Latest news with #NickHillman
Yahoo
07-05-2025
- Business
- Yahoo
Record number of universities in deficit
A record number of universities are in deficit as pressure grows on the Government to commit to bailouts for institutions that could go bust. Telegraph analysis of the financial accounts for 143 higher education providers in 2023-24 found that 61 chalked up deficits last year – about 43 per cent of the sector. It marks the highest figure on record and a significant jump since 2022-23, when 44 UK higher education institutions were in the red, according to Telegraph analysis. Politicians and experts urged the Government to spell out its plans to ease pressure on the sector amid fears that one or more universities could buckle in the coming months without further support. Nick Hillman, the director of the Higher Education Policy Institute (Hepi), said it was '100 per cent not sustainable' for ministers to continue to rule out rescue packages for any institutions that fail, as he warned that morale within the sector had reached its lowest point in decades. The Telegraph analysed the deficit relative to income at UK higher education institutions last year after removing adjustments to expected liabilities to the pension scheme, which performed well in 2023-24. This provided a better picture of how universities' day-to-day spending related to overall income. Five institutions were found to have recorded a deficit relative to income for the sixth year in a row, including Bishop Grosseteste University, Cranfield University, the Guildhall School of Music and Drama, Scotland's Rural College (SRUC) and the University of Reading. Bishop Grosseteste University, which specialises in teacher training, recorded a 19 per cent deficit relative to income last year, with the Lincoln institution spending £3 million more than it earned. Coventry University recorded the second-highest shortfall of UK higher education institutions in 2023-24, with a 16 per cent deficit relative to income. Mr Hillman said: 'It's not massively surprising, because we all know the way the world's been going, but it is interesting to get the hard numbers because what we've been relying on is projections. 'Multiple years in a row in a deficit – that to me is the crucial point… And it's already got worse since the time period covered by [the] data, because inflation has continued to eat away at tuition fees, and the National Insurance rise has come in. '[It's] 100 per cent not sustainable [for ministers to rule out a bailout]... Every government for decades has said that if a university goes bust, we don't bail them out, but it's nonsense.' Dr Hollie Chandler, the director of policy at the Russell Group, said: 'These figures reflect the situation that universities have been warning about for some time – the financial challenges are significant, and many institutions are being forced to make very difficult decisions to safeguard their futures. 'Sustainable funding' 'Whilst universities are doing what they can to mitigate the situation, these measures alone will not be enough without government action to create a sustainable funding landscape.' Universities have blamed current financial pressures on the eroding value of tuition fees over the past few years and a sudden drop in international students. Bridget Phillipson, the Education Secretary, announced last November that the Government would raise university tuition fees in line with inflation next year for the first time since 2017, with further funding reforms to be unveiled by this summer. But she has said universities should not expect taxpayer-funded rescue packages and instead told institutions to manage their budgets. Bishop Grosseteste University in Lincoln has 'implemented a programme of transformation to reduce operating costs' - Phil Crow/Alamy Leading university figures have warned, however, that the tuition fee rise alone does not go far enough, amid concerns that many universities are now teetering on the brink. It comes after the Scottish Funding Council (SFC) was forced to step in with a £22 million funding package for the University of Dundee in March as the Scottish institution struggles with continuing financial pressures. In a letter to Ms Phillipson sent on Tuesday, Helen Hayes, a Labour MP and chairman of the education select committee, warned that failure to address the worsening crisis across the sector would present a 'grave risk' to some universities. Ms Hayes, who represents a cross-party group of MPs, urged Ms Phillipson to unveil contingency plans 'in the event that one or more universities cease to be able to operate'. 'Serious challenges' 'The committee is clear from our evidence session that there are currently a number of very serious challenges facing the higher education sector which, if left unchecked, present a grave risk to the financial viability of some institutions and courses,' she said. Ms Hayes warned that university bankruptcies would also pose threats to 'the local economy in places where a university is an anchor institution and major employer, and ultimately to the international reputation and standing of the UK'. Vivienne Stern, the chief executive of Universities UK, told The Telegraph that 'the reality for most universities is that they have had to make serious cuts' to weather the storm. Telegraph analysis of the sector's latest financial accounts showed that universities laid off a record number of staff in 2023-24, with 10,223 redundancies across 108 of the country's largest institutions. In total, universities were forced to pay out £210 million in severance payments across the country – almost double the previous year. The University of Oxford laid off 656 staff last year, although many were part of Oxford University Press, costing the institution £5.3 million. The University of Nottingham paid out £13.8 million to 408 staff, while the University of Central Lancashire paid out £10.5 million to 264 staff – their largest round of dismissals in at least a decade. Mr Hillman warned that larger universities with healthy endowment funds would likely be shielded from the financial turmoil, while smaller, more niche institutions are expected to be the most vulnerable. He likened it to the impact of Labour's introduction of VAT on private school fees, which is unlikely to wreak havoc on schools like Eton and Winchester Colleges, while more small-scale institutions have warned it could send them over the edge. 