Archive for the Finance Category

BIS Budget Horrors

Posted in Finance, Politics, Science Politics on November 25, 2013 by telescoper

Just back from my travels so I only have time for a brief post today, but it’s about something potentially very important. It seems that there are big problems with the budget for the Department of Business, Innovation and Skills which includes the budget for universities in England and also the Research Councils under the umbrella of RCUK. The government has lost control over the number of students recruited into universities – particularly privately run colleges – with the result that it faces a massive £1.4 billion recurrent overspend. A leaked memorandum suggests making immediate £350 million cuts into funding for the poorest students, which is bad enough, but nowhere near enough. It seems the rest of the shortfall will have to be tackled by big cuts in the previously “ring-fenced” science budget. Such a move would run counter to numerous pledges made by the Minister David Willetts and would be devastating for the already underfunded science budget. There is already talk of the Science and Technology Facilities Council having to close one of its major research facilities.

I don’t like to say I told you so, but I have had suspicions for a long time that the government was planning to cut the amount of QR research funding allocated via the 2014 Research Excellence Framework to which submissions are due at the end of this week. Now I think it is virtually inevitable that all the years of preparation for this exercise across the country will earn universities virtually nothing. The total amount allocated via the QR mechanism is currently £1.6 billion – easily enough to cover the gaping hole in the budget caused by Whitehall incompetence. Slashing this budget will hit university science departments particularly hard.

Science has struggled along during the tenure of this government with a flat cash settlement, equivalent to a 10% real terms decline. That’s by no means a good result, but substantially better than other areas of public spending. Now it looks like austerity is really going to bite us very hard indeed.

I’m very worried for students and for science. But you can bet your bottom dollar that the people responsible for creating this fiasco in the first place won’t be in fear of losing their jobs. It may be that “we’re all in it together”, but some of us are in it a lot deeper than others.

Widening Participation – Outreach versus Bursaries

Posted in Biographical, Education, Finance with tags , , , , , on September 5, 2013 by telescoper

This morning I came across a University of Sussex News Item which explains that Sussex has made the shortlist, published today (Thursday 5 September), for Widening Participation or Outreach Initiative of the Year in the Times Higher Education Awards 2013.  This piece reminded me of a discussion I had a while ago about the whole approach to widening participation in University education, an issue made all the more serious by the introduction of £9K a year tuition fees. In particular

The University has increased spending on widening participation activities to £8.1 million a year, with over half of this spent on the innovative First Generation Scholars scheme, which supports students who are from low-income backgrounds or who are the first in their family to go to university.

Before commenting on this in any detail I should put my cards on the table. When I went to University in 1982 I was the first in my family ever to go to university. I’m also, at least as far as my immediate family goes, the last. However, in those days there was no need for a First Generation Scholars scheme: there were no tuition fees and, because I don’t come from a wealthy background, I qualified for a full maintenance grant. Life (in Cambridge) as an undergraduate student was fairly comfortable.

Times have changed a lot. Many more people go to university nowadays, but the price is that support for those who don’t have access to family funds is now spread very thinly.  There are no full maintenance grants, and the fees are very high. Looking back, though, I don’t think it would have been the tuition fees that might have deterred me from going to university. After all, they don’t have to be paid back until after graduation, and when one’s income exceeds a certain level. What would have made a difference would have been the withdrawal of maintenance. Without the grant, I simply wouldn’t have been able to study without getting a job. Apart from the amount of work involved in doing my degree, the recession of the early 1980s meant that jobs were very hard to come by.

To get back to the news item I mentioned earlier, I have always thought there is a tricky calculation to be made when it comes to designing programmes intended to encourage students from as wide a range of backgrounds as possible to come to university, whether that be to do with socio-economic considerations, gender, ethnicity, age or anything else. The question is whether pumping money into bursaries is actually effective. I can imagine that a large bursary, perhaps equivalent in money terms to the old maintenance grant, would genuinely influence the decision of a prospective student, but if the pot is shared out among very many people the resulting bursaries are fairly modest. How much does a bursary have to be to make a difference? Answers on a postcard.

