Executive Summary

1. Introduction

The Topic

Objectives

Methodology

Original Research

Problems In The Research Process

Definition

2. Strategic Overview

Market Dynamics And Segmentation

Occupational Scatter

Table: Qualifications And Jobs: Percentages Of Adults Of Working Age With First-degree And Postgraduate-level Qualification As Their Highest Qualification,

Chinese-origin Residents The Most Qualified

Table: Percentages Of Great Britain Residents With A First Degree Or Higher Qualification,

Charitable Status

Mass Market

Table: Growth In Higher Education In The Uk By Number Of Higher-education Students By Sex (000), /1971-2003/2004

Figure: Growth In Higher Education In The Uk By Number Of Higher-education Students By Sex (000), /1971-2003/2004

Table: Growth In Full- And Part-time Undergraduate Education In The Uk By Number Of Undergraduate Students By Sex (000),/1971-2003/2004

Students: More Women, More From Abroad

Table: Number Of Degrees Awarded In The Uk By Type By Sex Of Student,/2000 And/2004

Figure: Degrees Awarded In The Uk By Type (%),/2004

Table: Full-time Undergraduate Students In The Uk By Most Popular First-degree Subject Areas By Sex (number Of Students And % From The Uk),/2004

Masters Degrees Are The New First Degrees

Table: Growth In Full- And Part-time Postgraduate Education In The Uk By Number Of Postgraduate Students By Sex (000),/1971-2003/2004

Foreign Students Flock To Technology Courses

Table: Full-time Postgraduate Students In The Uk By Most Popular Postgraduate Subject Areas By Sex (number Of Students And % From The Uk),/2004

The Rise Of The Mature Student

Table: Students Aged And Over In The Uk By Type Of Study By Sex (000 And %),/2004

Competitive Structure

Advertising

The Consumer

Market Forecasts

Key Points

3. Funding For Institutions

Spending: Higher Education's Share Falls

Table: Higher Education In The Uk By Source Of Income (£m),/2004 And/2005

Table: Higher Education In The Uk By Type Of Expenditure (£m),/2004 And/2005

Fees From Foreign Students Are Vital

Table: Sources Of Finance For Higher-education Institutions In England (£m And %),/2004

Worrying Pay Issues

Teaching Versus Research

Table: Universities In England With The Highest Annual Resources (£m),/2007

Table: Most Efficient Institutions In The Uk For Award Of Phds In Relation To Staff Costs,/2000 And/2004

Open University Fares Better Than University For Industry And E-universities

Students To Pay More

Table: Public Spending On Student Support In The Uk (£m),/2000 And/2004

Figure: Public Spending On Student Support In The Uk (£m And %),/2000 And/2004

Key Points

4. Funding For Undergraduates And Postgraduates

Student Loans Approach £3bn A Year

Table: Student Loans In The Uk — Public Debt (£m), /2003-2004/2005

The Quiet Return Of Maintenance Grants

Table: New Students' Main Concerns (% Of New Students), May

Split By Social Class

Table: Percentage Of New Students From State Schools And Colleges By Subject Area,/2000 And/2004

Table: Highest Drop-out Rates In The Uk — Percentage Of/2004 Entrants No Longer In Higher Education After The First Year

Nhs Has A Big Impact On Higher Education

Learning As A Consumer Purchase

Key Points

5. Promotion And Advertising

Hsbc And Natwest

Table: Main Media Advertising Expenditure On Student Bank Accounts (£000), Year Ending March

Table: Main Media Advertising Expenditure On Student Bank Accounts (£000), Year Ending December

Table: Main Media Advertising Expenditure On Student Bank Accounts (£000), Year Ending September

Table: Main Media Advertising Expenditure On Student Bank Accounts (£000), Year Ending December

Key Points

6. An International Perspective

China Values British Degrees

Table: Number Of Overseas Students In Full-time Higher Education In The Uk By Type Of Study By Country Of Origin,/2001

Table: Number Of Overseas Students In Full-time Higher Education In The Uk By Type Of Study By Country Of Origin,/2004