'Universities hate it when they're compared to independent schools… but I agree the analogy between them is very, very close,' Mr Hillman said. The Hepi director also claimed there was growing discontent among university chiefs over Labour's approach to the sector, with recent policies echoing those of the previous Tory government. Rishi Sunak, the former prime minister, was roundly criticised after announcing a ban in 2023 on most foreign students being allowed to bring family members with them to the UK, which many have blamed for a dramatic drop in international student numbers. Sir Keir Starmer is now considering applying further restrictions on student visa applications from nationalities considered likely to overstay and claim asylum in the UK, The Times reported earlier this week. Mr Hillman told The Telegraph that despite hopes that a change in government 'would mean a new understanding in Whitehall towards universities, that's not how people currently feel'. 'People think that this Government seems to regard universities very similarly to the previous government. There's an even greater sense of demoralisation, because it feels like the flames are getting closer,' he said. 'Firing on all cylinders' Ms Stern told The Telegraph: 'Falling per-student funding, visa changes which have decreased international enrolments, and a longstanding failure of research grants to cover costs are creating huge pressures in all four nations of the UK. 'University leaders are gripping the problem… Our universities are something the UK can be genuinely proud of. They contribute over a quarter of a trillion pounds to the economy each year and are essential to the Government's growth ambitions and the UK's future economic success. We need them to be firing on all cylinders.' The Department for Education was approached for comment. Prof Andrew Gower, vice-chancellor of Bishop Grosseteste University, said: 'As seen across the sector, it is an increasingly challenging operating environment for universities. 'In response to these challenges, over the past three years, Bishop Grosseteste University implemented a programme of transformation to reduce operating costs whilst continuing to grow activity, maintain quality and deepen the impact of our teaching, research and knowledge exchange.' A spokesman for Coventry University said: 'Our deficit for the financial year 2023-24 was consistent with our size, our previous success in recruiting international students, and our strategic decision to reform our structures and practices. 'We didn't create the financial crisis in the higher education sector, but we saw the storm coming and our deficit is partly due to our decision to spend some of our substantial cash reserves to buy time to reshape and resize the group over two years, with three years of planned change happening in year one of that programme.' A spokesman for the University of Reading said: 'While we face many of the same financial challenges affecting many UK universities, we have in recent years made strategic decisions to draw on reserves rather than make short-term cuts, while also focusing on improving teaching. This has supported our key principle of environmental and financial sustainability.' A spokesman for SRUC said: 'Like much of the higher education sector in Scotland, SRUC has faced significant financial challenges in recent years and we are continuing to make good progress in addressing these. We have also recently made a number of strategic investments, including obtaining taught degree awarding powers and launching Scotland's first new vet school in 150 years.' Cranfield University and the Guildhall School of Music and Drama were approached for comment. The University of Oxford declined to comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
07-05-2025
- Business
- Telegraph
Record number of universities in deficit
A record number of universities are in deficit as pressure grows on the Government to commit to bailouts for institutions that could go bust. Telegraph analysis of the financial accounts for 143 higher education providers in 2023-24 found that 61 chalked up deficits last year – about 43 per cent of the sector. It marks the highest figure on record and a significant jump since 2022-23, when 44 UK higher education institutions were in the red, according to Telegraph analysis. Politicians and experts urged the Government to spell out its plans to ease pressure on the sector amid fears that one or more universities could buckle in the coming months without further support. Nick Hillman, the director of the Higher Education Policy Institute (Hepi), said it was '100 per cent not sustainable' for ministers to continue to rule out rescue packages for any institutions that fail, as he warned that morale within the sector had reached its lowest point in decades. The Telegraph analysed the deficit relative to income at UK higher education institutions last year after removing adjustments to expected liabilities to the pension scheme, which performed well in 2023-24. This