The other side of the debate is what the balance should be between bursaries and outreach. In a subject like Physics one of the principal obstacles faced by pupils from the state sector is the dire shortage of physics teachers as well as the lack of laboratory facilities in schools. Here in the Department of Physics & Astronomy at Sussex we have a very large (and growing) outreach programme which includes giving kids from local schools the chance to come into our building and do specially designed experiments in a laboratory set aside for the purpose.  This kind of activity is intended to get those of school age thinking about doing Physics or Astronomy, which they might not otherwise do.

I don’t see bursaries and outreach as mutually exclusive approaches to  the goal of widening participation. It’s more a question of the balance. How do we decide how to allocate resources? Is there research on the effectiveness of different programmes?

As always, comments are welcome via the box below!

 

The Welsh University Funding Debacle

Posted in Education, Finance, Politics with tags , , , , on September 4, 2013 by telescoper

Although I no longer work in Wales, I still try to keep up with developments in the Welsh Higher Education sector as they might affect friends and former colleagues who do. That’s why my eye was drawn this morning to a news item on the BBC website about the effect of the Welsh Government’s policy of giving Welsh students bursaries to study at English universities. The gist of the argument is that:

For every Welsh student that goes to university across the border it costs the Welsh government around £4,500.

It means this year’s 7,370 first-year students from Wales who study in other parts of the UK could take more than £33m with them. Including last year’s students, the total figure is over £50m.

I did in fact make exactly the same point over three years ago on this blog, when former Welsh Education Minister Leighton Andrews announced that students domiciled in Wales would be protected from then (then) impending tuition fee rises by a new system of grants. In effect the Welsh Assembly Government would pick up the tab for Welsh students; they would still have to pay the existing fee level of £3290 per annum, but the WAG would pay the extra £6K. I wrote in May 2010:

This is good news for the students of course, but the grants will be available to Welsh students not just for Welsh universities but wherever they choose to study. Since about 16,000 Welsh students are currently at university in England, this means that the WAG is handing over a great big chunk (at least 16,000 × £3000 = £48 million) of its hard-earned budget straight back to England. It’s a very strange thing to do when the WAG is constantly complaining that the Barnett formula doesn’t give them enough money in the first place.

What’s more, the Welsh Assembly grants for Welsh students will be paid for by top-slicing the teaching grants that HECFW makes to Welsh universities. So further funding cuts for universities in Wales are going to be imposed precisely in order to subsidise English universities. This is hardly in the spirit of devolution either!

English students wanting to study in Wales will have to pay full whack, but will be paying to attend universities whose overall level of state funding is even lower than in England (at least for STEM subjects whose subsidy is protected in England). Currently about 25,000 English students study in Wales compared with the 16,000 Welsh students who study in England. If the new measures go ahead I can see fewer English students coming to Wales, and more Welsh students going to England. This will have deeply damaging consequences for the Welsh Higher Education system.

It’s very surprising that the Welsh Nationalists, Plaid Cymru, who form part of the governing coalition in the Welsh Assembly, have gone along with this strange move. It’s good for Welsh students, but not good for Welsh universities. I would have thought that the best plan for Welsh students would be to keep up the bursaries but apply them only for study in Wales. That way both students and institutions will benefit and the Welsh Assembly’s budget will actually be spent in Wales, which is surely what is supposed to happen…

Well, the changes did go ahead, and now the consequences are becoming depressingly clear.

The figures in the BBC story suggest something that I’ve also worried about, which is that the WAG policy might actually increase the number of Welsh students deciding to study in England, while also decreasing the number of other students deciding to study in Wales. Why would this happen? Well, it’s because, at least in STEM subjects, the tuition fee paid in England attracts additional central funding from HEFCE. This additional resource is nowhere near as much as it should be, but is still better than in Wales. Indeed it was precisely by cutting the central teaching grant that the Welsh Government was able to fund its bursaries in the first place. So why should an English student decide to forego additional government support by choosing to study in Wales, and why should a Welsh student decide to do likewise by not going to England?

I really hope the Welsh Government decides to change its policy. There didn’t seem to be any chance of a U-turn while Leighton Andrews remained in charge, but now that he’s gone perhaps there’s hope.

HS2 or H2O?

Posted in Finance, Politics, Science Politics with tags , , , on August 26, 2013 by telescoper

Since it’s a Bank Holiday – and a fine and sunny one at that – I’ll restrict myself to a brief post today so I can return to the outside part of the Universe and get a bit of sun while it lasts.

