Oral Answers to Questions

Debate between Lord Willetts and Paul Blomfield

Thursday 10th April 2014 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

2. What recent estimate he has made of the resource accounting and budgeting charge on student loans.

[The Minister for Universities and Science (Mr David Willetts)]

We currently estimate the RAB charge to be around 45%. The estimate changes frequently in the light of new economic forecasts and will continue to change.

[Paul Blomfield]

Back in the days when the Minister was confidently predicting that the RAB charge would not rise above 32%, writing in The Independent in October 2012 he described an RAB charge of 38% as the worst outcome for the taxpayer. How does he describe an RAB charge of 45%?

[Mr Willetts]

What we have achieved with our higher education reforms is significant savings to the taxpayer and extra income going to our universities. That is the right combination.

Oral Answers to Questions

Debate between Lord Willetts and Paul Blomfield

Thursday 23rd January 2014 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

Last year, Sheffield Hallam university received £6.9 million as part of its share of the student opportunity fund. That not only helped it to recruit 30% of its undergraduate intake from low-income households—a commendable achievement—but to engage in critical retention work with the most disadvantaged learners. Yesterday, in the Business, Innovation and Skills Committee, the Secretary of State agreed with me that the fund’s work would be damaged if its resources were cut. Can the Minister reassure the House that that will not happen?

[Mr Willetts]

We certainly understand the value of the work of the student opportunity fund. Indeed, I have visited Sheffield Hallam university and have seen the excellent work that it does.

Oral Answers to Questions

Debate between Lord Willetts and Paul Blomfield

Thursday 5th December 2013 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

T10. May I press the Minister for Universities and Science further on why he repeatedly rejected warnings on uncontrolled financial support to students in private higher education colleges? In March, he argued that the policy was important to enable private providers to continue with their expansion, but now that he is faced with a growing black hole in the BIS budget, he has reversed the policy. Will he explain why and will he guarantee no further cuts to student support to pay for his mistake?

[Mr Willetts]

Let us be clear, we inherited from the previous Government a complete rubber-stamping exercise under which there was no control whatsoever over alternative providers. We introduced controls. For example, in the last year, out of 87 applications from alternative providers, 18 were approved and 69 were rejected. That was effective quality control and we have taken further steps to ensure that the Department can remain within its budget.

Oral Answers to Questions

Debate between Lord Willetts and Paul Blomfield

Thursday 24th October 2013 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

The Secretary of State will know that there is serious concern among our universities about many of the provisions of the Immigration Bill and their impact on international student recruitment. What discussions has he had with universities on the issue and what representations has he made to the Home Office?

[The Minister for Universities and Science (Mr David Willetts)]

What we are seeing is a continuing increase in the number of overseas students applying to come to study in Britain. We all make it clear whenever we visit overseas markets that there is no cap on the number of legitimate overseas students coming to Britain; they are very warmly welcome.

Oral Answers to Questions

Debate between Lord Willetts and Paul Blomfield

Thursday 13th June 2013 Commons Chamber

[Mr Willetts]

It was an excellent visit, and the initiative for a new joint university and city library was indeed striking. It is an initiative from which other cities across the country can learn.

[Paul Blomfield (Sheffield Central) (Lab)]

The Secretary of State will know of the campaign launched by the Cutlers company, supported by the Sheffield Star and with wide support across the city, concerning the threat posed by the red tape challenge to controls over the use of the name Sheffield. In response to the campaign, the Deputy Prime Minister has indicated that the protected name status for Sheffield will be retained. Is that correct?

Oral Answers to Questions

Debate between Lord Willetts and Paul Blomfield

Thursday 7th February 2013 Commons Chamber

[Mr Willetts]

My hon. Friend is right. There is no cap on the number of overseas students who come to Britain. All legitimate overseas students are warmly welcome in our country.

[Paul Blomfield (Sheffield Central) (Lab)]

Will the Minister acknowledge that both universities in my constituency, along with many others across the sector, have been negatively impacted by the ill-considered and hastily introduced student control measures last year? Will he recognise that he made a mistake by rushing into that and explain what he is going to do to mitigate the damage?

[Mr Willetts]

Let us be clear. The student control system that we inherited involved allocating a fixed number of student places to every university in England. We do not believe that that is the right way of ensuring competition and choice in our education. That is why we are introducing new flexibilities, so that universities that succeed in attracting more students can take on more students.

