Lord Willetts
Main Page: Lord Willetts (Conservative - Life peer)
Mr Lammy
I will not give way because I want to make some progress.
That is substantially more than the £3,000 we introduced. The essential ingredient of this debate is that we are breaking the partnership between student, state and university. We are saying that the state can step out of the arrangement, and that the arrangement should be entirely between the student and the university. It is my contention that that is unacceptable.
When we set up the Browne review, we specifically asked Lord Browne, in the terms of reference, to look also at the fourth constituent part of the arrangement that also benefits. I am talking about employers. Multinational companies in this country benefit greatly from graduates, so I am disappointed that Lord Browne spent effectively 300 words on them. It was heartening to hear the Secretary of State mention employers; I just wish he had not done it so late, and I wish he could attach a figure to what their contribution should be. If this is a genuine partnership, it must be one between students, the state, universities and employers. That is why this is so unfair and why people outside are so angry.
It is right for students to say, “What do we get for that £9,000?” There should be something before the House explaining what they will get for that money. Let us remember that, because universities had been so badly underfunded under a previous Conservative Government, the fee we introduced was topping up a big black hole in university finances. In fact, much of the tuition fee we introduced went to lecturers’ pay and salaries. Many people still believe that they cannot fully identity what they got for their contribution, so as we move to £9,000, should not the Government come forward and say, “For this money, these are the contact hours you will have with your lecturer. For this money, this is the size of your tutorial. For this money, we will be able to tell you what your employment prospects will be afterwards”? But there is nothing before the House about what the student gets for the contribution they are making.
A young girl approached me this week who wanted to go to my old university—the School of Oriental and African Studies. She wants to study development studies. She is a young black woman in my constituency. However, owing to the message the Government are sending on arts and humanities, and on the worth of doing development studies at SOAS, she is doubting whether it is worth coming out with debt to the tune of £40,000 and doing a subject such as development studies. I say to the Minister for Universities and Science that surely we recognise that we live in a multi-disciplinary, inter-disciplinary world. We do not just want scientists; we want those who study the humanities. We see in universities cross-disciplinary activity producing beneficial results, so why has he chosen to withdraw funds from arts and the humanities and teaching in this manner?
Mr Lammy
I have one minute left, so I will not give way. We will hear from the right hon. Gentleman later—[Interruption.] I have one minute left. I will not give way. The clock will not stop.
We have seen what our best universities are doing on access. Why should the London borough of Richmond send more young people to Oxbridge than Barnsley, Rochdale, Middlesbrough, Hartlepool and Stoke combined? That is unacceptable—and this measure will make it worse. It is unacceptable that 21 colleges across Oxford and Cambridge did not take on a black student. What will this do to address that problem?
That is why the people outside this Chamber are so angry and frustrated. If the Minister believes that this debate will stop as a result of the vote tonight, he is mistaken. It will continue, and I will join the students and their parents in the protest.
Mr Brine
I do not know whether the hon. Gentleman has access to my bank accounts, but if he did, he might not have asked that question.
Whether or not we all agree that 50% of young people should go to university, that is a decision that millions of young people and families across the country choose to take. That is the situation that the House faces. I hope that these proposals will put higher education funding and student finance on a sustainable footing, improve the quality of university degrees and put a progressive support package in place for students that will not deter access on account of the absence of up-front fees.
The Minister will be disappointed in me—I am glad to see him back in his place—if I do not make a point once again about Aimhigher. I think it works and that it has been proved to work, and it worries me that it is disappearing. I urge the Secretary of State and the Minister for Universities and Science to revisit this decision or, at the very least, to do more to safeguard the functions of Aimhigher. Aimhigher Hampshire is based at the university of Winchester in my constituency; it does a very good job.
Mr Willetts
I am grateful to my hon. Friend for giving way—unlike the right hon. Member for Tottenham (Mr Lammy). I would like to assure him that Aimhigher has produced some valuable initiatives and that individual universities can carry them forward. Indeed, under the new requirements we are introducing for the Office for Fair Access, we will expect them to take initiatives to broaden access. The best of Aimhigher will thus survive in a new form.
Mr Brine
I am glad to hear that. The Minister knows that I will be back and will hold him to that assurance. I also urge him—perhaps he will come back to it when he winds up the debate—to ensure that what universities such as the university of Winchester charge is not pegged at £6,000. They must be free to charge where they see fit within the £6,000 to £9,000 range.
I take no great ideological pleasure from today’s decision, but to govern is, indeed, to choose. I agree with the Deputy Prime Minister that to govern is not to abstain, but to choose. I shall support the proposals. We can support or not support only the proposals before us—not those that we would like to be before us. I will support them.
