What will an increase in demand mean for smaller and specialist higher education institutions?

Higher education is delivered in a hugely diverse range of providers. This diversity is one of the strengths of the UK system and recognised as a vital component of the sector in the Higher Education and Research Act 2017. There are large ones, small ones, specialist ones, rural/coastal ones and online ones, and GuildHE represents a great many smaller and/or specialist universities, university colleges and other HE institutions, each with a distinctive mission and priorities. As the demand for higher education continues to increase it is important to consider the different ways in which this demand may be met by these providers.

The sector has always been highly innovative and responsive to student and employer demand, and the range of qualifications offered in universities are testimony to that. The most recent policy intervention has focused on professional, vocational, and technical education, but this is something that all universities have been doing for centuries, whether through training doctors, teachers, nurses, lawyers, clerics and architects. Whilst we expand the diversity of qualifications, it is important to ensure that the huge benefits of higher education — whether economic, social or cultural —are available to all students whatever courses they are studying and that there doesn’t arise any artificial divide in the types and backgrounds of students that study particular courses. 

GuildHE members' distinctiveness in the sector is most obviously demonstrated in the size of our institutions, which are significantly smaller than the average university. Many of our members are also specialists in one or two related disciplines. This creates a unique dynamic and culture which offers students a very different, and strongly supportive, experience from studying in a large multi-faculty provider. 

There is therefore a balance to be struck between growing to meet demand and protecting this distinctive student experience. Data from UCAS shows that over the last 10 years our members have been growing, some at a considerable rate. For example, according to UCAS data, two of our small non-specialists have grown by over 35% since 2011 yet the rest of the sector's small non-specialist HEI’s have had more modest growth. Some of our specialist members have been able to grow more substantially (over double since 2011). However, they started from a much lower starting point — of around 100 - 200 acceptances per year. Although the number of acceptances to all conservatoires has also nearly doubled during this time, the actual number of acceptances for all conservatoires is still relatively small (from 1,325 in 2011 to 2,630 in 2021).ⁱ  

These are questions many of our providers are facing right now and there is a mixed picture of who wants to grow and how best to meet demand without compromising on quality and whilst maintaining a distinctive offer. Offering a very personal, supportive and inclusive learning environment for students is important to our members and having a disciplinary focus creates a sense of belonging and purpose for both staff and students.

There are several ways of growing an institution — whether expanding existing provision, diversifying the curriculum offer or increasing its partnership or transnational offer. Several of our specialist members that have seen the biggest growth have chosen to expand by creating new campuses across the UK and EU. This way they protect their small and specialist identity but can increase student numbers. This approach is however more expensive and riskier than simply expanding a single campus.

There are other financial barriers to growth too. Many of our institutions have high costs in teaching equipment and studio spaces which make growth a much less appealing proposition, especially at a time when the tuition fee (and any high-cost supplementary funding) just covers the cost to deliver without any real financial cushion to invest in growth and development. It is said you must spend money to make money but the freeze in tuition fees is having a profound impact on the level of investment providers can make to meet this new growth.

There are also potential demand barriers. Whilst the employment sector and post-18 education choices have profoundly changed and are more complex, the lack of investment in careers information, advice and guidance (IAG) for young people (and the population at large) is stifling growth in ‘opportunity’ occupations. It is unclear the extent to which the public are aware of the onward potential (and need for) gaining a degree in agriculture, osteopathy, and other niche specialisms. There are also pipeline barriers brought on by the changes to the national curriculum and school inspections. Whilst 30% of the jobs on the shortage occupation list are in the creative industriesⁱⁱ, the impact of Progress 8, the EBacc and state funding squeeze has dramatically reduced the creative curriculum in schools. There has been a 38% decline in students taking creative GCSEs and a 31% decline in creative A Level take up compared to 10 years ago.ⁱⁱⁱ  It makes it harder for state school pupils to access creative qualifications and therefore shuts them out of a crucial creative industry and many other careers. Creativity is one of the most in-demand skills by employers according to the World Economic Forum, the Confederation of British Industry, LinkedIn, and many others. The lack of creative education will not only restrict growth in L4+ arts qualifications but could harm social mobility more generally.