We have one of the fastest growing private sectors in Europe and the level of private investment in tertiary education in the UK is already far above the EU and OECD averages.
UCU: Fighting the White Paper
Campaigning against the government's white paper and the marketisation of tertiary education
The coalition government is committed to opening up the further and higher education sectors to 'new providers', especially those from the private sector.
UCU is opposed to the privatisation of tertiary education. We think that the interests of our members, of the students and parents who are at the heart of education and of the wider society we serve, are best served by an education system that is funded and controlled by the public and that is democratically accountable to the citizens of the UK.
Here you can read all about our campaigns against privatisation and download our resources.
An increasing number of people who work for private companies like BPP, INTO, KAPLAN, Navitas and American Intercontinental University are joining UCU, reflecting many of our concerns about the inferior pay, terms and conditions and commercial pressures on quality in the private sector. We want to collect information on working life in these private sector employers. If you have concerns about the treatment of staff, terms and conditions or pressures on the quality of provision, you can contact the union and help us build a better picture of the private sector: email privatisation-whistleblowers@ucu.org.uk
LATEST NEWS
Government shelves higher education privatisation plans
UCU has welcomed reports that the government has axed plans that would have allowed for-profit companies increased access to UK higher education and taxpayers' money. UCU added that it would remain vigilant and oppose any efforts to introduce privatisation or allow companies to acquire universities without proper legislation. On 24 January the Daily Telegraph reported that the plans, originally expected to feature in a forthcoming higher education bill, have been shelved until at least 2015. Half of Liberal Democrat backbenchers had voiced their concerns about the issue through an early day motion opposing the plans. UCU general secretary, Sally Hunt, said: 'The government should be applauded for appearing to listen to the experts in the case. We will continue to expose the dangers of allowing those whose first priority is to their shareholders a greater hold on our higher education system.' Read the full story
US report on 'predatorial' for-profits
Students at for-profit colleges in the USA 'wind up with higher debt burdens, experience greater unemployment after leaving and, if anything, have lower earnings six years after starting college than observationallyilar st simudents from public and non-profit institutions,' according to a new report by a team of Harvard academics. 'Not surprisingly, for-profits' students end up with higher student loan default rates and are less satisfied with their college experiences' the report continues: Harvard report slams record of 'predatorial' for-profits
UCU warns FE colleges against privatisation
December 2011: UCU has welcomed the news that plans to part-privatise City College Birmingham, and put it under the control of a for-profit company, have fallen through. Under the partnership staff would have been employed by the private firm, headed by the former chief executive of Coca- Cola, who would have retained a portion of the new institution's surplus as a profit. UCU general secretary, Sally Hunt, said: 'Colleges should exist to serve their local communities not to make a fast buck for private investors. For-profit education providers have been involved in a string of scandals in the US and I fail to see the logic in repeating the experiment here. Introducing the for-profit motive in to further education would be bad for staff and students alike with shareholders and investors rather than educators calling the shots.'
Academic community warns against for-profit companies
December 2011: UCU was once again at the head of the higher education sector's fight against for-profit companies this week as almost 500 leading academics used a letter to the Daily Telegraph this Wednesday to warn against government plans to allow for-profit companies to play a bigger role in UK higher education.
The letter, signed by 471 leading members of the academy, warns against giving for-profit companies substantial access to taxpayers' money through publicly-subsidised loans and allowing companies, including private equity firms, to acquire struggling universities. UCU General Secretary Sally Hunt also used her column in Left Foot Forward to repeat her attack on for-profit companies.
The open letter comes after three US for-profit companies which have been meeting David Willetts were labeled 'at high risk of outright failure' by a US ratings agency.
Academic community warns against for-profit companies
November 2011: UCU was once again at the head of the higher education sector's fight against for-profit companies this week as almost 500 leading academics used a letter to the Daily Telegraph this Wednesday to warn against government plans to allow for-profit companies to play a bigger role in UK higher education.
The letter, signed by 471 leading members of the academy, warns against giving for-profit companies substantial access to taxpayers' money through publicly-subsidised loans and allowing companies, including private equity firms, to acquire struggling universities.