Oral Answers to Questions

Debate between Lord Willetts and Paul Blomfield

Thursday 6th September 2012 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

I am pleased that the Minister of State has had the opportunity to spell out the importance of international students to the UK economy, and his Department has estimated that the contribution could double. I am sure that he will share my frustration at the way those prospects are being undermined by the Home Office. What is he going to do about it?

[Mr Willetts]

We completely understand the importance of the Home Office maintaining the integrity of our immigration controls, but BIS—and the whole Government—believe that legitimate students who have a visa entitlement to come and study in Britain should be welcome. There is no cap on those numbers and we are making every effort through UKTI and British embassies abroad to continue to communicate the message that Britain is a great place to come and study at our colleges and universities.

Oral Answers to Questions

Debate between Lord Willetts and Paul Blomfield

Thursday 24th May 2012 Commons Chamber

[The Minister for Universities and Science (Mr David Willetts)]

Higher education contributes to growth. We have just had universities week, celebrating our universities’ contribution to the Olympics, to the economy and to national life, and estimates by Universities UK indicate that higher education contributes more than £31 billion to our GDP. University education is of course, however, also worth while in itself—in ways that cannot be measured by economists.

[Paul Blomfield]

The Minister acknowledges the importance of higher education as a major export earner. Does he therefore agree with his hon. Friend the Member for Orpington (Joseph Johnson), who wrote an excellent piece in the Financial Times last week, arguing that we should catch up with our competitors and stop classifying students as migrants, as part of a strategy to win a bigger market share for our world-class university system?

[Mr Willetts]

I absolutely support the objective in that statement of winning a greater market share for our higher education sector, and we can be very proud of the international demand from students wanting to study at our higher education institutions. There is no cap on the number who come here, and we will do everything possible to correct any misunderstandings around the world that may be inhibiting people from applying.

--- Later in debate ---

[Paul Blomfield (Sheffield Central) (Lab)]

T5. Will the Minister for Universities and Science reassure the House that the introduction of any student premium to offset the impact of tuition fee increases, as proposed earlier this week by the Deputy Prime Minister, will not be at the expense of the funding that is provided for the widening participation premium and currently allocated to universities by the Higher Education Funding Council for England?

[Mr Willetts]

I have just written to the Office for Fair Access and HEFCE to ask them to assess the effectiveness of the very large amount of money that is now used for that purpose through the widening participation premium and universities’ access funding. We fully recognise that the different strands of money have different purposes, and that some of it is there to meet universities’ particular needs through WPP funding.

Oral Answers to Questions

Debate between Lord Willetts and Paul Blomfield

Thursday 15th March 2012 Commons Chamber

[Paul Blomfield]

As the Government have stumbled from the tuition fees debacle, through the uncertainty caused by core and margin and AAB, the reputational damage of international student visa policy, and the failure to develop policy on postgraduate education, will the Secretary of State admit—he has rightly identified this in other areas of Government policy—that the Government lack a compelling vision for UK higher education, and that that is behind today’s fall in our international reputational rankings?

[The Minister for Universities and Science (Mr David Willetts)]

We set out our approach to higher education in our White Paper. It shows how, even when public expenditure has to be reduced, we have been able to ensure that our universities remain well financed. It ensures that we still have more young people applying for university than in any year of the previous Labour Government. We are backing our universities.

Postgraduate Education

Debate between Lord Willetts and Paul Blomfield

Wednesday 25th January 2012 Westminster Hall

[The Minister for Universities and Science (Mr David Willetts)]

Thank you very much, Mr Hollobone, for chairing this debate. I congratulate the hon. Member for Huddersfield (Mr Sheerman) on his opening speech. I have always had a soft spot for him; I remember his chairmanship of the Education Committee, and he was also a student of Michael Oakeshott, so all we Tories have great respect for him. We then heard a series of speeches, which I welcome, from the hon. Members for Sheffield Central (Paul Blomfield), for City of Durham (Roberta Blackman-Woods) and for Luton South (Gavin Shuker), and then from the Opposition spokesman, the hon. Member for Birmingham, Ladywood (Shabana Mahmood). There was a theme, which I am happy to join in the support of, that postgraduate education is very important for a lot of reasons. It is very important for the economy, and for the individuals.

