Higher Education Policy

David Lammy Excerpts

Wednesday 27th April 2011 Commons Chamber

[Mr Willetts]

Let us turn to that. Given that we face a crisis in the public finances, and given that even the previous Government had planned £14 billion of saving, how does one best deliver those in a departmental budget which I do not think any of the three parties represented in the House said could be exempted from reductions? Fortunately, the previous Government set in train an exercise that helped tackle precisely that problem. In November 2009 they commissioned Lord Browne to review the financing of higher education, and they made perfectly clear the wide range of options that they wanted him to look at.

[Mr David Lammy (Tottenham) (Lab)]

rose—

[Mr Willetts]

I will give way in a moment to the right hon. Gentleman, not least because of his role as a Minister in the previous Government, but I hope he will accept that Lord Browne’s report was commissioned precisely so that when public expenditure had to be saved, the finances of higher education would be examined.

[Mr Lammy]

The right hon. Gentleman knows that the higher education review was indicated in the Higher Education Act 2004, some years before the deficit.

--- Later in debate ---

[Simon Hughes]

I will of course give way in a moment, although I am trying to be brief as many colleagues still want to speak.

Under the new system, the cost for those who earn £22,000 a year—which is just above the threshold—will be £90 per year or £7.50 a month; that will be the cost of their university education.

[Mr Lammy]

rose—

[Simon Hughes]

If the right hon. Gentleman will forgive me, I shall give way in a moment.

Those who earn £25,000, which is just above the average wage, will have to pay back £360 a year, or £30 a month. Those who earn £41,000 a year—which is much more than the average wage, let alone the average graduate wage—will have to pay £150 a month. These sums will be deducted from their salaries, in the same way tax is deducted. Those who earn £71,000, which is more than a Back-Bench MP earns, will pay £375 a month.

The first and most important step is to get the message across that there are no up-front fees—no fees when students are at university, and no fees for part-time students at university. They will pay only when they have the money to pay. In that respect, it is therefore not a debt in the normal sense; rather, it is a repayable sum contingent on income. I shall now give way to the former higher education Minister.

--- Later in debate ---

[Mr Lammy]

First, let me say to the right hon. Gentleman that £375 a month is a lot of money to our constituents. Secondly, he knows that not a single Member of this House would accept the new terms if their mortgage company were to ring them up and say, “I’ll treble your mortgage, but you’ll pay a lower monthly sum.” That is why students think it is patronising to suggest that this is a good deal.

[Simon Hughes]

The right hon. Gentleman and I have many concerns for the same sorts of people in our communities, and I respect what he has done in that regard, but most of our constituents do not earn £71,000 a year. They will not be earning that amount, and he and I do not earn that much as Back-Bench MPs.

[Mr Lammy]

They want to earn that much.

[Simon Hughes]

Yes, they may want to, and people in this country understand that if they earn more they will pay more to the state and pay more back into the system. That is fair Britain; it is not fair Britain if they pay the same amount for a service they have received irrespective of their earnings. Of course there are issues about perception—and they are big issues, which is why I did not vote for the policy—but I hope the right hon. Gentleman agrees that we now need to concentrate on the cost to the individual who will graduate in 2015 and later. If we start getting that message across, we will be helping young people to go to university, not hindering them, and our prime obligation now is to encourage, not reduce, access.

--- Later in debate ---

[Paul Blomfield (Sheffield Central) (Lab)]

It is illuminating to follow the right hon. Member for Bermondsey and Old Southwark (Simon Hughes). His transformation from critic to passionate advocate is part of the extraordinary nature of the road that the Government have been travelling along with this policy. It is almost surreal.

As a new Member almost a year ago, I expected that the Government would put forward policies with which I disagreed, but I had expected that they would at least be carefully considered, carefully evaluated, thoughtful and mindful of their impact. That was not so. The Minister for Universities and Science said earlier that the Government have a plan, but it seems that that plan is increasingly shaped not by Ministers but by events that they do not control and, at many levels, do not understand. Broken promises, conflicting statements and policy shifts: only when the dust settles will we find out the plan, with the publication of the repeatedly delayed White Paper.

Assurances were given to the House when we debated the Government’s plans back on 9 December, but those assurances have proved worthless. Indeed, had the House known then what we know now, who is to say, given the discomfort of some of those on the Government Benches at that time, what the outcome would have been? I recall the right hon. Member for Bermondsey and Old Southwark, in particular, seeking reassurance that £9,000 fees would be exceptional. Let me remind him what the Business Secretary said. He gave the right hon. Gentleman a clear pledge—huh, a Liberal Democrat pledge—that he would not allow the

“migration of all universities to the top of the range.”—[Official Report, 9 December 2010; Vol. 520, c. 547.]

Consistently, the Prime Minister and other Ministers gave assurances that £9,000 fees would be exceptional. So where are we? We have seen precisely the migration that the Secretary of State said that he would not allow. Far from being the exception, £9,000 fees are the norm.

We were told at one stage that fees would average £7,000, then that they were calculated at £7,500, then that they might average £8,000. Now we find that the average fee is likely to be just £360 short of £9,000, at the very top end of the range. It did not have to be like this, however. The situation became inevitable because the Government decided to cut the undergraduate teaching grant by 80% without considering the impact or listening to those who knew what it was likely to be. From the outset, vice-chancellors were clear, including many of those who had been browbeaten into supporting the Government’s proposals, that fees of about £8,000 would be needed for their institutions simply to stand still.