Privatisation under the spotlight at De Montfort University
November 2011: After months of management secrecy over a proposed joint venture with private company INTO University Partnerships, UCU activists at De Montfort University put privatisation under the spotlight with a public intervention at the Mayor's visit to campus on 8 November. Staff spoke directly to the Mayor and local councillors and distributed leaflets explaining the union's concerns about a deal with INTO and the threat it poses to the quality of education at DMU. This latest action is part of the branch's fantastic campaign against privatisation at the university which also saw a mass lobby of the board of governors meeting last month.
October 2011: UCU general secretary, Sally Hunt, delivered a stinging rebuke to the head of UK for-profit college BPP on 25 October 2011. Writing in the Guardian, Sally attacked claims made Carl Lygo in the paper that universities should be run like 'no frills' businesses and pointed to the scandals engulfing for-profit companies, including BPP's parent company Apollo, in the US.
Bogus college clampdown should force government to revisit for-profit university plans
As the immigration minister Damien Green reported on the crackdown on bogus colleges, UCU called on the government to review its own plans to allow for-profit universities greater access to taxpayers' money: read the full story UCU's response to the HE white paper
UCU has submitted its response to the HE white paper. 'Student at the heart of the system' reflects the deeply-held belief in the value of higher education to society as well as to individuals. UCU members are strongly opposed to the overall strategy in the white paper which seeks ultimately to privatise higher education by shifting its funding from the state to individual students and their families. This represents an impoverished view of the purposes of higher education and poses a fundamental threat to its ability to meet the wider social, cultural and economic needs of the country: Students at the heart of the system: Higher Education White Paper - UCU reponse, Sep 11 (.pdf) [59kb]
Ed Miliband warns of 'warped for-profit motive in education'
Labour Party leader, Ed Miliband, told the TUC Congress on 13 September that he did not want education to be 'warped by the for-profit motive'.
Mr Miliband was speaking in a Q&A session at the central London conference before delegates are expected to back a motion* that will condemn the government's attempts to divert public funding for higher education into the emerging for-profit sector.
White paper small print will pave the way for university privatisation, report warns
A new report published in September has warned that small print in the government's higher education white paper could pave the way for existing universities to be privatised. The report, by leading research publication Research Fortnight, details how government reforms will allow the assets of higher education charities to be given to for-profit companies and for the first time make privatisation of established universities practicable. UCU keeps pressure up on for-profit companies
Thanks to a UCU tip off, the Times Higher ran with the news that Education Management Corporation, the second largest for-profit company in America, is being sued for $11billion by the US government on charges of fraud. UCU drew attention to meetings between Education Management Corporation and universities minister David Willetts in the lead up to the white paper.
UCU also called on the deputy-prime minister Nick Clegg to extend his commitment of schools not being run for profit to colleges and universities as well. 22 Liberal Democrats and 124 MPs have signed an Early Day Motion expressing their concerns at the government's university privatisation plans. Read more here:
Help UCU respond to the consultations: As well as campaigning, UCU will be responding to the formal consultations on the white paper. Please help us develop our response to the key passages by using our web form here: whitepaper.web.ucu.org.uk/consultation/
Nick Clegg responds to rumbling Liberal Democrat revolt on university privatisation
UCU said it was pleased that Nick Clegg has taken up the issue of university privatisation with the government. In a letter to constituents, Nick Clegg said he had raised the matter with education secretary, Michael Gove, and UCU said it was essential he now bring up the issue with universities minister, David Willetts. In total 116 cross-party MPs, including half the Liberal Democrat backbench, have signed the EDM: Nick Clegg responds to rumbling Liberal Democrat revolt on university privatisation
BPP boss admits class sizes will rise as it looks to expand
The head of UK for-profit group BPP has admitted that class sizes will rise as it looks to expand across the country. In an interview with this week's Times Higher Education, Carl Lygo said some student:staff ratios could reach 30:1. UCU general secretary, Sally Hunt, said: 'BPP's belief that student:staff ratios of 30:1 are acceptable shows the pressure their American owners Apollo are now putting them under to deliver big profits from UK higher education.' Read more in the Times Higher.
