Universities’ cash crisis set to last for five years
● Virus could lose Scottish institutions £650m in 2020-21 ● Lochhead says free places for Europeans may have to end
Free tuition provided to EU students at Scottish universities may be axed in a bid to free up extra cash, it has been revealed.
Universities minister Richard Lochhead has warned Scotland’s tertiary institutions will take up to five years to recover from the financial crisis looming as a result of coronavirus.
It is estimated that Scottish universities could lose anywhere between £380 million to £650 million in 2020/21.
The UK Government has been asked to answer an “SOS” plea from the sector.
Scotland’s universities will take up to five years to recover from the financial crisis looming as a result of coronavirus, MSPS have been told.
And the Scottish Government may end the “free” places provided to EU students as a way to free up extra cash, universities minister Richard Lochhead has said.
He called on the UK government to answer an “SOS” plea from the sector to make good on Boris Johnson’s pledge to make the country a “scientific superpower”.
Scottish universities are internationally renowned, but face a massive drop in income as travel restrictions mean many international students will stay away next year, along with the loss of vital research funding.
It is estimated that universities could lose anywhere between £380-£650 million in 2020-21, Mr Lochhead told Holyrood’s education committee yesterday.
“These are massive challenges facing the sector not just loss of students but research as well,” he said.
“So it could be three, four, five years to recover from this.”
Students from EU nations currently receive free tuition in Scotland because EU rules prevented them being treated differently from Scottish students. Students from England, Wales and Northern Ireland were charged fees as they are not from another EU state, but regarded as internal UK students. The UK’S departure form the EU means these rules no longer apply, but the Scottish Government has pledged to continue funding EU students in 2020-21 in order to maintain student population numbers in Scotland. But Mr Lochhead admitted yesterday this may end the following year.
“We’ve not taken a decision yet as to whether to fund for the year 21-22 EU fees,” he said.
“As you know in Scotland we want to be seen as an outward-looking country, part of Europe and want the European experience on our campuses which benefits our own students as well as our ties with other countries.
“But clearly we have postponed taking a decision on that while we are looking at what the impact of Covid-19 is in the round.”
He added: “That is an option. We could take a decision that the £97m it is estimated to cost us in terms of funding EU students, part of that or all of that, whatever to be decided, could be made available for other purposes in further and higher education.”
The minister also called for “considerable fiscal intervention” from the UK Government
to help Scotland’s universities.
“The sector has issued an SOS,” he added.
“If assistance from the UK government is not forthcoming soon then the very sectors that we will rely on to get us through this pandemic and to support the country’s recovery will be severely weakened and diminished.
“And I’m afraid that the Prime Minister’s recent promise that the UK will become a science superpower will simply disappear into the ether like a puff of smoke unless assistance is more forthcoming.”
Mr Lochhead insisted that Scotland’ universities are “open for business” and would be open after the summer in “some shape or form”.
This might involve staggering course start dates or moving terms by a few weeks.
Mr Lochhead said some institutions may start their next terms a few weeks later than usual or shift to online learning as they assess the impact of the crisis.
The University of Edinburgh has already warned coronavirus restrictions may mean changes to the format or order of its teaching.
The university’s principal, Prof Peter Mathieson, said: “We know that social distancing is likely to be here for some time to come and therefore having hundreds of students packed into lecture theatres close together probably isn’t going to be possible.
“But we intend to provide small-group teaching and the other campus experiences that distinguish us in a research intensive environment.
“So we’re talking about a hybrid model.”
Mr Lochhead also told MSPS he has written to the Department for Work and Pensions (DWP) about the “common problems” of student hardship.
Most students cannot currently access Universal Credit but he has asked the DWP to consider allowing students to claim the benefit as many summer jobs have disappeared.
The Scottish Government has set out £5m to help students in hardship and £75m to support university research. Asked if any universities are on the brink of closing, he said he does not think this is the case but many face “monumental challenges”.
COMMENT
“The Prime Minister’s promise that the UK will become a science superpower will simply disappear into the ether like a puff of smoke”
RICHARD LOCHHEAD
Universities minister