We are not Americanising our higher education system. There are important differences between the system that we are proposing and the American one, not least of which is universal access to Exchequer-financed loans, which is not possible in the US. Also, there is a robust quality assurance system, the Quality Assurance Agency for Higher Education, which we are keeping. We are not Americanising the system.
I noted that in what the shadow Minister said there was no recognition of the fact that under the previous Labour Government, five private providers were awarded degree-awarding powers. That seems to me an indication that even the previous Government were not opposed to the private provision of higher education. I very much hope that Labour is not abandoning that position.
When all sorts of universities were obliged to charge the same, a student from a modest economic background had only to consider how well he or she would do in examinations and interviews in order to get a place at the best universities. Now, that potential student will have to consider how much he or she will be paying to go to a good university compared with the lesser amount required for a lesser university. Is that a step forward for meritocracy or a step backwards?
My hon. Friend talks about how much they will be paying, but we should remember that no student will pay up front. What will be crucial in determining their repayments is their earnings, and because we have raised the threshold, their monthly repayments, regardless of the university fee, will actually be lower under our proposed system than under the system we inherited from the Labour Government.
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I am grateful to my hon. Friend the Member for Hertsmere (Mr Clappison) for securing the opportunity to debate this important issue. As he was so generous in what he said about me personally, let me reciprocate. I understand his personal commitment to what he rightly described as the principle of merit—meritocracy. I would argue that equality of opportunity, rather than equality of outcome, is a key principle that the Conservative party believes in and that is probably shared by all parties.
The question is about how we apply the principle of merit and ensure meritocracy. The argument that we in government have gone though is as follows. First, we would all accept that, when going to university, merit involves some assessment of potential, not just what has already been achieved academically. Let us put ourselves in the position of an admissions tutor at one of the universities that my hon. Friend mentions. Let us say that two 18-year-olds present themselves. One has had an incredibly tough upbringing and been to a rather mediocre school with low educational standards, the other has had every advantage in life and benefited from high-quality schooling, but they have the same A-level grades. We would probably all intuitively reach a judgment about who had the higher underlying intellectual merit.
We might go further and say that the student who had lower grades but who came from the tougher background might have higher potential than the other student. That is our starting point. I see that requests for interventions are already piling in. I will accept brief interventions.
My right hon. Friend is, as always, extremely kind. I say to him that as someone who was in that position—someone who came from a poor household—I was prepared to be judged on the marks that I got, even though people in competition with me went through, shall we say, more advantaged educational processes, because once we start monkeying around with the grades and saying that the person with the higher marks should not get the place, we are in very dangerous and subjective territory indeed.
I hope to show my hon. Friend that it is not subjective, but absolutely it has to be about merit. I am not aware of any major higher education system in the world that says that the sole criterion for getting in is the exam marks that a person has already achieved. I would be interested to know whether my hon. Friend even believes that our own universities have ever solely used exam marks already achieved, rather than considering merit by including some assessment of potential.