I saw an article in the Observer yesterday about the proposed High Speed 2 rail link (`HS2′) between London and the Midlands. The budget for this project has risen to a whopping £42.6 billion pounds. Another article in today’s Grauniad argues that HS2 is `certainly not for northerners’ benefit’, which is clearly the case because according to current plans it only goes as far as Leeds, which as everyone knows, is in the Midlands.  But  the real point is that I find it extraordinary that  we are  even considering investing such a staggering sum in a new railway with few obvious benefits to anyone other than the lucky company that gets the contract to build it. In the mean time our existing railways will continue to be poorly maintained, shockingly unreliable and of course excruciatingly expensive.

Thinking about the cost of HS2, which had earlier been estimated at a mere £30 billion, reminded me of an old post about renewable energy, and specifically the proposed Severn Barrage, which has an estimated cost somewhere between £10 billion and £35 billlion, but which could generate 2GW average power from tidal energy extracted from plain old H2O,  which is about 6% of the UK’s average demand. Of course there are important environmental issues to be dealt with – no form of electricity generation is free from such concerns – and the power generated by a Severn Barrage would be variable, with peaks not necessarily coinciding with peak demand. At least the variation is predictable, though, which is more than can be said for wind power…

Anyway, let’s suppose for the sake of argument that the price tags on these two projects are both £30 billion. I’d be interested in knowing how many people think, as I do, that £30 billion invested in tidal energy generation would be a far better use of funds than a fast train from London to nowhere interesting.

The Dark Side of the REF

Posted in Finance, Science Politics with tags , , , , , , , , on August 8, 2013 by telescoper

There’s a disturbing story in the latest Times Higher which argues that the University of Leicester has apparently reneged on a promise that non-submission to the forthcoming (2014)  Research Excellence Framework (REF) would not have negative career consequences. They have now said that except in exceptional circumstances, non-submitted academics will either be moved to a teaching-only contract (where there is a vacancy and they can demonstrate teaching excellence), or have their performance “managed”, with the threat of sacking if they don’t meet the specified targets.  I’d heard rumours of this on the grapevine (i.e. Twitter) before the Times Higher story was published. It’s very worrying to have it confirmed, as it raises all kinds of questions about what might happen in departments that turn out to have disappointing REF results .

There are (at least) two possible reasons for non-inclusion of the outputs of a researcher and it is important to distinguish between them. One is that the researcher hasn’t enough high-quality outputs to submit. In the absence of individual extenuating circumstances, researchers are expected to submit four “outputs” (in my discipline that means “research papers”) for assessment. That’s a pretty minimal level of productivity, actually;  such a number per year is a reasonable average for an active researcher in my field.  A person employed on a contract that specifies their duties as Teaching and Research may therefore be under-performing  if they can’t produce four papers over the period 2008-2013. I think some form of performance management  may be justifiable in this case, but the primary aim should be to help the individual rather than show them the door. We all have fallow periods in research, and it’s not appropriate to rush to sack anyone who experiences a lean time.   Andrew Wiles would have been considered `inactive’ had there been a REF in 1992 as he hadn’t published anything for years. Then he produced a proof of Fermat’s Last Theorem. Some things just take time.

A second reason for excluding researcher from the REF is that the institution concerned may be making a tactical submission. As the Times Higher article explains:

The memo suggests that academics would be spared repercussions if, among other reasons, the number of individuals submitted is “constrained” by the volume of case studies their department intends to enter to demonstrate research impact.

Institutions must submit one case study for every 10 scholars entered.

Maria Nedeva, professor of science and innovation dynamics and policy at Manchester Business School, said the tactic of deciding how many academics to submit based on impact case study numbers was “rife”.

(Incidentally, the second paragraph is not quite right. The number of case studies required depends on the number of staff submitted as follows: for fewer than 15 staff , TWO case studies;  for 15-24.99 staff it is THREE case studies – and then for each additional ten members of staff entered a further case study is required.)

e case study for every scholars included plus one, i.e. forThe statement at the end of the quote there is in line with my experience too.  The point is that the REF is not just a means of allocating relatively small amounts of so-called `QR’ research funding . Indeed, it remains entirely possible that no funding at all will be allocated following the 2014 exercise. The thinking then is that the number of staff submitted is largely irrelevant; all that will count is league table position.

