Access to Postgraduate Study (Oxford University)

David Lammy Excerpts

Wednesday 23rd January 2013 Commons Chamber

[Hazel Blears (Salford and Eccles) (Lab)]

I am delighted to have secured this Adjournment debate, which will enable me to raise the case of my constituent, Mr Damien Shannon, who has been refused a place at St Hugh’s college, Oxford as he is unable to meet its financial requirements. It will also allow me to make some more general points about the growing importance of postgraduate education for individuals, the economy and social mobility.

Mr Shannon lives in Salford. He is an intelligent and thoughtful young man. He has sought to pursue his education in the past few years despite his difficult financial circumstances. Damien obtained a good degree in history and politics through the Open university, and then wished to undertake a one-year MSc course. He applied to St Hugh’s college, Oxford, and was absolutely delighted when he was offered a place for October 2012. However, that place was contingent on him being able to fulfil the financial requirements of the college, as well as meeting its standards, and this was where the difficulties began.

Damien has no financial support from his family. The fees for the one-year taught MSc course were £10,000, and he managed to secure a career development loan from the Co-operative bank to meet that requirement. As the Minister knows, there is no student loan scheme for postgraduate education, a subject I will return to later when I have specific questions for him to answer.

Damien had passed the academic test and had raised the funds to pay for his fees. Then came the fatal blow. The college required a guarantee that Damien had immediate access to £13,000, which the college deemed necessary to meet his living costs during his period of study. First, it said his rent would be £516.66 a month, which it claimed was the cost of renting a reasonable sized room in shared accommodation at market rates in the private rental market. That figure bears no correlation to Oxford city council’s local housing allowance figure, which is currently £342.98 for a room in shared accommodation. However, the £516.66 figure is enforced regardless of the rent an applicant actually has to pay.

Secondly, the college stipulated that an applicant should have £56.73 a week for food. That is almost the entire sum that someone under 25 on jobseeker’s allowance receives per week to meet all their non-rental living costs. The college figure is based on the requirement to eat a certain number of meals in college. Now, Damien has told me that he is perfectly confident that he could cater for less, and indeed does so now, but he was never given the chance to do so.

[Mr David Lammy (Tottenham) (Lab)]

I congratulate my right hon. Friend on bringing this matter to the House. Does she not agree that the basis of our democracy must be that it is for students to determine how much they have got to survive on once they get on to the course? It is not for the university to determine that. If the university is concerned, it should be reaching out to help students from poorer backgrounds, not putting them off and hindering them in this way.

--- Later in debate ---

[Mr Willetts]

And of course one of the rewards of going from government into opposition is that people can call for proposals that they were never able to afford or deliver while they were in government, so it works both ways.

I am open-minded on this issue. I accept that there are genuine concerns about social mobility, as expressed by Alan Milburn and others. I can see postgraduate qualifications becoming increasingly important. I am following with great interest the debate that has been launched with several different reports—the Higher Education Commission report is one but I want to touch on several others, too—on how our financing system could be changed to assist people into postgraduate provision.

[Mr Lammy]

Does the Minister recognise the urgency of the issue, given the changing nature of our economy? Students now need postgraduate education far more than previously and are also unlikely to have the money. At the same time, the sector has become truly global. As my right hon. Friend the Member for Salford and Eccles (Hazel Blears) has shown, the feeling is that institutions such as Oxford are more keen to take overseas students with the cash than local British students. The figures show that British students are losing out in these circumstances. That is why we need to grasp the problem, although I recognise that that is difficult.

[Mr Willetts]

I agree with the right hon. Gentleman, who has experience of this area in government, about the importance of the global issue. I appreciate that both right hon. Members have rightly focused on the wider social mobility issue and neither has tried to claim that the changes to undergraduate finance are the problem. Of course, the monthly and annual repayments of student loans for undergraduates will fall under our new arrangements, so that is not the issue. Regardless of what is happening in undergraduate education, the debate is much more about social mobility and the changing economic scene.

I welcome the interventions from several groups of experts. We have had the Higher Education Commission report that has been mentioned and an ingenious proposal from Tim Leunig of the CentreForum. Even the NUS, which in other contexts is against the loan and repayment scheme, has called for a postgraduate loan scheme, which is what I think the right hon. Lady was calling for. There are risks as well as attractions in that approach, and the biggest single risk is that as soon as we had a general public expenditure programme or loans scheme, the Treasury would immediately become interested in how many people were eligible, controlling postgraduate numbers and setting new conditions. It would be a great pity if this open and diverse sector found itself with a highly regulated loan scheme that constrained its growth.

I do not accept and have not been persuaded at this stage that a Government-funded loan scheme is the answer, but I am happy to consider that proposal and others if people make them.