As universities’ economic importance rises, Mandelson says students should have ‘consumer rights’
- Students should have assurances of quality says Mandelson, ahead of fees review
- Government wants to increase business-university links as economic importance of higher education sector rises
- Framework suggests factors apart from A-levels should be considered to help widen participation
The government has announced that its long term strategy for higher education will involve treating students more like consumers and increasing the role of business in university funding and governance.
A new framework document, entitled ‘Higher Ambitions: The Future of Universities in a Knowledge Economy’, was unveiled in the House of Lords yesterday. It includes plans to establish a system similar to food labelling, giving prospective students more data about courses, academic contact hours, and employment and salary prospects of graduates.
Business Secretary Lord Mandelson said that government and industry could help to direct courses on behalf of students and stimulate improvements by encouraging “a greater degree of competition between institutions”.
The proposals put forward by the Department for Business, Innovation and Skills’ also envisage a more “proactive role” for the Quality Assurance Agency, which monitors higher education standards.
As a precursor to the higher education funding review to be announced imminently, the emphasis the framework places on student being entitled to better quality education has widely been interpreted as paving the way for a fees increase.
NUS President Wes Streeting said: “Lord Mandelson has not said one way or another whether or not a student voice will be on the government’s review group. If he genuinely wants to see student engagement and ‘consumers’ shaping their own experience, he must ensure we have a seat at the table. Anything less will look like a backroom stitch-up between government, business and universities.”
Similarly, Sally Hunt, General Secretary of the University and College lecturers Union (UCU) took the opportunity to re-iterate their call for academic representatives to be on the board tasked with the funding review.
- KNOWLEDGE FOR INDUSTRY -
A second element of the plans to strengthen ties between universities and industry will see funds channeled towards institutions and courses that train graduates with “strategic skills”, especially the so-called ‘STEM’ subjects (science, technology, engineering and maths).
Two of the key concerns are said to be “employability” and “impact”. Universities will be encouraged to offer courses which help to fill skills-gaps in the economy, and funding for a research will rely more on it having a demonstrable impact “on the economy and society”.
Mandelson said yesterday “There is public value in every subject and academic discipline provided by universities, and added that “They are there to provide us with both civilisation and competitiveness.”
Meanwhile the framework document states clearly: “There can be no room in the system for vocational programmes that do not constantly evolve to meet changing business needs.”
- UNIVERSITIES AS ECONOMIC DRIVERS -
The importance placed on higher education as a driver of economic recovery and growth comes at the same time as a report produced by the University of Strathclyde for Universities UK, today released figures estimating that Higher Education in the UK generates £59 billion for the economy.
This puts universities ahead of the agricultural sector, as well as the advertising and pharmaceutical industries.
According to its findings, the higher education sector in 2007-8 generated about 2.3% of UK GDP, and employed 1% of the UK workforce. The £59 billion figure – of which about £2.3bn came from the off-campus expenditure of international students – represents a 25% increase compared to four years ago.
In economic terms the UK higher education sector is very efficient because it receives less investment than most comparable countries; recent figures showed that as a proportion of national resources invested in HE, the UK spends 1.3% of GDP, compared to an average of 1.5% among countries in the Organisation for Economic Co-operation and Development (OECD).
The Conservatives broadly welcomed the government’s framework, and agreed there should be no “rush to judgement” on tuition fees.
But the UCU declared itself “deeply concerned by the language used” in the framework and warned that “the government and the opposition are in danger of creating a worrying agenda that is focused purely on trying to justify the cost of a degree.”
Wes Streeting, writing in The Guardian, echoed these fears, saying: “We are in danger of sleepwalking into a system where students become customers and a degree becomes a commodity to be bought and sold in the marketplace; where students go simply to be certified rather than educated; and where higher education is a means to an end rather than an end in itself.”
- WIDENING PARTICIPATION -
However, a third aspectof the framework – widening participation – was welcomed by both the NUS and the UCU.
The government reaffirmed its target of 50 per cent participation in higher education, which it says can be achieved by increasing the number of part-time students.
Peter Mandelson also commissioned Sir Martin Harris, chair of the Office of Fair Access (OFFA) to review of access programmes, aimed at decreasing the attainment gap between students from higher socio-economic groups and those from poorer backgrounds, in time for next spring - before any general election campaign.
He also proposed, more controversially, for universities - especially the most selective institutions - to stop relying solely on A-level results to determine admissions. To assist participation of students from disadvantaged backgrounds, “contextualised data”, such as an applicant’s background and potential, should also be taken into account.
“What we’re saying is nobody should be disadvantaged or penalised on the basis of the families they come from or the schools they attend – and the way in which a simple assessment based on A-level results might exclude them,” Mandelson said.
UCU general secretary, Sally Hunt supported this part of the proposals, saying: “We strongly believe in the power of education to change lives and welcome Lord Mandelson’s focus, once again, on education as a driver for social mobility.”


Mandelson knows as much about student life as I know about the orgigin of Norwegian nationalism in 1215. He is only interestd in publicity and his reason for living is to do with being in the papers every day. He is not interested in whether he attracts negative or positive publicity so whatever he says should be ignored (it usually is..)
Nick