New report - For profit education - a step too far?
Government plans to encourage the growth of for-profit education providers could leave students with lower quality degrees and put the reputation of UK higher education at risk, warns a new report by UCU.
The report, For-profit education: a step too far?, published in June 2011, includes a survey of 500 professors, which reveals that over four-fifths (85%) think for-profit providers would offer lower quality courses than public universities, if they are given the green light to expand in the government's forthcoming higher education white paper.
Warnings as New College Swindon embraces for-profit university degrees
UCU said that it had significant concerns about for-profit education providers, following news that degrees, awarded by the private provider, BPP University College, will be taught at New College Swindon from September 2011.
The coalition government is committed to de-regulating the higher education sector in favour of private companies, creating what it calls a 'level playing field' for profit-making companies. UCU is concerned that this will remove the academic checks and balances that protect standards in universities, allowing companies whose primary obligation is to their shareholders to drive down costs and opening the door to the kind of mis-selling, recruitment and fraud scandals seen in the USA recently.
Branch resource: Speaker notes and video link | 3 June 2011
At a Congress fringe this year, delegates saw a US documentary on for-profit education in the USA, detailing the industry's growth and its problems. With US firms like Apollo and Kaplan keen to break into the UK market, these speaker notes can be used at branch meetings and including an online version of the film: College Inc. speaker notes (.pdf) [119kb]
UCU backs calls for tighter regulation of for-profit education providers | 5 May 2011
US education giant's takeover of BPP increases private sector threat to universities
The private higher education company BPP Holdings has accepted a take-over offer from the giant US education company Apollo Global. BPP Holdings owns four private colleges in London and Manchester offering business and law degrees and successfully lobbied the Privy Council for degree-awarding powers in 2007. On 8 June, BPP announced that it had was accepting the offer at a price of £303.5m by Apollo Global. Apollo Global is a joint venture owned by the US for-profit education provider Apollo Group and the private equity company Carlyle Group. BPP chairman David Sugden was quoted in the Financial Times as saying that the company's degree-awarding powers were likely to have been an important attraction for Apollo. With Conservative shadow higher education minister David Willetts apparently a fan of allowing 'new entrants' into higher education, UCU is warning that big money is moving into the sector with a hungry eye on higher education. For more see Legal Week's article; and Apollo also caught the THE's attention.
Education Solidarity Network - putting global solidarity into practice
Following the decision by 15 unions worldwide to sign UCU's international agreement to defend quality and employment rights against marketisation in education, the signatories have launched a new initiative to put this solidarity into practice. The 'Education Solidarity Network' is a joint union blogsite which enables unions to share information about the marketisation of education and to campaign jointly to defend standards and provision. You can see the latest posts here: educationsolidaritynetwork.org
College Inc.
2010 documentary by Public Broadcasting Service looking at how new for-profit universities are transforming the way the US thinks about college in America.
UCU has led a series of high profile campaigns against the private company INTO university partnerships, a company that recruits and teaches international students in partnership with universities, usually in the form of joint ventures. UCU is particularly concerned that these joint ventures are risky enterprises with a risky company. We have led several successful campaigns against universities forming partnerships with INTO.
INTO turned back at Reading University
In an overall bleak picture for UK higher education, a small bit of good news as it was confirmed that the talks between INTO University partnerships, the private company that trades in language students and which has featured elsewhere on this blog, and Reading University had broken down. Following strong representations from the existing in-house language school and the UCU branch at Reading, it was announced that there would be no partnership.
UCU advised universities and colleges against entering partnerships with private firms after new research showed that every single joint venture between the private company INTO University Partnerships and its partner university or college made a loss in 2007-08 - the most recent figures available. The five joint ventures made a combined loss of nearly £3.5m. The union further discovered that Andrew Colin, the sole shareholder of INTO University Partnerships had, up to 31 July 2008, lent the company £5.5m in the form of interest free loans: Privatisation may damage your wealth, UCU warns universities after more losses
Manchester college members deliver clear message to INTO
Manchester college UCU members facing transfer to private education company INTO's employment expressed clear support for the union's campaign to protect pay and conditions and win union recognition. Responding to a consultation, members at the college were unanimous in supporting a call for protection of pay and conditions for the full life of the enterprise, full protection of pensions, union recognition and no two-tier workforce.
