Higher Education Fees
Debate between Andrew Percy and John Denham
Mr Denham
I must make some progress.
The “fairest” can be judged only by how much graduates pay. It must also be measured by the chance of becoming a graduate at all. Over the past few years the proportion of students from poorer backgrounds has steadily increased. There is much more to be done, and even more to be done on access to the most selective universities, as my right hon. Friend the Member for Tottenham (Mr Lammy) has brilliantly shown this week.
The progress we have made was not an accident, however; it took great efforts by the majority of universities, and we constructed the support, the routes and the ladders of opportunity for more and more of those bright, talented young people. All that has been kicked away.
Andrew Percy
I wanted to make the point the shadow Secretary of State has just made when I tried to intervene on the Secretary of State’s opening speech. Participation has been widening, but there is evidence that the poorest children are not going to the best universities, and that remains a problem. The concern for many of us on the Government Benches—or some of us, certainly—is that increasing fees even further will mean they will be even less likely to go to the best universities.
Mr Denham
I am very sorry that the Secretary of State did not give way to the hon. Gentleman, because I think anybody who is showing the integrity and courage he is displaying in standing out and being critical of his party’s policies deserves a hearing from his own side of the House. In what he says, the hon. Gentleman is in some very good company, as I will show in a moment.
We created ladders of opportunity for young people from low-income backgrounds, but they are now being knocked over. The Minister for Universities and Science was recently asked a parliamentary question about the impact of Aimhigher. He said that
“evidence from colleges, schools and academies showed that involvement in the activities provided through Aimhigher was associated with higher than predicted attainment at GCSE and greater confidence among learners that they were able to achieve.”—[Official Report, 29 November 2010; Vol. 519, c. 590W.]
I repeat:
“greater confidence among learners that they were able to achieve.”
So what is the Minister doing? He is closing it down.
Tuition Fees
Debate between Andrew Percy and John Denham
Mr Denham
I did see Sir Peter Lampl’s article in The Times. It was a devastating critique of what is being proposed and it is all the more significant coming from somebody who supported the Labour Government’s introduction of top-up fees a few years ago. He is not a blind opponent of graduate contributions but somebody who has assessed the evidence of what enables students from poorer backgrounds to get to higher education and believes that this change will be damaging. Let me be quite clear: universities need to plan for 2012-13. Decisions will have to be taken by universities in the early months of next year, but only the Secretary of State’s indolence stands in the way of a full White Paper and draft legislation in January that would allow the House to consider the changes as a whole.
Let me take the issues in turn. How will graduates repay their debt? The Secretary of State said in his letter that
“we have put our costings and calculations in the public domain”,
but I had to submit a Freedom of Information Act request for the models before the Government published a so-called ready reckoner. The Library has now discovered that BIS uses a more complex model that has not been published. The Library told me:
“The ready reckoner version which has been published is a simplified version”.
So much for openness.
For all the talk of fairness, it is clear that middle-income graduates will pay the most. Library analysis shows that graduates repaying fees of £7,000 a year and a maintenance loan who work in middle-income graduate jobs will have to pay back 84% of a whole year’s gross earnings whereas those in the top 10% of earners will pay back less than half a year’s gross earnings. Million Plus reports today that the changes will leave between 60% and 65% of graduates worse off with middle-income earners being hit the hardest.
The coalition says that the threshold for repayment will be set at £21,000, but that is in 2016 prices. In real terms, that is the same as the £15,000 threshold that started in 2006 and is due for review next year. That is not generous: it is sleight of hand. Lord Browne said the threshold should be uprated every five years in line with earnings. The ready reckoner published by the Department assumes that it will be uprated every five years in line with earnings, but the Minister for Universities and Science, the right hon. Member for Havant (Mr Willetts), says only that there will be periodic uprating. I asked the Secretary of State whether that uprating would be laid down in law, but his letter is silent on that point. Even the dubious claims made about fairness depend on regular uprating in line with earnings, but if it is not in law it means nothing. The House must see draft clauses, not vague promises, before it is asked to vote on the fee cap.
Andrew Percy (Brigg and Goole) (Con)
I have always been opposed to tuition fees, including when they were introduced by the Labour Government. Does the shadow Secretary of State recognise that people such as he and I are in a particularly difficult position? We can do one of two things: play this issue for shameless politics or attempt to come up with an alternative. It is his job to ask questions, but when will he tell us his alternative?
Mr Denham
We have made it very clear that there are choices to make about the pace of deficit reduction. We would deal with the deficit but would not choose to make the reckless cuts across public services that the hon. Gentleman supports. There are also choices to make within Departments and we would not cut higher education funding by 80%. Neither would we want a system of graduate repayment that put all the burden on middle-income graduates. There are choices to be made and the hon. Gentleman should consider these matters carefully.
Local Government Financing
Debate between Andrew Percy and John Denham
Mr Denham
This is an important debate. The way in which the Secretary of State is handling these first cuts warns us all of what lies ahead and the unnecessary damage that will be done to the local services on which the people we represent rely. When he made his cuts, he had choices to make about how to make them—to make them fairly, or not to make them fairly. So let us remember the promises that the right-wing coalition made:
“We are all in this together. I am not going to balance the budget on the backs of the poor”,
said the then shadow Chancellor, now the Chancellor of the Exchequer.
“Our core aim is to hard-wire fairness back into national life”,
said the Deputy Prime Minister during the election campaign. The right-wing coalition document states that
“we will ensure that fairness is at the heart of those decisions so that all those most in need are protected.”
So what did the Secretary of State do?
Let us take two boroughs next door to each other in the same conurbation. One is 15th in the deprivation index; the other 178th. One has 27,000 people on housing benefit; the other has 13,000. One has 11,000 unemployed people; the other has 8,000. One has an average weekly income £40 below the other. One is poor; the other comfortable. So what does “We are all in it together” mean? Which one gets the bigger cut under the right-wing coalition? The poor one, of course! Salford loses twice as much as Trafford. And that is not an isolated example. According to the Secretary of State’s own figures, Newham, the sixth most deprived borough in the country, loses £4.6 million, while Richmond, the 309th most deprived borough, loses less than £1 million. In the Prime Minister’s district council, there will be no cut. His county of Oxfordshire, which has a deprivation index of 10.85, gets a cut of 0.7%.
If we look at the Deputy Prime Minister’s area, we see that Sheffield has a deprivation index of 27.8 and a 1% cut—perhaps the real price of coalition. As for the councils losing the highest proportion of the their income, they are in places that have been left behind—the Lancashire mill towns like Burnley, the ex-coalfield areas like Ashfield and the struggling seaside towns like Hastings. Among the metropolitan boroughs, it is the poorest that lose most. Why? Because it is what these Tories and Liberal Democrats believe in. As the Under-Secretary of State for Communities and Local Government, the hon. Member for Bromley and Chislehurst (Robert Neill)—who I see is not here to answer this debate either—said at oral questions with refreshing honesty:
“Those in greatest need ultimately bear the burden of paying off the debt”.—[Official Report, 10 June 2010; Vol. 511, c. 450.]
The poor will pay most, and that is what this right-wing coalition is all about.
Andrew Percy (Brigg and Goole) (Con)
The right hon. Gentleman cannot honestly defend the previous funding regime that saw authorities such as mine in East Riding receive hundreds of pounds less per pupil than those in neighbouring Hull. Is he suggesting that he wants to have cuts dished out to authorities that are already disproportionately doing badly out of the funding, which would mean deprived pupils in my area doing even worse than deprived pupils in neighbouring authorities?