How many university places do we really need in Britain?

By Warwick Sharp

The lure of a degree means universities are currently straining under the pressure of preparing for an unprecedented number of freshers. Single rooms are being fitted with bunk beds, lectures are being scheduled at night and student loans are becoming backlogged. None of this is particularly worrying as long as these extra degrees are worth it.

The arguments for university are strong, particularly in a recession – and this year there will be 513,000 places. Research shows that graduates are likely to be wealthier and healthier, and of greater value to their economies. Spillover benefits for society are potentially huge too.

I have huge respect for British universities and believe we have some of the best in the world. However, the benefits mentioned are based on a minority of school leavers going to university. Would those benefits decline significantly if more people enrolled? Is there a limit to the number of graduates Britain needs and can support? If developed well enough, would apprenticeships and other on-the-job training schemes give school leavers as big an advantage as a university degree?

In the past 50 years, the UK economy has shifted ever more towards knowledge based activities and therefore the UK has needed more people with higher level skills. As a result there has been a huge increase in the numbers going to university. As this shift towards knowledge based activities continues over the coming decades there will be pressure to keep increasing numbers going to university even more. But can we afford to keep relying on universities more and more?

Some facts suggest that we cannot. The number of jobless graduates is expected to double this year to 40,000. A survey suggests this year’s Freshers can expect to leave university with an average debt of £23,500. What is more, thousands leave university each year with absolutely no idea of what they want to do.

Perhaps universities have now reached their limit in terms of student numbers. Benefits may decline even more if we attempt to push more students through them. We can focus on other options instead to help young people achieve higher level skills and succeed in the world of work.

In a wide range of professions, school leavers can successfully go straight into training schemes and learn impressive higher level skills. Professions from plumbing to accountancy require extremely tailored skills that are often best taught on the job. Big businesses are getting on board; Sainsburys, for example, has introduced a national trainee scheme for 18-year-olds with three A levels to become department managers after 12 months on the job, with a starting salary of £17,500.

In addition, it is becoming increasingly difficult for Britain to fund university places. The CBI has just announced that current levels of funding are unsustainable. Focusing on alternative options could also put a great deal less strain on public finances.

So why are we pushing the university system to breaking point when there are better options for many young people which could be developed and expanded on?

I strongly support British universities – they do a great job of transforming a wide pool of talent. However, there are other pools of talent that can be equally well transformed through a multitude of other options.

Britain can, and should, produce a world-class labour force by focusing on the range of options to equip all school leavers with the right skills for the future.