This by no means the only example of the dangers that lurk when you take league tables too seriously.

If a department is required to submit, say, four impact cases if all staff are included in the REF submission, but only has three viable ones, it would not be unreasonable to submit fewer staff because their overall would be dragged down by a poor impact case even if the output quality of all staff is high.  There will certainly be highly active researchers in UK institutions, including many who hold sizable external research grants, whose outputs are not submitted to the REF. As the article points out, it would be very wrong for managers to penalize scholars who have been excluded because of this sort of game-playing. That’s certainly not going to happen in the School of Mathematical and Physical Sciences at Sussex University.  Not while I’m Head of School, anyway.

Moreover, even researchers whose “outputs” are not selected may still contribute to the “Environment” and/or “Impact” sections so they still, in a very real sense, do participate in their department’s REF submission.

My opinion? All this silliness could easily have been avoided by requiring all staff in all units of assessment to be submitted by all departments. You know, like would have happened if the system were actually designed to identify and reward research excellence. Instead, it’s yet another example of a bureaucratic machine that’s become entirely self-serving. It exists simply because it exists.  Research would be much better off without it.

Prudential Negligence

Posted in Biographical, Finance with tags , , on July 4, 2013 by telescoper

It’s been a long day, but before heading home I thought I’d do a quick post to update what looks like turning into quite a saga. Not long ago I blogged about a surprise letter of condolence I received about my father’s death. It was a surprise because my Dad died nearly six years ago…

The letter I referred to above actually came from the Annuities Department of the Prudential. I didn’t name them in my previous post because I didn’t want to rock the boat, and in any case I couldn’t remember the Pru being among the list of companies I wrote to after the funeral all that time ago. In between my previous post and now I had the chance to go through my old correspondence and establish that I did, in fact, write to the Prudential soon after my father passed away. To confirm this, a few days ago I received another letter from them admitting that they received my letter in 2007 and failed to act on it. I hadn’t pursued the matter at the time, probably because I thought they would just stop the small annuity he was apparently receiving from them and that would be that. In fact it turns out some money is owed (and has been owing all this time) to my Dad’s estate and nobody at Prudential bothered to do anything about it until now. I’m not impressed.

Naturally I’m a bit cheesed off with this, as I now have to do a number of things (like getting a copy of my father’s death certificate) in order to claim the residual funds. I’ll also be expecting quite substantial compensation for the gross negligence Prudential have shown too.

However, the main reason for posting about this episode is that it doesn’t exactly inspire me with confidence about the workings of the Prudential. That’s worth bearing in mind by any academics who have taken out Additional Voluntary Contributions (AVCs) to the Universities Superannuation Scheme (USS) in order to plan for early retirement or to make up for missing years’ contributions. You see, the USS voluntary contribution scheme is in fact managed by Prudential…

Farewell, then, Leighton Andrews…

Posted in Education, Finance, Politics with tags , , , , , , , on June 27, 2013 by telescoper

Although I no longer live in Wales I couldn’t resist commenting on the resignation, announced on Tuesday, of the Welsh Education Minister, Leighton Andrews. It seems that Mr Andrews was spotted holding a placard protesting against the planned closure of a school, a closure that results from his own policies. Personally, I think that it’s quite an imaginative move for a Minister to campaign against his own policies. It shows an open-mindedness absent in most politicians.

Leighton Andrews will probably be best remembered as the architect of the policy that students domiciled in Wales would be protected from having to pay large tuition fee rise by a system of grants, meaning that the Welsh Assembly will pick up the tab for Welsh students. They will still have to pay the “old”  fee level of £3290 per annum, but the WAG will pay the extra approx £6K charged by most Universities since the fee cap was raised. This is good news for the students of course, but the grants will be available to Welsh students not just for study in Welsh universities but wherever they choose to go. Since about 16,000 Welsh students are currently at university in England, this means that the WAG is handing over a great big chunk (up to 16,000 × £6000 = £96 million) of its hard-earned budget straight back to England. This has always seemed to me a very strange thing to do when the Welsh Government is constantly complaining that the Barnett formula doesn’t give them enough money in the first place.

