Higher Education

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Wednesday 3rd November 2010

(13 years, 6 months ago)

Westminster Hall
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David Lammy Portrait Mr Lammy
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My hon. Friend is exactly right. That is why France, Germany, America and other countries throughout the developed world have a huge commitment to higher education and are increasing funding, not decreasing it. There is a drive to give more of the population the higher-level skills that come from higher education. The Government’s decision is crucial to the future of this country. We commissioned the National Council for Educational Excellence to encourage schools and universities to work better together to raise aspirations and achievement.

We do not say that schools in this country are only about driving young people to get GCSEs or A-levels. It is about outcomes, and one of the most important pathways to a better outcome for individuals and society as a whole is attendance at university. By the year we left office, £580 million was being spent annually on broadening access to higher education and widening its reach to poorer families across this country.

The number of entrants to higher education increased by 44% between 1999 and 2009. Since 2004, participation among the poorest 20% of the country has increased by 32%, compared with a rise of 20% among the richest. Our policies raised aspiration among people who had never before seen the path to university as being for them. Schemes such as Aimhigher broke cycles of poverty and underachievement that had existed in families for many generations. The proportion of university places taken by ethnic minority students increased from 13% in 1994 to a figure broadly proportionate to the size of the young population as a whole. None of those changes happened by chance. They happened because we wanted them to. We put money and a lot of effort into them.

John Hayes Portrait The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)
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I do not want to interrupt the right hon. Gentleman’s flow, and I endorse what he said about our shared intentions in respect of participation. He will know that on his watch as Minister, the funding for Aimhigher was reduced. Why?

David Lammy Portrait Mr Lammy
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I have no recollection of the proportion of funding for Aimhigher being reduced. The Aimhigher programme sat alongside the funding that we gave universities to both widen participation and increase retention. As I said, that overall pot was about £580 million. That is a significant amount of money, and it made a huge difference. I do not recognise what the hon. Gentleman said.

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David Lammy Portrait Mr Lammy
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As I said, we were all concerned about the progress in relation to our most selective universities. That is why allowing our most selective universities to raise their fees to £9,000 a year must be counter to the progress that I would hope the hon. Gentleman desires. The Sutton Trust estimates that there are 3,000 missing state school students from Britain’s 12 most selective universities. A further statistic that comes to mind is that only one black Caribbean student was admitted to Oxford university in 2009—one student.

The Government’s claims are hugely important. They claim to be committed to higher education’s role in social mobility. Indeed, we are told that access is hard-wired into the coalition agreement. However, despite that hard-wiring, the Secretary of State has apparently long questioned whether the 50% participation rate is sensible or affordable. It is important that the Minister says something about what he considers will happen to the participation rate. Does he believe that the Government can widen access with an increased tuition fee of £9,000 a year? How will trebling fees encourage the sons and daughters of nurses and dinner ladies to achieve what their parents never had the prospect of doing? If we add to that figure the £8,000 a year maintenance that a student needs to live on, the Government’s plans mean that it will cost £17,000 a year to study for a degree. Will that encourage a nurse on an average of £23,000 a year to send her young son or daughter to university? With costs that are three quarters of their salary, will they not decide that university is what they always believed it to be: not for them?

Does the Minister honestly believe that students from the poorest backgrounds will not be put off by these staggering sums of money? A Sutton Trust opinion poll shows that only 45% of 11 to 16-year-olds who are currently interested in progressing to higher education at current fee levels would be interested if the fees were increased to £7,000. What does that then say about the current figure of £9,000? With institutions now capable of charging variable fees of between £6,000 and £9,000, it is inevitable that some of the most capable students from the poorest families will make choices based on cost or on the perception of cost, rather than because of academic talent.

John Hayes Portrait Mr Hayes
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I am intervening so that we can deal with some of the important questions the right hon. Gentleman raises. In the spirit of fairness that he normally adopts on these occasions, he will want to acknowledge that the statement made today by the Minister for Universities and Science, for the first time links fees to access. The proposals will explicitly link fees to the extra demand on universities in order to widen participation.

David Lammy Portrait Mr Lammy
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I hope that the Minister will explain in his response to the debate the detail of that access. As I listened to the Minister for Universities and Science a few moments ago, there did not appear to be the teeth required to ensure that level of access. I did not hear anything about the programme of effort—the punishment or fine—that we will need to ensure that higher education meets the necessary access levels.

