One of the administrators who worked with Crystal Palace has criticised the debacle surrounding the insolvency of Portsmouth FC as ‘embarrassing’ for the industry.
Brendan Guilfoyle, a highly respected figure in the industry and the chairman of the Ethics Committee, described the wrangle between the two firms as inappropriate and damaging for the rest of the businesses trying to operate.
The partners at UHY Hacker Young, Andrew Andronikou and Peter Kubik, were originally appointed to take charge of proceedings at the south coast club but HMRC intervened, asking the courts to appoint an alternative administrator. The taxman’s gripe was that UHY dealt with the previous administration and Andronikou was also the administration responsible for acting on behalf of the parent company. HMRC argued these two facts could colour the insolvency expert’s judgement and represented a conflict of interest.
It appears that the courts agreed with the argument put forward by HMRC, as UHY were stripped of their appointment and saw it handed to rival firm PKF instead. However, UHY have now submitted a formal complaint to the Institute of Accountants in England and Wales (IACEW), as they believe that PKF are also in breach of the guidelines over a conflict of interest.
UHY have alleged that because PKF were involved in audit work for Portsmouth recently, they should not be eligible to be considered for the role of administrator.
PKF are disputing the contention because they say they did not complete the audit and did not produce a final report, facts which UHY claim are irrelevant.
According to UHY, the rules issued by IACEW stipulate that any firm who has previously carried out any work as an audit is prohibited from taking up an administrative appointment. The ICAEW has so far refused to comment on the case and has said that its own code of conduct does not permit it to confirm whether a case is under investigation by its Professional Conduct Department.
This war of words between the two firms has led Mr Guilfoyle to describe the situation as an ‘embarrassment’ for the insolvency sector. He went on to add that he believed neither firm should have been awarded the administration because of their prior dealings with the club.
Mr Guilfoyle is the IPA’s Practice Guidance, Ethics and Standards chairman and has personally dealt with a number of tricky footballing insolvencies himself, including Luton, Leeds and Plymouth. He said it was ‘disappointing’ to see the conflict of interest and said he understood why HMRC contested the original appointment.
Whilst UHY continue to rail against the new administrators, Trevor Birch, the nominated individual for PKY has swiftly started to make changes at the cash strapped club. A number of redundancies have been made, including the chief executive, as Mr Birch described Portsmouth has having a Premiership ‘cost base,’ with no more than a ‘Championship income.’
Several other members of staff have been asked to agree to defer their wages whilst others have been asked to drop their hours and work part time. The players at the south coast club are not subject to any of the cutbacks because, due to the football creditors rule, they will not lose a single penny of the money owed to them.
Mr Birch acknowledged that some of the measures which had already been implemented may be ‘painful’ but insisted they were ‘essential for Portsmouth’s survival.’ He went on to emphasise that the downgrades and redundancies were not a reflection on the ‘hard working’ employees and should not be taken as a measure of their performance.
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A survey has revealed that homeowners desperately trying to make ends meet are avoiding maintenance work, a move which could end up landing them a much higher emergency bill.
The research was carried out by AA Home Emergency Response Service, which found that as many as 18.5 million Brits are delaying work around the home due to the cost.
However, around a fifth of those who had either put off the work or attempted to do it themselves found they encountered problems later on, with the average extra cost being £400 per customer.
Homeowners have benefitted from a frozen, rock-bottom interest rate in many cases, but have suffered financially as they are squeezed from many other angles. With the cost of energy rising twofold in just a decade, many are struggling to find enough cash to pay for the basics. And that means that essential maintenance work is not being carried out in good time, due to a lack of money.
Around three million homeowners who tried to postpone the work until their cashflow had improved, found that they suffered bigger problems in their property than if they had simply shelled out for the maintenance in good time. This delay led to a total collective cost of £1.2 billion.
The AA reported that some homeowners had tried to get the maintenance work done, but rather than paying for a professional, had either had a go themselves (14%) or had got friends and family to give them a hand for free (11%). However, 3% of those who attempted to avoid using a professional ended up having to call out a workman to correct a botch-up.
