Image copyright Thinkstock Image caption Part-time students are in decline in England's universities

A sharp fall in the number of part-time students at England's universities is harming the economy and limiting social mobility, a think tank claims.

The Higher Education Policy Institute (Hepi) says changes to student funding arrangements from 2012 and inflexible course structures are to blame.

Between 2010/11 and 2014/15, students starting part-time fell by nearly 143,000, from 258,885 to 116,025.

The government said it supported part-time students by offering them loans.

But to be eligible for a tuition fee loan, part-time students have to be:

aiming for a qualification that is not equivalent to or at a lower level than the qualification they already hold - so if they have a Bachelor's degree, for example, they cannot get a loan to pay for a second one

studying for at least 25% of a full-time course

following a full course for a specified qualification, which means students studying individual modules are ineligible for loans.

In a collection of essays on the decline of part-time university education, Hepi says two-thirds of would-be part-time students do not qualify for the new loans, largely because they already have a degree.

It says this post-2012 funding system has deterred many part-time students who, on top of higher fees that have to be paid upfront out of their own pocket, usually have other financial constraints such as mortgages and dependent children.

Hepi also criticises the government for reducing the attractiveness of studying by module, by forcing students to commit upfront to study for a whole degree if they want to get a loan.

Making loans available for individual modules would open up "access to courses that provide specialist skills and enable hard-working people to benefit not just themselves but their employers through increased productivity".

Benefits of study

Hepi director Nick Hillman said the collapse in part-time study was "arguably the single biggest problem facing higher education at the moment".

"If we succeed in reversing the decline in part-time study, the benefits to employers in terms of improved productivity and to the economy in terms of faster growth will be substantial," he said.

"But the benefits to individuals and their families will be even more transformative."

Image caption Peter Horrocks warns of the threat to part-time education

In her contribution to the Hepi essays, Claire Callender, professor of Higher Education at Birkbeck and UCL Institute of Education, said part-time higher education "transforms lives and drives our economy".

"Part-time study contributes to a more flexible and diverse system and helps widen participation and increase social mobility. All are at risk because of the 2012/13 reforms of part-time student funding."

Peter Horrocks, vice-chancellor of the Open University and author of one of the essays, said: "For too long the focus of higher education policy has been on the traditional university route of school leavers heading into full-time study.

"As this collection shows, part-time higher education has a key role to play in boosting productivity, contributing to economic growth and driving social mobility.

"Alongside our calls for the reversal of the policy to refuse loans for most second degrees, this paper is full of proposals which, if taken seriously, would help the government deliver on its promise to support the most aspirational people in our society."

A spokeswoman for the Department for Business, Innovation and Skills said: "We know that studying part-time and later in life brings enormous benefits for individuals, the economy and employers.

"That's why we introduced tuition fee loans for part-time students and have extended additional support for those retraining in computer science, engineering and technology part-time."

Student support

Responding to the Hepi publication, Dame Julia Goodfellow, president of Universities UK, said her organisation had asked the government to look at policies which would address the decline in part-time student numbers.

"These options include equity in maintenance support for part-time students, reviewing eligibility for loans and incentives for employer-funded places," she said.

Image copyright pinkomelet Image caption The government says it is supporting part-time study through loans

"Universities are continuing to develop and provide innovative and flexible methods of delivery to meet the needs of students, businesses and the economy.

"It is clear that government must also play its part if the long-term skills needs of the UK are to be met."

Professor Dave Phoenix, chair of million+ and vice-chancellor of London South Bank University, said part-time higher education was under threat.

"The November Spending Review offers the Chancellor the opportunity to make a difference," he said.

"Giving part-time students access to maintenance loans, improving support for those who want to return to study part-time for a second degree or other higher level qualifications and providing small employers with a tax credit to encourage their employees to study for professional and technical qualifications, would provide a lifeline that would benefit individuals and the economy in the long run."