As a new government elected on a promise of change, a focus on growth and a close eye on the skills sector settles into the realities of decision-making, now is the time for colleagues across the further and higher education sectors to find common ground on which to campaign and work together.
Our co-authored chapter for this week’s UUK report, Opportunity, Growth and Partnership: a blueprint for change from the UK’s universities makes the case for “a whole-of-tertiary sector participation target of 70 per cent of the population aged 25 studying at level 4 or above by 2040, with a particular focus on increasing access in low-participation neighbourhoods”.
To deliver this, colleges, universities and employers, along with local leaders – whether mayors or council leaders – must seize this moment to create and build on the strong regional and civic partnerships we need to deliver economic growth and widen participation in skills training and technical qualifications.
This proposal is not about universities making a landgrab to significantly increase the number of graduates they produce each year. On the contrary, it is an acknowledgement that the old dichotomy of school leavers vs graduates is no longer relevant to the needs of today’s employers and tomorrow’s economy.
The competitive edge
What is required is an approach that brings together universities, colleges and employers to increase educational attainment and improve skills levels across the country and meet the needs of current and emerging industries.
This means not only producing more graduates but also creating an employable, home-grown workforce trained to sub-degree levels, with an embedded appetite for lifelong learning.
International evidence supports this approach. Advanced economies such as South Korea, Japan and Canada have increased higher education participation rates to between 60 and 70 per cent. The Australian government has set a target of 80 per cent participation in tertiary education.
Meanwhile, the UK remains stubbornly divided by educational attainment, as recorded in the 2021 census; 33.8 per cent hold a level 4+ qualification and 18.2 per cent have no qualifications. This clearly demonstrates the scale of the challenge our economy faces.
A sustainable pipeline
While UUK’s target highlights those aged 25, the reality is that we need investment to bring up the educational attainment of large sections of the adult population too.
All could benefit from a collective ambition for their future, made possible through the flexible and accessible funding approach to the Lifelong Learning Entitlement which we argue for in the report.
While the ‘graduate premium’ has been reducing in recent years, the demand for sub-degree qualifications remains high, particularly in technical areas. As much as 36 per cent of job vacancies were described as hard to fill due to skills shortages in 2022.
Colleges already play a critical part in this. They have an even more important role in creating the pipeline of part-time and adult learners who study for level 4 qualifications, particularly learners from non-traditional and disadvantaged backgrounds.
What’s needed
To do this, however, they must be supported by a whole-system approach. This will require changes to funding and regulatory systems as well as changes to the way FE-HE works.
Additional financial support must be provided for gateway provision. Arbitrary funding cliffs at ages 19 and 24 must be removed and additional funding for catch-up learners provided.
We will also need to streamline the regulatory process to remove requirements for duplicate reporting to different regulators for those institutions that collaborate on delivery or offer a mix of provision.
To underpin this, UUK is also calling for a tertiary education opportunity fund to support collaborative programmes to respond to the needs of learners in low-participation areas. Ideally, this would extend to the co-development of new level 3 and 4 provision.
We encourage colleagues across the FE sector to join with universities and employers in pressing the government for such reforms. Rather than holding individuals back through dysfunction, together we can create a skills system that works for everyone, delivering a qualified workforce equipped to support a growing, productive and innovative economy.
Identifying South Korean, Japan and Australia as advanced economy competitors sounds quite compelling, but it’s probably worth questioning whether they have loans based systems, what the level of outstanding loan debt is and the actual salary premium and expected lifetime earning benefit is…
With a largely flat economy since 2008/09, the highest number of degree educated people ever and productivity growth stagnant, I get a bit nervous looking at the UKs outstanding student loan debt of £236bn as of March 2024. It has roughly quadrupled every decade over the last 30 years. That level of inflationary pressure inevitably creates unsustainable bubbles.