patterns of heis in the uk report 8

Patterns of higher educationinstitutions in the UK

Eighth report

43741 UniUK Patterns 8 14/8/08 11:28 Page i

This is a report by Professor Brian Ramsden on behalf of the Longer Term StrategyGroup of Universities UK

Patterns of higher education institutions in the UK: Eighth report

The copyright for this publication is held by Universities UK. The material maybe copied or reproduced provided that the source is acknowledged and thematerial, wholly or in part, is not used for commercial gain. Use of the materialfor commercial gain requires the prior written permission of Universities UK.

43741 UniUK Patterns 8 14/8/08 11:28 Page ii

pThis report is the eighth in a series published annually by Universities UK, with thesupport of GuildHE, updating and expanding a rich variety of data through which tounderstand higher education institutions in the UK.

The Patterns series

pThe Patterns series, since its first report in 2001, has examined the trends in UK highereducation at both the sector and institutional level. We have built up a 10-year time seriesof information that has proved to be very useful to senior managers in the sector as well asbeing drawn upon by many outside higher education. In addition, each report has focusedin its final section on a particular issue of immediate interest. In 2001 that wasconsolidation and collaboration within the higher education sector following the abolitionof the binary line. The particular issues in subsequent reports have covered diversity in thesector’s activities and provision; differentiation – in other words, the planned positioning ofinstitutions within the higher education sector; regional issues; the relationship betweenUK higher education institutions and those of other countries; and the student experienceand how it has changed over time. The seventh report was published last year, andincluded an analysis of the issues relating to strategic and vulnerable subjects.

The eighth report

pThis eighth report follows the established format of the Patterns series. Section A looksat sector-level trends over the 10-year period from 1997/98 to 2006/07 and provides thecontext for the findings about institutions. Section B looks at patterns of institutionaldiversity and updates information on higher education provided in the earlier Patternsreports. Section C focuses on some of the financial aspects of diversity and provides atime series analysis. A wide range of fascinating data is presented in this report. I shalldraw attention to some of the key findings here.

Growth in higher education enrolments

pAcross the UK, enrolments in higher education institutions have increased by 31 percent overall in the 10-year period from 1997/98 to 2006/07. Undergraduate numbershave increased by 28 per cent, but there has been even stronger growth of 45 per cent atpostgraduate level. It is a trend that has been maintained over the last two years,between 2005/06 and 2006/07, and one which both student and employer demand islikely to strengthen. It remains to be seen, however, whether this trend will be affectedby the first graduates emerging from the majority of UK institutions with the loan debtassociated with variable fees. It is also of interest that the number of part-timeenrolments at undergraduate level has grown more rapidly than full-time ones over thelast decade, amounting to more than 50 per cent.

How are students choosing to study?

pThe increase in part-time student numbers relates to an extent to changes indefinitions and data collection, but it is clear that those institutions which already havesignificant part-time numbers have expanded their part-time provision. As earlierPatterns reports noted, there is no typical part-time student. They include those onundergraduate and postgraduate degree programmes as well as students followingcourses of personal and professional development that may be at either level. Part-time study plays an increasingly important role in meeting the higher-level skillsagenda and contributes to lifelong learning. This trend will need to continue if thesector is to expand to the extent proposed by the Leitch review, particularly when thedecrease in the number of 18-year-olds in the decade after 2009 is taken into account.As the projections in Universities UK’s recent reports on the Future size and shape of thehigher education sector in the UK show, the 30-50 age group from which part-timestudents are largely drawn will continue to grow while the size of the younger age groupdeclines in the period up to 2019/20.

Universities UK Patterns of higher education institutions in the UK: Eighth report

Introduction

1

43741 UniUK Patterns 8 18/8/08 20:05 Page 1

What are students choosing to study?

pOver the decade from 1997/98 to 2006/07 there have been significant changes in thesubjects that students are studying. In particular, we see enrolments increasing insubjects allied to medicine (much of it accounted for by the shift of the funding ofnursing courses into higher education), biological sciences (primarily microbiology andpsychology), mathematical sciences, law, mass communication and documentation,historical and philosophical studies and creative arts and design (which also includesmusic, drama and film). The data for 2006/07 for the first time show an above-averagegrowth in student numbers in education and social studies over the preceding decade.It will be interesting next year to see whether this shift in interest has been sustained. Insocial studies, there has been particularly strong growth in social work, socialgeography and politics.

pWe find enrolments growing more slowly than average in architecture, building andplanning, agriculture, the physical sciences and engineering and technology. But thereare recent hopeful signs for physical sciences where there has been a picking up ofenrolments in physics (but not chemistry), and even more so for mathematical scienceswhere the recovery (especially in mathematics itself) first seen three years ago hasbeen sustained. In physics it is interesting to note that fewer institutions have provisionin the subject but that these have higher average numbers of students. There have, ofcourse, been trends that are masked by simply looking at the start and end years of thedecade: the recent downward trend in computer science student numbers may leavethem still significantly above those 10 years ago but that has not prevented concernabout whether the supply of graduates can match the demand from employers.

EU and international students

p It is clear from the analysis in this report that the UK is continuing to attract studentsfrom across the world. In the 10-year period from 1997/98 to 2006/07 non-EUinternational student enrolments have more than doubled. China remains the mostsignificant provider of students to UK higher education across most levels of study.India features very strongly among taught postgraduate students, and students fromthe United States are also prominent, especially amongst undergraduate visiting andjunior year abroad students and at postgraduate levels. The decline in the number ofundergraduate students from Africa reported in last year’s Patterns appears to havebeen arrested, as enrolments at taught postgraduate level are strong. In all these areasUK higher education is, of course, facing increasing competition. The market fortransnational education is, however, expanding, and it will be interesting to see infuture Patterns whether the growth in non-EU international student numbers issustained.

pEnrolments by students from other EU countries have also seen a greater rate ofgrowth in 2006/07 than that of UK-domiciled students, something which is due in part tothe enlargement of the EU. There are many students from the Republic of Ireland,especially at taught postgraduate level, although enrolments at undergraduate levelhave declined, presumably in response to the changed tuition fee system in theRepublic of Ireland.

pThe number of institutions with very large numbers of students from outside the UKhas grown significantly. In 2001/02, there were just three institutions with more than5,000 students from outside the UK. By 2006/07 that had risen to 14. UK universities arebecoming increasingly international in their composition, a development that embracesEU as well as non-EU students.

2


Diversity in the student population

pThe increasing diversity of the student population is something that has been seenacross successive issues of Patterns. This year’s report confirms the trend of anincreasing proportion of mature students, and a slight increase in the latest data from2006/07 in the proportion of students from minority ethnic groups and from lowersocio-economic groups. The concentration of UK-domiciled ethnic minority studentshas been maintained but not increased in the latest data, and virtually all of theseinstitutions with a high level of concentration are to be found in London.

pWomen are accessing higher education significantly more than their malecounterparts. We once again see that female students are in the majority at all modesand levels. The proportion of male students enrolled in higher education institutionshas declined by at least three percentage points – and in some instances considerablymore – over the 10-year period from 1997/98 to 2006/07. This is an internationalphenomenon that in many ways reflects the differential progression and achievementlevels of boys earlier in the educational system. The considerable variations betweeninstitutions will to a significant extent reflect their different subject mix. It is onlyamong full-time postgraduates (who are dominated by non-UK students) that malestudents approach parity.

Financial aspects of higher education institutions

pFrom 2000/01 to 2006/07 the sector as a whole has seen an increase of more than 50per cent (not corrected for inflation) in its overall income and in most of itscomponents: only endowment and investment income shows a markedly lower rate ofgrowth, but the income from these sources has improved compared with previousyears. The significant increase in tuition fee income is, to a considerable extent,attributable to the fees of international (non-EU) students, which have doubled over theperiod and now amount to £1.7 billion. In addition public funding has been stabilisedfollowing the erosion in the unit of funding that took place in the 1990s. Across thesector as a whole the median figure of 2.3 per cent surplus was generated. As inprevious years, this continues to be well below the 3 to 5 percent level which is judged

pThe analysis of long-term borrowing in relation to institutional income shows a verylarge range from zero to above 80 per cent of annual income. Will the level of borrowingby the sector increase over the next few years? The increasingly diverse incomeportfolio of 21st century universities and improvements in risk management, togetherwith the greater attractiveness of universities in the eyes of financial institutions, inprinciple provides more opportunities for institutions to borrow to support significantinfrastructure projects.

pThe process of differentiation of income streams amongst institutions continues. We cansee, for example, a widening spread in the importance of teaching grants for individualinstitutions, and a greater unevenness in the importance of funding councils’ grant forquality-related research (QR). On the latter, half of institutions receive less than 2 percent of the total QR grant distributed. It is interesting to note that once again the majorityof higher education institutions receive more income from research grants and contractsthan from research funding provided through the funding councils. There is also a widevariation in the dependency on health service income, though an increasing number ofinstitutions were recipients of NHS fees and grants in 2006/07 than in 2002/03.

pThis issue of Patterns provides a more extensive financial analysis by reviewing someadditional aspects of university financial diversity. Universities UK’s Longer TermStrategy Group held a seminar earlier this year to explore the possible changes in thefinancial environment for higher education over the next 10 to 20 years and how thesemight influence the future business models and management of institutions. A reporton the key issues and challenges for institutions as they develop their business modelswill be published separately.

Universities UK Patterns of higher education institutions in the UK: Eighth report 3


necessary in order to ensure the sustainability of institutions to invest in theirinfrastructures and for the management of risk.

4

pThe final section of Patterns compares a number of financial indicators for the periodbetween 2002/03 and 2006/07, and some clear changes can be seen even over thisrelatively short period. The analysis shows that in 2006/07 50 per cent of the sector’stotal income came from funding council teaching and research grants and from tuitionfees from home and EU students. Total fee income from the latter was double that fornon-EU students. However, teaching grant income has increased less than the overallincome of higher education institutions in this period, something confirmed by the factthat there has been a decrease in the number of institutions receiving more than 50 percent of their income from the teaching grant.

pResearch grants from the funding councils on the other hand have increased more thanthe overall income level. The largest relative increase in income, however, is seen in thefees from international students. Over the five-year period from 2002/03 to 2006/07,fees from international students have increased by 58 per cent, compared with anoverall increase in institutional income of 37 per cent, expressed in cash terms. Feesfrom international students have become a more significant income source for mostinstitutions than research grants from the funding councils. There has been a markedincrease in the number of institutions receiving more than 15 per cent of their totalincome from international student fees.

pThe analysis provides evidence of the sector’s efforts to diversify its income sources aspart of a wider strategy to reduce its dependence on public funding. There is increasingemphasis on raising funds through endowments, a priority supported by governmentthrough its new matched funding scheme. While the income from endowments iscurrently relatively small in the overall revenue of universities, they are one element inthe efforts of higher education institutions to diversify their income streams and toincrease their sustainability.

pMuch more rich material is to be found in Patterns 8, and readers will certainly findmuch of interest beyond the highlights that I have been able to point to in this briefintroduction. I would like once again to thank Professor Brian Ramsden for continuingto provide this fascinating insight into the patterns of higher education institutions inthe UK.

Professor Geoffrey Crossick

Warden, Goldsmiths, University of London, and Chair, Universities UK Longer Term Strategy Group

September 2008



6 Index of tables

7 Index of charts

8 Index of institutional distribution charts

Section A

9 Trends in UK higher education

9 Enrolments12 Enrolments by gender14 Enrolments by subject19 Subject coverage22 Changes in subject balance of full-time first-degree students22 Trends in EU and international enrolments25 Trends in income

Section B

27 Patterns of institutional diversity

27 Number of institutions in the sector27 Institutional charts28 Balance of provision32 Student characteristics and outcomes38 Aspects of staffing in higher education institutions40 Financial issues

Section C

51 Financial aspects of diversity

51 Revenue57 Expenditure58 Capital investment in the estate59 Endowments60 Liquidity and borrowing61 Liquidity ratio63 Surpluses and deficits

65 Conclusion

66 Appendices

67 Appendix 1: Total enrolments by subject of study, 1997/98 and 2006/0771 Appendix 2: Enrolments of students from outside the UK, by country and level of study,

2006/0774 Appendix 3: Trends in sources of income to higher education institutions, 2000/01,

2005/06 and 2006/0777 Appendix 4: Mergers within the higher education sector, 1994/95–2006/0779 Appendix 5: HESA cost centres

Contents


6

9 Table 1 Enrolments in higher education institutions by country on higher educationand further education programmes, 1997/98-2006/07

10 Table 2 Enrolments in higher education level courses within higher education andfurther education institutions, 2005/06

11 Table 3 Enrolments by mode and level, 1997/98, 2005/06 and 2006/0712 Table 4 Overall change by mode and level, 1997/98-2006/0713 Table 5 Enrolments by level and gender, 2006/0713 Table 6 Enrolments by level and gender, 2005/0613 Table 7 Enrolments by level and gender, 1997/9815 Table 8 Enrolments by subject area, 2005/06 and 2006/0716 Table 9 Enrolments by subject area, 1997/98 and 2006/07 (adjusted)21 Table 10 Numbers of institutions making provision for teaching of major subjects,

1997/98 and 2006/0723 Table 11 Enrolments of students by domicile, 1997/98, 2005/06 and 2006/0724 Table 12 Major countries supplying students to UK higher education institutions, by

level of study, 2006/0725 Table 13 Main sources of income received by UK higher education institutions, 2000/01,

2005/06 and 2006/07, £K (cash terms)35 Table 14 Classification of national statistics socio-economic groups64 Table 15 Surpluses and deficits recorded annually between 2002/03 and 2006/0764 Table 16 Percentage return on net assets, 2002/03 to 2006/07

Index of tables



Index of charts

7

14 Chart 1 Percentage male students by mode and level, 1997/98 and 2006/0717 Chart 2 Percentage change in enrolments by subject area, 1997/98-2006/0722 Chart 3 Percentage of full-time first degree students in each subject area,

1994/95-2006/0751 Chart 4 Major income sources of UK higher education institutions, 2006/0752 Chart 5 Teaching grant as a percentage of all income: institutional distribution,

2006/0752 Chart 6 Change in teaching grant as percentage of total income, 2002/03-2006/0753 Chart 7 Histograms showing distribution of teaching grant as percentage of all

income, 2002/03 and 2006/0753 Chart 8 Research grant as a percentage of all income: institutional distribution,

2006/0754 Chart 9 Histograms showing distribution of research grant as percentage of all

income, 2002/03 and 2006/0754 Chart 10 Percentage income from non-EU students’ fees, 2006/0755 Chart 11 Histograms showing distribution of non-EU student fees as percentage of

all income, 2002/03 and 2006/0756 Chart 12 Health service income (fees and grants £K) as a percentage of total income

2002/03 and 2006/07 57 Chart 13 Histograms showing health service income (fees and grants) received by

higher education institutions, 2002/03 and 2006/0757 Chart 14Ratio of payroll costs to total income, 2006/0758 Chart 15Histograms showing the ratio of payroll costs to all income, 2002/03 and

2006/0758 Chart 16 Histograms showing the percentage expenditure on repairs and

maintenance, 2002/03 and 2006/0759 Chart 17 Percentage of non-residential accommodation classified as new or

refurbished, 2001/0259 Chart 18 Percentage of non-residential accommodation classified as new or

refurbished, 2005/0660 Chart 19 Histogram showing institutions’ endowments assets, £K, 2002/0360 Chart 20 Histogram showing institutions’ endowments assets, £K, 2006/0761 Chart 21 Days of net liquid assets to total expenditure less depreciation, 2002/0361 Chart 22 Days of net liquid assets to total expenditure less depreciation, 2006/0762 Chart 23 Long-term borrowing as a percentage of total income, 2006/0762 Chart 24 Histograms showing borrowing as a percentage of income, 2002/03 and

2006/0763 Chart 25 Histograms showing institutional distribution of absolute borrowing (£K),

2002/03 and 2006/0763 Chart 26 Increase/decrease in interest payments as percentage of income, 2002/03

to 2006/0764 Chart 27 Average percentage ratio of historical surplus/(deficit) after tax to total

income, 2002/03 to 2006/0765 Chart 28 Percentage return on net assets, 2002/03-2006/07


8

Index of institutional distribution charts

28 Institutional chart 1: Percentage of students following postgraduate programmes,2006/07

29 Institutional chart 2: Absolute numbers of postgraduate enrolments, 2006/0729 Institutional chart 3: Absolute numbers of undergraduate enrolments, 2006/0730 Institutional chart 4: Percentage of enrolments in undergraduate programmes not

directly leading to first degrees, 2006/0730 Institutional chart 5: Percentage of part-time enrolments, 2006/0731 Institutional chart 6: Enrolments of all non-UK-domiciled students, 2006/0731 Institutional chart 7: Enrolments of international (non-EU)-domiciled students, 2006/0732 Institutional chart 8: Enrolments of EU (excluding UK)-domiciled students, 2006/0733 Institutional chart 9: Percentage of mature full-time undergraduates, 2006/0733 Institutional chart 10: Percentage of male students, 2006/0734 Institutional chart 11: Percentage of UK-domiciled first-year students from ethnic

minority groups, 2006/0735 Institutional chart 12: Percentage of young full-time first-degree entrants from national

statistics socio-economic classification classes 4, 5, 6 and 7,2006/07

36 Institutional chart 13: Percentage of young full-time first-degree entrants from lowparticipation neighbourhoods, 2006/07

36 Institutional chart 14: Average tariff points of entrants to full-time undergraduatecourses, 2006/07

37 Institutional chart 15: Percentage of first-class degrees awarded, 2006/0737 Institutional chart 16: Percentage of first and upper second class degrees awarded,

2006/0738 Institutional chart 17: Percentage of first degree full-time graduates not unemployed,

2005/0639 Institutional chart 18: Number of cost centres within which staff are employed, 2006/0739 Institutional chart 19: Percentage of female academic staff, 2006/0740 Institutional chart 20: Percentage of ethnic minorities among academic staff, 2006/0741 Institutional chart 21: Surplus/deficit as a percentage of income, 2006/0741 Institutional chart 22: Days ratio of net liquid assets to total expenditure, 2006/0742 Institutional chart 23: Days ratio of total general funds to total expenditure, 2006/0742 Institutional chart 24: The security index, 2006/0743 Institutional chart 25: Percentage ratio of total long-term borrowings to total income,

2006/0744 Institutional chart 26: Funding council income as a percentage of all income, 2006/0744 Institutional chart 27: Funding of research through the dual support system (£K), 2006/0745 Institutional chart 28: Funding of research through the dual support system as a

percentage of all income, 2006/0746 Institutional chart 29: Research grants and contracts as a percentage of funding council

research grant, 2006/0746 Institutional chart 30: Income for other services rendered (£K), 2006/0747 Institutional chart 31: Income from international (non-EU) student fees (£K), 2006/0748 Institutional chart 32: Administrative costs per full-time equivalent student (£), 2005/0648 Institutional chart 33: Academic departmental costs per full-time equivalent student,

excluding academic staff (£), 2005/0649 Institutional chart 34: Total academic services expenditure per full-time equivalent

student (£), 2005/0649 Institutional chart 35: Premises expenditure per full-time equivalent student (£), 2005/06



1 This section sets out some of the major trends in higher education in the UnitedKingdom (UK) during the last 10 years from 1997/98 to 2006/07, drawing on datapublished by the Higher Education Statistics Agency (HESA).1

Enrolments

2 Before looking at enrolments on higher education programmes, it should be noted thatthere is a small percentage of students in higher education institutions who arefollowing programmes at further education level. Table 1 shows the figures forenrolments at higher education and further education levels in 2006/07 andcomparisons with 1996/97 and 2005/06.

