Higher Education (Basic Amount) (England) Regulations 2010

Debate between Lord Alton of Liverpool and Lord Ashdown of Norton-sub-Hamdon

Tuesday 14th December 2010 Lords Chamber

[Lord Ashdown of Norton-sub-Hamdon]

The noble Baroness makes exactly the point that I would have gone on to, had she given me the opportunity to do so. When we consider university cuts, we may do one of two things. We may institute those cuts or ask graduates—not students—to bear a proportion of the costs. The right reverend Prelate who spoke earlier said that students should not be required to pay for higher education. They are not being required to pay; they are being asked to share in the payment. Under these proposals, universities by and large will have the same amount of funds as they had before, because graduates will pay their contributions. That is perfectly right. I cannot argue the case that the higher education sector should be removed from the burden that the rest of the nation has to carry. Those such as the right reverend Prelate seem to propose that somehow higher education should be free. It was free for my generation. I never went to higher education; my university was Her Majesty's Corps of Royal Marines. Free higher education is possible for 7 per cent of the population, but is impossible for 50 per cent. One has to find a mechanism to fill the gap.

The next question is whether it is fair. I will deal with the issue of debt. I accept that the consequence of these proposals will be to raise debt to the order of £27,000, £30,000 or perhaps more. I regret that; it is the consequence of the age in which we live and the economic position in which we were left. However, we do not complain when young people have to take out a mortgage debt of £150,000 or £200,000 to buy their house. This is not like a credit card debt; it is much more like a mortgage. There is a fixed system of repayment and a fixed mechanism for repayment. Frankly, I do not find it offensive; if one can take out mortgages for physical property, why should one not take out a mortgage to improve one's intellectual property, from which one will benefit in future? I know that I am testing the patience of the House and I am keen to make progress, but I will give way.

[Lord Alton of Liverpool]

On the question of personal debt, did the noble Lord see the figures released earlier this month that showed that personal debt in this country is now £1.5 trillion and that, out of 2,000 families surveyed, more than half said they were already in trouble with the debts that they had incurred? Is this any way to go into working life—with this albatross round your neck?

[Lord Ashdown of Norton-sub-Hamdon]

I understand the point that the noble Lord is making. However, we accept that it is reasonable for people to borrow huge sums to get themselves on to the property ladder. I see nothing different in following the same broad system. This is equivalent not to a credit card debt but to a mortgage. It is perfectly reasonable that we ask people to pay a significantly smaller amount of interest on a debt that will improve their life chances. There is nothing odd or strange in that.

My final question is that of fairness. The noble Lord, Lord Triesman, made the case that somehow or other—