Of those who were unlucky enough to experience problems due to either poorly completed work or neglect, just one in twenty was covered by their home insurance and one in five had emergency protection cover to pay for the costs.
Around eight per cent of homeowners ignore problems with their boiler, whilst a similar amount decided not to pay to have work done to their garden. Around 5% opted to leave windows which needed replacing or repairing, whilst 4% postponed fixing a leaky roof.
The head of the AA home emergency response, Tom Stringer, said that many homeowners were attempting to have their own private austerity drive, mirroring the policy adopted by the government but described it as a ‘false economy.’ Mr Stringer said that although many Brits were being ‘hit in the pocket,’ letting a property fall into ‘a state of disrepair’ was simply storing up problems for later on.
However, a group of Brits are attempting to force the cost of running a home downwards by joining a campaign run by consumer watchdog Which? to force a lower tariff from energy providers.
The Big Switch mirrors a similar successful project implemented in Holland and involves individuals signing up to agree to switch suppliers if a low tariff is offered. The lure of such a large group of customers should, in theory, incentivise suppliers to offer a group discount rate, giving those who joined the opportunity to benefit from cheaper energy and giving the supplier an influx of new accounts. Which? will earn a referral fee from the energy supplier but it says it will use the money to pay for the campaign, with any surplus being ploughed straight back into its affordable energy movement.
The idea has been backed by Tory Mp, Rob Wilson, who said that if successful, it could mean cheaper energy bills for ‘tens of thousands’ of Brits. Supporters of the campaign hope that if the move brings about a mass discount, it could be replicated across other sectors, such as personal finance and broadband access.
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After hours of late night negotiations an agreement has been reached which has allowed the next tranche of aid to be released for Greece.
The final approval of the rescue package means the country now has enough money to pay its debts – at least in the short term – and is no longer at risk of defaulting when the next big installment falls due next month.
The package includes a further injection of £110 billion to the cash-strapped nation, which will help to prop up the economy and prevent the country from total collapse.
However, the solution was far from easy to reach as leaders were poles apart on key topics such as control over the budget, austerity measures and targets. And there still remains a significant disparity amongst ministers, with some sceptical of the longevity of the package.
Greece has already been handed £91 billion in a previous rescue package but that hasn’t been enough to steer the nation out of financial trouble. Some experts have warned that the latest bailout deal is simply a way of throwing more money away and that the fundamental underlying issues have not been solved.
Alistair Darling, the former Chancellor, is one of those critics and he explained to BBC Radio 4 why he doubts the debt problem will go away for good. Mr Darling said that Greece is currently running at a debt level which is equivalent to 160% of their GDP. They have agreed to reduce this to 121% over the next 8 years, a target which Mr Darling says is unattainable, especially given their track record. He also said that he remained unconvinced that they had any policies which would stimulate growth whilst sticking to the spending cuts and without any significant expansion in the economy, Mr Darling said there would be insufficient income generated to reduce both the borrowing and debt.
The ex-Chancellor described the deal as a ‘ridiculous treaty’ and said that the situation was ‘highly unsatisfactory.’ He also predicted that ‘Greece will be back at the table’ with a strong chance that other countries may also be forced to ask for help because of the knock-on effects. Nevertheless, despite his scathing comments, Mr Darling also admitted that there was no other option and the deal ‘had to be done.’
The Netherlands had previously been wary about plunging back in to provide aid for Greece and had reportedly been keen to consider allowing them to simply leave the eurozone. The finance minister for the country, Jan Kees de Jager, led calls for a permanent monitor to be based in Greece, to ensure compliance with the plan and to allow the eurozone to keep a tighter rein on the debt-addled nation’s finances. However, this proved to be one of the more contentious issues, with Greece unwilling to hand over that much control to external parties.
