Immigration fuels need for 300,000 more places at university

HUNDREDS of thousands more university places will be needed by 2030 due to a baby boom fuelled by migration, figures suggest.

A study shows 300,000 more places will be needed in 12 years because of the growing population and the rising popularity of university among youngsters.

The number of 18-year-olds is set to rise in England by 23 per cent following a surge in births which began in the 2000s.

The Government has already said that was partially caused by a higher birth rate among foreignborn women who entered the country under New Labour.

Today’s study, undertaken by the Higher Education Policy Institute, (HEPI) says a trend towards ‘widening participation’ also means a larger proportion of 18-year-olds in 2030 are likely to want a place than is currently the case.

The Government’s current policy is to try to provide a university place to every youngster who wants one.

The cap on places was removed in 2015, meaning unlimited numbers of students can now go to university.

The Conservatives brought in the policy to prove to the public they were serious about helping disadvantaged youngsters.

But HEPI said funding unlimited numbers of students at university was unsustainable, and questioned how it would be afforded.

Student fees of £9,250 a year are paid for via taxpayer-backed loans, which are written off after 30 years and the rest of the bill is picked up by the public purse. Many courses such as science and medicine also require extra subsidies.

Report co- author Bahram Bekhradnia said: ‘It is difficult to see, under the current finance model, how the policy of uncapped student recruitment can continue.

‘ This is particularly pertinent given the constraints on public expenditure and the absence of any suggestion from the Treasury that more money will be available for higher education in the future.’

If population increase were the only factor, demand for degree courses would rise by around 50,000 places by 2030, HEPI said.

However, the researchers said the participation rate among youngsters in future is also set to rise – meaning a larger proportion will go. Already, the participation rate of people aged 20 and under has risen by nearly 25 per cent since 2006.

If this trend continues, there could be an overall rise in demand of 350,000 full-time places by 2030.

HEPI said the main factor that could have a negative impact on demand is Brexit, which, unless arrangements are made that will maintain demand from EU students, could mean that numbers fall by about 56,000.

This means that the most likely outcome is that by 2030, a net increase of around 300,000 full-time places will be needed.

Under the current system, students pay back their loans once they are earning £25,000 a year, with an interest rate of up to 6 per cent.

An estimated 83 per cent of current students will never repay their loans in full – meaning the rest of the cost of their degree is subsidised by the taxpayer.

‘Subsidised by taxpayers’