The cost of graduation ceremonies is higher than it should be because a near monopoly on ceremonial gowns is hiking prices up, it is claimed.
Prestigious tailors Ede & Ravenscroft, which opened its doors in 1689, is facing allegations it is ‘eliminating’ competition by sewing up exclusive contracts with more than 100 universities in the UK.
The 109 schools under contract insist students wear the ‘official supplier’s’ robes or risk being barred from the ceremonies, reports the Sunday Telegraph.
As part of the deals, universities can make up to 20 per cent commission on the robes, which can cost up to £50 to hire.
The cost of graduation ceremonies is higher than it should be because of a near monopoly on ceremonial gowns, it is claimed (stock picture)
Market regulator the Competitions and Marketing Authority (CMA) is aware of the allegations but has so far failed to investigate, though they have said the claims raised ‘interesting issues’.
Emails seen by the Sunday Telegraph reveal the watchdog is not acting due to its ‘finite resources’.
Figures obtained by the newspaper show how lucrative the arrangements can be for universities, who are required to put supply contracts out to tender.
Glasgow Caledonian University makes £25,000 a year from Ede & Ravenscroft while Lancaster University nets around £19,000 from their deal.
A foreign supplier has raised the complaint and alleges universities bag other benefits from the deal, such as staff receiving free robing.
The University of Reading benefits from free robe hire of up £30,000 and photographs and frames up to £1,000 a year.
As part of a deal with a supplier, the University of Reading (pictured) benefits from free robe hire of up £30,000 and photographs and frames up to £1,000 a year
This is coupled with their benefiting from 20 per cent commission on student gown hire and 50 per cent on photography.
There are concerns the arrangements mean students miss out on cheaper prices, with some estimates claiming just 58 per cent go to their graduation ceremonies.
They include the University of Reading, which receives free staff robe hire to the value of £30,000, and photographs and frames up to £1,000 per year.
Robert Halfon, chair of the Commons education select committee, labelled the claims ‘deeply concerning’.
Throughout the UK, it is thought only Oxford and Cambridge universities have arrangements in place with more than one supplier, allowing for cheaper prices for students.
At two Oxford-accredited supplies, undergraduate robes and a mortarboard can be hired for less than £18.
This is contrasted with Bristol University, where students renting a gown and buying the basic picture package have to fork out £75.
The most expensive deal costs £200.
A spokesman for Ede and Ravenscroft said students can choose to hire their gowns from whichever supplier they wanted to and added the firm won contracts because of their ‘competitive pricing’.
They also said manufacturing gowns for a single university can cost more than £250,000.