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David Lammy Portrait Mr Lammy
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My hon. Friend is absolutely right: arts and the creative arts make a huge contribution to our economy and to the new digital creative economy. The decision to withdraw state funding from such courses is bizarre, particularly as it was made alongside the decision to make massive cuts to the Department for Culture, Media and Sport.

Those subjects cut to the heart of what it means to be a democratic country. We all sit in this Chamber as politicians—politicians who draw on the liberal arts and who, I would have thought, expect the state to make some contribution to that area of study. Even in the United States, with its highly developed private higher education system, every state has a state university, as is the case in California, and all those universities make a massive contribution to the liberal arts. The departure that we are making in the UK leaves countries such as France, Germany and the United States making a contribution to that area of study, yet for the poorest students in this country, that will no longer be accessible.

I put on the record my thanks to the many people up and down the country who have worked in the Aimhigher programme. It is a programme that works. Pupils have been able to attend three-day summer schools attached to our universities as a result. I saw a scheme working with students in the Toxteth area of Liverpool; it was really reaching out to those young men, most of whom came from backgrounds like mine and had been raised by lone parents. They really wanted to aspire for the first time because of the huge inspiration that the scheme gave them. Following the decision that was announced today, what is to happen to Aimhigher? We have heard much today about the new access and success fund, but will the Minister confirm whether that fund will equal the £580 million a year that the previous Government invested in widening participation?

The Browne review promises to introduce stringent access agreements, and the Minister for Universities and Science confirmed that today. With universities charging more than £6,000 a year, will the Minister confirm what penalties they will suffer if they do not meet their access agreements? Will those agreements have teeth? I was saddened to hear the Secretary of State for Education being interviewed on the “Today” programme this morning. We did not want to hear that universities will demonstrate that they will use imaginative ways to attract students from poorer backgrounds; we want a lot more than imagination.

The Minister is really attracted to choice for students and to having funds following students to university. He has made great hay of the pupil premium, so why not have a pupil premium in that area of the education system? Why not fund students from poorer backgrounds better to get that buy-in from the higher education sector? Does he not agree that universities need real, hard commitments on access that are statutory and can be challenged? That is important if we are not to see the situation deteriorate.

John Hayes Portrait Mr Hayes
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I am grateful to the right hon. Gentleman for giving way a third time—I will not intervene again unless he says something extraordinary or outrageous, but I know that he will not. On the pupil premium, he knows that the biggest challenge in widening access is prior attainment. Unless we have more applications from people who come from disadvantaged backgrounds—as he and I do—we simply will not get the admissions we want. That is about the pupil premium and about supporting people in schools. Surely that is right.

David Lammy Portrait Mr Lammy
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I hope that the Minister appreciates the fact that 494 black students of Caribbean descent received straight As in their A-levels last year. I have already presented him with the evidence about Oxford university. The question for him is this: how will his changes make that situation better? Will they not make it worse?

It is important to note that there are three primary beneficiaries of higher education: the graduate, wider society and, of course, the employer. When we set up the Browne review, we asked it to look specifically at the employer contribution. I was disappointed that Browne spent only 300 words in his entire report on the employer contribution. We heard nothing from the Secretary of State on that subject when he responded to the report, and nothing from the Minister for Universities and Science today. Will the Minister now take the opportunity to explain why he departed from that key element in the basic terms on which we set up the Browne review? Why should we load young people, students and poor middle-class families with the debt, yet not ask employers, who are a beneficiary of our higher education system, to meet part of the cost? Why was that decision ruled out?

Will the Minister make a commitment that by the end of this Parliament, when—we are told—the structural deficit will have been eliminated, he will raise the public contribution to all courses, and lower fees? The changes have been presented to some extent as emergency measures that are necessary because of the deficit. When the legislation comes before the House, as we are told it will in a few weeks’ time, can we expect to see a sunset clause so that we depart from and then return to a system of more equalised contribution? I would like the Minster to say something about that.

On widening participation, I want to hear what the teeth, or the beef, of the programme will be. In particular, will the Minister commit to Aimhigher? I started my speech by saying that the Minister cares passionately about the issue, but I hope he will realise that, on this day of all days, many people beyond the Chamber are looking to this House, and what they want are answers.

