Hopwood Hall College enriches lives

Hopwood Hall College enriches the lives of learners and increases their lifetime incomes. It benefits taxpayers by generating increased tax revenues from an enlarged economy and reducing the demand for taxpayer-supported social services. Finally, it contributes to the vitality of both the local and Greater Manchester economies.

These are the findings of a socioeconomic impact study covering the academic year 2008-09, commissioned from EMSI, a leading provider who has carried out more than 900 studies in the UK, Australia and North America.

Questions that the study sought to answer were:

• What are the measurable benefits of further education? 
• Is education a worthwhile public investment? 
• What do taxpayers get out of it? 
• Can learners increase their earning potential by achieving qualifications?

The results of the study were presented at the college’s recent annual review meeting where five alumni of the college gave video interviews which showed the impact Hopwood Hall College had on their lives.

Clint Boon, current XFM Manchester DJ, said he gave the college “a lot of credit for what happened with the rest of my life”. Mr Boon started a band called the ‘Inspiral Carpets’ which he said took him “all round the world” and “for 25 years or so I’ve made a living out of, quite simply, being passionate about music”.

Alison Seagrave, former head pastry chef at Harvey Nichols’ exclusive restaurant in Manchester who has recently opened her own patisserie ‘Macaroon by Alison Seagrave’, said “I definitely would not be sitting here (in her own business) if it wasn’t for all the experience I gained at Hopwood Hall College and all the advice and help that I have received ever since the day I left until today”.

The results of the study show that the college:

Stimulates economy growth to the tune of £131.8 million The college’s annual operations and the cumulative effects of its past and present students accounts for £75.4 million in labour income (salaries) and £56.4 million in non-labour income (dividends, interest, rent). This equates to 0.3% of the Greater Manchester total income.

The college employed 469 staff with an annual payroll of £14.8 million and spent £24.3 million during the year, including purchases of supplies and services. Approximately 23% of the college’s learners either travelled or relocated to Greater Manchester from outside the region. These learners generated an estimated £11.7 million in sales while attending college.

It is estimated that the present-day Greater Manchester workforce contains approximately 65,000 qualifications gained by past and present college learners. These added skills promote business productivity and increase regional income.

Provides value for money for taxpayers Education is statistically correlated with improved lifestyle behaviours and it is estimated that the college’s learners generate savings of £481,800 a year with fewer instances of social costs such as health-related problems, criminal offences and unemployment benefit claims.

Learners generate £4.6 million annually in higher earnings due to their college education and the qualifications they gain.

Gives a return on investment of £1.40 for every £1 of taxpayer financial support
The UK government allocated approximately £22.3 million to the college and for every £1 allocated, taxpayers will see a cumulative return of £1.40 in the form of higher tax receipts and avoided social costs. The public will see a rate of return of 6% on their support of the college, as the college adds more money to the government than it takes out, which is better than most current savings accounts.

Increases learners’ earning potential 8,020 learners attended the college during the year in question and nearly all of these stay in the UK and contribute to the economy. Learners enjoy an attractive 13% rate of return on their college educational investment and over their working career their lifetime earnings will increase £3.60 for every £1 invested in the form of tuition fees and foregone earnings. Learners see their annual income increase by £753 per qualification obtained and a learner with a level 3 qualification (A-level equivalent) will earn on average £22,300 per year, which is 38% more than someone with no qualifications. Over the course of a working lifetime this equates to £224,100.

Commenting on the results of the survey, Vice Principal for Finance & Corporate Development John Spindler said: “The study clearly shows the impact and importance of Hopwood Hall College to the Rochdale borough and Greater Manchester, from both an economic and social perspective. The college is a major financial contributor to the local economy well in excess of its annual budget and gives a return on investment to taxpayers greater than most current savings accounts.

"For learners, investment in both time and money at Hopwood Hall College clearly shows through in the report in that an education will pay you back for a lifetime and is the ticket to a better job.”

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