Table 1

Enrolments in higher

education institutions

by country on higher

education (HE) and

further education (FE)

programmes,

1997/98–2006/07

Section A

Trends in UK higher education

9

United Kingdom England Wales Scotland Northern Ireland

1997/98 Total all students 1,842,332 1,537,360 94,381 168,184 42,407

Total HE students 1,800,064 1,496,889 92,939 167,829 42,407

Total FE students 42,268 40,471 1,442 355 0

FE students as % of total 2.3% 2.6% 1.5% 0.2% 0.0%



Total FE students 123,785 115,205 8,530 50 0




Total FE students 115,610 103,210 12,375 25 -


HE percentage change 1997/98 to 2006/07 30% 29% 39% 29% 29%

HE percentage change 2005/06 to 2006/07 1% 1% 2% 4% -8%

FE percentage change 1997/98 to 2006/07 174% 155% 758% -93% n/a

FE percentage change 2005/06 to 2006/07 -7% -10% 45% -50% n/a

3 As was noted in previous Patterns report, the growth in the numbers and proportion ofstudents following further education programmes in higher education institutions inEngland and Wales (in which it is exclusively concentrated) over the last 10 years arosepartly because of the incorporation of former further education institutions within asmall number of higher education institutions, and partly from a data definitionalchange adopted by HESA in consultation with the UK education departments andfunding councils. This change to the definition of the standard population, introduced in2000/2001 and used in analysis by HESA, involves counting more students followingshort courses. It is believed to be a better way of capturing the totality of provisionwithin higher education institutions.2

4 As we pointed out in Patterns 7, the increase in enrolments in further education coursesat higher education institutions is now seen to have been reversed in England, althoughthere is still some growth in Wales.

5 Enrolments of higher education students have increased by 30 per cent overall over the10-year period 1997/98–2006/07, but by a greater percentage in Wales. Last yearhowever, enrolments in Northern Ireland declined.

6 Changes in data definitions have also had an impact on the counting of higher educationstudents across years. If consistent definitions are used, the growth in higher educationenrolments overall amounts to approximately 27 per cent over the period 1997/98–2006/07.

1 Almost all the statisticalinformation in this report isdrawn from HESA publications:in particular, the CD-Rompublications HE Finance Plusand HE Planning Plus, and alsothe Higher EducationManagement Statistics atinstitutional level and thevolumes of Students andResources of Higher EducationInstitutions. The presentation offigures within the tablesconforms to HESA’sconventions for the year inquestion: for example,numbers for the year 2006/07are rounded to the nearest five.All HESA publications arepublished by the HigherEducation Statistics AgencyLimited, 95 Promenade,Cheltenham, GL50 1HZ,telephone +44 (0) 12 4225 5577:further details are available athttp://www.hesa.ac.uk/products/pubs/home.htm

2 For more information, seehttp://www.hesa.ac.uk/holisdocs/pubinfo/student/changes.htm


10

7 Although this report analyses students enrolled within publicly-funded highereducation institutions, it does not generally cover students following courses at highereducation level in further education institutions or in privately funded higher educationinstitutions. 3

8 Consequently, a significant number of students following higher educationprogrammes in Scotland and Northern Ireland are excluded from this analysis, sincethere is a far higher proportion of students within those countries who begin orundertake their higher education experience within further education colleges, as isillustrated in table 2.

Table 2

Enrolments in higher

education level courses

within higher education

and further education

institutions, 2005/06

9 This table is not available for 2006/07 but, as for last year, the clear trend in theprovision of higher education courses is that a smaller proportion is being provideddirectly in further education colleges. Overall, the percentage of higher educationstudents being taught in further education colleges across the UK as a whole hasreduced from over 9 per cent in 2001/02 to 7.4 per cent in 2005/06. The absolutenumbers of higher education students in further education institutions declined overallby 3 per cent in the last year, and this reduction is consistent in all countries of the UK,with the exception of Wales, which has seen a small increase from a very low base.

10 Overall, across the UK, 12.1 per cent of part-time higher education enrolments are infurther education colleges; in Scotland, the figure is 26 per cent (compared with 30 percent in 2004/05). However, the definitions of full-time study in further educationcolleges varies across the four countries of the UK. The statistics would be more robustif common definitions were adopted.

11 Registrations on programmes at further education level within higher educationinstitutions and on programmes at higher education level within further educationinstitutions are excluded from the further analyses within this report, whichconcentrates on higher education enrolments at higher education institutions.

12 Table 3 shows enrolments at undergraduate and postgraduate level, by UK country ofinstitution and by mode of study in 2006/07, comparing them with 1997/98 and 2005/06.

3 The exception is the Universityof Buckingham, which hasbeen included in HESA datasince 2004/05. There is also noanalysis of students followingcourses in privately fundedhigher education institutions,because there is currently noprocess for collecting dataconsistently from thoseinstitutions.

Country Higher education Further education

institutions institutions All institutions

Total student % in FEFull-time Part-time Full-time Part-time Full-time Part-time enrolments institutions

England 1,173,550 762,870 31,425 90,725 1,204,975 853,595 2,058,570 5.9%

Wales 74,990 54,245 380 705 75,370 54,950 130,320 0.8%

Scotland 148,825 67,005 25,830 24,055 174,655 91,060 265,715 18.8%

Northern Ireland 35,675 18,950 3,990 8,815 39,665 27,765 67,430 19.0%

United Kingdom 1,433,040 903,070 61,625 124,300 1,494,665 1,027,370 2,522,035 7.4%



13 The change over time in these enrolment statistics is summarised in table 4.

Table 3

Enrolments by mode

and level, 1997/98,

2005/06 and 2006/07

11

United Northern

Year Level Mode of study Kingdom England Wales Scotland Ireland

1997/98 Postgraduate Full-time 143,521 117,577 7,151 14,909 3,884

Part-time 243,480 206,069 9,728 21,965 5,718

Total 387,001 323,646 16,879 36,874 9,602

Undergraduate Full-time 1,022,606 826,386 58,281 113,428 24,511

Part-time 390,457 346,857 17,779 17,527 8,294

Total 1,413,063 1,173,243 76,060 130,955 32,805

All students Full-time 1,166,127 943,963 65,432 128,337 28,395

Part-time 633,937 552,926 27,507 39,492 14,012

Total 1,800,064 1,496,889 92,939 167,829 42,407

Percentage Postgraduate 21.5% 21.6% 18.2% 22.0% 22.6%


Part-time 311,150 257,705 15,065 30,695 7,680

Total 545,370 454,440 25,275 53,985 11,670


Part-time 591,925 505,165 39,175 36,310 11,270

Total 1,790,745 1,481,980 103,955 161,845 42,960

All students Full-time 1,433,040 1,173,550 74,990 148,825 35,680

Part-time 903,075 762,870 54,240 67,005 18,950

Total 2,336,115 1,936,420 129,230 215,830 54,630



Part-time 316,320 260,605 16,490 32,350 6,880

Total 559,390 462,430 27,665 59,025 10,270


Part-time 594,780 508,955 38,095 38,390 9,335

Total 1,803,425 1,494,760 104,100 164,505 40,060

All students Full-time 1,451,715 1,187,640 77,180 152,795 34,110

Part-time 911,100 769,560 54,585 70,740 16,215

Total 2,362,815 1,957,190 131,765 223,530 50,325



12

14 Overall, there has been an increase of 31 per cent in all student enrolments from1997/98 to 2006/07.

15 This compares to a corresponding increase of 45 per cent at postgraduate level and 28per cent at undergraduate level over the same period. The increase is rather lessmarked at both levels than was the case in the 10 years up to 2005/06, as reported inPatterns 7. Student enrolments in Wales, however, have increased markedly over the10-year period, 1997/98–2006/07.

16 When the figures are disaggregated by mode, it can be seen that there is a noticeablygreater increase in the number of part-time enrolments than full-time enrolments atundergraduate level, and it is particularly in this area that the increases in Wales arerecorded. However, the increase in the number of full-time postgraduates significantlyexceeds that of part-time postgraduates.

17 While a significant proportion of the growth in part-time undergraduates can beattributed to a structural cause (the mainstreaming of the former continuing educationcourses in the pre-1992 universities in 1994/95), there is in fact a generally greaterincrease across the whole of the period in part-time enrolments as compared with full-time enrolments. Again it is important to take into account the redefinition of the HESAstandard population, which reports greater numbers following short part-timecourses. This has had a major effect on the year-to-year shift since the year 1999/2000.

18 The percentage change in enrolments at all levels from 2005/06 to 2006/07 has beensmall, although the reduction in enrolments of full-time students in Northern Ireland isworth noting.

Enrolments by gender

19 The last two Patterns reports provided information about the trend in studentenrolments in higher education institutions by gender, and this information is nowupdated. Table 5 looks at enrolments by level and gender for 2006/07.

United Northern

Kingdom England Wales Scotland Ireland

Overall changes

percentage change in enrolments of postgraduates, 1997/98 to 2006/07 44.5% 42.9% 63.9% 60.1% 7.0%

percentage change in enrolments of postgraduates, 2005/06 to 2006/07 2.6% 1.8% 9.5% 9.3% -12.0%

percentage change in enrolments of undergraduates, 1997/98 to 2006/07 27.6% 27.4% 36.9% 25.6% 22.1%

percentage change in enrolments of undergraduates, 2005/06 to 2006/07 0.7% 0.9% 0.1% 1.6% -6.8%

percentage change in all students, 1997/98 to 2006/07 31.3% 30.8% 41.8% 33.2% 18.7%

percentage change in all students, 2005/06 to 2006/07 1.1% 1.1% 2.0% 3.6% -7.9%

Change in part-time numbers

percentage change in enrolments of part-time postgraduates, 1997/98 to 2006/07 29.9% 26.5% 69.5% 47.3% 20.3%

percentage change in enrolments of part-time postgraduates, 2005/06 to 2006/07 1.7% 1.1% 9.5% 5.4% -10.4%

percentage change in enrolments of part-time undergraduates, 1997/98 to 2006/07 52.3% 46.7% 114.3% 119.0% 12.6%

percentage change in enrolments of part-time undergraduates, 2005/06 to 2006/07 0.5% 0.8% -2.8% 5.7% -17.2%

Change in full-time numbers

percentage change in enrolments of full-time postgraduates, 1997/98 to 2006/07 69.4% 71.7% 56.3% 79.0% -12.7%

percentage change in enrolments of full-time postgraduates, 2005/06 to 2006/07 3.8% 2.6% 9.5% 14.6% -15.0%

percentage change in enrolments of full-time undergraduates, 1997/98 to 2006/07 18.2% 19.3% 13.3% 11.2% 25.3%

percentage change in enrolments of full-time undergraduates, 2005/06 to 2006/07 0.8% 0.9% 1.9% 0.5% -3.1%

Table 4

Overall change by

mode and level,

1997/98–2006/07



20 Female students outnumber males at all modes and levels, and it is only among full-time postgraduates (which are dominated by non-UK students) that male studentsapproach parity.

21 Comparative figures for the previous academic year – 2005/06 – are set out in table 6.There is very little change, although the proportion of males has slightly increasedamong part-time undergraduate students.

Table 5

Enrolments by level

and gender, 2006/07

Table 6

Enrolments by level

and gender, 2005/06

Table 7

Enrolments by level

and gender, 1997/98

22 Finally, in order to assess the long-term trend, table 7 shows the situation in 1997/98.

PercentageLevel and mode of study Total Female Male male

Full-time students

Postgraduate 243,070 123,065 120,005 49.4%

First degree 1,086,080 590,825 495,255 45.6%

Other undergraduate 122,570 83,555 39,010 31.8%

Total full-time 1,451,720 797,445 654,270 45.1%

Part-time students

Postgraduate 316,320 175,715 140,605 44.5%

First degree 201,145 121,990 79,160 39.4%


Total part-time 911,095 554,975 356,120 39.1%


Full-time students

Postgraduate 234,220 118,675 115,550 49.3%

First degree 1,073,775 582,950 490,825 45.7%


Total full-time 1,433,035 787,300 645,740 45.1%

Part-time students

Postgraduate 311,150 172,640 138,505 44.5%

First degree 205,080 125,130 79,950 39.0%


Total part-time 903,070 551,875 351,190 38.9%


Full-time students

Postgraduate 143,521 66,947 76,574 53.4%

First degree 899,719 464,535 435,184 48.4%


Total full-time 1,166,127 605,760 560,367 48.1%

Part-time students

Postgraduate 243,480 118,653 124,827 51.3%

First degree 89,670 51,734 37,936 42.3%


Total part-time 633,937 349,578 284,359 44.9%

13


14

23 A comparison of tables 5 and 7 shows that at all modes and levels, the proportion offemale students enrolled in higher education institutions has increased by at leastthree percentage points – and in some instances considerably more – over the 10-yearperiod 1997/98–2006/07. Chart 1 illustrates the changes.

Chart 1

Percentage

male students

by mode and

level, 1997/98

and 2006/07

p1997/98

p2006/07

Enrolments by subject

Methodological considerations

24 Previous Patterns reports have described, on a time series basis, the trends in studentenrolments by subject, and in each of the major subject area groupings. As was thecase last year, this exercise involves two complications.

25 The first is that, in 2002/03, HESA introduced a new subject classification, which had theeffect of aligning its subject codes with those used by the Universities and CollegesAdmissions Service (UCAS). In the process, a precise correspondence with the codesused in previous years was lost. At the aggregated subject area level, thecategorisations are very close, with one exception: introducing the new subject coding,together with a new (and improved) methodology for calculating principal subjects ofstudy, had the effect of significantly reducing the ‘combined’ subject area. Noadjustments will be made for this change. However, it should be taken into account thatthe precise components of each subject area are somewhat different in 2006/07compared to the equivalent components before 2002/03.

26 The second complication is more significant. Historically, the Open University, which isthe largest provider of undergraduate higher education, reported all of its studentswithin the ‘combined’ subject area. In 2002/03 for the first time, many of the university’sstudents were reported according to the main subject of the qualification for which theywere enrolled. It follows that, both at individual subject level, and also at the level ofaggregated subject areas, there has been a major shift from the ‘combined’ subjectarea into the other subjects and subject areas. The new position gives a better pictureof the overall enrolment by subject; but the time series comparison with previous yearsis distorted considerably. We described the effect of this change in Patterns 7, which setout a new baseline for timescale comparisons.

27 Consequently, table 8 shows the absolute and relative enrolments in each of the 19conventional subject areas in the most recent two years, and the percentage change.The figures include all students, irrespective of level, mode or domicile.

Full-time other

UG

Full-time first

degree

Part-time other

UG

Part-time first

degree

Full-time PG Part-time PG

60%

50%

40%

30%

20%

10%

0%



28 In table 9, the figures for 2006/07 are re-presented alongside the 1997/98 figuresadjusted according to the new subject definitions to enable comparisons, except thatthe ‘combined’ subject area (which showed a 64 per cent reduction primarily as a resultof the redistribution of the Open University students) is shown below the sub-total ofother subject areas. In this way it is possible to identify a meaningful comparativepercentage change for the sum of the other subject areas over the period in question.

