Celebrity professors, online lectures and employability classes

Sir Michael Barber’s “revolution” in higher education.

A new report from the IPPR entitled “An avalanche is coming: Higher education and the revolution ahead” warns that British universities are at risk if they fail to respond to competition from abroad. “Why would you go to the quite ordinary lecture by a quite ordinary lecturer when you can get Niall Ferguson online?” Sir Michael Barber, “deliverology” expert and Chief Education Advisor at Pearson, asked John Humphrys on Monday’s Today programme.

Barber claims that “the Ronaldo effect” will mean the best lecturers – of course, crowd-pleasing lecturers and first class educators are not one and the same – can “command the circumstances they want and move from one university to another”. He praises the Employability Centre at Exeter University, and UCL’s plans for a “university quarter” in Stratford, aimed at cashing in on the booming local economy. In every case, two assumptions are made: the first is that help finding a job is the only reason university is worth attending. The second is that higher education should bolster a thriving economy, rather than the other way around.

Over the weekend I read the Observer’s interview with Net Delusion author Evgeny Morozov. Taking the example of the press, Morozov said: “The newspaper offers something very different from Google’s aggregators. It offers a value system, an idea of what matters in the world. Newspapers need to start articulating that value.” Could it be that universities are falling into the same trap journalism has? Providers of higher education must engage with technology, but they should not be co-opted into propagating the fallacy of their own irrelevance. They set the intellectual agenda. Without them, aggregators are worthless.

The idea that a student’s progress might be assessed by a local “quite ordinary” robot-lecturer, while the star of the show telecasts from his or her luxury digs at Harvard, is uniquely alienating. It says nothing of the reality that the most effective tutors are often the least well-known on campus. A remote lecturer can create an electric one-hour show, but where are they when a student breaks down in tears before their final exams, when they confess they don’t know how to footnote properly, or want to take their work in a different direction to their peers. The emphasis upon star quality amplifies the deadening mandate for “impact” in tertiary teaching and research. “You can hold academics accountable for the quality of their teaching, as well as their research,” Barber told Humphrys on Today, as bleary-eyed lecturers nationwide veered their cars into oncoming traffic.

Many recent technological innovations have presented opportunities for thrift, but also for profit, enthusiastically spun by corporations and neoliberal politicians with so little faith in humanity they can barely comprehend that any motivating factor exists beyond the fiscal. Any opposition is tactically neutralised by the indivisible rhetoric of austerity: deficit, competition, growth. Nothing else matters. Our aim as a nation appears to be a return to late-90s levels of wealth, where the excess happily leaked over into social spending. But it was all a lie, and we risk making the same mistakes, if “growth” remains our sole reason for being.

We need a high-quality, universally available education system that will prepare young people for the realities of modern life. This does not mean ripping them off by lying about their future earning potential, nor cheating them by cutting down on university faculty and facilities, citing blue sky misconceptions about technology, openness and competition as an excuse.

“There are two things that a physical university can do that an online university can’t…” Barber said during his interview. Recognise that students are individuals with independent educational needs, not consumers who will be content with a one-size-fits-all syllabus, thought I. “One is, it can contribute to regional and city economy, second they can offer mentoring, support and experiences.”

In his interview Morotzov was keen to emphasise the ways in which technology companies can smuggle themselves inside our institutions, promising quality and universality, while eating them from the inside out. “We did not elect them to help us solve our problems. Once Google is selected to run the infrastructure on which we are changing the world, Google will be there forever.” The IPPR report, written as it was by Pearson employees – the world’s largest educational “delivery” specialist – is wrong to suggest the biggest threat to UK universities is optional online lectures from Singapore. The biggest threat is that they will talk themselves out of the discourse on education for good.

The Richelieu lecture theatre at the Sorbonne in Paris. Photo: Getty Images.

Philip Maughan is a freelance writer in Berlin and a former Assistant Editor at the New Statesman.

Show Hide image

Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/