THE TRENDS SHAPING UK HIGHER EDUCATION IN 2024 AND BEYOND
Universities in the UK are facing growing challenges when it comes to postgraduate (PG) recruitment, particularly in the home market. According to Kim McLellan, Managing Director at Hunterlodge, who works with a range of higher education clients, this trend can be traced back to 2014-2018. During that period, universities began absorbing more postgraduate candidates into their undergraduate programs, driven by a shortfall in 18-year-old applicants.
McLellan points out that the job market plays a significant role in shaping postgraduate enrollment trends. In a thriving job market, fewer people seek postgraduate education, but when the job market becomes more difficult, interest in PG programs increases. At present, the strong job market is making it harder for universities to attract domestic PG students. However, McLellan believes this is a temporary setback, suggesting that universities need to adopt more strategic, collaborative, and flexible approaches to recover from revenue losses.
One shift that universities are making is focusing on their location and international student recruitment, as many institutions try to fill the gap left by reduced domestic PG numbers. However, McLellan cautions that international markets can be volatile, and universities need to diversify their student base.
Key Trends Shaping UK Higher Education
1. The Popularity of “Big 4” Subjects
McLellan highlights the growing demand for degrees in business, psychology, computer science, and law—known as the “Big 4” subjects. These fields are experiencing rapid growth, both in the UK and globally. Universities with a strong presence in at least three of these disciplines are likely to see greater success. However, balancing the needs of these popular programs with the broader academic and research portfolio remains a challenge, as universities must cater to various disciplines to maintain academic rigor.
According to statistics from 2020/21, business and management studies attracted the highest number of enrollments in UK higher education, with over 470,000 students, followed by medicine.
2. The Cost-of-Living Crisis
The cost-of-living crisis is an ongoing issue that universities cannot afford to overlook. Many students are finding that their maintenance loans do not cover basic living expenses, with some surveys showing students fall short by nearly £439 per month. Some universities are stepping up to help students by offering practical solutions. For example, the University of Northampton provides free laptops to all new students, and others are reducing accommodation deposits to alleviate financial pressure.
McLellan advises universities to integrate cost-of-living considerations into their brand and marketing strategies, potentially offering more student-friendly initiatives such as free travel cards or heating grants, particularly in expensive cities like London.
3. A Resurgence of MOOCs
Massive open online courses (MOOCs) have seen a resurgence in 2024, with many universities now offering free MOOCs to attract prospective students. These courses are also being modularized, allowing students to complete them at their own pace and in their own space, providing significant commercial returns. The global EdTech market is set to grow rapidly, with projections suggesting it could reach $605 billion by 2027.
Universities that have effectively digitized and modularized their offerings, such as the London School of Economics, are reaping the benefits of this shift. Modular programs, especially in fields like business, are increasingly popular and can be offered as shorter, premium-priced courses, allowing universities to attract a wider range of learners.
Looking Ahead
Despite the current challenges, McLellan is optimistic about the future of UK higher education. Population growth is expected to keep the undergraduate market strong, which will eventually lead to a growing postgraduate market. Projections from the Office for National Statistics suggest that the UK population will rise from 67.1 million in 2020 to 69.2 million by 2030, with a particularly sharp increase in the number of young people.
London, with its growing population and appeal to international students, is expected to become a key area for student recruitment. Universities will need to refine their strategies to capture both domestic and international markets effectively.
While the UK higher education sector will continue to face challenges, particularly in the postgraduate market, institutions that are agile and responsive to these trends are likely to thrive in the years ahead.