Westminster says 'no' to INTO
After protracted negotiations, Westminster University joined the growing number of universities saying no to INTO's business model.
Secret privatisation deal at City University
UCU slammed City University's plans to privatise the recruitment, teaching and accommodation of international students, warning that the university would be 'gambling with its reputation' if it went ahead with a joint venture with the firm INTO: Concerns over secret privatisation deal at City University
May 2008: Readers of the Times Higher Education will have seen an article by the chairman and owner of privatising company INTO, Andrew Colin, who is at pains to explain how he is just trying to help universities to get a bigger share of the market in international students and accuses UCU of 'ideological' opposition to privatisation. INTO aim to secure deals with at least 11 universities. He also admits that pay is worse in his joint ventures and that INTO is currently making a substantial loss - just two of the reasons why UCU is opposed to such ventures and is campaigning to keep INTO out of UK universities.
The marketisation of education is a global phenomenon and in recognition of this, UCU initiated an international agreement which commits unions across the world to campaign in defence of public education and the maintenance of employment and academic standards. Fifteen unions have now signed this agreement and have set up a campaign blogsite to share information and resources between unions. You can see the Education Solidarity blogsite here:
'Fighting Privatisation: A branch activist's guide' is a cross-sectoral resource aimed at helping activists to combat any attempts to outsource educational services or to establish public-private partnerships with private sector education businesses.
The guide is divided into three parts with sections on how to campaign against privatisation proposals, what to do if privatisation goes ahead and how to campaign proactively to prevent privatisation in your college or university. This guide has been produced in close collaboration with the Professor Dexter Whitfield from the European Services Strategy Unit (ESSU), an indispensable resource for trade unionists.
Here we will detail examples of 'market failure' by private companies.
Carter and Carter go bust
One of the biggest private training providers in FE, Carter and Carter, recently went into administration. Carter and Carter had previously bought up a number of other private providers and at the point it went bust, had 25,000 learners on its courses. It was also a major contractor through the government's Train2Gain initiative. In October 2006, it announced a joint venture with Castle College Nottingham. A further proposed joint venture with West Nottinghamshire College was defeated after a UCU branch campaign. Most of Carter and Carter has now been bought by Newcastle College, effectively transferring back to the public sector: 'End marketisation of further education' call as private training provider collapses
Struggling A4E cuts contracts in 8 prisons
Coming in the wake of Carter and Carter's collapse, A4E, a private company
See also this story covered in the Times Higher. running offenders' learning, has terminated its contracts in 8 prisons in Kent a year early because it stands to make losses of £892,000. Prison education has been retendered 4 times since 1993 and A4E were the latest company to win contracts in 2006. UCU campaigned successfully to protect members' pensions when A4E tried to use an inferior scheme. Now the company, which describes itself as a 'market leader in global public service reform', has announced that due to its losses it will be terminating its contract a year early: Private company pulls the plug on prison education in face of financial loss
INTO losses
UCU has advised universities and colleges against entering partnerships with private firms after new research showed that every single joint venture between the private company INTO University Partnerships and its partner university or college made a loss in 2007-08 - the most recent figures available. The five joint ventures made a combined loss of nearly £3.5m. The union further discovered that Andrew Colin, the sole shareholder of INTO University Partnerships had, up to 31 July 2008, lent the company £5.5m in the form of interest free loans: Privatisation may damage your wealth, UCU warns universities after more losses
BPP losses
The for-profit private provider of higher education in the UK, BPP, has had more than a quarter of its purchase value written off by its US parent company, following lower than expected enrolment figures.
End-of-year results filed by Apollo Group recorded an $175.858m (£106m) 'impairment charge' to reflect these poorer results. UCU said the news was a blow for privateers in the UK and those who believed the for-profit university was the future: Blow for private universities as BPP records considerable losses
![[image depicting] UCU - University and College Union logo](./images/common/toplogo.gif "UCU - University and College Union's Logo")
