1. FEES, FUNDING AND YOUR FUTURE
Graham Galbraith, Vice Chancellor, November 2017

2. Our ambition: TO provide a world-class education to all students who can benefit from the opportunity
To do this we must
Invest properly in your education and future
Resist a government cap on the number of students
Avoid your career choices being distorted by money/finance
Ensure that, like taxation, student funding is progressive
Student funding must be fair and perceived to be fair
How universities are funded is a societal decision, not universities’
If you want change, engage and vote

3. CHANGE TO STUDENT FUNDING IS NECESSARY
“we will undertake a major review of university funding and student financing” Theresa May, Oct 2017
Issues I lobby government and MPs on:
 Increase to the thresh-hold of repayment
Re-introduction of maintenance grants
Reduction in the interest rate on the loan
I believe that a wholesale review is needed

4. THE FEE LEVEL IS NO GUIDE TO WHAT YOU PAY
What we get to teach you?
£9,250 per student per year
Plus an additional amount from the government for high cost subjects e.g. £1,500 per student for engineering
What you pay for university?
9% of your salary over £25,000pa
For up to 30 years
Anything else from general taxation

5. Immediate effect of fee changes
What we get to teach you
What you pay for university (per week)
£25,000pa
£30,000pa
£35,000pa
£40,000pa
£9,250 per student £0 £9
£17
£26
£7,500 per student
£6,000 per student

6. University funding Alternative systems
Graduates pays 55%, state pays 45% - current system with repayment threshold at £25,000 per annum (IFS)
Graduates pay 69%, state pays 31% - current system with repayment threshold at £21,000 per annum (IFS)
“[The new] reforms will increase the long-run government contribution to the cost of providing higher education by around £2 billion per year (raising the repayment threshold costs £2.3 billion and freezing fees saves £0.3 billion) This increases the RAB charge on student loans from 31% to 45% for students starting in This is entirely due to the reduced graduate repayments as a result of the higher repayment threshold (freezing fees slightly reduces the RAB).”?(Higher Education finance reform: Raising the repayment threshold to £25,000 and freezing the fee cap at £9,

7. University funding Current system - progressive
Graduating in 2018 (2015 start, three year degree) [Calculated on the basis of Money Saving Experts ‘Student finance calculator’ (see Maintenance loan of £0 has been assumed.
Examples of professions with >£29K salaries taken from here:
£27K (UP Mech Eng – salary figure from 2015/16) – repay 88% of fee (7900/9000 = 88%). £7900 is the figure to which the fee must drop if someone with starting salary of £27K were to repay all of their fee.
£21.5K (nurse 2015/6 salary - general) – repay 48% (4300/9000 = 48%)
£18K (UP Creative Writing 2015/6 - – repay 11% (1000/9000 = 11%)
Eg, Creative Writing Eg, Nursing Eg, Mechanical Eg, Consulting, Law Engineering (City), Banking
2018 graduate starting salary

8. Effects of fee changes
Individual profile
Fees at £6,000pa
Graduating in 2018 with a starting salary of £23,000pa
Has no effect on what you pay overall
Reduces taxpayer contribution to your education
Graduating in 2018 with a starting salary of £40,000pa
Reduces what you pay overall by about 40%
Source: Moneysaving Expert Student Finance Calculator (
If fees are reduced, we get less to spend on you and the majority of you pay the same
Lower fees would simply reduce the taxpayer contribution to your education

9. Investing in you, for you Principles that underpin our spending
Employ the best teachers and staff
Invest in resources so you can be successful
Employability
Career-enhancing activities
Real-life learning
ASK, ASDAC & wellbeing
Learning Support tutors
Online resources e.g. Lynda.com
Education environment IT
Estate

10. Income and Expenditure 2016/17
Headline figures:
Income (£m) Expenditure (£m)
Teaching £192.3m £195.7m
Other £41.4m £31.2m
Total £233.7m £226.9m
Notes:
Figures are pending external audit
‘Other’ income and expenditure - Research, Innovation, Residences, Catering.

11. UNIVERSITIES ARE CHARITIES – THEY DON’T MAKE PROFITS BUT THEY DO NEED SURPLUSES
Since 2004/05 the average surplus has been 2.6% of income per year
A total of £59 million over the period
Surpluses fund our investments – previous surpluses have funded:
Healthcare Simulation Centre
New Theatre Royal
Dental Academy
Library refurbishment
Dennis Sharma Building
Students’ Union
Eldon Building
Refurbishments of our teaching facilities and upgrades of our IT
In 2016/17 alone the University invested £14.7 million in land and buildings (Future Technology Centre etc.).

12. Are we getting it right? NO.1 TOP 100 96.5% The challenge:
GRADUATES WORKING or in FURTHER STUDY (DLHE 2016)
in the UK for BOOSTING GRADUATE SALARIES
NEW UNIVERSITIES Times Higher Education Young University Rankings 2017
The challenge:
We will have to make year-on-year savings of £4.5 million.
Transform our systems and ways of working e.g. improved marketing, MyPort, student record system, nursing, apprenticeships.

13. Thank you