I can tell the hon. Member for Sheffield Central that I was talking to senior managers from Boeing about their overall strategy for research and development. They said that when they were planning an investment in the US, they were taking some leading figures from American universities close to where they were investing to Sheffield, to see at first hand how business-university collaboration could be done successfully. We can get it right, and we should celebrate those examples. Clearly, great achievements have been made at the university of Sheffield and elsewhere.

We have an important and valuable postgraduate education experience. I realise that there are a range of concerns in the sector, expressed by Members in this debate, about the future funding of postgraduate study. Let me make several things clear. First, it is unhelpful to think of it as a problem caused by a pile of undergraduate student debt. The more one looks at the issue, the more it is clear that the idea of a debt mountain that is a burden on people’s shoulders is misleading. It should be thought of not as a debt but as a flow of payments. The model, which we took in many ways from the previous Labour Government, has the best features of a graduate tax. It is essentially 9% of any earnings above £21,000 a year until the cost of the university education is paid for. If a child of mine were leaving university with £25,000 in debt on his or her credit card, I would be worried, recognising that it would threaten their ability to borrow, for example, to pay for postgraduate education if necessary. However, that is not a fair analogy with our student finance proposals.

[Paul Blomfield]

Does the Minister not accept that he is trying to appropriate the language of a graduate tax to describe a system that is actually nothing but an income-contingent loan? He mentioned the central principle of graduate tax. Graduate tax is a system whereby people pay back according to what they can afford, as opposed to what they had to borrow to go to university.

[Mr Willetts]

The total amount to pay back is determined by the cost of the higher education, and it keeps the connection with the university. That is where I part company with the graduate tax. The point that I am trying to make is that graduates will experience only a slightly higher deduction from their pay packet by Her Majesty’s Revenue and Customs, and if their income ever falls to less than £21,000, no payments whatever will be made. That matters to the debate about postgraduate education. I am not simply trying to reopen the debate on our undergraduate proposals.

The idea seems to be that it will be harder for postgraduates to finance themselves, because they will suddenly have an enormous amount of debt. In all the conversations that we have had with lenders about, for example, graduates’ ability to access a mortgage, they have said that what lenders look at is fixed monthly repayments. We have increased the threshold for repayments from £15,000 to £21,000, so the monthly repayments under our system have fallen compared with the system that we inherited from Labour. That matters to postgraduates’ ability to fund themselves. That is the source of Opposition Members’ anxiety: a misunderstanding of the implications of the reforms.

Nevertheless, I accept that there is concern about postgraduate issues. We recognise the need to monitor closely what is happening, investigate if problems arise and be absolutely clear what they are and what will need to be done about them. Today, we published the letter that we sent to the Higher Education Funding Council for England with the grant statement for the coming year. A paragraph in that letter specifically discusses postgraduates:

“We are pleased that the Council is taking the lead on gathering evidence to improve our understanding of the purpose and characteristics of, and outcomes from, postgraduate study, with the intention of reviewing postgraduate participation following the changes to undergraduate funding.”

We accept that it must be monitored.

“We also note the progress the Council is making, with its HE Public Information Steering Group”

on better information for postgraduate students. Also, of course, we refer to continuing

“work on strategically important and vulnerable subjects”.

Oral Answers to Questions

Debate between Lord Willetts and Paul Blomfield

Thursday 27th October 2011 Commons Chamber

[Mr Willetts]

My hon. Friend is absolutely right, and that is why we are setting up the network of six technology and innovation centres. It is why we are particularly backing the campuses in Norwich, Babraham, Harwell and Daresbury, which bring together scientific research and business applications. It was also the reason for the investment of £50 million in the application of graphene to business purposes, which was announced only a few weeks ago.

[Paul Blomfield (Sheffield Central) (Lab)]

Does the Minister recognise the deep concern in our universities at the cutting back of their capital programme, in contrast with what is happening in other countries, which will put us at a significant competitive disadvantage?

[Mr Willetts]

The figure that I just gave the House for capital spending on science and research is comparable with the figures for capital spending under the ring-fenced science budget under the previous Government. So, even in tough times, we are absolutely maintaining our commitment to investing in science.

Higher Education White Paper

Debate between Lord Willetts and Paul Blomfield

Tuesday 28th June 2011 Commons Chamber

[Mr Willetts]

This is about the importance of information, advice and guidance in our schools and colleges. Again, I pay tribute to the right hon. Member for Bermondsey and Old Southwark (Simon Hughes) for his work in examining the matter carefully. I urge Members of all parties to take every opportunity to visit schools and colleges and get past some of the misinformation, and be absolutely clear to young people that no young person or their family will have to pay up front for the opportunity of going into higher education. I regret the anxiety about the matter, but it is misplaced and all Members, whatever their political views, have a shared responsibility to tackle it.

