Tuition Fees

Lord Willetts Excerpts

Tuesday 30th November 2010 Commons Chamber

[Iain Stewart]

I am not going to take any lectures from the Opposition about cutting money to universities when my right hon. Friend the Secretary of State’s predecessor, the noble Lord Mandelson, cut some £900 million from the university budget just before the election.

What we are focusing on is what will be relevant for our higher and further education sectors. We must develop higher education options that respond to the fast-changing global economic environment. Long gone are the days when people got one degree that set them up in a job for life. People will have to retrain and reskill many times through their working lives. People will have more portfolio careers and will need more flexible training options to engage with our fast-emerging economic competitors. Improved support for part-time students is critical to encouraging people to study at lower intensities, combining work and studies in different proportions. I welcome the move to put in place a single, integrated system of finance and support.

I would like to raise one or two points of detail that my friends at the Open university have raised with me. The first, and most significant, is the definition of the intensity of a part-time course. The Government have announced that they will reduce the current level to the equivalent of one third of a full-time course, and that is a huge step forward. I must point out, however, that the Open university has more than 100 courses—they involve 25,000 students, mainly in science, technology, engineering and maths—that have an intensity level below one third. The Open university would like the intensity level to be set at about a quarter. I appreciate that that might be difficult to attain in a single step, but I hope that the Minister will at least consider averaging out the intensity level for the duration of a course, because students often want to start off at a lower intensity level until they become more comfortable with the subject, after which they can increase the proportion as the course progresses. I hope that that is a constructive comment that the Minister can take on board.

[The Minister for Universities and Science (Mr David Willetts)]

I will of course undertake to look at the specific point that my hon. Friend has raised on behalf of the Open university. Will he also accept from me that, contrary to what we were told by the Opposition, it is already the case that we will be helping two thirds of first degree part-time students with our proposal to extend access to fee loans to them? The only way in which the Opposition can attain their figures is by including, for example, part-timers doing a second degree, and the only reason that they are not included in the policy is that it was the Labour Government’s ELQ—equivalent or lower qualifications—policy that excluded them in the first place.

[Iain Stewart]

My right hon. Friend makes an important point. I know the impact that the previous Government’s changes to ELQs had on the Open university. It had to take a multi-million pound hit.

--- Later in debate ---

[Anas Sarwar]

I thank the hon. Gentleman for that intervention but I will take no lectures from a Scottish Government and an SNP who stood at the election promising to scrap student debt for every student across Scotland and who failed on every single promise. The hon. Member for Perth and North Perthshire asked why young people would ever vote for the Labour party in Scotland, but he should look at the polling data for the general election and the opinion polls for the Scottish elections that are coming up. We outpolled the Scottish National party in the youngest bracket—18 to 24-year-olds—and I think that that will be reflected in the results in May.

I also want to take the opportunity to say that the Scottish Government must stop dithering.

[Mr Willetts]

I am grateful to the hon. Gentleman for allowing me to intrude on this Scottish argument. Do we not have here a very clear comparison of the two systems? Does he accept that we have fees and loans in England and a very different system in Scotland? Contrary to what we heard, will he confirm that it is therefore very significant that we have 4,900 English domiciled students going to Scottish universities but 11,500 Scottish students coming to English universities? What does that tell us about the two systems?

[Hugh Bayley]

That is under Labour’s system.

--- Later in debate ---

[The Minister for Universities and Science (Mr David Willetts)]

We have learned a lot about Labour’s approach in this debate. We have learned that it wants delay; we have learned that it wants careful consideration; we know that it needs more information; and we know that it wants to go slow. As my right hon. Friend the Secretary of State would put it, it wants to go slow, slow, slow-slow, slow. That is the only thing that Labour is offering. That does not just reveal the inadequacy of Labour’s approach to education; it matters, because if the changes that we propose were not in place in 2012, there would be a real financial challenge for our universities. The Secretary of State has made clear our commitment to delivering those changes.

By contrast, we heard from the shadow Secretary of State—

[Emily Thornberry]

rose—

[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—

[Ms Rosie Winterton (Doncaster Central) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Main Question accordingly put.