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Paul Blomfield Portrait Paul Blomfield
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My hon. Friend makes a good point. There is a further message within the Government’s announcement, about social sciences, arts and humanities courses. The Government are sending out the message that they are not valued by the country. That will, I am sure, also be a factor in students’ decisions.

We know from talking to constituents, from research and from looking across the Atlantic at the United States model that the Government seem intent on creating, that the cost of courses is a significant disincentive for those who can least afford them. The levels of debt that the Government seem intent on students taking on will be a disincentive, particularly for those on lower—and, indeed, ordinary—incomes, who cannot contemplate such financial risk.

Apart from the impact on participation, the Government’s proposals fail their own test on the funding of the higher education system. I refer hon. Members to the remarks made by Professor Steve Smith, president of Universities UK, who wrote recently in The Guardian:

“The government should be in no doubt about the risks these cuts in funding pose to the world-class standing of our higher education system, and thus to the country’s future economic growth and prosperity. The UK’s competitors face the same deficit reduction challenges as we do, but they have decided to invest in higher education at this crucial time, not cut it.”

John Hayes Portrait Mr Hayes
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I know that the hon. Gentleman is a devotee of Steve Smith’s words on this subject. This afternoon, following the statement, he said:

“We believe that this package of proposals represents the best available funding system for universities.”

Paul Blomfield Portrait Paul Blomfield
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I understand the messages that the Government have been sending about the available options, and the way the universities are being forced to accept a way forward that is deeply unpalatable for many of them. Steve Smith went on to point out in the article I quoted that the spending review set the context within which to understand Browne. That is a crucial point. The previous Labour Government set up the Browne review as an independent review of our higher education system, but clearly the steer that was given to Browne on the resources that would be available, and the way they would be allocated, shaped the recommendations and took away any pretence that the final report was the independent review we had sought.

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Diane Abbott Portrait Ms Diane Abbott (Hackney North and Stoke Newington) (Lab)
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I am grateful for the chance to take part in this valuable debate. I congratulate my friend and colleague, the right hon. Member for Tottenham (Mr Lammy), on obtaining this important debate. My Government had an excellent record in further and higher education, particularly when he was a Minister in that Department.

Like my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger), I signed a pledge not to vote for an increase in tuition fees, and I had to fight through a crowd of Lib Dems in this House to do so. I had imagined that that same crowd of Lib Dems would be here today; I cannot imagine what has happened to them. As I said, my Government had an excellent record in further and higher education, but I voted against tuition fees in any form or fashion because my view was that society as a whole benefits from education and society as a whole should pay.

It was also my view that I had benefited. As the child of people who left school at 14, I have benefited from an education at one of our better education institutions, nestling as it does in the mists of the fens of East Anglia, and I was not prepared to draw up the ladder behind me to another generation of young people. I also knew that this is where it would all come to. It was all very well for us to introduce tuition fees in a very careful way, hedged about with all sorts of support—very judicious—but I knew that it would end in a Tory-led Government ramping up fees unconscionably, leading to a more divided education system than we have ever seen.

John Hayes Portrait Mr Hayes
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When did the hon. Lady change her mind about fees, or is she totally, wholly and implacably opposed to fees of any kind?

Diane Abbott Portrait Ms Abbott
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I am afraid that I did not attract the Minister’s attention. I have always been against tuition fees; I have marched through the Lobby against them. It gives me no pleasure to say that I knew it would end up like this, with Tory Ministers such as the hon. Member for South Holland and The Deepings (Mr Hayes) ramping up fees—[Interruption.] Members will see how I cast my vote in the coming debate.

The point that I wanted to make is that in a world of markets—all of us here, even my good self, believe in markets nowadays—price is an indicator and, as I said earlier, if there is variable pricing, the indicator to students is that the higher-priced universities are not for the likes of them. Over the years, I have counselled many young people in my constituency, including ethnic minority young people, to try to encourage them to go on to higher education. They are held back not because they do not have the qualifications—their teachers bring them to me precisely because they think they are bright enough to benefit—but because their parents and they themselves are worried about leaving home, about the sorts of people that they will meet, and that the environment might be snobbish. And now that we see a gap of perhaps £6,000 or £7,000 between fees, what will those working-class students think?

