(12 years, 11 months ago)
Lords ChamberMy Lords, before the noble Lord leaves the very important statement that he made, both in his letter and again to the House today, I notice that it says that if a successful legal challenge were brought, the Government would carry out a review. Will he bear in mind what the right reverend Prelate the Bishop of Blackburn said earlier, and the point I raised with the noble Lord, Lord Lester, about vexatious litigation? It might not be successful litigation, but it would nevertheless be litigation, and it could involve people in considerable expenditure, as the noble and learned Lord, Lord Mackay of Clashfern, said earlier. In those circumstances, will the Minister given an undertaking to the House that the issue will be generally kept under review without having to wait for litigation? Will there be, if necessary—although most of us accept that it is highly improbable—an amendment to the Equality Act? That is, if those circumstances were to occur, would legislation be brought forward along the lines suggested by the noble and learned Lord?
I hope that this debate has brought a considerable degree of clarity to this issue. I think that it is now generally clear—most people understand the legal aspect—that there is no doubt about this matter. However, as the noble Lord has raised this point, which was also raised by the noble and learned Baroness, Lady Butler-Sloss, we will obviously keep all matters under review, and if we saw a problem, we could act. I do not think that that is likely. Particularly after what we have heard in this debate, it would be a very vexatious litigant who tried to bring such an action, and I do not think they would have much chance in the courts.
I hope that I have spoken briefly and with some clarity about what the Government’s intentions are. I repeat again, this measure is entirely permissive; it is not designed to go any further. On that I am at one with the Opposition Front Bench, with the noble Lord, Lord Alli, and with a large number of the legal luminaries who have spoken. I hope that my noble friend will feel able, therefore, to withdraw her amendment.
(13 years, 11 months ago)
Lords ChamberThis is not the time or place for the noble Baroness and me to go into these matters. The noble Baroness and I have been arguing points for 14, 15 or even 20 years and we have never necessarily agreed, so I do not suppose that we would agree if we argued for a bit longer about this. The simple fact is that we are confident about the robustness of our assumptions, and HEPI obviously takes a different view.
Those were the two principal myths that I wanted to stress. I also make it clear that we have considered all these issues carefully. However, as I said in my opening remarks, we recognise that very strong feelings have been aroused. I underline and re-emphasise that our proposals mean that when graduates come to pay—and they will not pay until they earn more than £21,000, and in due course that £21,000 will be uprated in line with earnings—they will pay less per month than they do at the moment. I also stress that that will be needs-blank and that in many cases they will not be paying anything at all, particularly if they have taken a career break or are not earning up to that limit.
These regulations will also allow us to provide a funding stream which enables our universities to attract a flow of income to sustain their world-class position. I am very grateful that noble Lords such as the noble Lord, Lord Bilimoria, stressed the global status of our universities. There is unprecedented global demand for higher education and we cannot let our HE sector drop behind our international competitors. I think that the number of people coming from overseas indicates that they are maintaining their position. However, in this current fiscal climate, that requires significant changes to higher education funding and student finance.
The next thing that I want to stress, which is contrary to what the noble Lord, Lord Triesman, said, is that we greatly value the autonomy of our higher education sectors. They are not emanations of the state, as the noble Lord put it. Each university and college is autonomous and each will be free to decide what contribution it sets for its courses. As we know, a number of vice-chancellors in England have indicated publicly that the Government’s proposals for university funding are reasonable and retain fundamentally important progressive elements. Again, I am grateful for all those who have stressed, like the noble Lord, Lord Ashdown, the progressive nature of our proposals.
I thank the Minister for giving way and I declare an interest in that I hold a chair with Liverpool John Moores University and am a visiting fellow at St Andrews. I want to test the Minister on whether the proposals are progressive, as has been asserted all the way through this debate, even though the Institute for Fiscal Studies has said that they are regressive. The IFS says that those who will be hit the hardest are not those coming from the free-school-meals category but those in the 30 per cent category of the lowest income earners in this country. Does the Minister agree with that assessment?
I do not agree with that assessment because no one will be paying anything until they earn £21,000 or whatever the figure will be after it has been increased. That figure of £21,000 is roughly the average wage. Thereafter, we go on up to about £42,000 before people pay the maximum, which is RPI plus 3 per cent. I do not think that that is the credit card levels of interest that the noble Lord and others seem to imply. That is not a heavy repayment to ask of someone on £30,000, £40,000 or even £50,000 or £60,000. If we take medical students as an example, a GP now earns in excess of £100,000. When one thinks of their investment, that is not a bad return.
I now want to deal with timing, as it has been alleged that we are rushing this through too fast. I want to stress again that we have a responsibility to give students, their families and the universities certainty about what arrangements will be in place for the 2012-13 academic year. One has to remember that, although the White Paper will not come out until early in the new year, already by then students will be beginning to visit the universities that they want to apply to for 2012. They will be starting to apply in the summer of 2011 for some courses, so everyone, including the institutions, need to know where they stand and when they can plan ahead.
Finally, I come back to the nature of the amendments. The noble Lord, Lord Triesman, has sought to reassure the House that his amendments are merely an invitation to the Government and another place to think again. I make it clear in no uncertain terms that this is not an occasion when we can think again. These two amendments are fatal and, if carried, would negate and override the vote in another place last week.