In return for receiving the latest handout of £110 billion, plus a further £80 billion in written off debts from the private sector, Greece must stick to a number of pledges which will shave £270 million from their 2012 budget. The country has elections coming up shortly and all sides have promised that if they are voted into parliament, they will not seek to reverse the austerity package which has been put in place.
The current Chancellor, George Osborne, said that the deal would give Greece ‘a sustainable debt position.’ He acknowledged that the targets would be challenging for the country to meet but said there was no other option which would allow all sides to move forward.
New research has revealed the sacrifices being made in families across the country as the financial freeze hits more and more households.
A survey by parenting group, Netmums, has shown that as many as seven out of ten families are on the brink of debt with some mothers opting not to eat to be able to put food on their children’s plates.
Netmums polled more than 2,000 mums about the state of their finances and questioned them about the effects of the financial freeze. The results painted a picture of many households struggling to survive and increasingly turning to credit to pay for everyday essentials.
With the rising cost of living, many families are unable to manage on the income that is available and have had to resort to doorstep lenders and even loan sharks in some cases. One in twenty households regularly takes out payday loans and one in 100 uses the services of loan sharks. Around one in four uses credit cards to pay their bills.
Nearly two out of three mothers interviewed said there was less money coming into the household compared to the same time last year and a similar number said they did not have enough money every week. Two in five households need a further £20 to survive the week whereas one in three need £50. One in ten mums said they would need an additional £100 to make it through without falling short.
Around one in three said they regularly borrowed from family and friends, whilst 5% said they had taken out a loan with the bank just to be able to pay for everyday expenses. One in two families had managed to scrape together extra money to live by either selling or pawning personal possessions. Fifteen per cent said they had been able to find a new job to earn extra cash.
More than three quarters of mums said they were having to compromise by buying cheaper food for their children. Even more worryingly, one in five admitted they were regularly going without their own meals to be able to afford to put food on the table for their children.
However, the financial strain has taken its toll, with nearly one in six suffering from stress-related illness due to money problems. Of those asked, 8% were taking anti-depressants and 1% had been referred for counselling. More than one in three also confessed that their relationship was suffering because of the financial strain.
Around one in six said they were becoming ‘desperate’ as their debts spiralled out of their control whilst one in three said they felt ‘suicidal’ and could not cope.
Opinion was split about whether enough was being done to help those suffering from debt problems, with 53% agreeing that the ‘government is doing its best in a tough climate.’ However, marginally less – 47% – said they felt ‘abandoned’ by those in power when they needed help the most.
The founder of Netmums, Sally Russell, described the results as ‘shocking’ and said that no mother should have to stop eating in order to feed her child. She warned that there was a risk of the problem turning into a ‘catastrophe for the nation’ if urgent help wasn’t provided.
A spokesperson for the Department of Work and Pensions promised that the planned reforms would have a ‘dynamic effect’ and would help to ‘lift over one million people out of poverty.’ They added that they were working with credit unions to expand the services to try and prevent the need for desperate individuals to turn to the services of illegal loan sharks.
A new report has revealed that as many as 80 potential employees are vying for each vacant position in some parts of the country.
However, in more affluent areas where unemployment is lower and recruitment is more common, there are as few as one candidate for each role.
The figures were produced by online job search site Adzuna, which commissioned a study into unemployment around the country.
The results showed that Aberdeen was the place in the UK where it is easiest to get employment with just one candidate per advertised position. At the pole opposite lies Hull, where there are 80 people competing for each vacant job. Of the employment which becomes available in Hull, a third lies within the healthcare sector, according to analysts.
Stoke-on-Trent was not much better off than Hull with 73 candidates for each position, whilst Sunderland, Southend and the Wirral had 53, 44 and 40 respectively. Milton Keynes, Cambridge, Reading and London all had less than two candidates for every role.
The study also looked at the demand and competition within different sectors and found that computing, engineering and sales and marketing came out the strongest, with the largest number of jobs nationwide. In London, the focus switched to secretaries and estate agents which were the two positions for which candidates were most regularly sought.
