com/education/2025/jun/20/students-in-england-graduate-average-debt-increase

[3] https://policyexchange.org.uk/wp-content/uploads/Tarnished-Towers_.pdf

[4] https://policyexchange.org.uk/wp-content/uploads/Tarnished-Towers_.pdf

Authors: Karen Stephenson, University Secretary, Birmingham City University and Katherine Brymer, Senior Teaching Fellow Project Management, University of Portsmouth