UK universities must cut costs to survive, warns Augar

Unlock Editors Digest for free

FT editor Rula Khalaf picks his favourite stories from this weekly newsletter.

The author of a major recent report into the UK's education system for over-18s has warned that the UK's university sector will have to tighten its belt and accept the need for job cuts and restructuring if it is to justify calls for increased government funding.

Sir Philip Auger, who chaired the 2018 Auger Review, said while it was legitimate for a cash-strapped education sector to call for more support amid rising inflation, a tuition freeze and falling support for international students, continued fiscal discipline was also needed.

He told the Financial Times that universities, like all organisations, must operate within their means and be prepared to restructure if necessary.

He added that failing colleges may need bailouts or restructuring teams to work with existing management to reduce or streamline benefits provided to students.

Philip Augar estimates that around half of the UK's 140 universities are facing deficits. Daniel Leal/AFP via Getty Images

Oger said this ahead of the release of A-level and BTec results on Thursday, which are expected to see a slight drop in university applications, leaving some institutions struggling to fill places with domestic students who pay up to $9,250 a year to study.

The sector is facing increasing financial stress as the number of international students who typically pay $20,000 to $30,000 in tuition fees has dropped significantly this year.

suggestion

With figures dropping by up to 50%, many lower-ranked universities are struggling to attract domestic talent to make ends meet, with more than 50 already announcing course closures, staff cuts and voluntary layoff programs.

Auger estimates that around half of the UK's 140 universities are facing financial difficulties, with a handful more likely to breach their financial obligations and need a rescue.

While Oger acknowledged that high inflation and a decade-long tuition freeze were partly to blame, he said the decision to triple tuition from $3,000 to $9,000 in 2012 had led to some profligacy in the sector.

While most responded responsibly to the sudden surge and planned for a safe future, some overextended and borrowed as the era of low interest rates ended in the 2010s.

But while Education Secretary Bridget Phillipson has ruled out a bailout for struggling universities, Auger, a former investment banker, said it would be neither fair nor wise for the government to allow any individual institution to fail.

It's unfair to the students who earn their degrees from these institutions, and it's unwise for the towns and cities where they are located, because colleges are a vital economic driver for local economies.

So I think regulators and the Department of Education need to step in. That doesn’t have to mean huge bailouts, but it could mean encouraging mergers or bringing in turnaround teams to work with existing management to reduce or streamline student offerings, he added.

Education Secretary Bridget Phillipson rules out bailout for universities Jordan Pettit/PA

Phillipson also said the government would not increase tuition fees to £9,250 as demanded by the university lobby group Universities UK, and in a BBC interview in July the government said it had no plans to do so.

But Oger said he believed that in the medium term, more cash needed to be injected into the system to preserve the quality of UK higher education, preferably through increased government grants to universities. The alternative would be to increase tuition fees and maintenance loans.

He added that recent changes to the student loan repayment system would mean that the increase would cost the government relatively little, and with Labor in the majority, now is the time in the political cycle to do it.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos