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With the introduction of top-up fees this autumn, the degree debate is a hot topic. Here, Universities UK chief executive, Diana Warwick, cools soaring temperatures and tells Paul Johnson why a degree is still a valuable commodity in the workplace

Universities would appear to have a delicate balancing game to play. On one hand they have to nurture and develop academic talent and achievement to the fullest extent, but on the other, they are charged with producing graduates who can switch seamlessly into the world of work, equipped with a battery of practical and vocational skills.
To some critics the two goals are mutually exclusive, leading to ‘ivory tower’ allegations that universities are too cut off from the realities of work – and the needs of prospective employers.
However, according to the body that represents the country’s universities, the reality is vastly different. Universities UK is the umbrella group for the university sector, and works to advance the interests of universities and to spread good practice throughout the higher education sector. The organisation, which has charitable status, has 127 members, namely the executive heads of all the UK university institutions and some colleges of higher education.
Universities UK chief executive Baroness Diana Warwick says universities are now better than ever in combining academic rigours with the practical skills and abilities demanded by employers.
She stresses that it’s important not to play down the value of a degree in any discipline – along with the aptitude, discipline and experience such learning brings – and the ease with which such skills can be transferred to the working environment.

Meeting the challenge
Some politicians – and even employers – have criticised the UK higher education system over a perceived ‘academic’ bias, alleging that too many students are keen to embark on degrees that will do little to improve their employment chances.
While Diana refutes the suggestion that universities are failing to deliver the right combination of academic and vocational skills, she says that it’s crucial that universities work closely with employers to address any skills shortages.
She says: ‘The distinction between ‘academic’ and ‘vocational’ is often a false one. Universities have a long tradition of providing education in areas such as medicine, dentistry, law, teaching, architecture and engineering which are both academic and vocational.
‘However, in an age of increasing participation in higher education, it does make sense to ensure that there is a range of higher education available, not only to suit the needs and aspirations of the wider range of students, but also to make sure that employers get the skills they need
‘The UK faces an increasingly competitive international challenge and we need to address higher level skills shortages if we are to meet that challenge.’

Addressing the skills gap
Universities have taken on board the message that they need to work hand in hand with businesses to provide as seamless a transition as possible between the worlds of learning and work.
Diana says: ‘Universities are working increasingly closely with employers to design and deliver courses that equip students with the skills these employers need. To give an example, look at the rapid growth in the numbers of Foundation Degrees, which are developed in collaboration with employers and involve learning in the workplace.
‘Also universities are increasingly involved in providing Continuing Professional Development for employees, commissioned by employers. That’s a trend that is set to grow.’
She adds: ‘I don’t think at higher education level what we are seeing is a decline in vocational qualifications. The trend is in the opposite direction. Increasingly both universities and employers are reaching out towards each other, and the result should be graduates who are more employable and more highly sought after.
‘It’s important to stress that employment rates among graduates remain very high, and the graduate premium – the average amount a graduate earns during the course of their working life which can be attributed to the fact they have been to university – remains considerable.
‘However, the Government is very keen to encourage more engagement between employers and universities, and other education and training providers, to ensure that courses really do equip graduates with the skills they need.’

The soft skills agenda
Graduate employers are fond of quoting the need for well-rounded employees equipped with the ‘soft skills’ – as well as academic achievements – that give them abilities such as team-working, leadership and initiative.
Businesses and organisations sometimes complain that graduates are lacking in these ‘people skills’, leading to problems working with others or completing tasks satisfactorily, and say that universities should do more to teach students the basics.
Diana says: ‘All university courses teach ‘soft skills’ to some degree - all higher level study will involve requirements such as meeting deadlines, working in teams, taking responsibility and people skills.
‘There are many sub-degree programmes (including Foundation Degrees and HNDs and HNCs) which apply learning more closely to the workplace – and if you are involved in work-based learning, the ‘soft skills’ will be an important part of your learning experience.’
Diana adds: ‘Universities UK welcomes the creation of vocational diplomas from 2008. Students learn in many different ways; the diploma will open up choices for young people and continue to encourage widening participation to higher education as well as providing a route into employment.
‘The diplomas will provide practical skill development with theoretical and technical understanding and knowledge. We must be careful not to overlook the importance of HE in the development of higher-level skills.’
 
