Universities will have to offer career training rather than being just ivory towers of academia if they are to survive, experts predicted.

Their research shows how higher education must adapt to cope with demographic changes, by taking on more part-time and mature students, and forming links with local businesses. The report by Universities UK, which represents vice-chancellors, said that the number of 18-year-olds will fall by 2020, removing 70,000 potential students from the further education system.

Although numbers will rally, they are predicted to rise by just 2.1 per cent by 2027 if universities continue to recruit from similar parts of society. Full-time undergraduates would increase by only 0.8 per cent.

Universities must diversify to thrive, according to the authors of the report. They may have to open their doors to greater numbers of overseas students, offer part-time courses, or professional development training for staff employed at local companies.

Sir Muir Russell, the vice-president of Universities UK and chairman of the report’s steering group, said that the sector would need to work closely with policymakers to cope with the “significant change in the make-up of its student population”.

He added: “We expect to see an increase in international students and we must ensure that the UK remains an attractive destination for them.

“Given the projected increases in other age groups, such as 30-39, it is also crucial that universities have a key role in improving the skills of the current workforce.

“And, as we saw with similar demographic uncertainties in the late 1980s, we must continue to improve the staying-on rate for 16-year-olds in order to increase demand for higher education, especially those from poorer backgrounds. Our universities are in an excellent position to prepare for such fluctuations.”

Nigel Brown, an educational consultant, said: “Universities have shown themselves remarkably adept at seizing opportunities and new markets. The sector is changing all the time by developing and changing.”

The University and College Union said that the demographic change would give institutions the chance to improve staff/student ratios, and provide support for part-time study.

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