provided a better picture of how universities' day-to-day spending related to overall income. Five institutions were found to have recorded a deficit relative to income for the sixth year in a row, including Bishop Grosseteste University, Cranfield University, the Guildhall School of Music and Drama, Scotland's Rural College (SRUC) and the University of Reading. Bishop Grosseteste University, which specialises in teacher training, recorded a 19 per cent deficit relative to income last year, with the Lincoln institution spending £3 million more than it earned. Coventry University recorded the second-highest shortfall of UK higher education institutions in 2023-24, with a 16 per cent deficit relative to income. Mr Hillman said: 'It's not massively surprising, because we all know the way the world's been going, but it is interesting to get the hard numbers because what we've been relying on is projections. 'Multiple years in a row in a deficit – that to me is the crucial point… And it's already got worse since the time period covered by [the] data, because inflation has continued to eat away at tuition fees, and the National Insurance rise has come in. '[It's] 100 per cent not sustainable [for ministers to rule out a bailout]... Every government for decades has said that if a university goes bust, we don't bail them out, but it's nonsense.' Dr Hollie Chandler, the director of policy at the Russell Group, said: 'These figures reflect the situation that universities have been warning about for some time – the financial challenges are significant, and many institutions are being forced to make very difficult decisions to safeguard their futures. 'Sustainable funding' 'Whilst universities are doing what they can to mitigate the situation, these measures alone will not be enough without government action to create a sustainable funding landscape.' Universities have blamed current financial pressures on the eroding value of tuition fees over the past few years and a sudden drop in international students. Bridget Phillipson, the Education Secretary, announced last November that the Government would raise university tuition fees in line with inflation next year for the first time since 2017, with further funding reforms to be unveiled by this summer. But she has said universities should not expect taxpayer-funded rescue packages and instead told institutions to manage their budgets. Leading university figures have warned, however, that the tuition fee rise alone does not go far enough, amid concerns that many universities are now teetering on the brink. It comes after the Scottish Funding Council (SFC) was forced to step in with a £22 million funding package for the University of Dundee in March as the Scottish institution struggles with continuing financial pressures. In a letter to Ms Phillipson sent on Tuesday, Helen Hayes, a Labour MP and chairman of the education select committee, warned that failure to address the worsening crisis across the sector would present a 'grave risk' to some universities. Ms Hayes, who represents a cross-party group of MPs, urged Ms Phillipson to unveil contingency plans 'in the event that one or more universities cease to be able to operate'. 'Serious challenges' 'The committee is clear from our evidence session that there are currently a number of very serious challenges facing the higher education sector which, if left unchecked, present a grave risk to the financial viability of some institutions and courses,' she said. Ms Hayes warned that university bankruptcies would also pose threats to 'the local economy in places where a university is an anchor institution and major employer, and ultimately to the international reputation and standing of the UK'. Vivienne Stern, the chief executive of Universities UK, told The Telegraph that 'the reality for most universities is that they have had to make serious cuts' to weather the storm. Telegraph analysis of the sector's latest financial accounts showed that universities laid off a record number of staff in 2023-24, with 10,223 redundancies across 108 of the country's largest institutions. In total, universities were forced to pay out £210 million in severance payments across the country – almost double the previous year. The University of Oxford laid off 656 staff last year, although many were part of Oxford University Press, costing the institution £5.3 million. The University of Nottingham paid out £13.8 million to 408 staff, while the University of Central Lancashire paid out £10.5 million to 264 staff – their largest round of dismissals in at least a decade. Mr Hillman warned that larger universities with healthy endowment funds would likely be shielded from the financial turmoil, while smaller, more niche institutions are expected to be the most vulnerable. He likened it to the impact of Labour's introduction of VAT on private school fees, which is unlikely to wreak havoc on schools like Eton and Winchester Colleges, while more small-scale institutions have warned it could send them over the edge. 'Universities hate it when they're compared to independent schools… but I agree the analogy between them is very, very close,' Mr Hillman said. The Hepi director also claimed there was growing discontent among university chiefs over Labour's approach to the sector, with recent policies echoing those of the previous Tory government. Rishi Sunak, the former prime minister, was roundly criticised after announcing a ban in 2023 on most foreign students being allowed to bring family members with them to the UK, which many have blamed for a dramatic drop in international student numbers. Sir Keir Starmer is now considering applying further restrictions on student visa applications from nationalities considered likely to overstay and claim asylum in the UK, The Times reported earlier this week. Mr Hillman told The Telegraph that despite hopes that a change in government 'would mean a new understanding in Whitehall towards universities, that's not how people currently feel'. 