Higher Education: Funding
Debate between Baroness Williams of Trafford and Lord Stevenson of Balmacara
Lord Stevenson of Balmacara
To ask Her Majesty’s Government what assessment they have made of the long-term sustainability of higher education funding in the United Kingdom.
Baroness Williams of Trafford (Con)
My Lords, participation in higher education has huge benefits for both student and state, and that is why the English higher education funding system shares the cost of study. The system of grants and government-subsidised student loans, which are based on income-contingent repayment, has enabled us to maintain student numbers, and universities now have a sustainable income stream. In 2014, we have had record participation rates both for 18 year-olds and for disadvantaged students.
Lord Stevenson of Balmacara (Lab)
I thank the Minister for that full reply. I thought that she would simply refer me to the Answer that she gave on 15 December to a very similar Question from her noble friend the noble Lord, Lord Sharkey. I have read the OECD report that she quoted on that occasion—in fact, she quoted it three times—to support her assertion that the coalition Government have a sustainable system of higher education funding. On page 261 of that report, the OECD notes:
“Since 2009, further changes have been made to tuition fees and public support systems”,
in the United Kingdom.
“However, the data presented here … do not reflect these more recent changes”.
In other words, since the tripling of university fees, the elimination of HEFCE’s teaching grant and the introduction of punitive interest rates for student loans, the OECD has actually made no statement about the sustainability or otherwise of the coalition Government’s present HE funding system, and it is surely disingenuous of Ministers to assert otherwise. In the light of this, would the Minister confirm that her quote was taken out of context from the OECD report, apologise for misleading this House and withdraw the comments that she made on behalf of the Government on 15 December?
Baroness Williams of Trafford
My Lords, to say that a Minister is misleading the House is quite a strong thing to say and should definitely be backed up by facts. I refer the noble Lord to a comment by Andreas Schleicher, the OECD’s director for education and skills, two days ago in an article, where he said that,
“the UK offers still the most scalable and sustainable approach to university finance”.
I wonder whether the noble Lord might in fact withdraw his comments.
Disabled Students’ Allowance
Debate between Baroness Williams of Trafford and Lord Stevenson of Balmacara
Baroness Williams of Trafford
The noble Baroness makes a valid point. Postgraduate funding is indeed less than undergraduate funding. How the reforms will exactly pan out has been under consultation and the Government will shortly provide guidance to institutions. I hope the noble Baroness has made that point during the consultation process.
Lord Stevenson of Balmacara (Lab)
My Lords, under the new arrangements, each individual student will have to negotiate the package of measures they get from their university. In contrast to what happens at present—where there is a statutory framework—there will be no overarching arrangements. What happens when things go wrong? Who will have rights in this matter and where will the statutory rights be located?
Baroness Williams of Trafford
In terms of recourse if things go wrong, there are two directions in which a student can turn. The first is the Office of the Independent Adjudicator. The second is the exceptional case process, the format of which is under consideration and will be announced shortly.
Higher Education: Financial Sustainability
Debate between Baroness Williams of Trafford and Lord Stevenson of Balmacara
Baroness Williams of Trafford
My Lords, I do not recognise the words “canoe”, “upstream” or “waterfall” mentioned in that question. According to the OECD, we are one of the few nations to have introduced a system of sustainable higher education finance. Indeed, our numbers of students are up to record levels at nearly half a million.
Lord Stevenson of Balmacara (Lab)
My Lords, is there not a triple whammy? The Government are no longer funding higher education; they are funding the debts of students who are attending universities. Students are acquiring debts—the latest figures from the IFS show an average debt of £44,000 per student leaving university. In addition, as we have just heard, universities have lost funding for important courses such as languages. The Government say that there is no imminent pressure on the system. Which way is the Minister facing?
Baroness Williams of Trafford
My Lords, I am facing firmly in the direction of the widely accepted view that both the student and the state should share the burden of higher education. In fact, graduates have higher earning potential than non-graduates.