[Mr Lammy]

Does my hon. Friend agree that the 80% cut and effective withdrawal of the state from higher education and the funding of arts, humanities and social sciences—there is no other country in the developed world that has made that kind of departure in higher education—will have catastrophic effects in the future?

[Paul Blomfield]

I completely agree. Back in December, the Minister for Universities and Science made the point that this was not about deficit reduction, as my hon. Friend the Member for Edinburgh East (Sheila Gilmore) reminded us earlier, but about changing the shape of our system. We stand only with Romania among OECD countries in cutting higher education, and we should be ashamed of that.

As universities have looked more closely at the figures, university councils and governing bodies have exercised the responsibility that they have a duty to exercise by setting the fees that their institutions need. It appears that many in government expected universities to fall into line with their picture of them, with Oxbridge setting fees at £9,000 and other universities ranking themselves where they fitted into the system. But those in government did not understand that university governing bodies would recognise their responsibilities to their students and the communities they serve and would set the fees that they need.

What about widening participation? I stress that this is not simply about Oxbridge. We should credit universities across the sector with the achievements on widening participation that my right hon. Friend the shadow Secretary of State has mentioned. Back in February the Deputy Prime Minister pledged in a BBC interview that Oxford and Cambridge would be given permission to charge £9,000 fees only

“if they can prove that they can dramatically increase the number of people from poorer and disadvantaged backgrounds”

who attend. In the past few days, it has become clear that Cambridge is not in a position, or is not intending, significantly to increase access for poorer students. What are the Government going to do about that? Will they tell Cambridge that it cannot have its £9,000 fees or will they tell the Deputy Prime Minister that he is going to have to confess to another broken promise?

What about the involvement of the private sector? The Minister for Universities and Science confirmed to The Times on Monday that, out of the crisis he is creating for the higher education sector, he expects there to be a bigger role for private sector providers. He has already prepared the ground by awarding university college status to BPP, which is part of the Apollo Group, which is currently being investigated by the United States Higher Learning Commission for deceiving prospective students. Where is the accountability for private sector higher education institutions? They do not face the same requirements on quality, access and numbers, and on the Government’s intentions in relation to the private sector we have had nothing but silence.

In December, the Business Secretary was quoted as saying of the Government:

“There is a kind of Maoist revolution happening in lots of areas like the health service, local government, reform, all this kind of stuff, which is in danger of getting out of control.”

What he failed to say was that the greatest chaos was unfolding in the area for which he is responsible.

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[Roberta Blackman-Woods]

Indeed. The hon. Lady makes an excellent point; we should always refer to what is happening in the devolved Administrations as well.

In 2007-08, the fees in the Canadian system were £2,866 and in Australia they were £2,600. What has been proposed for this country is absolutely out of line with our competitor countries across the board. According to quite a conservative estimate, the debt that a student will accrue, if they have to pay the £9,000 maximum and then accommodation and living expenses, could amount to about £48,000. If they then went on to do a master’s and a PhD, the student could come out with a debt of £70,000-plus. That is extraordinary.

[Mr Lammy]

On that excellent point, is my hon. Friend as concerned as I am that the plans will lead to catastrophically low levels of UK students deciding to go on to postgraduate study? Is she concerned that our university sector is actively recruiting abroad—notwithstanding the visa requirements imposed on it—and that we will therefore educate international students but deny that to students from this country?

[Roberta Blackman-Woods]

Indeed. My right hon. Friend has made a number of excellent points. It is interesting that we have heard nothing from the Government parties and nothing from the Minister about the impact of the proposals on postgraduate education in this country. The House will have to return to that issue in due course.

Graduates could be incurring extraordinarily high debts. The Government simply have no electoral mandate to do what they have done; it was not in any of the manifestos or in the coalition agreement. The costs are being pushed on to students because of the massive 80% cut being made to the university teaching grant. That does not fall uniformly across all universities; it hits hardest the universities with high numbers of students studying arts-based subjects. We simply do not know what the impact will be on the longer-term career aspirations of our students, but we need to continue to develop jobs in the creative industries. That is important for my region of the north-east, but it is also important across the board.

I am also really concerned that the Government do not seem to be paying any attention whatever to the possible deterrent effect of the proposals. There is an increasing constellation of evidence showing that an increase in tuition fees—particularly to the levels proposed —puts off people from applying to university. An Ipsos MORI survey last year of 2,700 11 to 16-year-olds showed that even marginal increases in tuition fees had a significant deterrent effect on participation among young people. Some 17% of the young people who responded said that they were unlikely to go to university if tuition fees increased to £5,000, with 46% saying that that they would not go if fees were increased to £10,000 a year. If the Government dispute those findings, they need to come up with alternative findings of their own. They have simply not commissioned research into the issue.

The Government say that they are remedying the situation with the national scholarship programme and tuition fee waivers, but we know from work that million+ has carried out on the national scholarship programme so far that it is over complex and that students simply do not know what will be available to them. The information about the programme is not available in an easily accessible format. That could lead to a postcode lottery.

We know, of course, that all these changes are part of a wider trend, with the scrapping of the education maintenance allowance and the future jobs fund, which helped to get young people into jobs. The Government are deliberately engineering a situation where the life opportunities of young people will be increasingly worse than those of their parents, and that is simply a disgrace.