Higher Education Fees

Adrian Bailey Excerpts

Thursday 9th December 2010 Commons Chamber

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

As the Chair of the Select Committee on Business, Innovation and Skills, which is charged with monitoring and scrutinising Government policy in this area, I have to make the point that this issue has aroused more interest than any other that my Committee is charged with considering.

I have received submissions from many students and would-be students, from various groups of universities and from parents. However, above all, I have had submissions from different sectors of industry that know that their future well-being and capacity to grow the country out of recession will be crucially affected by such legislation. I am therefore very disappointed that, in bringing this item forward now, the Government are precluding the sort of scrutiny that is necessary and that will be introduced following the White Paper.

The White Paper should have been published before this move was made so that my Committee, and the House in general, could consider the issue in the round and make an informed judgment. Inevitably, when the Committee meets, it will do so when the funding and tuition fees issue has already been decided. We will have to examine the consequences and potential unintended consequences.

I refused to sign the fees pledge. I did so knowing that higher education would need more funding and that we would have to examine the funding system in the context of a difficult financial situation, which could result in difficult decisions. There is a legitimate debate to be had about the balance of interests between individual contributions, the benefit that someone gets from higher education and the public benefit that comes from that individual’s education, which the public should invest in. Unfortunately, the procedure adopted has precluded that debate from being held.

[Steve Rotheram (Liverpool, Walton) (Lab)]

On 10 November in Prime Minister’s questions, the Deputy Prime Minister admitted to breaking the pledge he signed on tuition fees. However, on 21 November on the “Politics Show”, the Business Secretary denied breaking the tuition fees pledge. Which end of the Lib Dem pushmi-pullyu is right?

[Mr Bailey]

I do not want to be diverted by the grief and contortions of the Lib Dem party because there are some other very serious issues that need to be addressed.

Any package that is put forward must meet two criteria. The first is that it must provide the extra funding necessary to provide the flow of graduates into our industries and public services that will sustain the economy.

[Bill Esterson]

The University and College Union estimates that students currently graduate with around £23,500 of debt and that these proposals would increase that to £40,000. Does my hon. Friend agree that such high levels of personal debt are one of the main failings of the proposals?

[Mr Bailey]

I will come to that issue in a moment.

Let me just finish what I was saying. I have questioned Ministers both at the Select Committee and in the Chamber on whether these proposals will bring in any net increase in funding for universities. I have yet to receive any assurances that they will. In the context of the world situation, we must remember that these proposals have been introduced at a time when the most advanced western countries, including European countries with similar financial problems as us, are investing in higher education because they know the economic dividend that accrues as a result will get them out of recession. Despite such a profound change to our funding system and all the potential consequences, this country could lose out on the vital issue of growing itself out of recession.

My second point is about social mobility and accessibility. My hon. Friend the Member for Sefton Central (Bill Esterson) mentioned the potential £40,000 debt that is incurred. My constituency is a case in point, as a traditional industrial area with traditionally low aspiration and educational attainment. Over the past five or six years, that has been transformed by the money that has been put into education, the education maintenance allowance and the Aimhigher project.

[Dr Stella Creasy (Walthamstow) (Lab/Co-op)]

rose—

[Mr Bailey]

I cannot give way any more—I apologise.

Unfortunately, the rungs that were going to sustain that improvement are being removed. Above all, that £40,000 debt will play on the minds of would-be graduates in my constituency. To potential graduates from low-income households, such a sum appears to be disproportionately more than to those who come from higher-income households. The measures that the Minister said would be put forward to replace Aimhigher appear to be reinventing the wheel, and privatising the wheel, because in effect they will ensure that low-income graduates will pay £9,000 to go to universities that will recycle that money to encourage more low-income graduates to go to university and incur the same debt.

A system that has been effective in improving social mobility and supporting people from low-income households into university is being replaced with one that will be essentially self-funding. It will not work, and the potential consequences for social mobility are most profound. I believe that these proposals are hasty and ill considered, and that they will be ineffective.