Figure: Number Of Overseas Students In Full-time Higher Education In The Uk By Country Of Origin, /2001 And/2004

How The Uk Shapes Up Internationally

Table: Annual Expenditure On Higher-education Institutions Per Student By Country (us$ At Purchasing Power Parity),

Table: Subsidies For Higher Education To `private Entities' (students And Students' Households) By Country (% Of Gross Domestic Product†),

Key Points

7. Pest Analysis

Political Factors

Promotion Overseas Is A Top Priority

University Funding Rises Up The Political Agenda

Economic Factors

Financial Strains For The Less Affluent

New Class Of Super-wealthy

Social Factors

Extended Dependence

Technological Factors

E-learning — Cheaper But Lonesome

Key Points

8. Consumer Dynamics

Introduction

Overview

Table: Summary Of Public Opinions On Funding For Higher Education (% Of Respondents), November/december And April

Having/studying For A Degree, And Belief That A Degree Is Essential For A Well-paid Job

Degrees Becoming The Norm

Degrees Regarded By Many As Essential For Well-paid Jobs

Table: Belief That A Degree Is Essential For A Well-paid Job (% Of Respondents), November/december And April

Table: Those Who Have Or Are Studying For A Degree, And Belief That A Degree Is Essential For A Well-paid Job (% Of Respondents), April

Veering Towards Too Many University Students, Yet Only A Minority Agree That Students Should Pay The Full Costs Themselves

Towards The End Of Expansion?

Table: Opinion That Too Many Students Go To University Nowadays (% Of Respondents), November/december And April

Apparent Support For Public Funding For Students

Table: Opinion That Students Should Pay The Whole Cost Of Their Courses (% Of Respondents), November/december And April

Table: Opinions That Too Many Students Go To University Nowadays, And That Students Should Pay The Whole Cost Of Their Courses (% Of Respondents), April

University Is Too Expensive — But One Person In Two Objects To Paying More Tax To Help Students

Less-affluent Students Disadvantaged

Table: Belief That Poorer Students Are Discouraged From University Because Of The Cost (% Of Respondents), November/december And April

Objections To Higher Taxes To Support Students

Table: Belief That Poorer Students Are Discouraged From University Because Of The Cost, And Objection To Paying More Tax To Help Students (% Of Respondents), April

Lukewarm On Higher Taxes, But Firmly Against Further Growth In Student Numbers

Minority Favours More Taxation To Aid Higher Education

Focus Should Be On Quality Of Courses, Not Increasing Student Numbers

Table: Those In Favour Of Higher Taxes To Support Students, And Belief That The Government Should Be More Concerned With The Quality Of Courses Than The Number Of Students (% Of Respondents), April

Call For Private Sector To Give Universities More Money, But Division As To Whether To Concentrate Funding On A Reduced Number

Business Should Pay More

Opinion Split On Reducing The Quantity Of Universities To Fund The Remaining Ones Better

Table: Opinions That The Government Should Reduce The Number Of Universities And Fund The Remaining Ones Better, And That Business And Industry Should Give More Money To Universities (% Of Respondents), April

Importance Of Funding And Level Of Excellence For Universities

Universities Not Regarded As A Top Priority For Funding...

...but Excellence Is Seen As Being In The National Interest

Table: Opinion That There Are Higher Priorities For Government Funding Than Universities, And Belief That Having Universities That Are Centres Of Excellence Is In The National Interest (% Of Respondents), April

Most Important Advantages Of University Education

Skills For Employment Rated First, Expanding Knowledge Ranked Second

Table: The Most Important Advantages Of University Education — Those Citing Skills For Employment And Expanding Knowledge (% Of Respondents), April

Creative Thought And Friendship Networks Not Highly Rated

Table: The Most Important Advantages Of University Education — Those Citing Enablement Of Creative And Independent Thought, And Extension Of Networks Of Friends And Colleagues (% Of Respondents), April

Different Views

Table: The Most Important Advantages Of University Education — Those Citing None Of The Suggested Benefits (% Of Respondents), April

