Since the Further and Higher Education Act 1992 ended the 'binary
divide' between universities and polytechnics, all publicly funded
higher education institutions have been part of a single higher
education sector, subject to the same funding and quality assurance
arrangements. All are autonomous, independent organisations, with their
own legal identities and powers, both academic and managerial. They are
not owned by the state, although the overwhelming majority are dependent
to a greater or lesser degree on state funding. They can therefore be
classified as government-dependent private institutions.
The decision as to whether an organisation is designated as a higher education institution eligible for public funding rests with the Privy Council, a senior UK government committee, which acts on advice from the Quality Assurance Agency (QAA) and the Higher Education Funding Council for England (HEFCE). Criteria for designation include a requirement that 55 per cent of courses taught should be higher education courses.
Within the higher education sector, individual institutions are very diverse, varying in size, history, mission and subject mix. Some, particularly those established as universities prior to passing of the 1992 Act, are more research-intensive and typically focus their teaching on traditional academic courses at bachelor‘s degree level and above. Post-1992 universities, often former polytechnics or teacher training colleges, may be less research-intensive, and typically offer a wider range of vocational courses, some of which may be short-cycle programmes below bachelor‘s degree level. Other higher education institutions include small, specialist institutions of art and design, drama, music and agriculture. Many institutions identify themselves with a ‘mission group’, formed on the basis of common interests and with the aim of influencing policy eg Million+ and the Russell Group. A list of mission groups with links to their websites is available on the UCAS website.
In the White Paper, Higher Education:Students at the Heart of the System (BIS, 2011) the Government stated its commitment to encourage increased diversity of provision within the higher education sector. This includes private sector provision. Higher education bodies in the public sector have expressed concern about regulation and quality control of the private sector and the impact of increased competition on public sector provision.