A spokesman for Adzuna, Andrew Hunter, said ministers should ‘take note’ of the results of the study and ensure that jobs were created in the right regions, as well as providing the necessary training and skills for the trades in demand.
In other employment news, a misunderstanding over a Tesco recruitment advert has escalated into a full blown row, with protests expected to take place outside the store this week.
The issue arose after an advert was spotted for a night shift worker for the supermarket giant which offered no salary, simply expenses and continuation of their Jobseeker’s Allowance.
Tesco has since changed the advert claiming the original wording was simply a misunderstanding but protesters have claimed that the store is trying to replace full-time workers with unpaid volunteers from a government scheme.
The problem arose as the position was being offered as part of the ‘workfare scheme,’ the new initiative created by the government to help those on benefits long term to get used to being back in employment. Those taking part do not receive a salary, the reward is that they get to keep their Jobseeker’s Allowance, rather than being stripped of their benefit payments.
Tesco says the confusion was due to ‘an IT error caused by JobCentre Plus’ and should have explained that it was simply a work experience placement which offered a guaranteed job interview after it concluded.
However, protesters have said that the scheme is a cover for unpaid labour and that out of 1,400 placements only 300 went on to work for Tesco on a paid basis.
Tesco released a statement confirming that it has been part of the JobCentre Plus scheme for ‘many months’ and has been repeatedly assured that all the young people attending a work placement have done so voluntarily to try and gain valuable experience. The supermarket said it was not in favour of the threat of benefits being stripped if individuals did not attend and insisted that it had made those views clear to the DWP.
Chris Grayling, the Minister for Employment, said that Tesco and other companies which had agreed to join the scheme had resulted in ‘literally thousands of young people’ being able to find employment for the first time.
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The number of deaths from hypothermia in the UK has almost doubled in just five years, with more pensioners than ever facing fuel poverty.
The news comes just as the big six energy companies are about to announce their annual profits, which are expected to be around £15 billion.
According to official statistics, in 2006/2007 just 950 people were treated for hypothermia in hospital but by 2010/2011 this number had jumped to 1876. And the number of deaths that occurred within 30 days of admission nearly doubled, rising from 125 to 260. Three out of four of the patients were OAPs, with the over-60s the group most affected by the plunging temperatures.
Five years ago, there were 633 hospital admissions for hypothermia among the over-60s, a figure which shot up to 1396 during 2010/2011, a 120% increase. The number of adults aged between 15 and 59 saw a 54% rise, while children aged 14 or under suffering from hypothermia increased by 22%. The statistics from the NHS do not provide a breakdown of the deaths, but nearly one in five die within 30 days of being admitted, while a further 6% die between 30 and 90 days after being taken into hospital.
The rise in hypothermia admissions and deaths coincides with a marked rise in energy costs, with the price of gas rising by an astronomical 40% in the last five years, a level of increase that many on low incomes, such as pensioners, simply couldn’t keep up with.
In many households across the UK, the cost of heating means that a stark choice has to be made between buying food or keeping warm, an awful dilemma that is becoming known as ‘heat or eat’. Some analysts have estimated that fuel costs are so high that as many as eight out of ten households are having to ration their use of energy.
Research carried out by Age UK in January revealed that one in two pensioners were either switching off or reducing their heating in order to save money, even when they were very cold. An increasing number of OAPs are also having to resort to more extreme measures, such as only heating one room in the house and not inhabiting any others or simply staying in bed to keep warm.
A separate study from Age UK also estimated that close to three million pensioners are currently struggling to survive while in fuel poverty and of this figure, 1.2 million are living on their own. This total figure has trebled in less than ten years and now represents one in four of all OAPs.
A representative from Age UK, Michelle Mitchell, described the situation as ‘deeply shocking’ and called upon the government to do more to protect vulnerable groups such as the elderly.
The government pays out an additional amount for heating if the temperature falls below a specified level, but campaign groups have pointed to the increase in the number of hospital admissions as proof that the extra money is nowhere near enough to keep vulnerable groups warm in their homes.