'People think that this Government seems to regard universities very similarly to the previous government. There's an even greater sense of demoralisation, because it feels like the flames are getting closer,' he said. 'Firing on all cylinders' Ms Stern told The Telegraph: 'Falling per-student funding, visa changes which have decreased international enrolments, and a longstanding failure of research grants to cover costs are creating huge pressures in all four nations of the UK. 'University leaders are gripping the problem… Our universities are something the UK can be genuinely proud of. They contribute over a quarter of a trillion pounds to the economy each year and are essential to the Government's growth ambitions and the UK's future economic success. We need them to be firing on all cylinders.' The Department for Education was approached for comment. Prof Andrew Gower, vice-chancellor of Bishop Grosseteste University, said: 'As seen across the sector, it is an increasingly challenging operating environment for universities. 'In response to these challenges, over the past three years, Bishop Grosseteste University implemented a programme of transformation to reduce operating costs whilst continuing to grow activity, maintain quality and deepen the impact of our teaching, research and knowledge exchange.' A spokesman for Coventry University said: 'Our deficit for the financial year 2023-24 was consistent with our size, our previous success in recruiting international students, and our strategic decision to reform our structures and practices. 'We didn't create the financial crisis in the higher education sector, but we saw the storm coming and our deficit is partly due to our decision to spend some of our substantial cash reserves to buy time to reshape and resize the group over two years, with three years of planned change happening in year one of that programme.' A spokesman for the University of Reading said: 'While we face many of the same financial challenges affecting many UK universities, we have in recent years made strategic decisions to draw on reserves rather than make short-term cuts, while also focusing on improving teaching. This has supported our key principle of environmental and financial sustainability.' A spokesman for SRUC said: 'Like much of the higher education sector in Scotland, SRUC has faced significant financial challenges in recent years and we are continuing to make good progress in addressing these. We have also recently made a number of strategic investments, including obtaining taught degree awarding powers and launching Scotland's first new vet school in 150 years.'
Yahoo
05-03-2025
- Business
- Yahoo
Gen Z shun ‘Mickey Mouse' degrees to boost career chances
Gen Z students are shunning 'Mickey Mouse' degrees in order to boost their career chances. Telegraph analysis of Ucas and Department for Education data reveals applicants to British universities are opting increasingly for courses such as science, technology, engineering and mathematics (Stem), and leaving behind degrees such as creative arts and design. The latest figures relate to students starting their undergraduate degrees in September 2025, when tuition fees and maintenance loans will increase for the first time in eight years. Because this means students could be saddled with higher debts, it has prompted many to turn to courses that deliver higher-paid jobs after graduation. Over the past five years, subjects that pay on average more than £37,000 10 years after graduation experienced a more than 20 per cent increase in applications. One of the biggest surges was in applications for courses in engineering and technology, which increased by 38.69 per cent compared to 2020. The average salary 10 years after graduation is £46,340. Applications for language courses declined by 13.06 per cent while courses in creative arts and design increased by only 5.57 per cent. Ten years after graduating, a student with this type of degree might earn £36,422 or £24,300 respectively. Nick Hillman, the director of the Higher Education Policy Institute think tank, said there was growing debate over the value of some degrees, and rising cost pressures for university students. 'More people from poorer homes are going to university, and they sometimes think about the labour market payoffs more than a middle-class person studying history of art, say,' he told The Telegraph. 'There has also been recent public debate and conversation about whether it is worth going to university any more, which tends to concentrate minds. 'Then there's also the higher fees and loans which weigh on some people's shoulders more than others, despite the generous-ish repayment terms.' The Government announced in November that it would raise tuition fees in line with inflation from September 2025, following warnings that universities were currently making a loss of around £2,500 for each domestic student. It means the annual price of a degree will increase from the current £9,250 to £9,535 from September – the first uplift since 2017. Bridget Phillipson, the Education Secretary, said pushing up fees was necessary to 'restore stability to higher education'. It followed comments made by Peter Kyle, the Science Secretary, last September that Labour would end the 'war on universities' unleashed by the previous Conservative government and usher in a more allied approach to the higher education sector. During his time as prime minister, Rishi Sunak announced plans to crack down on what he labelled 'Mickey Mouse degrees', although the policy was never enacted. His plans, unveiled amid claims that some university courses were 'ripping young people off', involved freezing recruitment for degrees deemed to be failing in a number of metrics. Mr Hillman suggested the proposed policy had accelerated a debate around 'the returns of higher education', with parents increasingly sitting their children down to discuss their options beyond school. 