Table 8


area, 2005/06 and

2006/07

15

Percentage

Student Student change,

enrolments, Percentage enrolments, Percentage 2005/06 to

Subject area 2005/06 of total 2006/07 of total 2006/07

Medicine and dentistry 59,585 2.6% 63,245 2.7% 6.1%

Subjects allied to medicine 309,405 13.2% 300,900 12.7% -2.7%

Biological sciences 155,220 6.6% 164,215 6.9% 5.8%

Veterinary science 4,465 0.2% 4,875 0.2% 9.2%

Agriculture and related subjects 17,275 0.7% 16,085 0.7% -6.9%

Physical sciences 82,740 3.5% 83,905 3.6% 1.4%

Mathematical sciences 32,425 1.4% 33,790 1.4% 4.2%

Computer science 120,150 5.1% 106,910 4.5% -11.0%

Engineering and technology 136,695 5.9% 140,580 5.9% 2.8%

Architecture, building and planning 56,445 2.4% 60,525 2.6% 7.2%

Social studies 201,075 8.6% 201,720 8.5% 0.3%

Law 89,580 3.8% 90,845 3.8% 1.4%

Business and administrative studies 304,405 13.0% 310,255 13.1% 1.9%

Mass communications and documentation 47,805 2.0% 47,935 2.0% 0.3%

Languages 139,190 6.0% 139,715 5.9% 0.4%

Historical and philosophical studies 101,445 4.3% 103,215 4.4% 1.7%

Creative arts and design 156,180 6.7% 160,525 6.8% 2.8%

Education 207,705 8.9% 216,330 9.2% 4.2%

Combined 114,315 4.9% 117,245 5.0% 2.6%

All subjects 2,336,105 100% 2,362,815 100% 1.1%


16

29 It should be noted that the large increase in the numbers of enrolments in subjectsallied to medicine (predominantly nursing) has an obvious (compensatory negative)effect on the proportions of the sector made up by the other subject areas, since theincrease in this subject area constitutes a quarter of the overall change in studentenrolments.

30 The percentage change in the numbers within each subject area is therefore illustratedin chart 2.

Student Percentage Percentage Absolute Percentage

numbers of total Student of total change, change,

1997/98 excluding numbers excluding 1997/98 1997/98

Subject area (adjusted) combined 2006/07 combined to 2006/07 to 2006/07

Medicine and dentistry 41,959 2.8% 63,245 2.8% 21,286 50.7%

Subjects allied to medicine 164,899 11.2% 300,900 13.4% 136,001 82.5%

Biological sciences 96,337 6.5% 164,215 7.3% 67,878 70.5%

Veterinary sciences 3,348 0.2% 4,875 0.2% 1,527 45.6%

Agriculture and related subjects 15,184 1.0% 16,085 0.7% 901 5.9%

Physical sciences 72,285 4.9% 83,905 3.7% 11,620 16.1%

Mathematical sciences 21,184 1.4% 33,790 1.5% 12,606 59.5%

Computer science 77,987 5.3% 106,910 4.8% 28,923 37.1%

Engineering and technology 130,926 8.9% 140,580 6.3% 9,654 7.4%

Architecture, building and planning 45,002 3.1% 60,525 2.7% 15,523 34.5%

Social studies 122,390 8.3% 201,720 9.0% 79,330 64.8%

Law 57,441 3.9% 90,845 4.0% 33,404 58.2%

Business and administrative studies 222,137 15.1% 310,255 13.8% 88,118 39.7%

Mass communications and documentation 20,718 1.4% 47,935 2.1% 27,217 131.4%

Languages 91,989 6.2% 139,715 6.2% 47,726 51.9%

Historical and philosophical studies 61,288 4.2% 103,215 4.6% 41,927 68.4%

Creative arts and design 93,650 6.4% 160,525 7.1% 66,875 71.4%

Education 135,416 9.2% 216,330 9.6% 80,914 59.8%

Sub-total excluding combined 1,474,140 100.0% 2,245,570 100.0% 771,430 52.3%

Combined 325,924 117,245 -208,679 -64.0%

Total all subjects 1,800,064 2,362,815 562,751 31.3%

Table 9


area, 1997/98 and

2006/07 (adjusted)



5 A full explanation of thechanges in the subjectclassification is available at:http://www.hesa.ac.uk/jacs/jacs.htm

4 We are looking here at theprincipal subject ofqualification aim, as identifiedby HESA.

17

31 There have been above average increases in enrolments since 1997/98 in subjectsallied to medicine, biological sciences, mathematical sciences, law, masscommunication and documentation, historical and philosophical studies, and creativearts and design. This year, for the first time, education and social studies are also seento show an above average increase.

32 Changes in enrolments in languages, veterinary science and medicine are broadly inline with the average increase.

33 While no subject area has seen a significant absolute reduction in student numbersfrom 1997/98 to 2006/07, there have been only low levels of increase in enrolments inarchitecture, building and planning, engineering and technology, the physical sciences,agriculture and business and administrative studies (the last of which has been one ofthe most popular subject areas in recent years).

34 This simple analysis by broad subject group however does not do full justice to the verysignificant shifts in emphasis in higher education courses during the 10 years underinvestigation. It is important to consider the specific subjects4 being studied in orderfully to assess the nature of the changes.

35 As part of this analysis, it is necessary to be aware of the significant changes that tookplace in the categorisation of subjects in 2002/03. Examples of these changes include:

ppsychology is now classified as a single subject, whereas it was previously identified astwo separate subjects, depending on whether its major orientation was scientific orsocial;

pphysical geography is now combined with the former environmental sciences subject;

pelectronic engineering and electrical engineering have merged into a single subject‘electronic and electrical engineering’;

psports science is identified as a subject in its own right, having previously been splitbetween other related subjects;

ppharmacy and pharmacology have merged;

phistory of art is no longer identifiable, having been subsumed within history by topic.5

Chart 2

Percentage change in

enrolments by subject

area, 1997/98-2006/07

140%

120%

100%

80%

60%

40%

20%

0%

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His

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Soci

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s

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Agr

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and

rela

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18

36 The table in Appendix 1 sets out the numbers of students following individual subjectsas their main qualification aim in each of the years 1997/98 and 2006/07, subject to thecaveats listed above. This table is limited to subjects that can be clearly identified, andgenerally ignores ‘balanced combinations’, ‘broadly-based programmes’, and so on.The table does not distinguish by mode, level or intensity of study: it simply reports onthe numbers of enrolments within each subject.

37 The populations and definitions used in Appendix 1 and in the following analysis arebased on those in the relevant HESA publications. A more detailed analysis shows that:

pEnrolments within medicine and dentistry have risen by 51 per cent, in line with theoverall increase of 52 per cent. Changes in the structure of clinical degrees have led toa shift from pre-clinical to clinical studies.

pWithin subjects allied to medicine, nursing has seen an increase of over 82 per cent.This is largely a product of the shift of funding of nursing courses into the highereducation sector. Significant increases are also reported in pharmacy andpharmacology6 (81 per cent), nutrition (205 per cent), aural and oral sciences (464 percent though from a low base), anatomy, physiology and pathology (212 per cent) andmedical technology (148 per cent).

pWithin biological sciences most subjects show a below average increase in studentnumbers, except microbiology, which shows an increase of 87 per cent, and psychology,which shows a 99 per cent increase7. Botany shows an actual reduction in enrolmentsof 18 per cent.

pThere has been an increase in enrolments in veterinary science of 46 per cent, slightlybelow the average.

pReclassifications within agriculture and related subjects make time seriescomparisons impossible at the detailed subject level for this subject area.

pWithin the physical sciences area, chemistry has seen a reduction of 11 per cent andphysics an increase of only 7 per cent (compared with an actual reduction reported inthe previous 10-year comparison). However, there have been large increases inastronomy (176 per cent) and ocean sciences (75 per cent). Geology shows a slightlybelow average increase (47 per cent).

pSubjects within the area of mathematical sciences generally show increases in theirrecorded student populations, thus confirming a trend that was tentatively identifiedthree years ago. It can be argued, however, that these increases are partly a result ofthe changing definitions and apportionment algorithms adopted by HESA over theperiod. For the third time since these figures were first published, mathematics itselfagain shows an above average increase in enrolments (70 per cent). Statistics andoperational research show modest absolute increases.

pAfter adjusting for new definitions, we see a rise of 37 per cent in enrolments incomputer science, significantly below the norm, after several years in which it showedabove average increases over a 10-year period, for example in the 10-year period1996/97–2005/06.

pEnrolments in most subjects in the engineering and technology subject area havedecreased, or show below average increases. There have, for example, been significantabsolute reductions in enrolments in minerals technology, production engineering andpolymers and textiles. Electronic and electrical engineering shows an increase inenrolments of only 11 per cent, general engineering 27 per cent and civil engineering28 per cent, compared with the mean of 52 per cent. Only aerospace engineering hasshown a significant increase in enrolments (91 per cent) over the 10-year period.

pWithin the architecture, building and planning area, enrolments in architecture haveincreased by 51 per cent, which is in line with the average rise, but it is offset by a belowaverage increase in the numbers of students following courses in building (28 per cent)and planning (22 per cent).

6 Under the new subjectclassification it is no longerpossible to distinguishbetween pharmacy andpharmacology.

7 Psychology is now classifiedas a single subject includingboth scientific and socialpsychologies: the figures havebeen adjusted to recognisethis.



pMost aspects of social studies report an improved situation compared with earlieryears, with percentage increases in enrolments generally at or above the average level.Notable increases are found in social work (117 per cent), human and social geography(69 per cent), and politics (85 per cent).

pThere has been a 58 per cent increase in enrolments in law, slightly above average forthe sector as a whole.

pThe business and administrative studies subject area – as now reclassified – presentssome difficulties in analysis over time. The combined areas of business andmanagement studies show an average increase of 50 per cent, although this mayoverstate the position, as some other aspects of management are not separatelyrecorded now. While accounting shows an increase of only 33 per cent, enrolments infinance have more doubled: marketing also shows an above average rise.

pWithin the area of mass communications and documentation, media studies shows anincrease of 296 per cent between 1997/98 and 2006/07 while journalism has increasedby 48 per cent. On the other hand, information services, including librarianship, onlyshows an increase in enrolments of one per cent.

pThe languages area has seen some significant reclassifications of subjects, andcomparisons are difficult. Major increases are seen for English studies (96 per cent),and French studies (86 per cent), the latter being a reversal of an earlier relativedecline, although derived partly perhaps from a transfer from the combined group.Among less popular languages, Italian and Spanish continue to show very largepercentage increases (over 100 per cent). Celtic studies and classical studies also showmarked increases.

pAll subjects within the areas of historical and philosophical studies continue to berelatively buoyant in terms of overall enrolments, with the exception of history itself,which is now showing an increase slightly below the average. Theology and religiousstudies have shown an increase of 72 per cent, while archaeology and philosophy haveincreased beyond the average: indeed, enrolments in philosophy have almost doubled.

pCreative arts and design subjects also continue to show a significant increase (71 percent overall): enrolments in music have almost doubled, those in drama have morethan doubled, and there is an increase of 296 per cent in cinematics.

pThe rise in enrolments in education is, for the first time in many years, above theaverage increase across all subjects. Teacher training programmes however show abelow average increase.

38 In summary, there have been major changes in the subject enrolments of students onhigher education courses in the UK between 1997/98 and 2006/07.

Subject coverage

39 This section considers the spread of teaching provision throughout the UK asrepresented by the numbers of institutions teaching specific subjects.

40 Some earlier Patterns reports suggested that there was little correlation between thenumber of students studying a subject nationally and the number of institutions whichmade provision for this subject as a ‘principal subject of qualification aim’. As aconsequence, the average population of subjects within institutions varied widely. Thefifth and sixth Patterns reports suggested that the number of institutions teachingparticular subjects was coming more closely into line with movements in studentnumbers. The seventh Patterns report did not include this particular analysis, becauseits focus was on strategic and vulnerable subjects.

19


20

41 This year our analysis resumes. It follows broadly the approach in Patterns 6. Table 10shows the number of institutions teaching a subject to more than 20 students, in orderto eliminate data deficiencies, and shows all subjects which, in the most recent year,attracted more than 12,000 students across all of the higher education institutions inthe United Kingdom. No distinction is made between modes, levels or domicile ofstudents in this analysis. The table therefore shows comparative information for1997/98 and for 2006/07. In total there were 174 higher education institutions in1997/98 and 169 in 2006/07.

42 Analysis of changes in subject coverage is of course complicated by the new subjectclassification’s changed definitions, referred to above. As far as possible, the figures intable 10 have been adjusted to make it possible to compare from year to year, but thereis not always a precise correspondence.



Table 10

Numbers of institutions making

provision for teaching of major

subjects, 1997/98 and 2006/07

21

Studentnumbers

Number ofhigher

educationinstitutions

Averagenumber of

studentsper highereducationinstitution

Studentnumbers

Number ofhigher


Averagenumber of


percentagechange in

studentnumbers

Percentagechange in

number ofhigher


teaching thesubject

percentagechange in

averagenumber of


1997/98 2006/07 1997/98 to 2006/07

Subject

Business and management studies 133,925 120 1,116 200,330 134 1,495 50% 12% 34%

Nursing 100,640 85 1,184 183,580 85 2,160 82% 0% 82%

Computer science 77,987 115 678 105,625 121 873 35% 5% 29%

Training teachers 66,369 95 699 94,340 109 866 42% 15% 24%

Academic studies in education 27,339 98 279 87,210 111 786 219% 13% 182%

Law 57,441 86 668 86,010 101 852 50% 17% 27%

Psychology 36,483 100 365 72,475 113 641 99% 13% 76%

English studies 30,747 97 317 60,310 116 520 96% 20% 64%

Design studies 42,819 74 579 59,345 86 690 39% 16% 19%

Social work 27,263 107 255 59,190 100 592 117% -7% 132%

Medicine 36,611 32 1,144 55,475 43 1,290 52% 34% 13%

History 37,205 108 344 53,510 108 495 44% 0% 44%

Sociology 22,816 102 224 32,845 104 316 44% 2% 41%

Politics 17,703 78 227 32,760 88 372 85% 13% 64%

Electronic and electrical engineering 29,219 95 308 32,345 92 352 11% -3% 14%

Accounting 23,508 71 331 31,310 90 348 33% 27% 5%

Economics 21,789 80 272 30,225 74 408 39% -8% 50%

Mathematics 16,801 86 195 28,590 86 332 70% 0% 70%

Biology 23,100 91 254 27,580 99 279 19% 9% 10%

Media studies 6,873 38 181 27,225 102 267 296% 168% 48%

Music 13,377 68 197 25,560 93 275 91% 37% 40%

Drama and Dance 11,172 67 167 24,560 97 253 120% 45% 52%

Building 18,696 51 367 23,990 58 414 28% 14% 13%

Marketing 13,119 59 222 23,895 90 266 82% 53% 19%

Mechanical engineering 21,983 83 265 22,600 81 279 3% -2% 5%

Civil engineering 17,319 66 262 22,115 63 351 28% -5% 34%

Pharmacology, toxicology and pharmacy 11,959 41 292 21,675 52 417 81% 27% 43%

General engineering 17,027 72 236 21,665 77 281 27% 7% 19%

Finance 9,199 52 177 20,690 76 272 125% 46% 54%

Physical and terrestrial geographical and environmental sciences 23,839 102 234 20,530 82 250 -14% -20% 7%

Architecture 13,406 43 312 20,295 57 356 51% 33% 14%

Fine art 15,161 69 220 20,185 85 237 33% 23% 8%

Chemistry 22,010 80 275 19,585 70 280 -11% -13% 2%

Theology and religious studies 10,009 53 189 17,255 51 338 72% -4% 79%

Anatomy, physiology and pathology 5,431 36 151 16,930 64 265 212% 78% 75%

Cinematics and photography 4,057 33 123 16,055 74 217 296% 124% 76%

Physics 13,982 64 218 14,935 51 293 7% -20% 34%

Human and social geography 7,894 56 141 13,325 71 188 69% 27% 33%

French studies 6,994 59 119 12,975 66 197 86% 12% 66%

Social policy 8,600 54 159 12,870 71 181 50% 31% 14%

Planning 9,900 41 241 12,080 41 295 22% 0% 22%


22

43 There is now a fairly close correlation between the movements in student numbers andthe numbers of institutions making provision for particular subjects. There are howevera few notable outliers to this: for example, both social work and theology showsignificant increases in student enrolments, alongside a reduction in the numbers ofinstitutions making such provision.

Changes in subject balance of full-time first-degree students

44 Longer-term trends in the enrolment of full-time first degree students may provide aninteresting commentary on the trends presented above. These can be tracked withsome degree of confidence over the 12 years since the data for higher educationinstitutions throughout the UK was first collected on a consistent basis.

45 Chart 3 shows the trends in each subject group, continuing the series that hasappeared in previous Patterns reports.

Chart 3

Percentage of full-

time first-degree

students in each

subject area,

1994/95– 2006/07

p1994/95

p1995/96

p1996/97

p1997/98

p1998/99

p1999/00

p2000/01

p2001/02

p2002/03

p2003/04

p2004/05

p2005/06

p2006/07

46 In considering chart 3, it is important to remember that there has been a majormovement away from the ‘combined’ subject group in the last four years from 2002/03,for purely structural reasons. Allowing for this, the graph shows a consistent reductionin enrolments in physical sciences (marginally reversed in 2005/06 and 2006/07) and inengineering and technology. As noted previously, the reduction in enrolments inlanguages appears to have been arrested and indeed reversed. However, this may bepartly because of the reassignment of courses from the ‘combined’ subject group. Thesame may be true of mathematical sciences.