In the meantime, the big six energy companies in the UK will be announcing their profits in the coming few weeks, with the total expected to reach £15 billion. Ofgem, the regulator of the industry, says that the average profit per customer reached £100 in January, but will reduce to £70 in the warmer months.
The National Pensioners Conventions said the profits generated by energy firms were ‘scandalous’ and called for urgent action for the ‘most vulnerable individuals’ to receive better protection.
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Cash-strapped individuals wanting to romance their partners are being bombarded with offers of loans from a payday lender trying to take advantage of the seasonal spirit.
The firm in question, Cash Lady, is a payday broker which quotes interest rates of 1737% APR and has sent out scores of emails to customers, offering up to £300 to make this February 14th ‘one to remember.’
Cash Lady is a broker, not a lender and is responsible for providing quotes for customers . It is owned by PDB UK and features brands such as KwikPayday, PaydayDirect and SameDayPayDayLoans.
The email sent out to potential customers from Cash Lady urges individuals to take out loans of up to £300 in order to create a memorable Valentine’s Day, promising to provide a ‘fast cash boost.’
Payday loans are designed as short term finance options for individuals struggling to make their money last until their next pay day. Firms have come under fire for failing to carry out comprehensive credit checks and for providing money to individuals who cannot afford to repay it, creating an increasing spiral of debt.
Una Farrell, a representative from the Consumer Credit Counselling Service, slammed the practice of ‘enticing’ individuals into taking out ‘incredibly expensive loans.’ Ms Farrell described the ‘debt hole’ that the advert was pulling consumers towards and insisted that no individual would want their loved one to rack up ‘expensive credit’ just to pamper them on February 14th.
Stella Creasey, Labour MP, an anti-debt campaigner who has been lobbying the government to introduce new measures to police the payday lending industry, said it was a further example of payday firms putting consumers under ‘relentless pressure.’ Describing it as ‘emotional blackmail,’ Ms Creasey said consumers’ interests were being exploited for financial gain.
However, the payday broker at the centre of the row insisted that it does not target vulnerable individuals and that it was perfectly entitled to suggest a payday loan for Valentine’s Day. A spokesman for the firm said that splashing out on treats for loved ones was an ‘appropriate use’ of the money, for those who either hadn’t got any money or others who just wanted to ‘spend a little more.’
PDB UK admitted that it had recently made ‘responsible lending more of a focus,’ but added that it always operates in line with the Consumer Credit Act.
However, PDB UK was not the only business in the payday lending industry that was under the spotlight, as a separate lender has been criticised for preying on owners who have ill pets.
Petloan.co.uk charges £58 in interest for borrowing £200 over 30 days, the equivalent of 2120% APR. If the pet owner cannot afford to repay the loan after 30 days, further charges and interest are added, meaning many more vulnerable individuals could end up trapped in a circle of debt.
Ms Creasey said that attempting to reach out to those who were struggling to pay their vet bill was ‘cynical,’ describing the move as ‘exploiting an emergency.’
The managing director of Petloan claimed that the firm is offering a viable alternative to pets that are ‘abandoned or killed,’ claiming that insurers often fail to pay up in time.
However, experts have suggested that consumers should not feel they have to resort to borrowing money from payday loans, a move which could end up in debt management. Ms Creasey suggested that those who need to access cash could contact their local credit union, whilst other experts recommend putting a small amount of money away on a regular basis, to create an emergency fund.
The Greek prime minister has taken the latest measures to fellow ministers, in a bid to try and gain acceptance for the austerity package so the country can avoid a messy default.
So far Greece and the rest of the EU have been at loggerheads about how to proceed and so far the debt-stricken country has not received the next instalment of its rescue deal, with Eurozone finance ministers threatening to withhold it completely, unless Greece complies.