What’s more, the Welsh Assembly grants for Welsh students are paid for by top-slicing the grants that HECFW makes to Welsh universities. So funding cuts for universities in Wales have been  imposed in order to subsidize English universities. This is hardly in the spirit of devolution either!

English students wanting to study in Wales will have to pay full whack, but will be paying to attend universities whose overall level of state funding is even lower than in England (at least for STEM subjects whose subsidy is protected in England). Currently about 25,000 English students study in Wales, compared with the 16,000 Welsh students who study in England, but I wonder how many of them realize that if they study England their £9K fee attracts an additional investment of £1.5K from HEFCE whereas there is no equivalent central resource supplied by HEFCW if they study in Wales? To put it another way, each £1 of tuition fee paid by a STEM student is worth £1.16 in England, but just £1 in Wales.

The other drastic implication of this policy is that HEFCW will have no money left to fund research via the QR mechanism that pertains in England (at least for the time being). I blogged about this a couple of days ago so won’t say any more today.

I don’t think any of my former colleagues in Cardiff are terribly upset to see Leighton Andrews go, but there is some nervousness about whether the replacement might be even worse. The new Education Minister is Huw Lewis. I wish him well in his new post, and hope he has the courage to question some of the decisions made by his predecessor that have had such a negative effect on education in Wales.

Anyway, in bidding farewell to Leighton Andrews I thought I’d show him all due respect, and do him the honour of presenting a look-alike. All reference to Muppets purely coincidental…

Slide1

University Research Funding: Will the Axe Fall on QR?

Posted in Finance, Politics, Science Politics with tags , , , on June 25, 2013 by telescoper

As we tremble in anticipation of this week’s Spending Review, which will determine the budgets for Science and Higher Education in 2015/16, there’s fairly strong evidence that Chancellor of the Exchequer George Osborne is looking to save about £11.5 billion of public spending. Given that funding for some Whitehall departments is ring-fenced there is considerable speculation that the axe will fall heavily on the Department for Business, Innovation and Skills (BIS), which seems likely to have to make over £1 billion of savings.

But where will these savings in the BIS budget be made? The government has made noises that it will protect science funding (at least in cash terms) so big cuts in the larger research council budgets appear unlikely. However, Treasury officials have been rumoured as thinking that the Universities are now “awash with money” and should therefore be cut. On the other hand, incoming for University teaching now largely comes from fees so there’s very little of the HEFCE teaching budget to cut further.

Now here’s the rub. The part of HEFCE’s budget that deals with research amounts to about £1.6 billion per year. This, the so-called `QR’ funding, is currently being distributed to Higher Education Institutions according to the outcome of the 2008 Research Assessment Exercise (RAE). This year we
are preparing submissions to a new system called the Research Excellence Framework (REF), which was always intended to be used to distribute QR funding from 2015/16 onwards. But what if the government decides that the only way to balance the books is to remove the QR funding stream entirely?

The 2012 funding letter from HEFCE states explains that it is distributing

£1,558 million for research. The ring-fenced settlement for science and research means that we will be able to maintain overall funding, in cash terms, until 2014-15.

But this does not include the period covered by the spending review, so it’s perfectly possible that the “ring fence” could be removed, or at least re-interpreted as a result of this spending review.

The government could argue that QR and Research Council grant income correlate so well that there’s no need to continue with the current dual funding system, by which the Research Councils provide grants for specific projects and programmes and the higher education funding bodies provide block grant funding to universities via the QR line. It could also argue that the high fees being charged mean that Universities will be able to cope with these cuts without undue hardship. There is a precedent in Wales, where HEFCW will not be awarding any QR funding after the 2013 REF, so why shouldn’t England do the same? They could also get away with the argument that this money isn’t part of the ring fence mentioned above.

The only problem is that so many institutions have spent so much time on preparations for the REF that cancelling the funding associated with it will mean all that effort is wasted. Indeed, the only remaining justification (if it can be called that) for Universities participating in the REF is for position in various league tables, which is rather a lot of expense for something of extremely debatable value.

