Tag Archives: language teachnig

Making money from Education

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At this time of year, the DfE publishes data about the success of the education sector in generating income from exports. The income can be as a result of students from overseas – traditionally excluding EU students – coming to study in schools; colleges; universities or language schools. Set alongside that is the physical export of goods and services to customers in the education sector overseas. The latest data release covers 2020 and must, therefore, be considered an abnormal year because for much of that year the covid pandemic severely affected opportunities for income generation. UK revenue from education related exports and TNE activity 2020 – GOV.UK (www.gov.uk)

 The recorded income for education exports in 2020 was some £25.6 billion pounds; up from £25.4 billion in 2019. To put those figures in some form of context, it was estimated that the Track and trace system for tracking covid possibly cost the government and taxpayers more than £30 billion over two years according to many reports on the web.

Higher education was the largest earners, responsible for £19.5 billion of export revenue. In comparison, Further Education, which consists of non-EU students only, accounted for £0.2 billion. The flow of overseas students into the further education sector these days probably doesn’t even warrant being called a trickle.

The income generated from Education Products and Services and Trans National Export activity was broadly similar, at around £2.1 billion and £2.3 billion worth of revenue generated, respectively. English Language Training and Independent Schools generated £0.5 billionand £1.0 billion, respectively. While the contribution from language training has been either static or declining in recent years, down from £2.23 billion in 2010 at current prices, income across the private school sector dipped from it record level of £1.05 billion in 2019, to £1.01 billion in 2020, presumably because of covid affecting the number of new registrations. On the other hand, TNE activity continued to increase, from £2.19 billion in 2019 to £2.28 billion in 2020.

Over the period between 2010 to 2020, the share of Higher Education to the total revenue from UK education related exports and TNE activity has increased by 16.3 percentage points from 60.0%to76.3%.

UK TNE activity increased by 2.2 percentage points over the same period from 6.7% to 8.9%. The share of English Language Training (ELT) and Further Education (non-EU students only) have both fallen by 12.2 and 5.2 percentage points, respectively: the ELT share dropping from 14.0% to 1.8% and the Further Education share dropping from 5.8% to 0.6%.

In 2020, international (EU and non-EU) Higher Education students at UK universities generated an estimated £18.0 billion in exports through living expenditure and tuition fees (£15.9 billion in 2019), which accounts for around 70.2% of the total value of education exports and TNE activity (62.6% in 2019). Overseas students are now clearly a vital part of the income stream for UK higher education institutions and have helped to cross-subsidise home students where fee levels have not kept pace with increases in costs.

The remaining £1.5 billion of exports revenue generated from Higher Education is made of research contracts and other exports income. 

With the development of national programmes, such as the new Oak Academy, there must be scope to increase ethe income from experts within the education sector. Should overseas students decide to seek university places in other English-speaking countries and avoid UK universities, this might be of great concern to that sector and its funding.

Problem not yet solved

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Data from the second monthly report on applications and acceptances for postgraduate teacher preparation courses shows little overall change for last year. The trend is still not good, with 10,270 applicants domiciled in England as at 16th December 2019, compared with 10,820 on the corresponding date in 2018 and 11,430 in 2017. The good news is that there are more applicants this year from London and the surrounding regions, and the fall in numbers is more marked in applicants from the north of England where filling teacher vacancies has been less of an issue.

There are fewer applicants in all of the age groups compared with last year, and those shown as ‘age 22’ numbered just 1,510 this December compared with 1,910 in December two years ago. There are nearly 500 fewer women applicants this December, and 150 fewer male applicants. Male applicants make up less than a third of applicants in December 2019.

Fewer applicants also means fewer applications. Total applications were down in December, from 30,930 in 2018, to 29,330 in 2019. In 2017, the number of applications in December was over 33,000. Although it will concern providers, the fact that the bulk of the reduction in applications is for primary ITT courses; down from 14,720 in 2018 to 13,380 in 2019 will be something of a relief to the DfE, as the falling birth rate means fewer primary teachers are likely to be needed in the next few years that is unless schools receive a large cash injection for more teachers, rather than more pay for existing staff.

Applications for secondary courses at 15,950 were only 150 down on 2018 and very similar to the December 2017 figure of 16,070. Most subjects were at similar levels in terms of offers made by mi-December although art, design & technology, mathematics and Religious Education were slightly ahead of their 2018 position. By contrast, geography was slightly worse than in 2018 and acceptances for modern languages notably so. Is this the first sign of a reaction to Brexit? Certainly overall application levels for languages courses seem well down on last year.

Apprenticeships are the route in primary with more applications in December 2019 than in December 2018. Higher Education seems to be a major loser, with applications down from 6,150 in 2018 to 5,570 in December 2019. In December 2017, Higher Education had recorded 7,870 applications. In the secondary sector, both SCITTs and apprenticeships registered small increases in December 2019 over the previous December figure. All other routes were broadly similar to the previous December.