Representatives from the European Central Bank, the International Monetary Fund and the European Commission, met with the Prime Minister of Greece, Lucas Papademos, earlier this week to thrash out a deal which would be acceptable to all sides. However, Mr Papademos now faces the unenviable task of getting his fellow ministers to agree to the package of austerity measures that the rest of the eurozone have insisted are essential.
With the economic problems having rattled on in Greece for some time, members of the public are fed-up with cutbacks and have claimed that much of the money in the past has lined politicians’ pockets. Many are therefore unhappy with the prospect of further austerity measures.
Earlier this week one of the biggest unions in the country held a one-day strike which culminated in the German flag being set alight. Germany are widely viewed as the main country driving the toughest measures in the package.
The content of the measures being put before Greek ministers has not yet been made public but it is believed to focus on cutting around 3.2 billion euros from their budget. This would be achieved by firing around 15,000 public sector workers, dropping the minimum wage by 22%, to 600 euros a month and cutting both basic and supplementary pension payments. Healthcare would also be slashed by 1.1 billion euros.
At the same time as negotiating targets with eurozone ministers, the Greek Prime Minister also has to get the private sector to write off some of their debt. As part of the bailout, private creditors are being asked to forget about approximately 70% of the money that the Greek government owes to them.
Despite the lack of bargaining power Greece would appear to have, some politicians in the country are still reluctant to agree to the cuts proposed. The situation is also being compounded by the fact there is an election looming in April and some ministers are deliberately digging in their heels in a bid to win more votes.
But the deadline to agree a deal is rapidly approaching with Greece due to pay a large debt instalment next month and currently without the means to do so. Experts suggest that the last date a deal could be finalised in order to avert a default is February 15, with the payment due on March 20.
However, outside Greece the mood is slowly changing amongst some leaders who are tired of being asked to bail out a country repeatedly, which is refusing to bear more of the pain itself. When the crisis first broke, eurozone ministers were horrified at the prospect of Greece leaving the single currency, with many feeling the future of the euro could be put in jeopardy by such a move.
However, countries such as The Netherlands are slowly becoming more blasé about the possibility. The Dutch Prime Minister, Mark Rutte, is quoted as saying it would now be less risky if Greece were to leave than before, whilst Neelie Kroes from the European Commission told a newspaper from The Netherlands, that one country leaving would not constitute a disaster. Mrs Kroes added that countries could not keep bailing out Greece without ‘evidence of good will.’
Customers who have switched energy suppliers are being lured back to their old supplier with the promise of free cash for simply changing their provider.
The rising energy costs have prompted many customers to review their suppliers for the first time in a while and has led to many opting to change to a cheaper provider.
This competition means that the so-called Big Six have to do something to stop the constant drip of customers leaving, so they have dreamt up the idea to simply hand out cash to cash-strapped consumers who simply switch to them.
According to uswitch.com, around 35,500 households found a new supplier in the first month of 2012, with more people than ever before opting to leave a larger company for the cost benefits to be found by joining a smaller firm. This number of customers leaving the bigger firms represents a tenfold increase compared to just four months ago.
British Gas is still the biggest supplier of domestic energy across the UK and has 15.9 million households on its books. However, even a company of this size is concerned about losing customers who are looking for ways to save money and has offered a great deal for anyone who returns. British Gas has confirmed that any customers who leave for another supplier but opt to return could qualify for £125 of free energy, if they rejoin the company and stay for a minimum of 12 months. British Gas have said that this would be provided by giving a discount off the bill, rather than a cash refund.
Npower is also believed to be working on a similar package which would reward customers who returned after switching to another supplier.
But whilst the move will be welcomed by consumers trying to eke the last penny out of the pound, campaigners have questioned how the energy firms can afford to simply ‘give away’ this level of profit.
Energy prices have been hiked up significantly right across the board this winter, with firms pointing to the rise in wholesale prices as the reason for the increase. However, ministers have asked the firms to explain how they have budgeted for giving away free fuel when they have said their profits are so thin. Incentives such as that offered by British Gas are estimated by experts as running into millions of pounds.