Graduate prospects
Being a graduate is still a huge benefit when it comes to finding high-quality work and looks certain to continue says Diana.
‘The 2006 UNITE student experience report showed that an overwhelming 96 per cent believe that going to university is a worthwhile experience,’ she says.
‘This figure has remained in the high nineties since the UNITE report began in 2001, despite the many changes taking place in UK higher education. Clearly students see going to university as a solid investment in their future.
‘The recent DfES Class of ‘99 report also showed that graduates are going on to build good careers that reflect their skills and achievements – and that employers continue to value graduates and are prepared to pay a premium that reflects this.
‘The research revealed that the graduate market remains strong – 85 per cent are in graduate level employment, two thirds are in jobs relating to long term career plans and just 2-3 per cent are unemployed.’
Diana adds: ‘I think it’s very interesting that the Class of ‘99 report also showed that the majority of graduates in its survey did not measure the value of their degrees purely in economic terms. Alongside the welcome growth in starting salaries the vast majority of graduates and employers also recognise the personal development opportunity that an undergraduate education offers.
‘And a final thought – employers are still prepared to pay a premium to employ graduates, even in jobs that also employ non-graduates. A point often overlooked.’

Maintaining quality
Some students and graduates complain about a perceived bias in universities favoured by employers, citing Oxford and Cambridge as being particularly in demand. However, Diana dismisses any suggestion of a two-tier system, pointing out that all UK degrees are carefully monitored for quality control.
She says: ‘Each university plays an integral part in maintaining UK HE’s world-class reputation, and the diversity of the UK higher education sector has always been one of its great strengths.
‘Institutions across the UK are all subject to the same stringent quality assurance systems – some of the toughest in higher education anywhere.
‘That means employers know they can trust the value of a UK HE degree, regardless of the institution the graduate has come from. UK degrees are recognised around the world as being of high quality and lead to excellent employment opportunities.’
Diana adds: ‘The issue of whether one degree is better than another ignores the reality of higher education in the UK today. The huge range of courses offered by the UK's universities, including access courses, are aimed at enabling as many people as possible who can benefit from higher education to take up the opportunity.’

The debt question
The introduction of the new tuition fees for students has been met with a mixed response, with critics arguing it will only discourage talented potential students from poorer backgrounds going to university.
With the average graduate debt reported to be around £10,000 there is the fear that university leavers will be saddled with yet more money to repay, affecting their career choices.
Diana says the reality is far different. ‘Unfortunately a lot of the media coverage so far has focused on the increased tuition fee, which will rise this year from a fixed fee of a little over £1,000 to a varied rate, capped at £3,000, at most institutions.
‘What has not perhaps come across well enough in the media coverage is the fact that tuition is now free at the point of entry, and the fee is only repaid once you’re earning. Fees will no longer have to be paid upfront, so students don’t pay and parents don’t pay; it is graduates who pay, and then only when they are earning over £15,000.
‘Students will not be hit with unmanageable levels of debt as a result of the introduction of higher, variable fees – they will be required to repay only nine per cent pa of their salary above this £15,000 threshold. So, for example, if you earn £18,000 you would repay £5.19 per week.’
‘Commercial rates of interest will not be charged – the loan will only be increased in line with the rate of inflation. Any student loans, or part of a loan, still unpaid 25 years after the course is finished will be written off by the Government.’
Diana adds: ‘Under the new fee regime, universities are also offering more than £350 million in bursaries to support students. Individual institutions are offering a huge variety of financial help, whether as cash bursaries, scholarship schemes, subject-specific bursaries or other schemes.’
She says it’s likely that the new system will not have a major impact on less well-off students. ‘I know newspaper reports have suggested that the new fee regime will hit poor students hardest – and that they will therefore be less likely to go to university. We’re looking at the figures very closely as we get closer to the start of the first academic year under the new fees regime, but the picture so far is encouraging.’
Diana adds: A final, very important, point is the reintroduction under the new fee package of the Higher Education Maintenance Grant – more than half of students will be eligible for this. This re-introduction of non-repayable maintenance grants for students from low-income backgrounds will I think be critical in mitigating the fear of debt.
‘These grants, together with other enhanced student support measures and the £350 million-plus in bursaries, are real incentives to encourage more young people to enter higher education.’

The future of HE
The Government hopes to have around 50 per cent of school leavers going on to higher education, but critics have argued that the university system might not be able to cope, especially if funding is inadequate
Others fear that an influx of graduates on the job market will dilute the value of being a graduate when it comes to employment, leading to those with degrees being unable to find appropriate work.
Diana says: ‘Universities UK believes strongly that everyone who has the ability to benefit from higher education – not just young people – should be able to do so, regardless of their financial or social circumstances.
‘To support this aim, universities undertake a range of widening participation programmes to encourage people from all backgrounds to apply to university, and support them through their studies to ensure their success.’
Diana adds: ‘The 50 per cent target is just that – a target – not a fixed point, and is just something to aim for. Many of our competitor countries have already exceeded this level of 50 per cent, as indeed has Scotland, for example. But we do need to maintain standards as we expand opportunities to study in HE – and that means adequate funding.
‘It’s important for the economy and the country as a whole to have more – not fewer – graduates. Research from the Centre for Research on the Wider Benefits of Learning (www.learningbenefits.net) shows that graduates and wider society benefit from the higher skilled workforce on many levels.’

For more information about Universities UK, log on to www.universitiesuk.ac.uk

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