Higher Education Policy

Debate between Graham Stuart and John Denham

Wednesday 27th April 2011 Commons Chamber

[Mr John Denham (Southampton, Itchen) (Lab)]

I beg to move,

That this House condemns the failure of the Government to deliver the commitment made to Parliament that £9,000 a year student fees would be ‘exceptional’; further notes that the Office of Fair Access (OFFA) has said that it has no powers to set university fees or determine university admissions policies; notes with alarm the warning of the Secretary of State for Business, Innovation and Skills that average fees higher than £7,500 would mean reducing student numbers or further cutting university teaching funding; condemns the failure of Ministers to explain their policies by publishing a Higher Education White Paper; believes that Ministers are putting at risk the success of universities and the future of generations of students; further believes that current policies are unfair, unnecessary and unsustainable; and therefore calls on Ministers, as soon as practicable, to set out to Parliament how they will meet the promise that fees of £9,000 will only be in exceptional circumstances, to guarantee that there will be no fall in the number of university places or further cuts to university teaching budgets, and to outline what powers, if any, they propose for OFFA on determining fee levels and enforcing access arrangements.

I am glad to see the Secretary of State for Business, Innovation and Skills in his place, although I understand that he is not following the usual courtesy of responding to my opening remarks. I am nevertheless grateful to him for attending the debate.

I make no apology for raising for the third time in an Opposition day debate the dismal record of this Secretary of State and the Minister for Universities and Science on university fees. Nothing is more important to this country’s future than the rising generation of young people, including all those who are working hard as we speak on their GCSEs and A-levels. We owe it to them to give them the best opportunities, to make the most of their talents, the most of their abilities, the most of their willingness to work hard and do the best for themselves. All of us depend on them to ensure that, through their innovation and creativity, this country can pay its way in the world and create jobs in the future. Despite fashionable sneers, we need more people, not fewer, educated at a higher level. That is what is happening in every country with which we compete. Young people will benefit from their higher education, but so will the rest of us. That is why our young people deserve a fair deal and good opportunities.

Under the last Labour Government, the number of students in English universities increased by almost 380,000, and 51% of young women now go to university. Now, however, the ladders of opportunity are being kicked away. The education maintenance allowance has been scrapped, and Aimhigher, which persuaded countless young people that they could go to university, has been scrapped. Sir Peter Lampl of the renowned Sutton Trust said:

“I think these fees are going to put a lot of children from lower and middle-income homes off universities.”

A poll today shows that more than half of final-year students at 14 Russell group universities in England would not have enrolled if annual fees had been £9,000.

For those who do aim high, fees are being trebled—to the highest average fees of any public university system in the world, and all because this Secretary of State decided to cut the higher education teaching grant by 80%, to make most students pay the whole cost of their higher education and to embark on a bizarre ideological experiment devised by the Minister for Universities and Science. It was always a bad idea, but these Ministers have implemented it with truly staggering incompetence: they have lost control and are making it up as they go along. Instead of being open and honest about finances and open and honest about their future policies, they are resorting to veiled and not-so-veiled threats, planning the biggest ever interference in the autonomy of universities.

[Mr Graham Stuart (Beverley and Holderness) (Con)]

If a Labour Government had been re-elected, would tuition fees have risen?

[Mr Denham]

We have made it quite clear in every debate since the Browne report was published that it would be unrealistic to say that higher education budgets would be untouched by the deficit reduction that we would have had to introduce. However, we have also pointed that if, for the sake of argument, the reduction in higher education spending had been in the order of 10% to 20%, as faced by most public services, we would certainly not have been talking about tuition fees above about £3,800—and certainly not the £9,000 that this Government are implementing.

Since Parliament voted to treble tuition fees in December, Ministers have ensured through their actions that record numbers of disappointed students will be turned away from university this year, with perhaps 150,000 applicants missing out on places. More of the students across England who are studying hard for their A-levels today will be rejected than ever before, because tens of thousands are rushing to avoid the trebling of fees, and because Ministers have already cut 20,000 places for 2012 from the number that Labour had planned for 2010—and that is before any more cuts that may be in the pipeline.

On 3 November, the Minister for Universities and Science told the House:

“We… are… proposing a basic threshold of £6,000 a year, and in exceptional circumstances there would be an absolute limit of £9,000.”—[Official Report, 3 November 2010; Vol. 517, c. 924.]

That was the solemn promise on the basis of which the House was asked to treble fees. The Minister did not say, “Most universities will charge £9,000 or as near as makes no difference”; he said that £9,000 would apply “in exceptional circumstances”, and that is not going to happen. Of the universities that have made declarations, 71% have declared fees of £9,000 and 85% have declared fees of £8,000 or more.

The Minister continues to live in a world of his own. In March he was saying of arts and humanities degrees:

“Most institutions should only need to charge £6,000—or perhaps a bit more once inflation has been accounted for.”

So where are those £6,000 arts and humanities degrees in the most sought-after universities? Where, for that matter, are the £6,000 arts and humanities degrees in less sought-after universities? The truth is that the Minister and the Secretary of State have lost control of the system through their own incompetence. They have created a system in which there is every incentive for universities to charge high fees and virtually no incentive for them to charge low fees, and it is young people who will pay the price. Some will be put off university altogether, while those who go to university will face 30 years of debt repayments, with middle-income graduates paying more money and a larger proportion of their incomes than the wealthiest. They will still be paying off their student debt when their own children have started university.

The Minister is now trying to say that what matters is the average once the reduced fees for some students have been taken into account. How disingenuous can you get? When the Minister promised fees of £9,000 “in exceptional circumstances”, I do not believe that a single Member of the House thought, “Oh—that means that most universities will charge most students £9,000, or as near as makes no difference.” That is not what Members thought; they thought that he meant “in exceptional circumstances”. I do not think they thought that middle-class, middle-income students would have no choice but to pay close to £9,000 a year no matter which university they chose to go to. The Minister’s failure to admit that he got it wrong does him no credit.