[Paul Blomfield (Sheffield Central) (Lab)]

There is concern on both sides of the House about the expansion of the for-profit sector in higher education. Will the Minister not learn from the experience of the United States, where the for-profit sector has a higher failure rate than other universities and is currently being investigated for misrepresentation to prospective students? Will he listen to the concerns of HEFCE, which says that the expansion of the for-profit sector here will damage the reputation of our university system?

[Mr Willetts]

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.

Off-quota University Places

Debate between Lord Willetts and Paul Blomfield

Tuesday 10th May 2011 Commons Chamber

[Mr Willetts]

My hon. Friend is absolutely right. There is a problem. We are restricting access to university, and social mobility in our country is far too low. This Government are looking at how we can tackle that problem, but all we get from the Labour party is completely wilful misrepresentation of what we are doing, and no practical proposals whatever.

[Paul Blomfield (Sheffield Central) (Lab)]

As my hon. Friend the Member for Huddersfield (Mr Sheerman) has pointed out, public schools are charities. Will the Minister unambiguously rule out that his proposals would allow any public school to buy places at any university?

[Mr Willetts]

It is absolutely not our intention that such purchasing of places at university should happen. That is why the criteria that I have set out are absolutely clear on fair access. People should not be able to buy places at university. We are not proposing what the hon. Gentleman claims.

Higher Education Funding

Debate between Lord Willetts and Paul Blomfield

Wednesday 3rd November 2010 Commons Chamber

[Mr Willetts]

We have indeed considered that carefully, and we are very happy to meet representatives from the Islamic community to discuss it with them further. Our belief is that the terms on which the money is being lent are so much more favourable than the commercial terms available in the market that they would not be covered by Islamic rules, but we are happy to discuss the matter further with the Islamic community.

[Paul Blomfield (Sheffield Central) (Lab)]

The Minister has admitted that this is not simply about saving money and is in fact a fundamental and deeply ideological remodelling of our university system, with the withdrawal of public funding from the majority of courses and the introduction of a market in which the best courses will cost up to 50% more than the basic fee level proposed. There was no mandate for either governing party introducing those changes. We know about the worthless pledges that the Liberal Democrats made, but the Conservative party did not have anything about the changes in its manifesto. Is it right, therefore, that these proposals should be rushed through, or should we wait for a full debate when the White Paper is published, about what sort of higher education system we want?

Oral Answers to Questions

Debate between Lord Willetts and Paul Blomfield

Thursday 8th July 2010 Commons Chamber

[Mr Willetts]

I have met the vice-chancellor of the university of Plymouth and corresponded with her when she praised the co-operation that she already had with my hon. Friend. Of course, I would be very happy to meet her. Those are exactly the kind of initiatives linking universities and business to promote economic growth that the Government are backing.

[Paul Blomfield (Sheffield Central) (Lab)]

In October last year, the Minister said:

“At a time when the jobs market for young people is tougher than ever, it is far better to find them a place in education than to leave them languishing on the dole…whereas going to university will increase their qualifications and make them more employable in the long run.”

Will he confirm that that is no longer his view, in the light of the withdrawal of 10,000 university places?

[Mr Willetts]

In that statement, I announced my commitment to 10,000 extra places at university, when the then Government were planning a cut in the number of places at university. We have delivered those 10,000 extra places. There will be more places at university this year than the then Government originally planned, and we are proud of what we have achieved.

Oral Answers to Questions

Debate between Lord Willetts and Paul Blomfield

Thursday 3rd June 2010 Commons Chamber

[Mr Willetts]

The Secretary of State has made it clear that he did not make those remarks. We are looking at a review that will not cut the rights of individuals, but we want a streamlined process to cut the costs of compliance for employers. We have noticed the comments that have been made by, for example, British Chambers of Commerce and the Institute of Directors, which have called for changes to the employment tribunal system so as to streamline the process. That is what we are considering.

[Paul Blomfield (Sheffield Central) (Lab)]

10. Whether he has discussed with Sheffield Forgemasters the continued availability of a loan facility from his Department; and if he will make a statement.