Time To Emphasise Quality

Key Points

9. Company Profiles

Introduction

Abbey National Plc

Corporate Strategy

Advertising And Distribution

Profitability

Table: Financial Results For Abbey National Plc (£m, Number, % And £), Years Ending St December-2004

Future Company Developments

Barclays Plc

Corporate Strategy

Advertising And Distribution

Profitability

Table: Financial Results For Barclays Plc (£m, Number, % And £), Years Ending St December-2005

Future Company Developments

The Co-operative Bank Plc

Corporate Strategy

Advertising And Distribution

Profitability

Table: Financial Results For The Co-operative Bank Plc (£m, Number, % And £), Years Endingth January Andth January, And Weeks Toth January

Table: The Co-operative Bank — Operating Profit, Average Retail Customer Deposits And Lending, And Total Assets (£m), Financial Years Endingth January And Th January

Future Company Developments

Hbos Plc

Corporate Strategy

The Halifax

Bank Of Scotland

Advertising And Distribution

Profitability

Table: Financial Results For Hbos Plc (£m, Number, % And £), Years Ending St December-2004

Hsbc Holdings Plc

Corporate Strategy

Advertising And Distribution

Profitability

Table: Financial Results For Hsbc Holdings Plc ($m, £m, Number, %, $ And £), Years Ending St December-2005

Future Company Developments

Lloyds Tsb Group Plc

Corporate Strategy

Advertising And Distribution

Profitability

Table: Financial Results For Lloyds Tsb Group Plc (£m, Number, % And £), Years Ending St December-2005

Future Company Developments

The Royal Bank Of Scotland Group Plc

Corporate Strategy

The Royal Bank Of Scotland

National Westminster Bank

Advertising And Distribution

Profitability

Table: Financial Results For The Royal Bank Of Scotland Group Plc (£m, Number, % And £), Years Ending St December-2005

Future Company Developments

Key Points

10. The Future

Dependence On Foreign Students

Table: English Higher-education Institutions Receiving The Highest Proportion Of Income From Non-eu Foreign Students (£m And %),/2004

Table: Impact Of A Hypothetical% Drop In Fees From Non-eu Students On University Surpluses (£m And %) —/2004 Outturn If Revenue From Outside The Eu Were% Lower

Higher-education Staff: Too Few, Too Temporary, Paid Too Little

Table: Open-ended And Temporary Employment In Uk Higher Education (number Of Contracts),/2004

Table: Full-time Academic Staff In Higher Education In The Uk By Grade By Sex (number),/2005

Closing The Funding Gap For Institutions

More Endowments And Charitable Giving

Table: Comparative Endowment Per Student — Uk And Us (number And £),

Closing The Funding Gap For Students

Further Accelerating The Programme To Offer-year Foundation Degrees, And Expanding The Range Of Degrees

Table: Foundation-degree Courses In The Uk By Subject Area (number Of Courses), As Atth June

2-year Honours Degrees

Summary

Key Points

12. Consumer Confidence

Methodology

Key Findings This Quarter

The Willingness To Borrow

Confidence Declines Again

Table A: The Average Amount Consumers Are Willing To Borrow In Order To Purchase Expensive Items At Current And Constant November Prices (£ And £bn), May, August, November, February And May

Signs That The Decline Could Be Bottoming Out

Table B: The Number Of Adults Willing To Borrow In Order To Purchase Expensive Items (000 And %), May, August, November, February And May

The Willingness To Spend From Savings

Sharp Decline In Spending From Savings

Table C: The Average Amount Consumers Are Willing To Spend From Savings In Order To Purchase Expensive Items At Current And Constant November Prices (£ And £bn), May, August, November, February And May

Table D: The Proportion Of Adults Without Any Savings (%), May, August, November, February And May

Borrowing Grows In Relative Importance

Table E: The Average Amounts Adults Are Confident Spending To Purchase Expensive Items (£ And %), May, August, November, February And May

13. Further Sources

Banks

National Press/other Published Sources

Government, Official And Representative Sources

General Sources

Bisnode Sources