47 Computer science continues to experience a negative trend in enrolments, as doagricultural subjects.

48 On the other hand, there has been a consistent increase in enrolments in subjectsallied to medicine, biological sciences (primarily because of the effect of increasingenrolments in psychology) and creative arts and design. Education appears also toshow a modest proportional increase.

Trends in EU and international enrolments

49 Turning now to the domicile of students, table 11 shows absolute and relative numbersof students from the UK, other EU countries and countries from outside the EU(international)8, for 2006/07, with comparisons for 2005/06. It also provides the changein student numbers over the 10-year period 1997/98–2006/07.

8 In this report ‘international’refers to non-EU domiciledstudents and ‘EU’ refers toEU (excluding the UK)domiciled students.

16%

14%

12%

10%

8%

6%

4%

2%

0%

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50 From 1997/98 to 2006/07, there has been a considerably greater increase in the numberof students from non-EU countries than from the UK or the other countries of the EU.Non-EU international student numbers have more than doubled over the 10-yearperiod, and increased by 7 per cent since 2005/06. Enrolments from other countries ofthe EU continue to show a greater increase than UK-domiciled students, and, as notedin the last Patterns report, this is to a considerable extent related to the enlargement ofthe EU.

51 Appendix 2 contains more detailed information about the enrolment of students fromparticular regions and countries. From this it is possible to see which countries are themajor suppliers of students to the UK. This information is summarised in table 12.

Table 11

Enrolments of students

by domicile, 1997/98,

2005/06 and 2006/07

23

Year Domicile Student numbers percentage of total

1997/98 UK 1,586,800 88.2%

EU 96,424 5.4%

International 116,840 6.5%

All 1,800,064 100.0%

2005/06 UK 2,006,035 85.9%

EU 106,225 4.5%


All 2,336,110 100.0%

2006/07 UK 2,011,345 85.1%

EU 112,260 4.8%


All 2,362,815 100.0%

Percentage change 1997/98 to 2006/07 UK 27%

EU 16%

International 105%

All 31%

Percentage change 2005/06 to 2006/07 UK 0%

EU 6%

International 7%

All 1%


24

52 China9 continued to be clearly the most significant provider of students to UK highereducation across most levels of study, although its absolute numbers have declined atfirst-degree level since 2005/06. India features very strongly among postgraduatetaught degree students. Students from the United States are also prominent, especiallyat other undergraduate and postgraduate levels.

53 Undergraduate enrolments of students from the Republic of Ireland have declinedsomewhat, presumably in response to the changed fee regime in the Republic.

54 The decline among undergraduate students from Africa noted in last year’s Patternsreport appears to have been arrested and enrolments at taught postgraduate degreelevel are strong.

55 Countries of the Middle East and South Asia feature prominently among postgraduateresearch students, including students from India, Malaysia, Pakistan, Saudi Arabia,Iran, Libya, and Egypt.

9 Note that Hong Kong, Taiwanand Macao are distinguishedfrom China in this analysis.

Other Post graduate Post graduate

Country First degree Country undergraduate Country degree (taught) Country degree (research)

China 18,410 United States 3,620 China 21,620 China 5,170

Malaysia 7,710 China 3,245 India 15,500 United States 3,480

Republic of Ireland 7,600 France 2,395 Greece 7,095 Greece 3,085

Hong Kong 6,660 Republic of Ireland 2,125 Nigeria 5,440 Germany 2,525

Germany 6,050 Germany 1,870 United States 5,250 India 1,985

France 5,930 Spain 1,605 Pakistan 4,870 Malaysia 1,880

Cyprus 5,580 India 1,380 Taiwan 4,260 Italy 1,845

Greece 4,890 Poland 920 Republic of Ireland 3,525 France 1,330

India 4,080 Japan 915 Germany 3,120 Canada 1,300

Poland 3,900 Zimbabwe 785 France 2,940 Taiwan 1,270

Nigeria 3,550 Nigeria 720 Thailand 2,285 Republic of Ireland 1,235

United States 3,120 Italy 595 Cyprus 2,130 Thailand 1,155

Pakistan 2,720 Greece 565 Canada 1,845 Saudi Arabia 1,000

Spain 2,385 Hong Kong 450 Japan 1,715 Pakistan 960

Sweden 2,175 Philippines 445 Malaysia 1,575 Mexico 875

Japan 2,050 Pakistan 395 Italy 1,490 South Korea 865

Singapore 1,990 South Korea 370 Ghana 1,415 Portugal 855

Norway 1,795 Saudi Arabia 365 Hong Kong 1,410 Spain 845

South Korea 1,760 Taiwan 360 Poland 1,270 Japan 820

Italy 1,755 Malaysia 335 South Korea 1,235 Nigeria 775

Sri Lanka 1,580 Cyprus 315 Spain 1,170 Iran 760

Kenya 1,540 Australia 295 Turkey 1,055 Hong Kong 720

Belgium 1,510 South Africa 265 The Netherlands 920 Egypt 685

Portugal 1,355 Canada 265 Saudi Arabia 900 Libya 650

Canada 1,315 Sweden 245 Russia 870 Cyprus 565

Table 12

Major countries

supplying students to

UK higher education

institutions, by level of

study, 2006/07



Trends in income

56 Finally, this section concludes with trends in the sources of income received by highereducation institutions. The data is presented for the latest year, 2006/07, the previousyear 2005/06, and for the financial year 2000/01 as a baseline: it cannot be analysedover a longer timescale because of changes in data definitions.

57 Table 13 summarises the main sources and levels of income for these three years, forthe United Kingdom as a whole and for its four constituent countries, and also showsthe percentage changes. Appendix 3 contains more detailed data about the individualcomponents of each income stream.

Table 13

Main sources of income

received by UK higher

education institutions,

2000/01, 2005/06 and

2006/07, £K (cash

terms)

UK England Wales Scotland Northern

Ireland

2000/01

Funding council grants 5,355,777 4,299,885 286,350 632,513 137,029

Tuition fees, education grants and contracts 3,048,579 2,589,365 131,262 275,368 52,584

Research grants and contracts 2,207,228 1,812,384 78,807 278,265 37,772

Other income 2,589,948 2,121,062 132,108 296,152 40,626

Endowment and investment income 292,387 245,949 12,533 30,948 2,957

Total income 13,493,919 11,068,645 641,060 1,513,246 270,968

2005/06


Tuition fees and education grants and contracts 4,640,799 3,941,168 199,399 434,585 65,647


Other income 3,854,546 3,223,825 204,996 350,320 75,405


Total income 19,503,112 16,114,968 917,542 2,064,336 406,266

2006/07


Tuition fees and education grants and contracts 5,413,985 4,649,073 214,995 470,144 79,773


Other income 4,077,385 3,416,751 209,967 371,536 79,131


Total income 21,289,853 17,591,618 1,005,046 2,258,574 434,615

Percentage change, 2005/06 to 2006/07

Funding council grants 6% 5% 15% 10% 5%

Tuition fees and education grants and contracts 17% 18% 8% 8% 22%

Research grants and contracts 8% 8% 8% 11% -1%

Other income 6% 6% 2% 6% 5%

Endowment and investment income 14% 13% 6% 22% 33%

Total income 9% 9% 10% 9% 7%

Percentage change, 2000/01 to 2006/07

Funding council grants 50% 50% 51% 49% 47%

Tuition fees and education grants and contracts 78% 80% 64% 71% 52%

Research grants and contracts 53% 51% 67% 55% 85%

Other income 57% 61% 59% 25% 95%

Endowment and investment income 34% 33% 28% 39% 77%

Total income 58% 59% 57% 49% 60%

25


26

58 Since 2005/06, the sector has seen an increase in income of the order of 9 per cent,achieved partly through increases in tuition fee income, especially in England.Endowment and investment income also shows an improvement as compared withearlier years. Most of this increased income, especially that for research grants and forresearch and educational contracts, will have resulted in commensurate increases inexpenditure.

59 Since 2001 there has been an increase in total income, and of most incomecomponents, of more than 50 per cent.

60 Over the seven-year period – 2000/01–2006/07 – the total number of students in the UK(full-time equivalents) increased by 16.6 per cent and general inflation in the UKeconomy (measured by the GDP deflator) increased by 17.2 per cent. During this periodthe Higher Education Pay and Prices Index which measures price increases within thehigher education sector (including pay increases), showed an increase of 23.3 percent.10

10 Universities UK (2007) Highereducation pay and prices indexLondon: Universities UK.Available athttp://bookshop.universitiesuk.ac.uk/downloads/HEPPIJuly07.pdf



61 Section B shows, in graphical form, the distribution of various features across highereducation institutions. It points out time series comparisons and trends, wherepossible.

62 Not all institutions are included within all the charts. Some institutions recently joiningthe sector do not have available data. In those charts that are derived directly orindirectly from Universities and Colleges Admissions Service (UCAS), data frominstitutions that do not admit students through UCAS are excluded. The studentpopulation in these charts is limited to those who are admitted through the UCAS (andrelated) systems and any students directly admitted to the institution are thereforeomitted, although they are included in charts that are not directly derived from UCASdata.

63 Four main themes are addressed:

pbalance of provision;

pstudent characteristics and outcomes;

paspects of staffing in higher education institutions;

p financial issues.

64 Throughout this section, unless otherwise indicated, HESA publications are the sourceof the data.

Number of institutions in the sector

65 Before addressing the balance of provision in higher education, it should be noted that,since the publication of the last Patterns report, the structure of the sector has changedslightly.

66 A number of mergers have taken place since 1994/95. The common pattern forinstitutional mergers in recent years has been the absorption of specialist colleges intothe pre-1992 universities, although this pattern is not universal.

67 Since 2005/06, no new institutional mergers have taken place, although there has beena transfer of a campus from De Montfort University to the University of Bedfordshire.Two institutions, both specialist colleges in the performing arts, have joined the sector.

68 In total, therefore, this report describes the features of 169 higher educationinstitutions. Since 1994/95, the number of institutions within the sector has reducedfrom 186, a decline of 10 per cent.

69 Appendix 4 lists the mergers that have taken place since 1994/95.

Institutional charts

70 Several charts show the distribution of institutions in relation to various features.Within them, the median position and the upper and lower deciles are shown for eachchart, with last year’s figures in parentheses where these can be directly compared.The text also comments on changes since the first Patterns volume was published,using data from 1998/99.

71 There is no suggestion that these charts are in any way “performance indicators”:rather, they are designed to illustrate the shape of the sector as it changes over time.

Section B

Patterns of institutional diversity

27


28

Balance of provision

72 The balance of provision within higher education institutions is considered in fouraspects:

pdifferent levels of study;

p full-time and part-time provision;

pUK, EU and international students;

psubject.

73 The following charts analyse the balance by level of study.

74 Institutional chart 1 cannot be directly compared with those in early Patterns reports,which include data from 1998/99, due to a change in methodology. Since 2001/02 therehas been an increase of two percentage points in the median. However, in recent yearsthe lower decile has declined slightly following that some former further educationinstitutions have been absorbed into the higher education sector. The typical highereducation institution has almost a quarter of its higher education students followingcourses at postgraduate level.

75 To put these figures into context, institutional charts 2 and 3 show the distribution ofabsolute numbers of enrolments at postgraduate and undergraduate levels within UKhigher education institutions with the figures for 2005/06 in parentheses.

Institutional chart 1

Percentage of students

following postgraduate

programmes, 2006/07 100%

80%

60%

40%

20%

0%

Lower decile 10%

(10%)

Median 23%

(22%)

Upper decile 40%

(40%)



Absolute numbers of

undergraduate

enrolments, 2006/07


76 These two charts show a clear increase in postgraduate enrolments across the sectoras a whole, and a fall in undergraduate enrolments, again across the whole sector, soconfirming the aggregate figures reported in Section A of this report.

77 Institutional chart 4 shows those undergraduate programmes which lead toqualifications other than first degrees.


Absolute numbers of

postgraduate

enrolments, 2006/07

29

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

Lower decile 183

(174)

Median 3016

(2843)

Upper decile

7221 (7123)

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

Lower decile 572

(644)

Median 9111

(9668)

Upper decile

19232 (20080)


30

78 Since 1998/99 the median has declined by one percentage point, the upper decile isdown one percentage point and the lower decile is unchanged. Change in 2006/07 hasbeen slight, but shows a modest dip as compared with each of the last two years. Themodest reduction in sub-degree qualifications shown in this chart replicates the overalltrend in undergraduate qualifications generally.

79 Turning now to the balance between full-time and part-time enrolments, institutionalchart 5 analyses the balance by mode of study.

80 Since 1998/99 the median is up 11 percentage points, the upper decile is up 20percentage points and the lower decile is down 2 percentage points. Because ofchanges in definitions we should treat the figures with caution, although there hasundoubtedly been a marked increase in part-time numbers. There are differentcategories of part-time students. They include not only those on undergraduate andpostgraduate degree programmes, but also students following courses of personal andprofessional updating that may be at either level, and that encompass a broad range ofstructures and content.


Percentage of

enrolments in

undergraduate

programmes not

directly leading to first

degrees, 2006/07


Percentage of part-

time enrolments,

2006/07

90%

80%

70%

60%

50%

40%

30%

20%

10%

0

Lower decile 0%

(0%)

Median 15%

(16%)

Upper decile 38%

(38%)

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0

Lower decile 7%

(7%)

Median 29%

(28%)

Upper decile

48% (49%)



Enrolments of

international (non-EU)-

domiciled students,

2006/07


81 Institutional chart 5 and its predecessors have tentatively suggested a trend for greaterdifferentiation in the provision of part-time higher education courses, with institutionsthat already have significant part-time provision expanding it; although the most recentfigures show an increase in the median, implying a further movement towards part-time provision within the sector as a whole.

82 As the previous Patterns report identified and as noted in Section A, the growth of studentnumbers coming from countries outside the EU has significantly outstripped the growthin enrolments of home and EU-domiciled students during recent years. We now addressthe institutional distribution of EU and international students. Institutional charts 6, 7 and8 show the numbers of EU and non-EU students enrolled on programmes of study athigher education institutions in the UK, both in total, and disaggregated between studentsfrom other EU countries and from outside the EU (international).

83 Since 1998/99 the median is up by 55 per cent, the upper decile is up by 65 per cent andthe lower decile is up by 280 per cent, although of course from a low base.

84 Clearly, institutions across the spectrum have seen significant increases in thenumbers of students from outside the UK. Since 2001/02, the number of institutionswith more than 5,000 students enrolled from outside the UK has risen from three to 14.


Enrolments of all

non-UK-domiciled

students, 2006/07

31

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Lower decile 106

(101)

Median 1758

(1509)

Upper decile

4711 (4330)

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Lower decile 59

(47)

Median 1034

(1007)

Upper decile 3435

(3185)


32

85 Since 1998/99 the median is up by 112 per cent, the upper decile is up by 110 per centand the lower decile is up by 145 per cent. The growth in international student numbersis clear across the sector as a whole. What is new compared to the situation reported inprevious Patterns reports is that it is now clear that there is no differential increaseamong the institutions in the middle of the chart.

86 Since 1998/99 the median is up by 3 per cent, the upper decile is up by 18 per cent andthe lower decile is down by 4 per cent. In previous Patterns reports we observed areduction in the enrolment of students from other EU countries. This has now beenreversed and numbers have increased across the spectrum of institutions. Theenlargement of the EU is obviously relevant here, and the institutional figures accordwith the totals reported in Section A.

Student characteristics and outcomes

87 The following paragraphs address some aspects of student characteristics andoutcomes within higher education institutions.

88 Previous Patterns reports we have drawn attention to the growing significance ofmature student enrolments in UK higher education. The percentage of full-time matureundergraduates is shown in institutional chart 9.


Enrolments of EU

(excluding UK)-

domiciled students,

2006/07 3,000

2,500

2,000

1,500

1,000

500

0

Lower decile 44

(45)

Median 577

(555)

Upper decile 1512

(1439)



Percentage of male

students, 2006/07


89 Since 1998/99 the median is up three percentage points, the upper decile is up eightpercentage points and the lower decile has reduced by one percentage point. Thefigures show a continuing increase in the proportion of full-time matureundergraduates, and a concentration in institutions which already had a significantproportion.

90 As noted in Section A female students are in a majority among all modes and levels.There are, however, considerable variations between institutions, which are shown ininstitutional chart 10.

91 In the large majority of institutions male students make up from 30 per cent to 50 percent of the total, although there are some obvious exceptions: these are chieflyspecialist institutions. The subject specialisms of these institutions include nursing andeducation at the lower end of the chart, and engineering and technology at the otherend.

92 Since this is only the third time that this chart has been presented within the Patternsseries, comparisons over the longer term cannot yet be made.


Percentage of mature

full-time

undergraduates,

2006/07

33

100%

80%

60%

40%

20%

0%

Lower decile 10%

(11%)

Median 26%

(25%)

Upper decile 47%

(44%)

100%

80%

60%

40%

20%

0%

Lower decile 29%

(28%)

Median 43%

(42%)

Upper decile 52%

(52%)


34

93 Institutional chart 11 shows the percentage of UK first-year students who are reportedas belonging to ethnic minority groups.

94 Since 1998/99 the median is up four percentage points, the upper decile is up 16percentage points and the lower decile remains unchanged. Previous Patterns reportssuggested there was evidence of an increasing concentration of students from ethnicminority groups in a limited number of institutions. These are, above all, institutionslocated in London. There is now a modest indication of an increase in the median,implying a more general increase in the proportion of students from minority ethnicgroups across the sector as a whole. There continue to be outliers at both ends of thespectrum, being generally specialist institutions; for example, pharmacy features atthe higher end and agriculture at the lower end. (The overall percentage of entrants tohigher education institutions from ethnic minority groups is 17 per cent.)

