University funding changes set to cost more than they save

By David Mercer. Changes to the way universities are funded will result in economic costs six times higher than any Government savings, new figures suggest.
The Treasury is set to reduce its expenditure by almost £1.17 billion following the changes in 2012-13, which include allowing universities to charge higher tuition fees and no longer offering teaching funding through the Higher Education Funding Council for England (HEFCE), think tank million+ said.
But a report by the group has found the economic costs of the new funding system are expected to reach more than £7 billion - 6.5 times higher than the Treasury's expected savings. Read more...