(8 years, 5 months ago)
Commons ChamberThank you for giving me two bites at the cherry, Mr Speaker.
I welcome the Government’s commitment to new universities coming forward, and I am working hard to further one in my Somerset constituency. Given recent developments regarding the EU, does the Minister agree that it is now even more essential that we enable universities to provide the skills needed to upgrade the workforce and maintain our position in the world?
Yes, indeed. The productivity challenge facing the country is grave, and our universities are a big part of the answer. New universities in higher education cold spots such as Somerset will be a big part of our solution to these challenges.
(8 years, 6 months ago)
Commons ChamberThis country has a very successful international education exports sector. We have a global market share of more than 10%, which is holding. Our annual growth in international student numbers is between 3% and 4% a year. We are obviously attentive to the need to remain competitive, but we have a successful international education sector and we want to continue to support it by driving up the quality of the teaching and student experience on offer in all our universities.
On the skills gap, the south-west is below the productivity levels. A university would make a really big difference in my constituency of Taunton Deane and in wider Somerset, because it would help skill-up those young people whom I fear we are losing to other places such as Hereford.
I completely agree with my hon. Friend. Universities are a great driver of regional and local economic growth. A recent London School of Economics study demonstrates the strong correlation between opening new universities and significantly increased economic growth. The LSE academics estimate that doubling the number of universities in a region is associated with more than 4% higher future GDP growth per capita.
(8 years, 11 months ago)
General CommitteesAccessing university is a transformational experience for many students, especially for people from disadvantaged backgrounds. We want more people from disadvantaged backgrounds to go to university and receive the benefits that can bring. I will now explain exactly why—
I have come hot-foot from a delegation of students who came up from Somerset College in my constituency this morning, some getting on the train at 5 o’clock to meet me, because they knew I was on this Committee. I want to express their heartfelt concerns about the dropping of the maintenance grant and the switch to loans. They believe it will have a serious impact on people from low-earning backgrounds, particularly women, single-parent families and mature students—which they all are.
I fully understand that the Government want to get more people into further education and the concern about the debt that we were left by Labour. We would not even be discussing this if it were not for that and the deficit. Will the Minister assure me and those students that he has their concerns at heart and that we will still enable people from disadvantaged backgrounds to access further education?
My hon. Friend makes some points that I will now address head-on. Students understand the value of obtaining a degree. On average, graduates will earn £100,000 more than non-graduates over a lifetime. Because of the progressive nature—this is the vital point—of the student loan system, loans will start to be repaid only when students are earning more than £21,000. That means that the lowest earners will repay nothing.
As our equality analysis indicates, the grant-to-loan switch will only significantly affect students from low-income backgrounds whose annual average lifetime earnings are £30,000 or more. Critically and crucially, that is to say that only those who benefit from increased earnings as a result of undertaking higher education will be affected.