The funding task and finish group heard a diverse range of solutions from stakeholders.
It was recognised by many that there are problems of underfunding that need to be addressed promptly, and a need for stability so that students can feel confident in making their decision to enter university in the future.
Our recommendations
1. Retain and reform the income contingent loan system
The income contingent loan system should be retained, but reformed, to ensure future students have the same opportunities as those of the last decade and can access learning over their lifetimes. This will require:
- enhanced maintenance support for students in England, including reinstating maintenance grants for those who need them the most.
- growth and diversification in the capacity in the system so all qualified learners can enter, succeed and progress.
2. Reduce reliance on less stable sources of income
University teaching, research and innovation are vital to strengthen our knowledge-intensive and globally competitive economy. We must reduce a reliance on less stable sources of income and:
- reverse the long-term decline in funding for teaching, through increased government grants and index linking the fee cap from 2025 onwards in England
- increase the proportion of cost recovery on publicly-funded research grants in all parts of the UK
- address the decline in real-terms value of QR funding and DA equivalents
- scale up funding in support of university contribution to innovation
What is needed to make these recommendations a reality?
To achieve these recommendations, we need increased public investment alongside continuous improvements made by universities in quality, efficiency and value for money.
HEIs will make a unique contribution ... through cutting edge research and the supply of green skills. Both will be essential for the success of the transition to net zero ... more sustainable funding for the sector will be required to make it happen.
Danail Popov
Frontier Economics
If one change could be made, I would reintroduce maintenance grants as it shames our society that we expect the poorest students to emerge with bigger debts than others.
Nick Hillman
Higher Education Policy Institute (HEPI)