95 The first few Patterns reports analysed the participation of students from ‘under-represented groups’, as identified within the funding councils’ performance indicators.Two indicators were used: first, the percentage of young full-time first-degree entrantsfrom social classes IIIM, IV and V; and secondly, the percentage coming from ‘lowparticipation neighbourhoods’, as identified by the Higher Education Funding Councilfor England (HEFCE). There was a close correlation between the institutional rankingon each of these measures (while not assuming that the measures themselves closelycorrelated) and non-traditional entrants to full-time undergraduate courses (again, atinstitutional level).

96 In the most recent years, following the 2001 Census, a new categorisation of socio-economic groupings has been adopted, the national statistics socio-economicclassification.11

97 In place of the six categories used in the earlier definition of social class, the newclassification has seven categories as follows:


Percentage of UK-

domiciled first-year

students from ethnic

minority groups,

2006/07

11 The Office for NationalStatistics has furtherinformation about the NSSEC classificationavailable at:http://www.statistics.gov.uk/methods_quality/ns_sec/default.asp

100%

80%

60%

40%

20%

0%

Lower decile 3%

(3%)

Median 11%

(10%)

Upper decile 39%

(39%)



Percentage of young

full-time first-

degree entrants

from national

statistics socio-

economic

classification

classes 4, 5, 6 and 7,

2006/07

12 In essence, the newdefinition of lowparticipationneighbourhoods, usingthe “POLAR2”categorisation (based onanalysis of previousexperience of data withinthe higher educationsector) is very different tothe earlier categorisation,which was based on superprofiles categories.


98 The last four of these categories have been identified as being the lower socio-economic groupings for the purpose of constructing performance indicators for thehigher education sector. While this definition will be followed in this report, it should benoted that it includes small employers and own account workers, which may include awide variety of occupations. For example, it includes many people engaged in farming(and so agricultural college figures are very high) and also many contractors in thecomputing industry.

99 The analyses of socio-economic groupings are available only for students enteringthrough the UCAS system. While this covers the large majority of all entrants to full-time undergraduate courses (85 per cent), it is possible that it understates thepercentage of entrants from lower socio-economic groups. The data for the year2006/07 is presented in institutional chart 12.

100 The lower decile has increased by one percentage point since 2005/06 but the medianand upper deciles show increases of three and four percentage points. The overallimpression therefore is that there is an increase in the proportions of students enteringhigher education from social classes 4, 5, 6 and 7, and that this increase is concentratedin institutions which are already showing a high proportion of students from the lowersocial classes.

101 There is a major issue arising from the new definition of low participationneighbourhoods adopted by the performance indicators steering group in the mostrecent year12. Due to the change in definition, it is not possible to produce a chartcomparable with earlier charts.

Table 14

Classification of

national statistics

socio-economic groups

35

NS SEC group Description

1 Higher managerial and professional occupations

2 Lower managerial and professional occupations

3 Intermediate occupations

4 Small employers and own account workers

5 Lower supervisory and technical occupations

6 Semi-routine occupations

7 Routine occupations

100%

80%

60%

40%

20%

0%

Lower decile 18%

(19%)

Median 33%

(32%)

Upper decile 45%

(43%)


36

102 Institutional chart 13 shows the distribution of students from low participationneighbourhoods, using the new definitions: this will form the basis of comparativeanalysis in future years.

103 Earlier Patterns reports included information about new students’ entry qualifications,based on their A-level points, but this time series was discontinued because thestructure of reporting changed significantly. Applicants and acceptances to full-timeundergraduate courses are now recorded in relation to UCAS’ tariff points, whichinclude not only conventional academic qualifications but also many vocationalqualifications.13

104 This is the third year in which we show entry qualifications to higher education institutionsrecorded according to the new UCAS tariff as shown in institutional chart 14.14

105 It is too early to provide longer-term time series comparisons, although there is amarginal decrease in the average points scores, as compared with last year.


Percentage of young

full-time first-degree

entrants from low

participation

neighbourhoods,

2006/07


Average tariff points of

entrants to full-time

undergraduate

courses, 2006/07

13 A full description of thetariff is given at:http://www.ucas.ac.uk/candq/tariff/.

14 The full definition is,‘average tariff points forfull-time, first year,undergraduate studentswhose highest qualificationon entry was 'A' levelequivalent qualification notelsewhere specified, or anycombinations of GCE'A'/SCE 'Higher' andGNVQ/GSVQ or NVQ/SVQ atlevel 3’.

30

25

20

15

10

5

0

Lower decile 3.4%

(3%)

Median 7.6%

(10%)

Upper decile 16.1%

(39%)

600

500

400

300

200

100

0

Lower decile 199

(209)

Median 273

(275)

Upper decile 406

(416)



Percentage of first-

class degrees

awarded, 2006/07


Percentage of first

and upper second

class degrees

awarded, 2006/07


106 We now turn to the outcomes from higher education study as represented by the degreeclassifications awarded to qualifiers from first-degree programmes and thesubsequent graduate employment rates. Institutional chart 15 shows the percentage offirst-class honours degrees awarded.15

107 Since 1998/99 the median is up four percentage points, the upper decile is up sixpercentage points and the lower decile is up three percentage points. There has been anoticeable increase in the proportion of students awarded a first-class degree from1998/99 to 2006/07. Institutions at the upper end of the scale show the greatest level ofincrease, i.e. some institutions that have historically awarded a high percentage of first-class degrees have increased their proportion.

108 It is also relevant to look at the combined total of firsts and upper seconds, which arepresented in institutional chart 16.

15 The denominator in this andthe following chart is allclassified degrees. Ittherefore excludes mostclinical degrees, which areawarded withoutclassification. ManyScottish universities awarda significant proportion oftheir degrees withoutclassification.

37

40%

35%

30%

25%

20%

15%

10%

5%

0%

Lower decile 7%

(7%)

Median 12%

(11%)

Upper decile 20%

(19%)

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Lower decile 46%

(47%)

Median 59%

(58%)

Upper decile 76%

(77%)


38

109 Since 1998/99 the median is up six percentage points, the upper decile is up eightpercentage points and the lower decile is up five percentage points. Again, there hasbeen a significant increase in the proportion of students gaining good honours degrees,although there is a modest decline at the upper and lower ends of the spectrum.Throughout the sector, however, it continues to be the case that the award of a first- orupper second-class degree is the norm rather than the exception.

110 Finally, we turn to graduate employment. Institutional chart 17 shows the percentage‘employment rate’ (i.e. all activities except unemployment) for full-time UK-domiciledfirst degree students who graduated in the academic year 2005/06, as reportedapproximately six months after graduation.

111 There has been no significant change since the last year: the chart continues to show avery low level of unemployment among first-degree graduates.

112 It is too early to show longer-term changes and indeed these would need to be set in thecontext of the overall labour market. However, there are no significant changes in thereported figures as compared with 2004/05.

Aspects of staffing in higher education institutions

113 Institutional chart 18 updates the analysis of the number of academic cost centreswithin which staff of higher education institutions were undertaking teaching andresearch (see Appendix 5 for a list of HESA academic cost centres).


Percentage of first

degree full-time

graduates not

unemployed, 2005/06 100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Lower decile 90%

(89%)

Median 94%

(94%)

Upper decile 96%

(97%)



114 As reported in the previous Patterns reports both the median and the upper decile havereduced by one cost centre since 1998/99, perhaps reflecting a reduction in spread ofsubject provision. However, there is no change in the most recent year.

115 Three years ago, for the first time, it was possible to include an analysis of the genderbalance of all academic staff. Institutional chart 19 updates this, showing thepercentage of female academic staff in higher education institutions in 2006/07.

116 The gender balance of academic staff within higher education institutions variesmarkedly between institutions, and the issue of subject distribution is relevant here.

117 The median and the upper decile show a slight increase as compared with 2005/06, andacross the spectrum of institutions there has been a modest increase in the proportionof female academic staff recorded in the last year.

118 Institutional chart 20 continues the analysis of the ethnicity of members of the academicstaff for the third year. There is a slight discontinuity, however, for technical reasons,which leads to a greater number of institutions apparently showing a zero return.


Number of cost

centres within which

staff are employed,

2006/07


Percentage of female

academic staff,

2006/07

39

30%

25%

20%

15%

10%

5%

0%

Lower decile 1

(1)

Median 16

(16)

Upper decile 23

(23)

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Lower decile 34%

(33%)

Median 44%

(43%)

Upper decile 57%

(55%)


40

119 While the median has increased slightly, the lower decile has reduced by twopercentage points while the upper decile is unchanged. It is relevant to note that, acrossall higher education institutions, the percentage of academic staff from ethnic minoritygroups is 10 per cent, as compared with the median institution’s figure of seven percent. This draws attention to the concentration of staff from ethnic minority groups:unsurprisingly, as in the last two years, only one of the 10 institutions at the upper endof the graph is located outside London.

Financial issues

120 The previous Patterns reports included some analysis of financial security, and of costsand “efficiency”, together with an analysis of sources of income.

121 This year’s report adopts the same approach. Several of these issues in this section areelaborated upon in Section C, which discusses some financial aspects of diversity.

Financial security

122 The following paragraphs address some of the measures of financial security of highereducation institutions, reported in previous Patterns reports.

123 Institutional chart 21 shows the historical surplus/deficit for each institution in 2006/07as a percentage of income.


Percentage of ethnic

minorities among

academic staff,

2006/07 40%

35%

30%

25%

20%

15%

10%

5%

0%

Lower decile 0%

(2%)

Median 8%

(7%)

Upper decile 17%

(17%)



124 Since 1998/99 the median is down 1.2 percentage points, the upper decile is up 1.3percentage points and the lower decile is down 0.1 percentage points. There is a slightimprovement as compared with the figures given last year, although there are feweroutliers at the upper end. Across the sector as a whole, the median figure of a 2.3 percent surplus continues to be quite low.

125 However, the current year out-turn is only one relevant measure, and one that shouldbe seen in a wider context. Institutional charts 22 and 23 show two other securitymeasures, relating to liquidity and the retention of reserves respectively.

126 Since 1998/99 the median has increased by four days, while the upper decile is up bynine days and the lower decile is up by four days. The latest year’s figures show, for thefirst time, a modest improvement in this measure across the spectrum of institutions.

127 The days’ ratio of general funds to total expenditure is a measure of the ability ofinstitutions to invest in the future as illustrated in institutional chart 23.


Surplus/deficit as a

percentage of income,

2006/07


Days ratio of net

liquid assets to total

expenditure,

2006/07

41

25%

20%

15%

10%

5%

0%

-5%

-10%

-15%

Lower decile 7.3%

(8.7%)

Median 2.3%

(2.1%)

Upper decile -1.1%

(-1.3%)

350

300

250

200

150

100

50

0

-50

Lower decile 139 days

(131 days)

Median 62 days

(56 days)

Upper decile 15 days

(12 days)


42

128 Because of a change in definitions comparisons with years before 2005/06 cannot bemade16. However, there is a modest improvement compared with 2005/06.

129 The previous Patterns reports set out an index of financial security based on threefactors (equally weighted):

p the average of the last two years’ percentage ratios of historical surplus/(deficit) aftertax to total income;

p the days ratio of general funds to total expenditure;

p the days ratio of net liquid assets to total expenditure.

130 The security index for 2006/07 is set out in institutional chart 24.


Days ratio of total

general funds to total

expenditure, 2006/07


The security index,

2006/07

16 In 2005/06 institutionswere, for the first time,required to include netpensions assets orliabilities within theirgeneral funds as set out inthe FRS17 accountingconvention. Mostinstitutions have a netpensions liability, whichmeans that there was asignificant overall reductionin general funds. The largereduction in this indicator istherefore, primarily due tonew accountingconventions: the pensionsliabilities existed in thepast, but were notpreviously counted.

600

500

400

300

200

100

0

-100

Lower decile 237

days (224 days)

Median 103

days (85 days)

Upper decile 13

days (8 days)

600

500

400

300

200

100

0



131 This index does not reflect the financial security of the sector as a whole, but simply onthe relativities within the sector. It provides a basis for analysing aspects of institutionalprovision against a single measure of financial security, but a quantification of changefrom year to year within the sector as a whole cannot be derived from it. It doesnevertheless provide a basis for disaggregation of the sector and an assessment ofcomparative financial security among individual institutions and groupings ofinstitutions.

132 In 2005/06 four of the top 20 institutions in the index were comparatively small colleges,mostly of a specialist nature, that number having reduced from six in 2004/05. Thelatest figures show a return to the earlier position with six small specialist collegesbeing within the top 20 in the security index. In previous years, the post-1992universities appeared to be more prominent at the head of the index than the pre-1992universities, but that is no longer the case.

133 At the lower end of the index, five of the bottom 20 institutions are specialist colleges ofperformance arts, with the other places being shared evenly across the sector.

134 Last year, for the first time, in response to suggestions by some users of the Patternsseries, an additional analysis to show the ratio of borrowing by institutions as apercentage of total income. Institutional chart 25 presents this for the second time.

135 The chart continues to show a very wide variation in long-term borrowing in relation toinstitutional income, ranging from many institutions that report zero borrowing toabove the level of 80 per cent of annual income. The chart shows that borrowings as apercentage of income have fallen slightly over from 2005/06 to 2006/07. The changesince last year suggests that there is now slightly less exposure to long-term borrowingas a percentage of income across the sector, even though the total borrowing may haverisen. The level of absolute borrowings should also be considered. This is described inparagraphs 205 to 207.

136 As indicated in the last Patterns report, this ratio is being published separately for twoyears, and will be considered for inclusion as a component of the security index in theninth Patterns report.


Percentage ratio of

total long-term

borrowings to total

income, 2006/07

43

140%

120%

100%

80%

60%

40%

20%

0%

Lower decile 0%

(0%)

Median 14%

(15%)

Upper decile 40%

(42%)


44

Patterns of income

137 The Joint Performance Indicators Working Group and the Higher EducationManagement Statistics Group, which defined the financial indicators published byHESA, proposed that dependence on funding council income is a further aspect offinancial security17. It is also, of course, an issue of inherent interest in the context of thediversity of the sector.

138 The percentage of income from the funding councils is shown in institutional chart 26.

139 Since 1998/99 the median is unchanged, while the upper decile is down three percentagepoints and the lower decile is down one. At some points in the graph in previous reports, wepointed out that funding council income was increasing slightly compared to income fromother sources. This trend appeared to have been arrested last year, and has now beenreversed, no doubt partly due to the recent introduction of variable tuition fees in England.

140 Institutional chart 27 shows the distribution of the public funding of research throughthe dual support system, that is to say the combination of funding council researchincome and research grant and contract income from the research councils.


Funding council

income as a

percentage of all

income, 2006/07

17 The background to thedevelopment ofperformance indicators isdescribed in a paper by theHigher Education FundingCouncil for Englandavailable at:http://www.hefce.ac.uk/pubs/hefce/1999/99_11.rtf


Funding of research

through the dual

support system (£K),

2006/07

80

70

60

50

40

30

20

10

0

Lower decile 29%

(30%)

Median 45%

(46%)

Upper decile 59%

(62%)

200,000

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

Lower decile 0

(21)

Median 2,467

(2,508)

Upper decile

51,660 (48,350)



141 Since 1998/99 the lower decile is unchanged (at zero), the median is up 48 per cent andthe upper decile is up 89 per cent. It is only in the upper decile that we see an increasein research funding in the last year. The short- and long-term trends demonstrate theconcentration of research funding in a small number of higher education institutions.

142 Institutional chart 27 expresses public funding of research in absolute cash terms.Institutional chart 28 shows the relationship between public research income throughthe dual support system and all income.

143 There is a steep gradient here above the upper decile. The extent of concentration ofresearch funding is demonstrated by the fact that the overall ratio of public researchincome to overall income is 13 per cent (16 per cent in Scotland): in this chart themedian institution is on three per cent (down from four per cent last year).

144 As in the previous two Patterns reports, we also set out data about the relationshipbetween the income received by institutions from research grants and contracts, andthe research income from the funding councils, which is designed to underpin thedevelopment of research.

145 In institutional chart 29, institutions are mapped showing the income from researchgrants and contracts as a percentage of the funding councils’ research grant. The chartonly includes institutions that have research grant income of at least £100,000.


Funding of research

through the dual

support system as a

percentage of all

income, 2006/07

45

30%

25%

20%

15%

10%

5%

0%

Lower decile 0%

(0%)

Median 3%

(4%)

Upper decile 21%

(21%)


46

146 The chart shows that the large majority of institutions receive more income fromresearch grants and contracts than from the research funding provided by the fundingcouncils. There is also an increase across the whole spectrum of institutions comparedwith the data presented in the last year’s Patterns report.

147 Following changes in the HESA finance record in 2004/05, institutional chart 30 showsfor the third time the institutional distribution of income from ‘other services rendered’;which broadly amounts to commercial contracts of a non-research nature.18

148 There is a similar, though less extreme, level of differentiation between institutions, asseen above in relation to research. In the last year higher education institutions havereceived significantly more income from ‘other services rendered’.

149 In view of the importance of income from international student fees, institutional chart31 looks at income from this source. Fees derived from international (non-EU) studentsare once again by far the largest component of international income for UK highereducation institutions.


