Higher Education (England) Regulations
Debate between Kevin Hollinrake and Robert Halfon(7 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Robert Halfon
We need to look at this across the board to make sure that salaries are related to performance and are seen as fair. I am not against high salaries, but what we have seen with some of these vice-chancellors, although not all, is pretty awful. As I say, their Marie Antoinette response to this just shows that they are completely out of touch with what is going on with a struggling economy, struggling students and so on. That is why I support the recent comments by the Universities Minister on pay and the restrictions the Government have proposed.
In my role as Chair of the Education Committee, I look forward to bringing greater scrutiny to the issue of pay and the wider value-for-money question. The hon. Lady is a new, valued member of the Committee, and I am pleased that one of the first areas the Committee will look at is the extent to which students are gaining a high-quality education and accessing graduate-level jobs. We will look at the evidence on how universities are currently spending the £9,000 and how an extra £250 would improve—or not—the experiences and outcomes of students.
Value for money must also be linked to interest rates. Not only are students graduating from university with greater debt than ever before, but they are facing substantially more interest on their loans. The interest rate of 6.1% is just too high; with the increase it will be more than 24 times the official Bank of England base rate. It has to be reviewed and it must be lowered, and it should be much more comparable to what happens in other countries. As the OECD highlights, our interest rate is one of the highest in western Europe, overburdening our students.
Kevin Hollinrake
Does my right hon. Friend accept that lowering the interest rate would give a greater advantage to wealthier students, because they are more likely to pay off their debt than the more disadvantaged students or the lower earners? This would probably have the reverse consequence of what he intends to deliver.
Robert Halfon
I have heard that argument, but the wealthier students are the most likely to be able to pay off the current interest rate. A member of my office staff, who is not paid huge amounts of money and whom I would love to pay more, has £60,000 to pay. I just find that unacceptable—