Draft legislation making its way through Parliament would allow universities in England to charge different amounts of tuition fees, directly and solely based on the quality of teaching. The proposal came about through conversations at the Universities UK conference in Exeter. Vice chancellors from across the world convened there to discuss and argue for various proposed reforms.
The higher education regulator has indicated that differentiated tuition fees could serve as an incentive for institutions to enhance their teaching standards. Changes to fee structures in general are entirely at the government’s discretion, leaving several important questions still unclear. The current maximum annual tuition fee for undergraduate degrees at English and Welsh universities is £9,535. That sum may go up or down depending on regulatory actions taken in coming months.
Universities U.K.’s chief executive Vivienne Stern said there are complicating factors around this possible move. She stated, “It’s not unreasonable to apply [regulatory bite] below that threshold where an institution might require improvement.” Stern emphasized that the next few months would see extensive debate about which universities might qualify to charge higher fees.
With the pandemic turning the higher education industry on its head, universities prepare for fiscal woes, with over 40% projecting they will be running a deficit by early summer. This backdrop of great fiscal strain has created a greater sense of urgency to have conversations on what sustainable funding models look like. In her speech, Skills Minister Jacqui Smith revealed that the government will bring forward proposals for the funding of universities this autumn. This will be included in next year’s new higher education white paper.
Baroness Smith, speaking directly to vice chancellors, urged that a sustainable financial settlement for universities needs to be agreed. She remarked, “While an enormous amount of wisdom exists in higher education, that’s not all the wisdom in the world,” suggesting a need for broader perspectives in discussions about university funding and teaching quality.
The impending white paper is expected to address critical issues such as potential fee increases and the future cap on tuition fees. The future of the £9,535 cap is uncertain for some institutions. Subject to inflation or measures adjustment due to performance standards, changes can be made there.