Research grants and

contracts as a

percentage of

funding council

research grant,

2006/07


Income for other

services rendered

(£K), 2006/07

18 One extreme outlier hasbeen excluded from thisanalysis.

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Lower decile 0

(0)

Median 3100

(2782)

Upper decile

15219 (13821)

1200%

1000%

800%

600%

400%

200%

0%

Lower decile 443%

(419%)

Median 176%

(166%)

Upper decile 61%

(58%)



150 Here again, as noted previously, there is a highly differentiated position, with manyinstitutions earning less than £5 million from the fees of international (non-EU)students, while a few earn over £30 million per year.

151 The median and upper decile have increased significantly since last year. Only the lowerdecile shows no increase: this last point may be due to the change in the constituency ofhigher education institutions, as new institutions have joined the sector. As noted in theprevious Patterns report, there appears to be an increasingly broader distribution of theincome from international student fees, and there is clearly an increase in the incomefrom international student fees among most of the higher education institutions.

Costs and efficiency

152 Finally, in this section of the report, we update information about expenditure per full-time equivalent student, which was published in the previous Patterns reports.19

153 For comparison with the rates of change shown in parentheses in the followingparagraphs, it should be noted that the increase in the GDP deflator over the period1998/99 to 2005/06 was 21 per cent.

154 It should also be noted that the calculation of full-time equivalent students haschanged, with the exclusion of students following non-credit-bearing courses: therewill therefore, inevitably, be an increase in the costs per full-time equivalent student, ascompared with the earlier Patterns reports.

155 Institutional chart 32 shows the cost per full-time equivalent student of centraladministrative services, including staff and student facilities.20


Income from

international (non-EU)

student fees (£K),

2006/07

19 For technical reasons, thelatest year for which thesefigures are available is2005/06.

20 The University of WalesRegistry and the Universityof London’s centralinstitutes and activitieshave been excluded fromthis and the followingcharts, together with asmall number of outliers.

47

60,000

50,000

40,000

30,000

20,000

10,000

0

Lower decile 262

(273)

Median 5,852

5,018)

Upper decile 24,615

(21,056)


48

156 Since 1998/99 the median has increased by £576 (61 per cent), the upper decile is up£867 (42 per cent) and the lower decile up £361 (54 per cent). As in the last threePatterns reports, it appears to be the case that institutions generally have increasedtheir administrative expenditure per full-time equivalent student by more than the rateof inflation. It is important to recognise that institutional structures vary, which willsignificantly affect where costs are recorded across an institution. Centraladministrative costs should be considered alongside the non-academic costs withinacademic departments, since in several institutions the administrative costs will fallalso within academic departments. This is shown in institutional chart 33.21

157 Since 1998/99 the median is up by £306 (30 per cent), the upper decile is up £1,436 (65per cent) and the lower decile is up £148 (30 per cent). There is a marked increase in theunit costs of administrative activities within academic units, especially at the higher endof the distribution. This may reflect a shift from central administrative cost centres toacademic cost centres as a result of reorganisation. It may also reflect a reallocation ofbudget codes to areas closer to the students.


Administrative costs

per full-time

equivalent student

(£), 2005/06



Academic

departmental costs

per full-time

equivalent student,

excluding academic

staff (£), 2005/06

£18,000

£16,000

£14,000

£12,000

£10,000

£8,000

£6,000

£4,000

£2,000

£0

Lower decile £1,009

(£920)

Median £1,520

(£1,419)

Upper decile £2,898

(£2,936)

£20,000

£18,000

£16,000

£14,000

£12,000

£10,000

£8,000

£6,000

£4,000

£2,000

£0

Lower decile £658

(£638)

Median £1,331

(£1,299)


(£3,526)



158 For the third year, in institutional chart 34, we present a further ratio, about the cost perfull-time equivalent student of academic services, including expenditure on libraries,computing facilities, museums, galleries and observatories (except those run byacademic departments)22. The ratio also covers expenditure on any other generalacademic services not covered above including, for example, radiation protection,international liaison office and industrial liaison.

159 The figures show modest increases as compared with the previous year; in futurereports we will show a time series comparison.

160 Finally, as in previous years, institutional chart 35 shows the spread of premisesexpenditure per full-time equivalent student.

161 Since 1998/99 the median has increased by £243 (37 per cent), the upper decile by £682(52 per cent) and the lower decile by £136 (35 per cent).



Total academic

services expenditure

per full-time

equivalent student (£),

2005/06


Premises

expenditure per full-

time equivalent

student (£), 2005/06

49

£7,000

£6,000

£5,000

£4,000

£3,000

£2,000

£1,000

£0

Lower decile £435

(£426)

Median £751

(£710)


(£1,386)

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

Lower decile £520

(£469)

Median £890

(£819)


(£2,008)


50

162 As noted in previous Patterns reports, there has been a continuing increase in premisescosts. This has been concentrated at the upper end of the graph, reflecting the fact thatinstitutions with already high costs have seen these rise disproportionately. Howeverthis trend is reversed in the latest figures, which show a marginal reduction in premisescosts at the upper end of the scale.



163 This year’s themed section of Patterns goes into more detail about some of the sector’sfinancial indicators. It elaborates on some of the financial indicators and trendsdescribed in section A and B with the aim of providing a more comprehensiveassessment of the financial diversity of the UK higher education sector. The newsection compares a number of financial indicators for the period between 2002/03 and2006/07 and identifies the main trends. It looks at the following aspects of the financesof higher education institutions:

prevenue

pexpenditure

pcapital investment in the estate

pendowments

p liquidity

psurpluses and deficits

Revenue

164 The following pie chart shows the major sources of income across all higher educationinstitutions in the UK in the most recent year, 2006/07.23

165 This chart shows that almost exactly 50 per cent of the income of higher educationinstitutions in the United Kingdom currently comes from the teaching and researchgrants of the funding councils, together with fees from UK and EU students. The totalincome from research grants from the research councils, UK charities and thegovernment (excluding the funding council research grant) and from contractsconstitute 16 per cent of all income. However, there is a great deal of variation in thesignificance of different income sources from one institution to another.

Funding council teaching grant as a percentage of total income

166 As chart 4 above indicates, the teaching grant from the funding councils represents thelargest single source of income to higher education institutions, making up almost

Chart 4

Major income

sources of UK higher

education institutions,

2006/07

23 In this chart, the ‘Other’category includesotherwise unattributeditems in the fundingcouncils’ grants, and alsoincludes catering, etc.

Section C

Financial aspects of diversity

51

Funding council T grant25%

Funding council R grant8%

UK/EU student fees17%

Other13%

Endowments &investments

2%

Other operating income5%

Other services6%

Other RGC4%

Research grantsfrom government

3%

Research grantsfrom UK charities

4%

Research grants from Research councils

5% Non-EU student fees8%


52

exactly a quarter of their income in 2006/07.

167 In 2002/03, teaching grant from the funding councils constituted 26.8 per cent of thetotal income to UK higher education institutions. In 2006/07, the equivalent figure was25.2 per cent. Over the period 2002/03–2006/07, the teaching grant itself increased by28 per cent, compared with the overall increase in institutional income of 37 per cent(both expressed in cash terms).

168 The teaching grant makes up a larger percentage of some individual institutions’ totalincome than others. The institutional distribution of these funds in 2006/07 is shown inthe following chart.

169 Chart 5 shows a broadly even spread across institutions of income from the teaching grant,ranging from less than 10 per cent to over 60 per cent, with the median at 35 per cent.

170 There has however been significant change in teaching grant as a percentage of totalincome at the level of individual institutions. The following chart shows the change overthe last five years across all institutions expressed in percentage points of the teachinggrant within overall income.

Chart 6

Change in teaching

grant as percentage

of total income,

2002/03–2006/07

80%

70%

60%

50%

40%

30%

20%

10%

0%

Chart 5

Teaching grant as a

percentage of all

income: institutional

distribution, 2006/07Median = 35%

15

10

5

0

-5

-10

-15

Median = -1.2 percentage points

T g

ran

t a

s %

of

inco

me

....


Chart 8

Research grant as a

percentage of all

income: institutional

distribution, 2006/07


171 A more detailed analysis of institutional changes over time is shown in the followinghistograms, which show that the number of institutions relying on the grant forteaching as 50 per cent or more of total income have dropped slightly.

Funding council research grant as a percentage of total income

172 In 2002/03, the research grant from the funding councils constituted 7.6 per cent of thetotal income to UK higher education institutions. In 2006/07, the equivalent figure was7.9 per cent. Over the period, the research grant increased by 42 per cent, comparedwith the overall increase in institutional income of 37 per cent (both expressed in cashterms.)

173 There is, of course a very wide variation in the significance of the research grant in theincome of individual institutions. The institutional distribution of the research grant in2006/07 is shown in chart 8.

174 The chart shows a sector within which almost a half of institutions receive either noresearch grant or less than 2 per cent of the total institutional income. A second groupreceives between 2 per cent and 14 per cent of its income from the funding councils’research grants, while a small group receive a greater proportion.

175 A summary of the situation in both 2002/03 and 2006/07 is given in the followinghistograms, which show the number of institutions receiving particular percentages oftheir total income from the funding councils research grant.

Chart 7

Histograms showing

distribution of

teaching grant as

percentage of all

income, 2002/03 and

2006/07

53

50

40

30

20

10

0

50

40

30

20

10

0

Institutions

Teaching grant, 2002/03

%age income from funding councils teaching grant

Teaching grant, 2006/07

20

18

16

14

12

10

8

6

4

2

0

Re

se

arc

h g

ran

t a

s %

of

inco

me

....

10 20 30 40 50 60 More%age income from funding councils teaching grant

10 20 30 40 50 60 More


54

176 Over the last five years there has been a small but perceptible increase in the numberof institutions receiving more than 15 per cent of their total income from the fundingcouncils’ research grant, offset by a reduction in all other groups, except the lowest two– a graphical representation of the increasing concentration of research funding.

Non-EU student fee income as a percentage of total income

177 In 2002/03, income from non-EU overseas students’ fees was 7 per cent of the totalincome of UK HEIs. In 2006/07, the equivalent figure was 8 per cent. During that time,international students’ fees increased by 58 per cent, compared with the overallincrease in institutional income of 37 per cent (both expressed in cash terms.) Duringthe last five years, fees from non-EU students have come to represent a bigger share ofhigher education institutions’ income than the funding councils’ research grants.

178 Chart 10 shows the different dependency of individual higher education institutionsdepended on non-EU students’ fees in 2006/07.

179 The chart shows a generally even distribution except at the higher end, where we see avery small number of institutions generating more than 20 per cent of their totalincome from non-EU students’ fees.

180 The following two histograms, chart 11, show the change over the last five years.

Chart 9

Histograms showing

distribution of

research grant as

percentage of all

income, 2002/03 and

2006/07

Chart 10

Percentage income

from non-EU

students’ fees,

2006/07

60

50

40

30

20

10

0

60

50

40

30

20

10

0

Research grant, 2002/03 Research grant, 2006/07

35

30

25

20

15

10

5

0

%age income from funding councils research grant

0 2 5 10 15 20%age income from funding councils research grant

0 2 5 10 15 20



181 Chart 11 shows that the numbers of institutions recording less than 5 per cent of theirincome coming from non-EU student fees has been reduced, and there has been amarked increase in the number recording more than 15 per cent from this source. Thesignificance of this source of funding is plainly increasing for many institutions.

Health service income

182 Another major provider of income to the higher education institutions is the NHS. Whatfollows is only partial, because it cannot include research grants received from the NHS(they cannot be disaggregated from other central and local government funding). Itdoes however include fee income from the Department of Health (and its territorialequivalents) and also income received from UK strategic health authorities and NHStrusts for the funding of any employees of the institution, including posts in academicteaching (except for those relating to the provision of a service, and except forresearch).

183 In 2002/03 the total identifiable funding from the health service, therefore, was £797million. In 2006/07, it was £1,062 million, an increase of 33 per cent, slightly less thanthe increase in total income over the period.

184 Higher education institutions vary widely in the extent to which they receive NHSincome, as the following charts and histograms demonstrate.

Chart 11

Histograms showing

distribution of non-

EU student fees as

percentage of all

income, 2002/03 and

2006/07

55

80

70

60

50

40

30

20

10

0

80

70

60

50

40

30

20

10

0

Non-EU student fees, 2002/03 Non-EU student fees , 2006/07

Percentage income from non-EU student fees

2 5 10 15 20 MorePercentage income from non-EU student fees

2 5 10 15 20 More


56

185 A comparison of the two charts shows that the number of institutions receiving someincome from the health service has increased significantly during the period1997/98–2006/07.

186 The same tendency is also illustrated in the histograms in Chart 13. In 2006/07 only halfas many institutions were receiving less than £100,000 compared to 2002/03.

Chart 12

Health service

income (fees and

grants) as a

percentage of total

income 2002/03 and

2006/07

30%

25%

20%

15%

10%

5%

0%

30%

25%

20%

15%

10%

5%

0%

2002/03

2006/07



Expenditure

187 We now turn our attention to two aspects of expenditure, concerned with staffing andthe estate. These are:

p the percentage ratio of total payroll costs to total income;

prepairs and maintenance as a percentage of total expenditure.

Payroll costs as a percentage of total income

188 In 2002/03, the ratio of expenditure on staff to total income across all higher educationinstitutions in the UK was 57.7 per cent. In 2006/07, the equivalent figure was 57.1 percent, representing a small reduction overall.

189 However, there is a wide distribution across the higher education sector, as the chart 14illustrates.

190 The chart shows, in 2006/07, a distribution in this ratio of between 40 per cent and 70per cent, but with most institutions clustering between 55 per cent and 65 per cent ofincome spent on staff costs. The following histograms show the change in thisdistribution over the last five years.

Chart 13

Histograms showing

health service

income (fees and

grants) (£K) received

by higher education

institutions, 2002/03

and 2006/07

Chart 14

Ratio of payroll costs

to total income,

2006/07

57

100

80

60

40

20

0

100

80

60

40

20

0

Health service income, 2002/03 Health service income , 2006/07

80

70

60

50

40

30

20

10

0

Income from NHS (£K)

100 500 1000 5000 10000 20000 MoreIncome from NHS (£K)

100 500 1000 5000 10000 20000 More


58

191 When comparing the figures for institutions which have provided data consistently forthe last five years, we see that there has been a reduction in the number of institutionsdevoting more than 60 per cent of their income to staff costs, as other costs have beenincurred.

Repairs and maintenance as a percentage of total expenditure

192 In 2002/03, the expenditure of UK higher education institutions on repairs andmaintenance was 3.37 per cent of the total expenditure. By 2006/07, that figure hadincreased marginally to 3.4 per cent, but the distribution had changed significantly, asmore institutions appeared to be spending an above average amount on repairs andmaintenance.

Capital investment in the estate

193 The proportion of the (non-residential) estate which is classified as newly built orrefurbished – groups A and B in the annual estates management statistics – gives ameasure of investment in the estate in the higher education sector. 24

Proportion of non-residential estate classified as newly built or refurbished

194 Data about the estate is collected on a voluntary basis from institutions, and some havenot made a return consistently over the last five years. Time series comparisons aretherefore difficult.

195 There are 132 institutions which have made apparently robust returns over the fiveyears 2001/02 to 2005/06. Subject to the limitations, the following charts show thedistribution of these institutions according to the percentage of gross internal area(GIA), which is classified as either new or refurbished (groups A and B).

Chart 15

Histograms showing

the ratio of payroll

costs to all income,

2002/03 and 2006/07

Chart 16

Histograms showing

the percentage

expenditure on

repairs and

maintenance,

2002/03 and 2006/07

24 Estates managementstatistics provides highereducation institutions withinformation to help themimprove their propertymanagement. Seehttp://www.opdems.ac.uk/

80

70

60

50

40

30

20

10

0

80

70

60

50

40

30

20

10

0

Ratio of payroll costs to income, 2002/03 Ratio of payroll costs to income, 2006/07

Percentage expenditure on staff

40 45 50 55 60 65 70 MorePercentage expenditure on staff

40 45 50 55 60 65 70 More

50

40

30

20

10

0

50

40

30

20

10

0

Percentage expenditure on repairs

and maintenance, 2002/03_____

Percentage expenditure on repairs

and maintenance, 2006/07_____

% expenditure on repairs and maintenance

1 2 3 4 5 6 More% expenditure on repairs and maintenance

1 2 3 4 5 6 More


Chart 18

Percentage of non-

residential

accommodation

classified as new or

refurbished, 2005/06


196 Charts 17 and 18 show a clear increase over the five years in 2001/02-2005/06 in thenumbers of institutions reporting the estate to be in good condition.

Endowments

197 Institutional finance returns report on the level of financial assets in the form ofendowments. While these are, overall, comparatively small in terms of the overallbalance sheet of universities, they are potentially important as institutions seek todiversify their income streams in the future.

198 Charts 19 and 20 show the change in the number of institutions holding endowmentassets at particular levels in 2002/03 and again in 2006/07.

Chart 17

Percentage of non-

residential

accommodation

classified as new or

refurbished, 2001/02

59

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Median = 67%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Median = 70%


60

199 We see here a movement towards the upper end of the chart. There are moreinstitutions with endowment assets in excess of £100 million and between £50 millionand £100 million than was the case five years ago, providing some evidence to suggestthat institutions are being increasingly successful in raising endowment income.

Liquidity and borrowing

200 We now turn to the relationship between assets and liabilities in institutions’ finances.

201 The days of net liquid assets to total expenditure, is an indicator of liquidity; charts 21and 22 shows the institutional distribution in 2002/03 and in 2006/07.