Anyway, if I were a gambling man (which I am, actually) I don’t think I’d be betting against this outcome. Predictions are very difficult, especially about the future, but this one is mine. And I hope it’s proved wrong…

Tuition Fee Caps

Posted in Education, Finance, Politics with tags , , , , , , , on May 27, 2013 by telescoper

I know it’s a Bank Holiday, but I’ve been thinking…

About a week ago I posted an item arguing that the current system of higher education funding is detrimental to the health of STEM disciplines (i.e. Science, Technology, Engineering and Mathematics). The main reason for this is that present funding arrangements fail to address the real difference in cost of degree courses in various disciplines: the income to a University for a student doing Physics is about £10.5K whereas for a student doing, say, English it is £9K. I would  estimate the extra cost for the former corresponds to at least a factor two and probably more. That’s partly because Physics requires laboratory space and equipment (and related technical support) that English does not, but also because Physics students receive many more contact hours with academic staff.  The issue is just as much about arts students being ripped off (as they undoubtedly are being) as it is a strategic failure to protect the sciences.

The problem is that the Council responsible for distributing funding (HEFCE) is strapped for cash, so is unable to fund STEM disciplines at the higher level of resource that it used to.  Since the government has decided, in its  (finite) wisdom, to transfer most of the cost of higher education to the students, HEFCE can now exert very little influence on how universities plan their portfolio of courses. Since it is a lot cheaper and easier to expand capacity in Arts & Social Sciences faculties than in the more expensive STEM disciplines, this is an incentive for Universities to turn away from the Sciences. Given our economic predicament this policy is simply perverse. We need more scientists and engineers, not fewer.

This morning I read an article in the Times Higher about the present £9K tuition fee cap. Not surprisingly the Russell Group of self-styled “elite” Universities wants it lifted, presumably so its Vice-Chancellors can receive even bigger pay rises. But that’s not the point. The article made me think of a cunning (or perhaps daft) plan, which I’m floating here with the prediction that people will shoot it down through the comments box.

Now before I go on, I just want to make it clear that I’m not – and never have been – in favour of the present funding system. I don’t object to the principle that students who can afford to should contribute to the cost of higher education, but the arrangements we’re stuck with are indefensible and I don’t think they will last long into the next Parliament. It’s telling that, only a decade after introducing tuition fees, Germany is now scrapping them. I’d prefer a hybdrid system in which the taxpayer funds scholarships for STEM disciplines and other strategically important areas, while leaving universities to charge fees for other disciplines.

However, since we’ve been lumbered with a silly system, it’s worth exploring what might be achieved by working within it. There doesn’t seem to be much creative thinking going on in the coalition, and the Labour Party just says it would reduce the fee cap to £6K which would squeeze all academic disciplines equally, without doing anything about the anomalies mentioned above.

My  idea is quite simple. I propose that universities be entitled to lift their fee levels for STEM subjects by an amount X, provide that they reduce the fees for Arts and Social Sciences students by the same amount. The current fee level is £9K for all disciplines, so an example might be for STEM subjects to charge £12K while A&SS (if you pardon the abbreviation) get £6K. That would achieve the factor of two differential I mentioned above.

The advantages of this proposal are that it gives an incentive for universities to promote STEM disciplines and more properly reflects the difference in cost of the different subjects, without increasing the cost to the Treasury. In fact only about 25% of students study in STEM disciplines, at least for the moment, so the cost of fee loans will actually go down

The biggest potential flaw is  that increasing the cost to STEM students would put them off. There’s simply no data on which to base an argument as to whether this would be the case or not. I suspect however that a difference in price would be perceived by many as a difference in value.

Anyway, it’s just an idea. That’s what blogs are for. Thinking out loud as it were. Feel free to object..

The Threat to STEM from HEFCE’s Funding Policies

Posted in Education, Finance with tags , , , , , on May 19, 2013 by telescoper

In my job here as Head of the School of Mathematical and Physical Sciences (MPS)  at the University of Sussex, I’ve been been spending a lot of time recently on trying to understand the way the School’s budget works, sorting out what remains to be done for this financial year, and planning the budget for next year. In the course of doing all that it has become clear to me that the current funding arrangements from the Higher Education Funding Council for England (HEFCE) are extremely worrying for Science, Technology, Engineering and Mathematics (STEM) disciplines.