I was the first in my generation of my family to go to university. I always remember my father, who was a committed and kindly parent, saying when I was in the sixth form, “Girls of your age are out of school.” He was not being cruel; all the black girls of my age that he knew were out of school. I voted against tuition fees in the first place because had someone told my father, who left school at 14 and worked all his life, that not only was I staying on into the sixth form, not only was I going on to university, but I was going to pile up upward of £40,000 debt to go to my chosen university, he would have said, “No. You leave school and you become a nurse like your mother,” not because he was cruel, but because he was looking out for my future. For someone from his kind of background, that level of debt would be more than they would earn in a year, and more than my father in his day would have earned in several years, which would have been completely unthinkable.

I agree with Government Members who said that the issues that face young people from communities such as mine when going forward into further education are not just about money. They are very complex issues, and that is why for many years I have run a programme that is designed to encourage black young children, specifically, in London to raise their achievements. We have conferences and seminars, and we give out awards. There are, of course, hundreds of ethnic minority young people doing very well in school, in spite of everything and, as I am sure my right hon. and hon. Friends will agree, this measure will hit not just people from communities such as mine, but middle England also. In some ways, the people who will be worst off are those who are just in the middle, who are not eligible for the help but cannot afford to contemplate their children going on to pile up £40,000 of debt, not when they will have to think about their pension and their jobs, and interest rates on mortgages are rising. I believe that the introduction in this way of a crude market mechanism into higher education is wrong. I believe that it shows the reality of our invisible Lib Dem colleagues’ commitment to equality and fairness. I look forward to hearing the Minister responding to my colleagues’ points today, but I look forward even more to seeing what the electorate in Southwark, in Hornsey, and in Lib Dem constituencies up and down the country, will say in response to the way in which the Lib Dems have today walked away from signed commitments not to have higher tuition fees.

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John Hayes Portrait The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)
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It a pleasure to speak in this debate, Mr Betts, and I congratulate the right hon. Member for Tottenham (Mr Lammy) on securing it. I acknowledge that we both care deeply about this subject, and we have debated it over many years. It was especially fortuitous of him to secure the debate for today. He applied for it and secured it before he knew about the statement that would be made—a remarkable achievement.

I have always listened to the right hon. Gentleman with interest. His journey from Tottenham to this place is one that we all believe more people should be able to take. Like many other hon. Members who have spoken, I was the first person in my family to go to university and, as the right hon. Gentleman knows, I want that opportunity for more people from working-class backgrounds. Like the hon. Member for City of Durham (Roberta Blackman-Woods), I believe in what she described as the transformative power of learning, and the way that learning changes lives by changing life chances.

However, let us be frank during the course of our affairs this afternoon. The previous Government knew, just as this Government know, that we have to think again about how we fund such opportunities. That is precisely why the previous Government commissioned the Browne review. I have a series of quotes from Lord Mandelson and others. It would be tedious to read them out, but they state that we need to think afresh about the way that we fund universities and think carefully about the contribution made by graduates. That was why we needed to commission a review that looked at such matters. The terms of reference of the Browne review could hardly have been agreed on had it not been anticipated that the outcome would address such subjects. That is precisely what Lord Browne did.

We have heard from a number of hon. Members about the problem of the disincentive effect of higher fees. We heard about that issue from the hon. Members for Sheffield Central (Paul Blomfield) and for Liverpool, Wavertree (Luciana Berger), and the hon. Member for Harrow West (Mr Thomas) mentioned it in his summing up. That stands in contrast to the simultaneous and accurate claims made by hon. Members that since fees were introduced, things have improved in terms of widening access. Rather than being a disincentive, there is little evidence to suggest that people have been put off by fees. As we heard, more people from less-advantaged backgrounds have been going to university since the introduction of fees.

Paul Farrelly Portrait Paul Farrelly
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Will the Minister give way?

John Hayes Portrait Mr Hayes
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I will happily give way, but I am not going to give way too much because of the time. I want to cover all the points that have been raised.

Paul Farrelly Portrait Paul Farrelly
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My hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott) and I were veterans of the bloody battles that were fought in the Labour party over a market in higher education. The Conservative party and the Liberal Democrats agreed with us. The key achievement all those years ago was to stop the variability, which would have led to people from poorer backgrounds choosing cheaper universities.