'One thing that's happened, of course, is parents are subsidising their children's higher education to a much bigger degree than in the past, because maintenance support has been held down, and rents have been going up as well,' he said. Ministers have so far defied calls to reinstate maintenance grants, a form of means-tested support scrapped by David Cameron in 2016 that could cost the Treasury billions each year to revive. Mr Hillman also noted that the rise in applications for science-related degrees may also be linked to greater numbers of women pursuing careers in the field. 'There are far more women at university than there used to be, and women are more likely than they used to be to study some Stem disciplines. Things like computer science are still very, very, very heavily dominated by men, for example,' he said. 'But there are other Stem disciplines where women have been growing in numbers. Years ago, veterinary science – that was a male-dominated profession, now it's a female-dominated profession.' Telegraph analysis of Ucas figures also shows that despite women earning lower salaries in Stem fields compared to men, they are showing a growing interest in these disciplines, outpacing men in application rates for key courses. There has been a 56.92 per cent increase in applications from women for engineering and technology courses compared to 29.82 per cent for men in the last five years. Ten years after graduating, women in these fields can expect to earn an average salary of £39,462, while their male counterparts make £47,150. In medicine and dentistry, female applicants can expect an annual salary of £48,850 a decade after graduation. Interest in this field has grown, with applications rising nearly 20 per cent since 2020. For men, the expected salary in medicine and dentistry is notably higher at £69,500, yet their application growth has been more modest at 13.6 per cent. In order to study Stem at university, science A-levels are needed. According to Stem Learning UK, science education progression has grown significantly. Currently, 96 per cent of students are taking two GCSEs in science, up from just 63 per cent in 2010. A-level science entries have also increased by 30 per cent, leading to a greater uptake of Stem degrees. Dr Rhys Morgan, director of education and skills at the Royal Academy of Engineering, told The Telegraph: 'We are probably seeing rational decisions by young people to consider careers that provide high earning potential. 'We also may be seeing a response to the expected impact of technology and AI on career decision making. But we shouldn't discount the fact that for well over a decade many thousands of organisations have been diligently working in schools across the UK to promote careers in engineering.' The typical student currently leaves university £45,000 in debt, according to the Student Loans Company. The tuition increase from September will see that debt rise. But a Stem degree can lead to salaries rising beyond the UK median wage within a few years of graduation, while graduates in creative arts and design will barely exceed £25,000 a decade later. Both men and women are shunning these types of degrees. Over the past five years, there were 15.02 per cent fewer applications for language degrees amongst women and 20.15 per cent fewer amongst men. In that same period in creative arts and design subjects. Women's applications increased by a meagre 3.92 per cent while men's applications declined by 4.47 per cent. Many universities have begun slashing arts and humanities degrees as part of cost-cutting measures as the sector grapples with financial difficulties. Cardiff University said in January it would launch a consultation on proposals to axe 400 full-time academic jobs, slash key courses and merge faculties as it fights to remain 'viable'. In total, more than half of all UK universities are currently making redundancies or cutting courses, according to the University and College Union's rolling list of cuts. It has stoked concerns this could deal a major blow to the UK's cultural resources. The British Academy, the main national body for humanities and arts, wrote to Rachel Reeves last month warning that the 'range of cutbacks we are seeing across universities is leading to a severe loss in UK capability'. A Department for Education spokesman said: 'This Government has taken tough decisions as we seek to fix the foundations of higher education to deliver change for students. 'Students should be certain that the extra money they invest in their higher education will be worth it, and the teaching and experience they receive will help them follow their passions and expand their horizons. 'This Government remains committed to restoring universities as engines of opportunity, aspiration and growth.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
05-03-2025
- Business
- Telegraph
Gen Z shun ‘Mickey Mouse' degrees to boost career chances