Before the introduction  of the £9K tuition fees this academic year (i.e. in the `old regime’), a University would receive income from tuition fees of up to £3375 per student and from a `unit of resource’ or `teaching grant’ that depends on the subject. As shown in the upper part of Table C below which is taken from a HEFCE document:

Budgets

In the old regime, the  maximum income per student in Physics was thus £8,269 whereas for a typical Arts/Humanities student the maximum was £5,700. That means there was a 45% difference in funding between these two types of subject. The reason for this difference is that subjects such as physics are much more expensive to teach. Not only do disciplines like physics require expensive laboratory facilities (and associated support staff), they also involve many more contact hours between students and academic staff than in, e.g. an Arts subject.  However, the differential is not as large as you might think: there’s only a factor two difference in teaching grant between the lowest band (D, including Sociology, Economics, Business Studies, Law and Education) and the STEM band B (including my own subject, Physics). The real difference in cost is much larger than that, and not just because science subjects need laboratories and the like.

To give an example, I was talking recently to a student from a Humanities department at a leading University (not my employer). Each week she gets 3 lectures and one two-hour seminar, the latter  usually run by a research student. That’s it for her contact with the department. That meagre level of contact is by no means unusual, and some universities offer even less tuition than that.

In my School, MPS, a typical student can expect around 20 contact hours per week including lectures, exercise classes, laboratory sessions, and a tutorial (usually in a group of four). The vast majority of these sessions are done by full-time academic staff, not PDRAs or PhD students, although we do employ such folks in laboratory sessions and for a very small number of lectures. It doesn’t take Albert Einstein to work out that 20 hours of staff time costs a lot more than 3, and that’s even before you include the cost of the laboratories and equipment needed to teach physics.

Now look at what happens in the `new regime’, as displayed in the lower table in the figure. In the current system, students still pay the same fee for STEM and non-STEM subjects (£9K in most HEIs) but the teaching grant is now £1483 for Physics and nothing at all for Bands C and D. The difference in income is thus just £1,483 or in percentage terms, a difference of just 16.4. Worse than this, there’s no requirement that this extra resource be spent on the disciplines with which it is associated anyway. In most universities, all the tuition income goes into central coffers and is dispersed to Schools and Departments according to the whims of the University Management.

Of course the new fee levels have led to an increase in income to Universities across all disciplines, which is welcome because it should allow institutions to improve the quality of their teaching bu purchasing better equipment, etc. But the current arrangements as a powerful disincentive for a university to invest in expensive subjects, such as Physics, relative to Arts & Humanities subjects such as English or History. It also rips off  staff and students in those disciplines, the students because they are given very little teaching in return for their fee, and the staff because we have to work far harder than our colleagues in other disciplines, who  fob off  most of what little teaching their supposed to do onto PhD students badged as Teaching Assistants. It is fortunate for this country that scientists working in its universities show such immense dedication to teaching as well as research that they’re prepared to carry on working in a University environment that is so clearly biased against STEM disciplines.

To get another angle on this argument, consider the comments made by senior members of the legal profession who are concerned about the drastic overproduction of law graduates. Only about half those doing the Bar Professional Training Course after a law degree stand any chance of getting a job as a lawyer in the UK. Contrast this with the situation in science subjects, where we don’t even produce enough graduates to ensure that schools have an adequate supply of science teachers. The system is completely out of balance. Here at Sussex, only about a quarter of students take courses in STEM subjects; nationally the figure is even lower, around 20%…

I don’t see anything on the horizon that will alter this ridiculous situation. STEM subjects will continue to be stifled as universities  follow the incentive to invest in cheaper subjects and will continue to overproduce graduates in other areas. The present Chief Executive of HEFCE is stepping down. Will whoever takes over from him have the guts to do anything about this anti-STEM bias?

I doubt the free-market ideologues in Westminster would even think of intervening either, because the only two possible changes are: (i) to increase the fee for STEM subjects relative to others; and (ii) to increase the teaching grant. Option (i) would lead to a collapse in demand for the very subjects it was intended to save and option (ii) would involve increasing public expenditure, which is anathema to the government even if it is an investment in the UK’s future. Or maybe it’s making a complete botch of the situation deliberately, as part of a cunning plan to encourage universities to go private?