Hopefully, the government’s recruitment advertising campaign will improve matters in 2020, but compared to the defence forces, I have seen relatively little recruitment advertising for teaching over the festive period. This is despite the massive difference in recruitment needs between teaching and the whole of the armed forces.

If there is not a pickup in early 2020 in the number of applicants into secondary subjects, 2020 will begin to look like another year when training targets are not met and schools will have to make up the shortfall in teachers from other sources. With increasing pupil numbers, the need for more teachers is going to be an on-going challenge for secondary schools.

 

A Minister for Education Trade?

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Following on from the general election last Thursday, the period of Purdah has come to an end and the routine of government has re-started. This includes the publication of a whole swath of education statistics.

One set of statistics published during Purdah was the annual update on the United Kingdom’s annual revenue from education related exports and transnational education activity. Post Breixt, this part of the service sector is going to continue to be an important part of our economy. The data published related to the calendar year 2017, so almost two years ago. The statistics can be found at https://www.gov.uk/government/statistics/uk-revenue-from-education-related-exports-and-tne-activity-2017

As in the past, the higher education sector dominates the data, accounting for two thirds of the revenue. Changes at the overall percentage level tend to be slow, but it is clear that the further education sector now contributes little by way of expert revenue, recorded in these statistics as accounting for just one per cent of revenue. In, 2010, it accounted for six per cent. After the issue of bogus college that harmed this sector, there does seem to be room to explore whether there might new avenues of export generated revenue around the area of teaching and learning in the skills sector that could be led by the further education sector.

English Language training has been the other sector in decline in terms of export revenue; down from 14% of revenue in 2010 to 7% in 2017. In cash terms this is a decline from £2,230 to £1,570 (both to the nearest £10 million). However, there has been continued limited growth in this sector from transnational revenue earned overseas.

The independent school sector in the United Kingdom has increased its revenue, as has these schools contribution to transnational education. This is presumably due to the number of overseas campuses now in operation by schools. However, this sector only contributes some five per cent to total revenue.  Even so, this is five per cent that might have disappeared has the outcome of the general election been different.

Amongst education products and services, growth between 2016 and 2107 was steady, with equipment sales showing the strongest growth year on year, and a 20% growth over two years.

In terms of higher education, the bulk of fee income originates from students arriving from outside the EU, so this should not be at risk after the United Kingdom exists the EU in 2020. Whether EU income changes as a result of our exiting the EU won’t be obvious in this dataset until probably 2022 or even 2025 when existing EU students have completed their courses. However, any changes in research funding will most likely become apparent much sooner. In these figures, research income is not differentiated between EU and non-EU sources, so it is not possible to calculate the likely outcomes from the UK’s departure from the EU.

Education is an important and growing part of the United Kingdom’s expert drive, and I am sure that the new government will recognise this fact and want to ensure that as much as possible of the growth is directed to areas away from London towards parts of the United Kingdom that can benefit from this economic activity in their localities. Perhaps there should now be a Minister for Education Trade in the new government?

Money for education

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The DfE has published its annual retrospective look at the amount of money generated by education as an export industry. This implies either goods or services sold overseas or alternatively consumed and paid for here by non-residents. Now that the DfE includes both further and higher education the data can no doubt be more easily collated by one government department, although with the help of others along the way.

The latest set of data refers to 2016, although the technical note doesn’t seem to define what is covered. For fees, I assume it is the academic year 2016/17, but possibly for some other products and services, the calendar year 2016? The technical document can be found at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/773029/Education_Exports_2016_-_Technical_Document.pdf

This blog has commented upon the figures released for previous years and the trends seem largely the same; decline in language training income and from the further education sector, balanced by higher income form higher education fees still being reported and increases in equipment, publishing and awarding body sales.

Overall, HE accounts for two thirds of the income stream, so any slowdown in the world economy and post-Brexit departure or non-arrival of EU students will impact on the figures and hurt some universities in cash terms. There is also a sizeable research income attracted from overseas that may be impacted by Brexit, especially if some research teams move elsewhere.

Further education accounted for 6% of revenues in 2010, but by 2016 this was down to just two per cent. During the same period, English Language Training share of revenue fell from 14% to just eight per cent. High education increased its share during this period from 60% to 67%.

The total income from education exports increased between 2010 and 2016 from £15.88bn to £19.93bn.

With more UK schools opening campuses across the world, a proportion of their income will no doubt continue to find its way into future year’s figures once local spending has been accounted for. How far such growth can be set off against the loss of teachers from the labour market in England to help staff this export drive is an interesting debate that no doubt someone within government has had at some point. However, this transnational education activity has shown significant growth, especially in the schools sector, albeit from a relatively low base in 2010.

Some teachers returning from overseas may well bring back more cash than they had when they left to teach overseas, but such additional wealth for the country wouldn’t be captured in this data.

There is no doubt that education is a potential export growth area for the United Kingdom as a whole. New markets will be needed, especially post Brexit it there is a significant slowdown in revenues generated by higher education.