Chart 19

Histogram showing

institutions’

endowments assets,

£K, 2002/03

Chart 20

Histogram showing

institutions’

endowments assets,

£K, 2006/07

50

40

30

20

10

00 1000 10000 50000 100000 500000 More

50

40

30

20

10

00 1000 10000 50000 100000 500000 More



Liquidity ratio

202 Although the two charts are of broadly similar shape, it is clear that the overall positionis more positive in the most recent year, as the median has increased from 45 days in2002/03 to 55 days in 2006/07.

Borrowing

203 Chart 23 shows the institutional distribution of long-term borrowing as a percentage oftotal income in 2006/07.

Chart 21

Days of net liquid

assets to total

expenditure less

depreciation,

2002/03

Chart 22

Days of net liquid

assets to total

expenditure less

depreciation,

2006/07

61

400

350

300

250

200

150

100

50

0

-50

Median = 45 days

400

350

300

250

200

150

100

50

0

-50

Median = 55 days


62

204 There is a very wide range here, with several institutions reporting no borrowing, whileothers show a considerable level of debt. More details are given, together with a five-year comparison, in the following two histograms.

205 Chart 24 shows that while a minority of institutions record no long-term borrowing, thenumber recording borrowings of up to 10 per cent of income has increased. However,fewer institutions are now borrowing over 20 per cent of income.

206 In absolute terms, long-term borrowing across the sector increased from £3.1 billion in2002/03 to £4.2 billion in 2006/07. When adjusted for inflation, the real-terms increasewas 24 per cent.

207 The two histograms in chart 25 show the distribution of long-term borrowing acrossinstitutions in the years 2002/03 and 2006/07, adjusted to 2006/07 price levels using theGDP deflator.

Chart 23

Long-term

borrowing as a

percentage of total

income, 2006/07

Chart 24

Histograms showing

borrowing as a

percentage of

income, 2002/03 and

2006/07

80

60

40

20

0

Median = 14%

50

40

30

20

10

0

50

40

30

20

10

0

Borrowing as percentage of income, 2002/03 Borrowing as percentage of income , 2006/07

0 10 20 30 40 More 0 10 20 30 40 More


Chart 26

Increase/decrease in

interest payments as

percentage of

income, 2002/03 to

2006/07


208 While the figures at the lower end of the charts are broadly similar, it is clear that therehas been a shift towards the higher level of borrowings, especially in the range over£100 million.

209 Chart 26 shows the change in annual servicing costs, expressed as a percentage ofincome, between 2002/03 and 2006/07.

210 A complex picture is presented here. As we have noted, an increase in the number ofinstitutions borrowing up to ten per cent of income has been accompanied by areduction in those borrowing over twenty per cent. The costs of servicing the borrowinghave similarly changed over time, and are no doubt related to the timescales associatedwith the borrowing. Broadly, there is an even balance between those institutions whichhave experienced an increase in their interest charges and those which have seen adecrease.

Surpluses and deficits

211 This section addresses the question of institutions’ surpluses and deficits. Institutionsneed adequate surpluses for investment to ensure their long term sustainability.

Ratio of surplus/(deficit) to total income

212 Consideration of the surplus or deficit of individual institutions in a single year is not auseful approach here, and therefore, the following table shows both the average surplusafter tax and the number of institutions across the whole sector which recorded a deficit.

Chart 25

Histograms showing

institutional

distribution of

absolute borrowing

(£K), 2002/03 and

2006/07

63

80

60

40

20

0

80

60

40

20

0

Absolute borrowing, 2002/03 Absolute borrowing , 2006/07

0 1,000 10,000 40,000 100,000 More 0 1,000 10,000 40,000 100,000 More

2

1

0

-1

-2

-3

-4


64

Table 15

Surpluses and

deficits recorded

annually between

2002/03 and 2006/07

Chart 27

Average percentage

ratio of historical

surplus/(deficit)

after tax to total

income, 2002/03 to

2006/07

Table 16

Percentage return on

net assets, 2002/03

to 2006/07

2002/03 2003/04 2004/05 2005/06 2006/07

Average surplus/deficit (percentage) 2.42 3.13 2.88 3.28 2.93

Number of institutions recording deficit 29 27 29 29 23

213 While the average surplus/deficit has increased slightly over the period, the number ofinstitutions recording a deficit in each year has been broadly the same, except in themost recent year. The institutional distribution of the average surplus/deficit as apercentage of total income over the five years is shown in the following distributionchart.

214 It is clear that the average surplus of higher education institutions over the last fiveyears from 2002/30 to 2006/07 has been less than the 3 to 5 per cent that would beneeded to maintain sustainable investment.

Return on net assets

215 To show the relationship between the outturn and the asset base, table 16 gives thepercentage return on net assets for the sector as a whole.

2002/03 2003/04 2004/05 2005/06 2006/07

Average return on net assets 1.5% 2.6% 1.6% 2.5% 2.2%

216 The institutional spread of the return on net assets in the most recent year is given inthe final chart.

15

12

9

6

3

0

-3

-6

Median =

2.46%



Conclusion

217 This report has been prepared as the latest in a series of yearbooks about highereducation in the UK in order to meet the expressed wishes of the higher educationsector, through Universities UK and GuildHE. It has expanded the data contained in itsprevious Patterns reports, as a basis for subsequent comparisons.

218 It is hoped that it will also be of interest to a wider audience, as setting out a range offacts, trends and ratios for the universities and colleges in the United Kingdom.

Chart 28

Percentage return on

net assets, 2006/07

65

35%

30%

25%

20%

15%

10%

5%

0%

-5%

-10%

-15%

Median = 1.4%


66

Appendix 1: Total enrolments by subject of study, 1997/98 and 2006/07

Appendix 2: Enrolments of students from outside the UK, by country and level of study,2006/07

Appendix 3: Trends in sources of income to higher education institutions, 2000/01, 2005/06 and 2006/07

Appendix 4: Mergers within the higher education sector, 1994/95-2006/07

Appendix 5: HESA cost centres

Appendices



Appendix 1

Total enrolments by subject of study, 1997/98 and 2006/07

67

Percentage

Subject group and subject 1997/98 Subject 2006/07 change

Medicine and dentistry 41,959 63,245 51%

Pre-clinical medicine 12,037 Pre-clinical medicine 15,495 29%

Pre-clinical dentistry 2,036 Pre-clinical dentistry 1,245 -39%

Clinical medicine 24,574 Clinical medicine 39,980 63%

Clinical dentistry 3,312 Clinical dentistry 5,830 76%

Subjects allied to medicine 164,899 300,900 82%

Anatomy and physiology 5,431 Anatomy, physiology and pathology 16,930 212%

Pharmacology 3,464 Pharmacology, toxicology and pharmacy 21,675 81%

Pharmacy 8,495

Nutrition 1,915 Nutrition 5,845 205%

Ophthalmics 2,293 Ophthalmics 3,290 43%

Audiology 723 Aural and oral sciences 4,080 464%

Nursing 100,640 Nursing 183,580 82%

Medical technology 3,353 Medical technology 8,325 148%

Complementary medicine 6,765

Other medical subjects 37,918 Others in subjects allied to medicine 49,450 30%

Biological sciences 96,337 164,215 70%

Biology 23,100 Biology 27,580 19%

Botany 950 Botany 775 -18%

Zoology 3,581 Zoology 4,040 13%

Genetics 2,134 Genetics 2,240 5%

Microbiology 2,608 Microbiology 4,880 87%

Sports science 30,835

Molecular biology and biophysics 1,462 Molecular biology, biophysics and biochemistry 10,460 7%

Biochemistry 8,338

Psychology (not solely as social science) 28,133 Psychology 72,475 99%

Psychology (without significant element of biological science) 8,350

Other biological sciences 15,665 Others in biological sciences 9,495 -39%

Veterinary sciences 3,348 4,875 46%

Agriculture and related subjects 15,184 16,085 6%

Agriculture 9,080 Agriculture 7,295 -20%

Forestry 731 Forestry 790 8%

Food science 2,888 Food and beverage studies 2,650 -8%

Agricultural sciences 524 Agricultural sciences 360 -31%

Animal science 3,220

Other agricultural subjects 1,926 Others in veterinary sciences, agriculture and related subjects 1,770 -8%

Physical sciences 72,285 83,905 16%

Chemistry 22,010 Chemistry 19,585 -11%

Materials science 471 Materials science 650 38%

Physics 13,982 Physics 14,935 7%

Archaeology as a physical science 2,134 Forensic and archaeological science 9,115 327%

Astronomy 1,069 Astronomy 2,950 176%

Geology 6,226 Geology 9,145 47%


68

Oceanography 724 Ocean sciences 1,265 75%

Geography studies as a science 9,844 Physical and terrestrial geographical and environmental sciences 20,530 6%

Environmental science and other physical sciences 13,995

Others in physical sciences 4,695

Mathematical sciences 21,184 33,790 60%

Mathematics 16,801 Mathematics 28,590 70%

Operational research 703 Operational research 795 13%

Statistics 2,419 Statistics 3,550 47%

Computer science 77,987 106,910 37%

Computing science 77,987 Computer science 72,810

Information systems 26,615

Software engineering 6,200

Engineering and technology 130,926 140,580 7%

General engineering 17,027 General engineering 21,665 27%

Civil engineering 17,319 Civil engineering 22,115 28%

Mechanical engineering 21,983 Mechanical engineering 22,600 3%

Aeronautical engineering 4,311 Aerospace engineering 8,220 91%

Electrical engineering 6,990 Electronic and electrical engineering 32,345 11%

Electronic engineering 22,229

Production engineering 11,908 Production and manufacturing engineering 6,850 -42%

Chemical engineering 6,237 Chemical, process and energy engineering 6,845 10%

Minerals technology 799 Minerals technology 205 -74%

Metallurgy 844 Metallurgy 670 -21%

Ceramics and glasses 228 Ceramics and glasses 120 -47%

Polymers and textiles 4,197 Polymers and textiles 2,710 -35%

Other materials technology 2,815 Materials technology not otherwise specified 2,935 4%

Maritime technology 2,412 Maritime technology 1,455 -40%

Biotechnology 727 Industrial biotechnology 205 -72%

Other technologies 2,474 Others in technology 9,570 287%

Architecture, building and planning 45,002 60,525 34%

Architecture 13,406 Architecture 20,295 51%

Building 18,696 Building 23,990 28%

Environmental technologies 2,405

Landscape design 1,880

Town and country planning 9,900 Planning (urban, rural and regional) 12,080 22%

Other architectural studies 595 Others in architecture, building and planning 2,265

Social studies 122,390 201,720 65%

Economics 21,789 Economics 30,225 39%

Politics 17,703 Politics 32,760 85%

Sociology 22,816 Sociology 32,845 44%

Social policy and administration 8,600 Social policy 12,870 50%

Social work 27,263 Social work 59,190 117%

Anthropology 3,657 Anthropology 4,930 35%

Percentage




Geography (unless solely as a physical science) 7,894 Human and social geography 13,325 69%

Other social studies 12,668 Others in social studies 14,270 13%

Law 57,441 90,845 58%

Law by area 33,065

Law by topic 52,945

Others in law 2,955

Business and administrative studies 222,137 310,255 40%

Business and management studies 133,925 Business studies 125,520 50%

Management studies 74,810

Financial management 9,199 Finance 20,690 125%

Accountancy 23,508 Accounting 31,310 33%

Marketing and market research 13,119 Marketing 23,895 82%

Industrial relations 10,869

Human resource management 16,325

Catering and institutional management 18,928

Land and property management 2,922

Transport, other business and admin studies 3,081

Office skills 1,240

Tourism, transport and travel 13,590

Others in business and administrative studies 2,450

Mass communications and documentation 20,718 47,935 131%

Librarianship 1,161 Information services 5,360 1%

Information science 4,172

Communication studies 5,094 Publicity studies 4,075 -20%

Media studies 6,873 Media studies 27,225 296%

Publishing 343 Publishing 1,145 234%

Journalism 2,575 Journalism 8,955 248%

Languages 91,989 139,715 52%

Linguistics 4,128 Linguistics 5,820 41%

Comparative literature 2,902 Comparative literary studies 1,900 -35%

English 30,747 English studies 60,310 96%

Celtic languages, literature and culture 1,095 Celtic studies 3,640 232%

Latin language and literature 145 Latin studies 265 83%

Ancient Greek language and literature 140 Classical Greek studies 165 18%

Classics 2,596 Classical studies 4,730 82%

Other ancient languages and related studies 491 Others in linguistics, classics and related subjects 2,215 351%

French language, literature and culture 6,994 French studies 12,975 86%

German language, literature and culture 2,923 German studies 5,590 91%

Italian language, literature and culture 1,432 Italian studies 3,585 150%

Spanish language, literature and culture 2,657 Spanish studies 10,530 296%

Portuguese language, literature and culture 197 Portuguese studies 675 243%

Latin American languages, literature and culture 406

Scandinavian languages, literature and culture 496 Scandinavian studies 455 -8%

Russian languages, literature and culture 991 Russian and East European studies 2,160 118%

Percentage



70

Slavonic and East European languages, literature and culture 493 -100%

Other European languages, literature and culture 4,885 Others in European languages, literature and related subjects 12,200 150%

Chinese languages, literature and culture 641 Chinese studies 1,665 160%

Japanese languages, literature and culture 784 Japanese studies 1,720 119%

Other Asian languages, literature and culture 304 South Asian studies 360 18%

Other Asian studies 260

African languages, literature and culture 165 African studies 250 52%

Modern Middle Eastern languages, literature and culture 1,110 Modern Middle Eastern studies 2,020 82%

American studies 2,679 American studies 3,580 34%

African languages, literature and culture 165 Australasian studies 35 -79%

Historical and philosophical studies 61,288 103,215 68%

History 27,468 History by period 41,015 57%

History by area 2,140

Economic and social history 1,540 History by topic 12,500 28%

History of art 7,849

History and philosophy of science 348

Archaeology 4,126 Archaeology 7,250 76%

Philosophy 6,031 Philosophy 11,885 97%

Theology and religious studies 10,009 Theology and religious studies 17,255 72%

Other humanities 1,823 Others in historical and philosophical studies 10,570 480%

Creative arts and design 93,650 160,525 71%

Fine art 15,161 Fine art 20,185 33%

Design studies 42,819 Design studies 59,345 39%

Music 13,377 Music 25,560 91%

Drama 11,172 Drama 20,915 120%

Dance 3,645

Cinematics 4,057 Cinematics and photography 16,055 296%

Crafts 343 Crafts 1,555 353%

Imaginative writing 6,465

Art and design other 5,500 Others in creative arts and design 6,760 23%

Education 135,416 216,330 60%

Teacher training 66,369 Training teachers 94,340 42%

Research and study skills in education 3,670

Academic studies in education 27,339 Academic studies in education 87,210

Techniques in teaching children 1,272

Techniques in teaching adults 10,596

Education for those with special needs 4,430

Technology in education 673

Management and organisation of education 3,870

Other topics in education 14,460 Others in education 31,035 115%

Percentage




Appendix 2

Enrolments of students from outside the UK, by country and level of study, 2006/07

71

Total non-UK domiciled 351,470 50,460 120,255 13,530 135,195 32,030

European Union countries excluding UK 112,260 15,450 27,705 4,870 51,840 12,395

Austria 1,430 255 310 60 675 130

Belgium 2,560 310 490 85 1,510 165

Cyprus 8,710 565 2,130 125 5,580 315

Czech Republic 1,150 100 215 25 670 140

Denmark 1,565 245 435 105 645 140

Estonia 535 35 65 5 350 80

Finland 1,700 195 245 55 1,095 110

France 13,070 1,330 2,940 475 5,930 2,395

Germany 14,010 2,525 3,120 450 6,050 1,870

Gibraltar 635 15 55 45 475 40

Greece 16,050 3,085 7,095 415 4,890 565

Hungary 1,040 145 185 35 540 135

Republic of Ireland 16,255 1,235 3,525 1,765 7,600 2,125

Italy 5,990 1,845 1,490 305 1,755 595

Latvia 880 30 145 10 610 85

Lithuania 1,485 40 170 15 1,150 105

Luxembourg 880 95 145 15 585 35

Malta 815 195 360 40 190 30

The Netherlands 2,810 490 920 160 1,020 220

Poland 6,770 550 1,270 130 3,900 920

Portugal 3,010 855 515 75 1,355 215

Slovak Republic 890 60 100 20 615 105

Slovenia 285 65 90 10 90 30

Spain 6,350 845 1,170 345 2,385 1,605

Sweden 3,380 340 515 105 2,175 245

European Union 2007 accession countries 1,450 325 355 65 510 190

Bulgaria 710 125 170 25 325 65

Romania 740 205 185 40 185 125

Other European Economic Area countries 3,420 260 955 85 1,895 230

Iceland 390 75 195 20 90 10

Liechtenstein 15 5 0 5 5 0

Norway 3,015 185 760 60 1,795 220

Other Europe 8,620 1,370 3,105 370 3,150 625

Albania 240 30 70 15 105 25

Croatia 250 65 100 15 55 10

Russia 2,580 305 870 90 1,125 190

Serbia and Montenegro 340 105 115 10 90 20

Switzerland 1,895 300 540 135 800 125

Turkey 2,235 390 1,055 55 545 190

Ukraine 495 80 185 20 180 30

Other countries not listed 585 100 170 30 245 40

Domicile Total

Postgrauduatedegree

(research)

