Tuition Fees

Barry Gardiner Excerpts

Tuesday 30th November 2010 Commons Chamber

[Mr Willetts]

No, I have only five minutes.

We heard from the shadow Secretary of State that the speed of deficit financing is a matter of choice. He hinted that he would be willing not to make the public expenditure savings and to borrow the money instead. If he is willing to borrow the money instead, we know what Labour’s approach is—it is willing to impose debts on future generations. There is one difference between our approach and Labour’s: Labour’s approach is indiscriminate and would hit everybody, rich or poor, male or female, and ours means that people will start paying back only when they are earning more than £21,000 a year. That is why our approach to university financing is progressive and Labour’s is indiscriminate and unfair.

Of course, the £21,000 threshold that we propose is far higher than the £15,000 threshold that we inherited from Labour. That is not the only feature of our proposals that is fair and progressive. We are increasing the maintenance grant so that it helps families that earn up to £37,000 a year. The national scholarship programme is worth £150 million. Two thirds of first-time students who study part time will also benefit from our proposals.

Labour is completely disingenuous. It is not carefully waiting for more information or a White Paper, but simply playing for time while it tries to work out what on earth its policy is and whether its leader has the guts to follow the advice of his own shadow Chancellor:

“Oh, and for goodness’ sake, don’t pursue a graduate tax. We should be proud of our brave and correct decision to introduce tuition fees. Students don’t pay them, graduates do”—

quite right—

“when they’re earning more than £15,000 a year, at very low rates, stopped from their pay just like a graduate tax, but with the money going where it belongs: to universities rather than the Treasury.”

I could not have put it better myself. The only difference is that under our proposals, the threshold is not £15,000, but £21,000. We know which is the right approach.

[Barry Gardiner (Brent North) (Lab)]

rose—

[Mr Willetts]

No, I will not give way.

We know what Labour does when it is under pressure. In its last public spending document before the election, it proposed £600 million of savings from higher education. There was no waiting around for a White Paper then, no consultation and no careful consideration; just one paragraph on £600 million of cuts. By contrast, we have a proper set of proposals to reform higher education, which, contrary to what the Opposition said, will not mean catastrophic losses in funding for universities. Money can get to universities in many ways, and under our proposals it will get there through the choices of students. We will provide them with the extra money to make those choices, and that is—