Gen Z students are shunning 'Mickey Mouse' degrees in order to boost their career chances. Telegraph analysis of Ucas and Department for Education data reveals applicants to British universities are opting increasingly for courses such as science, technology, engineering and mathematics (Stem), and leaving behind degrees such as creative arts and design. The latest figures relate to students starting their undergraduate degrees in September 2025, when tuition fees and maintenance loans will increase for the first time in eight years. Because this means students could be saddled with higher debts, it has prompted many to turn to courses that deliver higher-paid jobs after graduation. Over the past five years, subjects that pay on average more than £37,000 10 years after graduation experienced a more than 20 per cent increase in applications. One of the biggest surges was in applications for courses in engineering and technology, which increased by 38.69 per cent compared to 2020. The average salary 10 years after graduation is £46,340. Applications for language courses declined by 13.06 per cent while courses in creative arts and design increased by only 5.57 per cent. Ten years after graduating, a student with this type of degree might earn £36,422 or £24,300 respectively. Nick Hillman, the director of the Higher Education Policy Institute think tank, said there was growing debate over the value of some degrees, and rising cost pressures for university students. 'More people from poorer homes are going to university, and they sometimes think about the labour market payoffs more than a middle-class person studying history of art, say,' he told The Telegraph. 'There has also been recent public debate and conversation about whether it is worth going to university any more, which tends to concentrate minds. 'Then there's also the higher fees and loans which weigh on some people's shoulders more than others, despite the generous-ish repayment terms.' The Government announced in November that it would raise tuition fees in line with inflation from September 2025, following warnings that universities were currently making a loss of around £2,500 for each domestic student. It means the annual price of a degree will increase from the current £9,250 to £9,535 from September – the first uplift since 2017. Bridget Phillipson, the Education Secretary, said pushing up fees was necessary to 'restore stability to higher education'. It followed comments made by Peter Kyle, the Science Secretary, last September that Labour would end the 'war on universities' unleashed by the previous Conservative government, and usher in a more allied approach to the higher education sector. During his time as prime minister, Rishi Sunak announced plans to crack down on what he labelled 'Mickey Mouse degrees', although the policy was never enacted. His plans, unveiled amid claims that some university courses were 'ripping young people off', involved freezing recruitment for degrees deemed to be failing in a number of metrics. Mr Hillman suggested the proposed policy had accelerated a debate around 'the returns of higher education', with parents increasingly sitting their children down to discuss their options beyond school. 'One thing that's happened, of course, is parents are subsidising their children's higher education to a much bigger degree than in the past, because maintenance support has been held down, and rents have been going up as well,' he said. Ministers have so far defied calls to reinstate maintenance grants, a form of means-tested support scrapped by David Cameron in 2016 that could cost the Treasury billions each year to revive. Mr Hillman also noted that the rise in applications for science-related degrees may also be linked to greater numbers of women pursuing careers in the field. 'There are far more women at university than there used to be, and women are more likely than they used to be to study some Stem disciplines. Things like computer science are still very, very, very heavily dominated by men, for example,' he said. 'But there are other Stem disciplines where women have been growing in numbers. Years ago, veterinary science – that was a male-dominated profession, now it's a female-dominated profession.' Telegraph analysis of Ucas figures also shows that despite women earning lower salaries in Stem fields compared to men, they are showing a growing interest in these disciplines, outpacing men in application rates for key courses. There has been a 56.92 per cent increase in applications from women for engineering and technology courses compared to 29.82 per cent for men in the last five years. Ten years after graduating, women in these fields can expect to earn an average salary of £39,462, while their male counterparts make £47,150. In medicine and dentistry, female applicants can expect an annual salary of £48,850 a decade after graduation. Interest in this field has grown, with applications rising nearly 20 per cent since 2020. For men, the expected salary in medicine and dentistry is notably higher at £69,500, yet their application growth has been more modest at 13.6 per cent. In order to study Stem at university, science A-levels are needed. According to Stem Learning UK, science education progression has grown significantly. Currently, 96 per cent of students are taking two GCSEs in science, up from just 63 per cent in 2010. A-level science entries have also increased by 30 per cent, leading to a greater uptake of Stem degrees. Dr Rhys Morgan, director of education and skills at the Royal Academy of Engineering, told The Telegraph: 'We are probably seeing rational decisions by young people to consider careers that provide high earning potential. 