Universities to compete for students

Students at the heart of the system sets out proposals for a higher education market that will make institutions compete for the best students. Central control of student numbers is to be weakened so that each institution is allocated a ‘core’ number of students, and will be encouraged to compete for students beyond their core. In 2012/13, around 85,000 places will be contestable. Universities and colleges that are most successful at attracting students will be allowed to expand.

Launching the white paper, universities minister David Willetts said: ‘We must move away from a world in which the number of students allocated to each university is determined in Whitehall. But universities will be under competitive pressure to provide better quality and at a lower cost.’

Other reforms contained in the white paper include better information for students on their likely job prospects and improved teaching and feedback on their work while they are studying.

The government also promises to make it easier for new education providers to be accredited and enter the market. It has said it will ensure the Office for Fair Access is properly resourced so it can do more to ensure prospective students from low-income families are not put off higher education.

Business, Innovation and Skills Secretary Vince Cable said the white paper ‘put students in the driving seat’.

He added: ‘We want to see more investment, greater diversity, including innovative forms of delivery from further education colleges and others, and less centralised control over student numbers. But, in return, we want the sector to be more accountable to students, as well as to the taxpayer.’

Sir Steve Smith, president of Universities UK, said the focus on transparency and accountability were positive steps.

‘The move to a funding system that is flexible and responsive will help ensure greater student choice. However, the government must ensure that the detailed proposals on student number controls do not result in unintended consequences that could be damaging to students and universities’ efforts to widen participation,’ he said.

Aaron Porter, president of the National Union of Students, criticised the white paper as ‘confused’ on key issues.

‘Fees have been tripled and students have been exposed to the potential chaos of the market and yet there are still no concrete proposals for how quality, accountability and access will be improved,’ he said.

‘We welcome the drive for better information for students in the white paper, but the government must not confuse information with power. Market competition alone will not drive up quality.’