Two universities could go private

1 July 2011 Last updated at 12:22 GMT By Angela Harrison Education correspondent, BBC News There will be more competition for students in the changing system Two English universities are actively considering becoming private institutions, research suggests.

This would mean they would no longer get direct funding for research or teaching from the government.

The government has said it wants to open up the system to private providers of higher education.

The two universities, which have not been named, took part in a survey of vice chancellors by management consultants PA Consulting Group.

The authors of the survey say the institutions are not part of the Russell Group, which represents some of the UK's leading universities.

They contacted the vice chancellors of 165 universities and received responses from 65.

The authors say a "substantial minority" of institutions (just over 20 of those which responded) want to minimise their dependence on government-controlled activities.

'Top of the agenda'

Co-author Mike Boxall said there were probably more than two institutions which were actively looking at whether to go private.

"It's probably on the top of the agenda for a number of universities," he said.

"It's in the public domain that the LSE has actively considered it. There are probably more than [the two universities] for whom it will be an active thing.

"It's more about universities looking at widening their base and thinking about where to build their business.

"The publicly-regulated area is not offering a lot of growth for universities."

The Universities Minister David Willetts has talked of wanting to "open up the system" and the higher education White Paper, published earlier this week, sets out ways the government aims to do that.

Private institutions are being encouraged to compete with publicly-funded institutions to offer places.

In total, a quarter of all undergraduate university places will be up for grabs - unlike the present system where individual institutions are given funding for a set allocation of places.

New legislation will allow students to borrow the maximum annual undergraduate tuition fee of ?9,000 as long as the institution (publicly-funded or private) agrees to abide by regulations on fair access, quality and student complaints.

Fears of going bust

Changes to university funding mean teaching grants are being largely cut. Funding is expected to come more directly from students and their increased tuition fees.

Critics say this will mean departments - and even universities - closing, and ministers have said that they accept some institutions might fail.

Two universities which took part in the survey said they feared they might not exist in ten years' time.

The researchers at the PA Consulting Group said some universities were "still distinctly nervous", with 11 out of the 65 which took part in the survey saying they were concerned about shortages of investment funds and staff.

And about 20 of the universities said they expected the increase in tuition fees to lead to a "significant reduction in student demand".

Overall, Mr Boxall said that after a period of anger and upheaval over the changes in higher education, many universities were now "feeling quite bullish".

"After a lot of change in the cost structure, a number are feeling that they have come out the other side. A lot of institutions have a lot of cash and a big chunk of the sector is in good shape."

He said institutions were looking at various growth strategies, particularly further expansion into the international market.

View the original article here

Student visa curbs could cost £2.4bn

13 June 2011 Last updated at 16:47 GMT Visa cuts: Ministers say there are too many bogus students who are working in the UK Plans to cut the number of foreign students arriving in the UK could cost ?2.4bn more than they save, according to Home Office estimates.

The figures show the total costs could be ?3.5bn, but that would be partially offset by savings of ?1.1bn.

Officials estimate the measures will cut net migration by 230,000 by the end of the current parliament.

A Home Office spokesman said the measures are aimed at cutting immigration abuse by bogus students.

In the detailed figures on the plan's impact, Home Office officials estimate that the plans could cost the economy between ?2.2bn and ?4.8bn before taking into account savings. They say their best estimate of the net effect is ?2.4bn.

The main costs would be an estimated ?3.2bn loss from fewer students arriving and working in the UK either during or after their course, and a further loss of ?170m in fees to educational institutions.

Savings would include an estimated ?840m saving to public services, such as the NHS, by having to deal with fewer immigrants and a further ?150m at the UK Border Agency.

Restrictions on numbers

Earlier this year, ministers said they would cut the number of student visas through greater scrutiny of private colleges and courses and tougher English language tests. There will also be restrictions on when students and their dependents can work.

Continue reading the main story Education: ?407m Health: ?339m Crime: ?92m UKBA investigations: ?44m Public services total: ?840m (Source: Home Office; Savings estimated over four years)The proposals are expected to eventually reduce the number of students by 75,000 a year, down from roughly 250,000 a year at present.

Officials say the figures are based on a worst-case scenario and it would be reasonable to assume that British workers would take jobs not being held by foreign students.

'Sledgehammer'

Immigration Minister Damian Green said: "We are radically reforming the immigration system to tackle abuse and bring net migration down to sustainable levels.

"These changes to the student visa system will create a system where every student coming to the UK attends a legitimate course at a legitimate institution.

"They will work alongside our other reforms of the work route and changes being planned for the settlement and the family routes."

But Pam Tatlow, chief executive of the Million+ think tank that represents new universities, said "the system did not need the government to take a sledgehammer to it", although it was necessary to crack down on bogus universities.

She said university leaders had been warning "for months" about the likely cost of the visa changes.

"At a time of economic difficulty, we should not be introducing reforms that will damage the UK or stop us attracting the talent and skills we need to rebuild our economy," she said.

Shadow home office minister Shabana Mahmood said the government's immigration policy was in "disarray".

The government had "succeeded in damaging the reputation of UK universities" and was not providing the UK Borders Agency with sufficient resources, she said.

"At the heart of Tory immigration policy is chaos, confusion and a failure to protect both the UK border and the economy," she said.

Taking action'

On Monday the government also released figures showing it had revoked the licences of 33 education providers since May 2010, saying they had failed to comply with the government's requirements.

These included Rockfield College, Torquay, which the Home Office said had claimed to be offering University of London degrees but could produce no evidence to prove it - although Martin Beech, the former principle of the college, told the BBC the claims were incorrect and the licence had been granted just two weeks before it was revoked.

In another case, the licence was revoked from St Georges College UK Ltd, which the Home Office said was unable to account for a "high proportion" of students who had applied for visas to study there, and the Waterloo School of English, which it said was "operating without premises".

Neither organisation could be reached for comment at the time of publication.

Another 32 providers have had their licences suspended.

Mr Green said the figures showed "that this government will not hesitate in taking action against educational providers who do not abide by our rules".

The government has long been trying to clamp down on so-called bogus colleges set up to get around visa rules under the pretence of offering courses.

View the original article here

Elderly care costs 'could treble'

18 May 2011 Last updated at 10:49 GMT Some countries are struggling to recruit careworkers The cost of caring for the elderly could treble by 2050, according to a report by the Organisation for Economic Cooperation and Development.

The body, which represents the most industrialised nations, estimates that 10% of people in OECD countries will be more than 80 years old by 2050.

That is up from 4% in 2010 and less than 1% in 1950.

The OECD report said member countries are spending 1.5% of GDP on long term care.

It predicts spending as a share of economic output will double or even triple in the next forty years.

Overhaul

The report said countries must face up to the challenge of caring for ageing populations. It said a vision of long term care was needed and that "muddling through" was not an option.

Angel Gurria, OECD Secretary-General, said: "With costs rising fast, countries must get better value for money from their spending on long-term care.

"The piecemeal policies in place in many countries must be overhauled in order to boost productivity and support family carers who are the backbone of long-term care systems."

However, the report warns against relying too heavily on family members. It says low pay and hard working conditions result in a high turnover of care workers and that many countries were struggling to meet demand.

It says Germany, the Netherlands and Sweden had all increased retention by boosting pay and improving working conditions.

The OECD also said there was likely to be an increased need for migrant workers.

View the original article here