'We also may be seeing a response to the expected impact of technology and AI on career decision making. But we shouldn't discount the fact that for well over a decade many thousands of organisations have been diligently working in schools across the UK to promote careers in engineering.' The typical student currently leaves university £45,000 in debt, according to the Student Loans Company. The tuition increase from September will see that debt rise. But a Stem degree can lead to salaries rising beyond the UK median wage within a few years of graduation, while graduates in creative arts and design will barely exceed £25,000 a decade later. Both men and women are shunning these types of degrees. Over the past five years, there were 15.02 per cent fewer applications for language degrees amongst women and 20.15 per cent fewer amongst men. In that same period in creative arts and design subjects. Women's applications increased by a meagre 3.92 per cent while men's applications declined by 4.47 per cent. Universities slash degrees to cut costs Many universities have begun slashing arts and humanities degrees as part of cost-cutting measures as the sector grapples with financial difficulties. Cardiff University said in January it would launch a consultation on proposals to axe 400 full-time academic jobs, slash key courses and merge faculties as it fights to remain 'viable'. In total, more than half of all UK universities are currently making redundancies or cutting courses, according to the University and College Union's rolling list of cuts. It has stoked concerns this could deal a major blow to the UK's cultural resources. The British Academy, the main national body for humanities and arts, wrote to Rachel Reeves last month warning that the 'range of cutbacks we are seeing across universities is leading to a severe loss in UK capability'. A Department for Education spokesman said: 'This Government has taken tough decisions as we seek to fix the foundations of higher education to deliver change for students. 'Students should be certain that the extra money they invest in their higher education will be worth it, and the teaching and experience they receive will help them follow their passions and expand their horizons. 'This Government remains committed to restoring universities as engines of opportunity, aspiration and growth.'
Yahoo
26-02-2025
- Business
- Yahoo
Graduate owed nearly £50,000 in student loan overpayments, figures show
At least 10 graduates are owed more than £15,000 after overpaying their student loans – with one owed nearly £50,000 by the Student Loans Company. Some former students in England overpaid on their loans more than five years ago and they still have not claimed their refunds, according to Student Loans Company (SLC) data. The figures, obtained by Research Professional News, show that one individual overpaid their student loan by more than £48,840, and a further three people overpaid by more than £20,000. The data, which was obtained under the Freedom of Information Act, shows none have received refunds for the five-figure sums. The SLC said it has 'repeatedly' contacted the high-earning individuals owed money but they have either not responded to their communications or they have opted not to request a refund at this time. It added the average amount owed to graduates who had overpaid in the 2022-23 financial year was £406. Historically, the SLC received student loan repayment information from HM Revenue and Customs (HMRC) once a year – which meant some people continued to repay their loans after their full balance had been settled. But since April 2019, the HMRC has been sharing repayment information with the SLC on a weekly basis. Nick Hillman, director of the Higher Education Policy Institute (Hepi) think tank, called the latest figures 'genuinely shocking'. He told Research Professional News: 'In most cases, people repay their student loans through the tax system via their employers, so these people should not generally be that hard for the authorities to find. 'If you pay your tax late, you get a fine but when it comes to official bodies giving money back to people, the processes are clearly not so good. 'There will always be large numbers of people who overpay a little on their loans because of the way the student loan system is based on whole tax years but no one should routinely be paying back for more than a few months longer than they should and the refunds afterwards should always be speedy. 'These new numbers should serve as a reminder to everyone to check their student loan repayments just in case they are in line for a windfall.' A SLC spokesperson said: 'The exceptional credit balances are the result of payments received from high-earning individual customers. 'In most cases, when a customer fully repays and goes into a credit balance, we automatically refund up to the value of £5,000, where they have kept their details up to date (in accordance with the T&Cs) and they can be validated. 'In all other circumstances, we use a range of communication methods to contact customers and arrange their refunds. 'We are reliant on customers responding to us and engaging with us to receive their refund. 'SLC has repeatedly contacted these high-earning customers using their account information, however, to date they have not responded to our communications or opted not to request a refund at this time. 'Over-repayment is entirely avoidable, and customers can opt to join SLC's direct debit scheme in the final stages of repayment. 'We also strongly encourage customers to keep their contact and bank details up to date in their online account to ensure they don't miss any refund communication. 'Customers can also log in to their online account to check if they are due a refund.' In 2019, Research Professional News published data on the value of overpayments that had not been refunded, which found more than half a million former students had overpaid on their loans. Over a nine-year period, the figures showed that more than £28 million in student loan overpayments had been unclaimed by graduates.