While I am on my feet, I would like to make another point—

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John Hayes Portrait Mr Hayes
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I rather suspect that that depends on the degree. There is much more evidence to suggest that degrees in applied sciences, for example, and some of the practical subjects, tend to increase employment potential, whereas some other degrees do not—we could share that discussion offline, Mr Betts, if we have not got time to share it now. I do not write off those other degrees. My goodness—I am a politics graduate and I ended up in this place. As a social scientist, I do not want to make a case against social sciences, and as someone interested in the arts and humanities, I am not going to make a case against those subjects. None the less, if the hon. Gentleman looks more closely at the evidence, he will find that the issue is more about the type of degree.

Much has been made in the debate about the issue of prior attainment. I want to emphasise and amplify the point that the key problem with widening access is prior attainment. If the number of applications were greater, the number of admissions would be greater too. There is not much evidence to suggest that the admissions system is skewed against people from less well-off backgrounds. Many studies have been done to try to establish that, but such a claim is not evidentially based. The issue is about the number of people who apply to universities from less well-off backgrounds. We have to get the school system right and put people on the starting block in the race for higher learning.

We must get advice and guidance right. All too often, people from disadvantaged backgrounds are not given the right kind of empirical advice about the opportunities available to them. When people are advised properly, equipped with the qualifications necessary for their applications and encouraged to apply to university, we see the widening of participation and the fair access that both I and the right hon. Member for Tottenham would like.

John Hayes Portrait Mr Hayes
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I will give way once more, and then I must make progress.

Sheila Gilmore Portrait Sheila Gilmore
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No one would disagree with the need to improve attainment, but I do not think that those issues are necessarily in conflict—I will ask the Minister for his view on that. Over the past few years, if people wanted to get into housing, those who could go to the bank of mum and dad did so. Are we going to see a position where those who have the bank of mum and dad, or perhaps an inheritance from mum and dad or grandparents, will in future be able to make choices about higher education that other people cannot make?

John Hayes Portrait Mr Hayes
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It is more the case that people who get advice and guidance derive the wherewithal that turns their aspirations into reality because of a familiar understanding of opportunity. Research suggests that people tend to get that wherewithal from social networks or familiar experience. That is why my children will benefit from advantages that I did not have because of my understanding of the options that are available for higher study. The issue is not only about money, although money is part of it and I shall come on to that in a few moments.

Gareth Thomas Portrait Mr Thomas
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Will the Minister give way?

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John Hayes Portrait Mr Hayes
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I will not. I am terribly sorry, but I want to make progress. A lot has been said about Aimhigher. I charged the right hon. Member for Tottenham with the claim that he cut the budget for Aimhigher—that was perhaps a little unfair given that he will not have access to the same figures as when he was a Minister or a Front Bencher. However, I would like to give him the facts and I know he will also want them on the record. In 2007, the budget for Aimhigher was £102 million; by 2009 it had dropped to £81 million, and by time the right hon. Gentleman left office, it had fallen to £78 million. The faith that he and others expressed in Aimhigher was not supported by a financial commitment in the budget over which he presided.

David Lammy Portrait Mr Lammy
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Let me put on the record that I was not the Minister in 2007. We increased the widening participation budget for universities more broadly, alongside Aimhigher.

John Hayes Portrait Mr Hayes
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The right hon. Gentleman was not the Minister when funding for Aimhigher was at its highest, but he was when the funding fell. We understand his point.

The quality of achievement at state schools and the prior attainment of students is critical. The right hon. Gentleman makes an important point about the success of black students in getting into Russell group universities. That is a matter of profound concern and something that the Government should look at, particularly in light of the recent research that he and I discussed yesterday. I want to see what we can do to address that issue.

I also wish to speak a little about the point made about arts subjects. It is important to understand that we will continue to support the arts. It was suggested that arts subjects will no longer receive funding, but we will continue to focus the Government subsidy for teaching on that.

Roberta Blackman-Woods Portrait Roberta Blackman-Woods
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Will the Minister give way?

John Hayes Portrait Mr Hayes
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I cannot give way; I do not have time. I apologise. We will continue to support the arts through the subsidy for teaching in universities.

I have a couple of other points. First, the increase in support for part-time learning will do more to widen participation than any other single measure. As the right hon. Gentleman and others know, disadvantaged people are disproportionately represented among part-time learners. Raising the income threshold to £21,000 will have a profound effect—

Clive Betts Portrait Mr Clive Betts (in the Chair)
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Order. We must now bring the debate to a conclusion.