Higher Education Funding

Baroness Garden of Frognal Excerpts

Thursday 12th September 2024 Lords Chamber

[Baroness Garden of Frognal (LD)]

My Lords, UK universities are a source of national pride. Their reputation for research and teaching attracts not only the brightest and best of UK students but those from all parts of the world. However, they are, as the noble Lord, Lord Krebs, set out so brilliantly, currently under severe financial pressure as they face challenges on multiple fronts.

I think it was Lord Dearing who commented that the beneficiaries of higher education are the individuals, the state and employers. Should these not also be the people who contribute to our universities? We are well aware that the income from students has not kept pace with inflation, but successive Governments have been reluctant to raise student contributions, knowing the hardship that many students face. Government contributions are essential, of course. Perhaps we might look to employers to increase their funding, not only for teaching, which is troubled and has seen the cutting of some important programmes, courses and provision, but for research, where funding has also faced limitations.

Our woeful decision to leave the EU has seen a huge decrease in EU students studying here. It is to be welcomed that we have seen a partial about-turn on funding from Horizon, which made such an impact on our research through both collaboration and funds. We hope that the EU will welcome our return to fully participating in a programme to which UK researchers contributed so greatly.

Anti-immigration policies have had a dangerous effect on the UK’s reputation for welcoming overseas students. Those students provided not only much needed income but, perhaps more importantly, diversity and international friendships, which greatly enhanced the experience for home students. The changes to immigration policy have sent out messages that the UK does not welcome those from overseas. These damaging moves include the hit on dependants. Students and their dependants are not permanent residents—the vast majority will return to their home countries after their period of study—so why such a vicious policy?

Our lack of welcome is a boost to other countries which open their doors more readily and cream off many of the high achievers who would otherwise have studied here, enjoyed living in the UK and become British friends for life. Given how many international leaders have studied in the UK, this soft power can be enormously beneficial to future international relations.

The British Academy has major concerns about the impact on the social sciences, humanities and the arts for people and the economy—SHAPE, as it is calling it. These are essential programmes if we are to grow the people who will lead our institutions. Of course we need to remain leaders in science, engineering and technology, but the arts play a critical role in life, growth and productivity. The creative industries are one of the jewels in the UK crown, making a major contribution to the economy and to our well-being.

Increases in the cost of living have a disproportionate effect on students, who are traditionally strapped for cash, and we hear horror stories of some student accommodation that is not fit for purpose but is often all that students can afford. What is being done about student accommodation?

The Labour Government have committed to reviewing HE funding but must act fast if we are not to see some fine institutions damaged beyond repair. As one who went to university many years ago when we paid nothing, I would be happy to pay a graduate tax late in the day. But why not target those of us who had free university education? Has thought been given to restoring grants, implementing the lifelong learning entitlement from 2026 and, as a first step, introducing credit-based fee caps to facilitate growing demand for accelerated part-time study? Valuable organisations, such as the Open University and Birkbeck, have done much to bring HE to those who might not have considered it. They deserve a boost of this sort.

It is tough on young graduates to have to embark on adult life with eye-watering debt around their necks. As the HE situation grows grave, what measures are the Government considering to rescue these institutions of which we are so justly proud, to ensure that they not only survive but flourish?