Education Funding / Children and Financial Planning
Question: Will spending cuts pile on pressure for universities and students?
It has been reported that the government intends to cut the university teaching budget from £4.7bn to just £1.2bn. The teaching budget is used to subsidise the cost of university courses as the upper limit of tuition fees of £3,290 is inadequate to support the cost. There will also be a cut in universities research budget but this will be by less than £1bn of the current £6bn budget.
The cuts are expected to fall disproportionately for arts courses as universities seek to protect strategically important subjects such as sciences and languages. It is estimated that if the subsidy is withdrawn completely for some arts courses the cost of tuition fees would rise from £3,290 to £5.931.
Universities are increasingly finding it hard to make ends meet. At least 29 were in the red for the financial year 2008/09, twice as many as the previous year.
This is a further assault on the finances of those who wish to see their children or grandchildren through higher education. If the state will not pay then parents/grandparents must save/invest for the future or face massive education costs.
Now is the time to review any investments you have in place for children or grandchildren.