Postgraduatedegree

(taught)Other

postgraduate First degreeOther

undergraduate

135,195 32,030

51,840 12,395

675 130

1,510 165

5,580 315

670 140

645 140

350 80

1,095 110

5,930 2,395

6,050 1,870

475 40

4,890 565

540 135

7,600 2,125

1,755 595

610 85

1,150 105

585 35

190 30

1,020 220

3,900 920

1,355 215

615 105

90 30

2,385 1,605

2,175 245

510 190

325 65

185 125

1,895 230

90 10

5 0

1,795 220

3,150 625

105 25

55 10

1,125 190

90 20

800 125

545 190

180 30

245 40

First degreeOther

undergraduate

120,255

27,705

310

490

2,130

215

435

65

245

2,940

3,120

55

7,095

185

3,525

1,490

145

170

145

360

920

1,270

515

100

90

1,170

515

355

170

185

955

195

0

760

3,105

70

100

870

115

540

1,055

185

170

Postgraduatedegree

(taught)

50,460

15,450

255

310

565

100

245

35

195

1,330

2,525

15

3,085

145

1,235

1,845

30

40

95

195

490

550

855

60

65

845

340

325

125

205

260

75

5

185

1,370

30

65

305

105

300

390

80

100

Postgrauduatedegree

(research)

13,530

4,870

60

85

125

25

105

5

55

475

450

45

415

35

1,765

305

10

15

15

40

160

130

75

20

10

345

105

65

25

40

85

20

5

60

370

15

15

90

10

135

55

20

30

Other postgraduate

351,470

112,260

1,430

2,560

8,710

1,150

1,565

535

1,700

13,070

14,010

635

16,050

1,040

16,255

5,990

880

1,485

880

815

2,810

6,770

3,010

890

285

6,350

3,380

1,450

710

740

3,420

390

15

3,015

8,620

240

250

2,580

340

1,895

2,235

495

585

Total


72

Africa 33,355 4,185 12,695 1,700 11,595 3,185

Algeria 475 175 125 60 100 15

Angola 255 5 35 0 170 45

Botswana 630 65 130 15 385 35

Cameroon 465 50 185 25 155 50

Egypt 1,205 685 265 85 140 25

Ethiopia 230 40 120 15 45 10

Gambia 355 15 115 15 180 35

Ghana 2,675 345 1,415 140 565 210

Kenya 2,760 200 790 80 1,540 145

Libya 1,685 650 720 80 95 140

Malawi 580 80 240 30 190 45

Mauritius 1,885 90 380 80 1,160 180

Morocco 210 30 75 5 75 25

Nigeria 11,135 775 5,440 650 3,550 720

Seychelles 160 5 45 5 100 5

Sierra Leone 265 30 90 20 85 45

South Africa 1,700 330 515 150 440 265

Sudan 345 85 140 20 75 20

Tanzania 1,050 100 425 30 420 70

Uganda 910 100 430 40 290 55

Zambia 605 70 195 30 235 70

Zimbabwe 2,475 140 440 70 1,040 785

Other countries not listed 1,295 115 380 50 555 190

Asia 142,555 16,710 59,255 4,275 53,220 9,090

Bangladesh 2,675 265 870 210 1,185 145

Brunei 1,205 50 185 15 865 90

Burma 255 20 65 10 145 15

China (People's Republic of) 49,595 5,170 21,620 1,150 18,410 3,245

Hong Kong 9,640 720 1,410 400 6,660 450

India 23,835 1,985 15,500 890 4,080 1,380

Indonesia 1,090 190 465 30 370 40

Japan 5,705 820 1,715 200 2,050 915

Kazakhstan 875 35 305 30 390 120

Macao 205 15 80 0 100 10

Malaysia 11,810 1,880 1,575 310 7,710 335

Maldives 195 20 65 5 95 15

Nepal 635 80 210 20 210 120

Pakistan 9,305 960 4,870 365 2,720 395

Philippines 825 55 130 15 175 445

Singapore 3,200 495 555 75 1,990 85

South Korea 4,310 865 1,235 80 1,760 370

Sri Lanka 3,005 340 870 70 1,580 145

Taiwan 6,795 1,270 4,260 150 755 360

Thailand 4,545 1,155 2,285 160 740 205

Vietnam 1,685 195 500 35 860 95


Domicile Total

Postgrauduatedegree

(research)

Postgraduatedegree

(taught)Other


undergraduate

33,355

475

255

630

465

1,205

230

355

2,675

2,760

1,685

580

1,885

210

11,135

160

265

1,700

345

1,050

910

605

2,475

1,295

142,555

2,675

1,205

255

49,595

9,640

23,835

1,090

5,705

875

205

11,810

195

635

9,305

825

3,200

4,310

3,005

6,795

4,545

1,685

1,160

Total

11,595 3,185

100 15

170 45

385 35

155 50

140 25

45 10

180 35

565 210

1,540 145

95 140

190 45

1,160 180

75 25

3,550 720

100 5

85 45

440 265

75 20

420 70

290 55

235 70

1,040 785

555 190

53,220 9,090

1,185 145

865 90

145 15

18,410 3,245

6,660 450

4,080 1,380

370 40

2,050 915

390 120

100 10

7,710 335

95 15

210 120

2,720 395

175 445

1,990 85

1,760 370

1,580 145

755 360

740 205

860 95

375 115

First degreeOther

undergraduate

12,695

125

35

130

185

265

120

115

1,415

790

720

240

380

75

5,440

45

90

515

140

425

430

195

440

380

59,255

870

185

65

21,620

1,410

15,500

465

1,715

305

80

1,575

65

210

4,870

130

555

1,235

870

4,260

2,285

500

485

Postgraduatedegree

(taught)

1,700

60

0

15

25

85

15

15

140

80

80

30

80

5

650

5

20

150

20

30

40

30

70

50

4,275

210

15

10

1,150

400

890

30

200

30

0

310

5

20

365

15

75

80

70

150

160

35

55

Other postgraduate

4,185

175

5

65

50

685

40

15

345

200

650

80

90

30

775

5

30

330

85

100

100

70

140

115

16,710

265

50

20

5,170

720

1,985

190

820

35

15

1,880

20

80

960

55

495

865

340

1,270

1,155

195

130

Postgrauduatedegree

(research)



Australasia 2,495 695 715 255 440 395

Australia 1,770 470 500 180 325 295

New Zealand 575 205 170 60 75 70


Middle East 16,120 4,275 4,690 530 5,415 1,205

Bahrain 955 155 200 10 530 65

Iran 2,455 760 695 80 750 170

Iraq 330 85 140 15 55 40

Israel 890 415 230 25 190 25

Jordan 1,505 500 565 35 360 40

Kuwait 1,165 265 215 40 560 85

Lebanon 670 180 330 15 125 25

Oman 1,325 210 520 35 445 115

Qatar 600 65 100 20 315 100

Saudi Arabia 3,250 1,000 900 115 870 365

Syria 570 295 185 10 50 25

United Arab Emirates 2,220 320 555 130 1,085 130

Yemen 195 35 55 10 80 20


North America 25,495 5,925 8,535 985 5,850 4,210

Bahamas 240 10 55 25 140 10

Barbados 415 35 165 15 180 20

Bermuda 220 15 30 10 145 20

Canada 5,010 1,300 1,845 285 1,315 265

Jamaica 805 95 270 50 300 90

Mexico 1,665 875 530 30 120 105

St Lucia 155 10 50 5 85 10

United States 15,955 3,480 5,250 490 3,120 3,620


South America 4,460 1,060 1,770 305 970 350

Argentina 340 120 105 55 45 15

Brazil 1,315 385 540 50 220 120

Chile 380 175 160 15 20 15

Colombia 550 135 290 10 60 55

Peru 225 45 110 10 50 10

Trinidad and Tobago 880 55 260 90 390 90

Venezuela 350 70 135 60 65 15


Domicile Total

Postgrauduatedegree

(research)

Postgraduatedegree

(taught)Other


undergraduate

440 395

325 295

75 70

40 25

5,415 1,205

530 65

750 170

55 40

190 25

360 40

560 85

125 25

445 115

315 100

870 365

50 25

1,085 130

80 20

0 0

5,850 4,210

140 10

180 20

145 20

1,315 265

300 90

120 105

85 10

3,120 3,620

445 70

970 350

45 15

220 120

20 15

60 55

50 10

390 90

65 15

120 35

First degreeOther

undergraduate

715

500

170

45

4,690

200

695

140

230

565

215

330

520

100

900

185

555

55

0

8,535

55

165

30

1,845

270

530

50

5,250

335

1,770

105

540

160

290

110

260

135

170

Postgraduatedegree

(taught)

695

470

205

25

4,275

155

760

85

415

500

265

180

210

65

1,000

295

320

35

0

5,925

10

35

15

1,300

95

875

10

3,480

110

1,060

120

385

175

135

45

55

70

75

Postgrauduatedegree

(research)

255

180

60

10

530

10

80

15

25

35

40

15

35

20

115

10

130

10

0

985

25

15

10

285

50

30

5

490

75

305

55

50

15

10

10

90

60

20

Other postgraduate

2,495

1,770

575

145

16,120

955

2,455

330

890

1,505

1,165

670

1,325

600

3,250

570

2,220

195

0

25,495

240

415

220

5,010

805

1,665

155

15,955

1,030

4,460

340

1,315

380

550

225

880

350

425

Total


74

Appendix 3

Trends in sources of income to higher education institutions, 2000/01, 2005/06 and

2006/07

The following tables shows the sources of income to higher education institutions

In 2000/01, 2005/06 and 2006/07 (expressed as £thousand in cash terms).

2000/01 UK England Wales Scotland

Northern

Ireland

Funding council grants

a Grants for higher education provision (including further education in Scotland) i Recurrent (teaching) 3,805,637 3,029,040 213,593 463,603 99,401

ii Recurrent (research) 1,070,580 880,125 46,294 118,792 25,369

Other higher education grants 408,526 322,265 23,884 50,118 12,259

b Grants for further education provision 71,034 68,455 2,579

Total funding council grants 5,355,777 4,299,885 286,350 632,513 137,029

Tuition fees and education grants and contracts

1 Higher education course fees a Home and EU domicile students 2013648 1686126 101806 180555 45161

b Non-EU domicile students 746,366 648,976 23,851 68,502 5,037

Total higher education course fees 2,760,014 2,335,102 125,657 249,057 50,198

2 Non-credit-bearing course fees 236,782 209,252 4,715 20,697 2,118

3 Further education course fees 26,416 25,975 90 351

4 Research training support grants 25,367 19,036 800 5,263 268

Total tuition fees and education grants and contracts 3,048,579 2,589,365 131,262 275,368 52,584

Total research grants and contracts 2,207,228 1,812,384 78,807 278,265 37,772

Other income

a Other services rendered 652,262 506,803 50,233 83,378 11,848

b Residences and catering operations (including conferences) 925,602 771,461 50,966 93,965 9,210

c Grants from local authorities 10,606 10,521 85

d Income from health and hospital authorities (excluding teaching contracts) 200,225 175,523 5,043 14,678 4,981

e Released of deferred capital grants 45,655 37,261 649 7,745

f Income from intellectual property rights 17,828 7,413 3,478 6,906 31

g Other operating income 737,770 612,080 21,654 89,480 14,556

Total other income 2,589,948 2,121,062 132,108 296,152 40,626

Total endowment and investment income 292,387 245,949 12,533 30,948 2,957

Total income 13,493,919 11,068,645 641,060 1,513,246 270,968





ii Recurrent (research) 1,543,826 1,250,423 63,877 187,050 42,476


b Grants for further education provision 109,958 106,656 3,302



1 HE course fees

a Home and EU domicile students 2718486 2279096 137307 246066 56017

b Non-EU domicile students 1,499,348 1,297,178 50,194 143,896 8,080

Total HE course fees 4,217,834 3,576,274 187,501 389,962 64,097


3 FE course fees 23,035 22,589 218 228

4 Research training support grants 85,329 64,388 3,149 17,772 20


Total research grants and contracts 3120606 2540013 121321 389220 70052

Other income

a Other services rendered 1,212,366 1,009,779 92,678 92,974 16,935

b Residences and catering operations (including conferences) 1,162,244 973,136 60,045 115,562 13,501

c Grants from local authorities 2,446 2,357 82 7


e Released of deferred capital grants 87,375 72,344 2,799 11,196 1,036


g Other operating income 1,045,725 885,748 32,313 105,414 22,250



Total income 19,503,112 16,114,968 917,542 2,064,336 406,266

75


Northern

Ireland


76



ii Recurrent (research) 1,671,653 1,343,770 65,315 215,917 46,651


b Grants for further education provision 112,367 101,963 10,404 0 0



1 Higher education course fees a Home and EU domicile students 3,270,707 2,808,414 140,387 252,043 69,863

b Non-EU domicile students 1,712,730 1,472,893 60,110 171,002 8,725

Total higher education course fees 4,983,437 4,281,307 200,497 423,045 78,588


3 Further education course fees 28,001 26,933 740 328 0

4 Research training support grants 95,542 71,923 4,704 18,885 30


Total research grants and contracts

Other income

a Other services rendered 1,313,930 1,108,518 94,378 94,196 16,838

b Residences and catering operations (including conferences) 1,233,005 1,034,152 59,402 125,661 13,790

c Grants from local authorities 1,464 1,371 77 16 0


e Released of deferred capital grants 88,651 71,948 3,121 12,402 1,180


g Other operating income 1,076,424 898,293 35,542 114,245 28,344



Total income 21,289,853 17,591,618 1,005,046 2,258,574 434,615


Northern

Ireland



Unless otherwise stated, the merged institution assumed the name of the second named institution. Only publiclyfunded higher education institutions are included in this list.

1994/1995

Institute of Psychiatry (transition) and King’s College London

West London Institute of Higher Education and Brunel University

London Hospital Medical College and Queen Mary and Westfield College

St Bartholomew’s Hospital Medical School and Queen Mary and Westfield College

The Welsh Agricultural College and University College of Wales, Aberystwyth

Duncan of Jordanstone College of Art and University of Dundee

1995/1996

Salford College of Technology and University of Salford

Winchester School of Art and University of Southampton

Charlotte Mason and St Martin’s College

The British Postgraduate Medical Federation incorporated into:

Imperial College of Science, Technology and Medicine, King’s College London, University College London and London University - Senate institutes

1996/1997

Institute of Psychiatry and King’s College London

Royal Postgraduate Medical School and Imperial College of Science, Technologyand Medicine

Charing Cross and Westminster Medical School and Imperial College of Science, Technologyand Medicine

La Sainte Union College and University of Southampton

Coleg Normal and University College of North Wales, Bangor

1998/1999

Loughborough College of Art and Design and Loughborough University

United Medical and Dental School (UMDS) and King’s College London

Royal Free Hospital School of Medicine and University College London

Westhill College (‘strategic alliance’) and University of Birmingham

Moray House Institute of Education and University of Edinburgh

The Scottish College of Textiles and Heriot-Watt University

1999/2000

St Andrew’s College of Education and University of Glasgow

Appendix 4

Mergers within the higher education sector, 1994/95–2006/07

77


78

2000/2001

Westminster College Oxford and Oxford Brookes University

Wye College and Imperial College of Science, Technologyand Medicine

North Riding and University of Hull

College of Guidance Studies and Canterbury Christ Church University College

Bretton Hall and University of Leeds

Homerton College, Cambridge and University of Cambridge(partial merger)

2001/2002

London Guildhall University and University of North London, forming LondonMetropolitan University

Northern College of Education and University of Aberdeen and University of Dundee

2002/2003

Northern School of Contemporary Dance and Conservatoire for Dance and Drama(Transfer of higher education provision.)

2004/2005

University of Manchester Institute ofScience and Technology and the Victoria University of Manchester, forming

the University of Manchester

Kent Institute of Art and Design and The Surrey Institute of Art and Design, forming the University College for the Creative Arts

The University of Wales College of Medicine and Cardiff University

2005/2006

Wimbledon School of Art and University of the Arts London

Homerton College and Anglia Ruskin University



01 Clinical medicine

02 Clinical dentistry

03 Veterinary science

04 Anatomy and physiology

05 Nursing and paramedical studies

06 Health and community studies

07 Psychology and behavioural sciences

08 Pharmacy and pharmacology

10 Biosciences

11 Chemistry

12 Physics

13 Agriculture and forestry

14 Earth, marine and environmental sciences

16 General engineering

17 Chemical engineering

18 Mineral, metallurgy and materials engineering

19 Civil engineering

20 Electrical, electronic and computer engineering

21 Mechanical, aero and production engineering

23 Architecture, built environment and planning

24 Mathematics

25 IT and systems sciences, computer software engineering

26 Catering and hospitality management

27 Business and management studies

28 Geography

29 Social studies

30 Media studies

31 Humanities and language based studies

33 Design and creative arts

34 Education

35 Modern languages

37 Archaeology

38 Sports science and leisure studies

41 Continuing education

Appendix 5

HESA cost centres

(Excluding non-academic cost centres)

79


80


About Universities UK

This publication has beenproduced by Universities UK,which is the representative bodyfor the executive heads of UKuniversities and is recognised asthe umbrella group for theuniversity sector. It works toadvance the interests ofuniversities and to spread goodpractice throughout the highereducation sector.

Universities UK

Woburn House20 Tavistock SquareLondonWC1H 9HQ

telephone

+44 (0)20 7419 4111

fax

+44 (0)20 7388 8649

email

[email protected]

web

www.UniversitiesUK.ac.uk

© Universities UKISBN 978 1 84036 182 7September 2008


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