By Andreas Schleicher, OECD Director for Education and Skills
The UK has some of the most renowned universities in the world; recognised for their academic excellence, cultural diversity, and high-quality research and innovation. But if you were to build the higher education system from scratch, what would it look like? This was a question discussed at the Universities UK’s Annual Conference 2024 last month. Here are some perspectives I shared:
Lack of non-university pathways
The UK higher education system faces numerous issues but there are arguably three fundamental challenges. The first concerns non-university pathways, which often fall short of providing robust foundations for progression to advanced learning. While UK nations have succeeded in widening university access, they have not been as effective in expanding opportunities for the 45% of the population who do not pursue the university route. And with some 12% of 25-35 year-olds in the UK lacking even upper secondary qualifications, should policymakers just leave these people behind and not support aspirations for post-secondary education? Of course not.
Part of the issue stems from the complex array of choices that 16-year-olds face when deciding what qualifications to pursue. These include A-levels, Scottish Highers, the International Baccalaureate, Cambridge Pre-U, BTEC Diplomas and T-Levels – which can be daunting.
There is often a perception in the UK that vocational pathways are more of a last resort than a first choice, which can also affect the recognition of qualifications. The UK has attempted to address these issues with the ‘Get the Jump’ campaign and the introduction of an Apprenticeship Levy, which is paid by large firms with the aim of creating more apprenticeship places. However, despite the introduction of the scheme in 2017, there are fewer apprenticeship starts in England now than when it came in. Degree apprenticeships are also often taken up by older, academically able students.
For those pursuing vocational education, pathways to higher education are more complicated than for students on academic tracks. The UK is not alone in facing this issue. However, many OECD members, particularly Northern European countries, have developed more attractive and robust vocational systems. These are models that the UK could learn from.
The uncertainty about future skills needs, especially with AI advancements, underscores the importance of post-secondary learning. In Australia, after a comprehensive review of the higher education sector, the government has set a target of 80% of the working-age population having some form of tertiary qualification by 2050[1]. It is a goal worth considering, particularly in the face of the high earnings returns to advanced qualifications in the UK, which held up despite growing participation.
Flexible adult learning
The second fundamental challenge is improving support for adult learning in the UK. Upskilling and reskilling employees is increasingly important in our fast-changing world. Yet the number of mature student entrants at UK universities (those over 21) fell from over 400,000 in 2010 to around 250,000 in 2020. Changes to the tuition fees regime in England and a related sharp fall in part-time study contributed to this decline.
Student finance is different in different parts of the UK, as education is devolved. The Lifelong Learning Entitlement in England is an example of a scheme that holds the promise of boosting mature student numbers. Current plans would allow people to access loans worth the equivalent of four years of post-18 education (around £37,000 [$49,000] in today’s tuition fees) throughout their lives.
However, there is a clear need for greater flexibility in the system to accommodate different learning needs. The development of stackable micro-credentials, seen in many OECD countries, offers a promising solution. These small, flexible learning units are particularly attractive to adults. The UK has fallen behind in this area but can now benefit from lessons from other systems to help restore the role of universities in adult learning.
Sustainable funding
The third fundamental challenge is that the UK needs a more sustainable funding model. Only the US and Luxembourg spend more per full-time student in tertiary education than the UK, but that is primarily due to private household spending. On average across UK nations, only about one-quarter of higher education spending comes from public sources, the lowest rate in the OECD.
The principle of students contributing to their education costs makes sense. The OECD has long supported this position, especially in times of tight public finances. However, England may have shifted too much of the burden onto individual students and relies heavily on income from international students.
Steps to reinvent education
So how could you reinvent higher education in the UK? A new system must deliver outcomes that match or exceed current successes while addressing existing shortcomings, for example:
- It should offer high quality learning opportunities, including good technical and vocational options, and aim for high participation rates, similar to Australia’s goals. This would involve investing in further education colleges and universities delivering professionally oriented programmes.
- The system must make learning accessible and attractive for adults needing to upskill and reskill, as well as for young people transitioning from earlier stages of education. Flexibility to study part-time alongside work and family commitments will be key.
- A sustainable funding model will be essential to guarantee quality and an appropriate cost-sharing balance between learners and society. Fundamental choices will need to be made around what universities should do and how to pay for it. Raising domestic tuition fees or increasing government funding must be options on the table.
What does this mean for designing the high education systems of the future? Firstly, qualifications should be designed around relevant bundles of knowledge and skills that can be meaningfully assessed to permit providers to certify capabilities. This will help ensure that education does not stop at graduation. Short courses, online modules and part-time degrees can help individuals stay relevant in a rapidly changing job market. Smaller, stackable learning units will be crucial for upskilling and reskilling.
Secondly, if you consider post-secondary education as a public good (I do!) then there is a clear argument for public authorities to play a leading role in regulation and support. Increased funding and support for research initiatives can drive innovation and contribute to solving global challenges. However, it is questionable whether most students need to attend a research-intensive institution. If we agree it is not necessary, then a more differentiated system with a mix of professionally oriented and more academic providers may be more effective than the current uniform UK model.
Thirdly, it is important to address the politically sensitive discussion about how much society should contribute to the costs of students’ education. For domestic students, the financial burden can be substantial, potentially limiting access to higher education for some. Many universities argue that the current funding model for English higher education is struggling to match demand. Much can be done to help. For example, there is currently a substantial cross-subsidy of research from student fees across UK higher education. The reliance on this could be substantially reduced if steps were taken to fund research and third mission activities more transparently and adequately. Ultimately, if the UK wants to maintain and improve its educational standards then substantial public support will be needed to complement student contributions to finance learning.
Addressing these challenges head on through a serious national conversation on the future of higher education is crucial if the UK is to create a more inclusive, flexible and sustainable higher education system. While the system boasts numerous strengths, policymakers need to tackle the inherent weaknesses to ensure it meets the needs of all learners.
[1] Building a better and fairer education system for a future made in Australia | Ministers’ Media Centre