The MP for East Lothian, Fiona O’Donnell,said that the energy freebies ‘raised questions’ over whether the firms had been truthful about how much profit they were really making. The minister for Rutherglen and Hamilton West, Tom Greatrex, said the giveaway showed that energy firms were engaging in ‘predatory pricing,’ a practice they have been quick to deny in the past.
A spokesperson for British Gas said that incentives were commonplace in the energy market and offering money, or moneyback, was ‘not unusual’ amongst the big names in the sector. However, the spokesperson added that customers would not automatically qualify for the £125 and that British Gas was providing a range of offers which were ‘time limited,’ as a ploy purely to attract new business.
Other than British Gas and nPower, none of the other big firms was willing to admit they have been considering lowering their prices or giving customers freebies for reverting back to them from a rival.
Scottish and Southern Energy has admitted that its profits are exceedingly healthy and has promised to drop the rates for domestic customers, but not for two months. After lifting its prices by 18% in September, it is now promising customers around a quarter of the money back with a drop of 4.5%, providing they are still with them by March and don’t switch.
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Universities have suffered a dramatic nosedive in the number of students applying for places, as the effect of rising tuition fees makes its impact known.
Around 44,000 fewer applications were submitted to universities, a drop of nearly 9%, as tuition fees are set to sharply spike.
The huge increases in tuition fees were expected to deter some students from entering further education and the drop seen by the mid-January deadline would seem to confirm the predictions.
England has seen the largest decline, where students could face tuition fees of up to £9,000, compared to this year’s charges of just £3,275. The average net cost of fees is expected to be in the region of £8,000. Mature students and those from middle class backgrounds were the two groups where numbers were affected the most.
Whilst there had been much speculation that poorer students would be those disadvantaged the most by the hike in fees, the evidence points to students from the top 20% most affluent postcodes as being the ones the most reluctant to apply. A possible explanation for the drop is that students from well off families will not qualify for grants or subsidies, unlike those from poorer households.
Universities at the top end of the scale, such as the elite Russell Group institutions, saw far more marked drops, whilst cheaper universities saw their popularity soar. Manchester experienced a 10% fall in applications, whilst Warwick fell by 10.1%, Kings College 10.7% and Liverpool a whopping 11%. Private universities have been promoted by ministers as an alternative route for further education and frequently offer a less expensive route to gaining a degree. BPP University College, which holds its own degree awarding capabilities, saw its applicants leap by 139%, whilst the University of Birmingham, the largest private UK university, recorded a twofold jump in demand.
Despite the tumble in applicants, University UK insisted the fall in numbers was ‘far less dramatic’ than forecasters had predicted. This view was echoed by the Universities Minister, David Willetts, who said the number applying in 2012 was still higher than two years ago.
However, Labour was quick to point out that the drop had been predicted when the rise in tuition fees was announced and said that the fear of amassing huge debts was stopping individuals from being able to ‘invest in their future.’
According to official statistics, the total number of applications fell by 7.4% but a large chunk of the numbers were made up from overseas students. Amongst British applicants alone, the numbers rose to 8.7%, a drop of 43,881 applications.
There were also regional differences across the country, with England the worst off of the four nations. England has the highest level of fees and, as a result, suffered a 9.9% fall in applicants, whereas at the opposite end of the scale, Scotland, which offers free tuition, only experienced a decline of 1.5%. Welsh student applications only fell by marginally more, 1.9%, whereas universities in Northern Ireland recorded a drop of 4%.
The type of subjects applicants showed an interest in also revealed a shift in mindset, with students far more determined to pick subjects which offer a greater chance of getting out of debt more quickly. Subjects such as medicine, a career which could potentially provide a good salary, only fell by 2.5%, whilst business and professional degrees were also down by less than the overall average at 5.2%.
However, humanities, a subject difficult to link to a guaranteed career path and performing arts both plummeted much more sharply than the overall figure, with drops of 14% and 30%.