The Minister for Universities and Science (Mr David Willetts)
We have indeed had a passionate and robust debate, and I am sorry that there will not be time for me to respond to all the points that have been made. The reason for the passion is that all of us care about the future of our universities, and about how we discharge our obligations to the younger generation. It has to be said that all three parties, when in government and confronted by the challenge of how to finance higher education in our country, have reached the same conclusion. All have concluded that the way forward is fees, paid for by loans from the taxpayer and repaid by graduates.
Mr Bone
My problem in deciding how to vote tonight is related to my constituents, and to whether this measure will put them off going to university. My right hon. Friend the Minister has already indicated that there will be an annual review of the measure. Will the £150 million be used to help all low-income families, rather than just those on benefit?
Mr Willetts
I can assure my hon. Friend, as I chair the group planning the use of that extremely valuable £150 million, that we will consider a range of options for who could be assisted by the scholarship programme.
I was explaining to the House how all three parties have reached the same conclusion, albeit by a rather circuitous route. When we were in opposition, my party voted against the fee increases in 2004, and we remember that decision because we were afraid that the effect of fees would be to put poor people off applying to university. We have now seen the evidence, however, and it shows that, since fees came in—and because there were loans as well—the proportion of people going to university from the poorest backgrounds in England has actually gone up. It has not gone down. Indeed, by contrast, in Scotland, the proportion of people from the poorest backgrounds attending university has fallen while it has gone up in England. That is why my party has concluded that fees supported by loans do not deter poor students from going to university.
The Liberal Democrat party and my right hon. Friend the Secretary of State for Business, Innovation and Skills, when confronted with the challenge of how to deliver progressive policies in a time of austerity, have rightly concluded that this is what we have to do.
The Labour party, now so irresponsibly retreating to the comforts of Opposition, was explaining such policies six years ago. I see the shadow Chancellor laughing. Six years ago, he was in the position that I occupy today, and he explained only the other day, as well as anyone could, the logic of our proposals, in his famous note to the leader of the Labour party:
“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, 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.”
Quite right. It was true then and it is true now.
Ben Gummer
Back in June, when the Leader of the Opposition was offering solutions, he said that instead of up-front fees, graduates under Labour’s scheme would be asked to contribute a small percentage of their salaries to a fund over a fixed period of time. The percentage would vary according to income. I struggle to understand the difference between his proposal and that of Government Front Benchers.
Mr Willetts
My hon. Friend is right. We have improved on the policies that we inherited from the previous Government. They had a threshold of £15,000 and we are increasing that to £21,000, which is why the poorest quarter of graduates will be better off under our proposals than on the scheme we inherited.
Mr Willetts
Absolutely right. Lord Browne produced an excellent report. There is a group, “Blairites for Browne”, but of course they fell for that trick once before, so they are a bit wary this time.
The House should recognise that our proposals improve on the inheritance from the Labour Government. We have not only raised the threshold but increased the maintenance support available to students. Indeed, 500,000 students will receive more grant than they currently do.
Pete Wishart
I am very grateful to the Minister for giving way, but there are more than three parties in the House. Does he recognise that one party has consistently opposed tuition fees, is in government in Scotland and will have nothing whatsoever to do with tuition fees?
Mr Willetts
Perhaps the hon. Gentleman will explain how, under the English system, more Scottish students study at English universities than English students study at Scottish universities. We know how to invest in high quality universities for the future, in the best interests of English students and the nation.
We have increased the repayment threshold and the value of the maintenance grant and, of course, we have offered a far better deal for part-time students than is currently available to them. In future, part-time students will be eligible for fee loans, which they do not currently receive.
Mr Speaker
Order. The hon. Gentleman will resume his seat. I call the Minister.
Mr Willetts
If I may say so, that was a disgraceful intervention.
The Government are committed to explaining how our proposals are progressive, how they will improve social mobility and how they will give our universities secure financial backing for the future. Members on both sides of the House have asked about the speed with which we are implementing our proposals. In fact, that was the Opposition’s main point—they want more time for a review and a Green Paper. I should explain to the House that the proposals emerge from Lord Browne’s review, which was set up by the Labour Government more than a year ago. The inquiry took evidence in public and received evidence from Members of all parties. We believe that we are implementing proposals—[Interruption.]
Mr Willetts
I was explaining how we have not rushed our proposals. They were based on a report that was introduced and commissioned by Labour a year ago. The changes will not come into force for the first generation of students until September 2012. It is necessary to take the financing decisions now so that universities can plan for them. If we do not take those decisions now, students and universities will find that universities have less grant, and that they are unable to replace it with income from students, which is what we are introducing—that is the key feature of our proposals.
We often hear Opposition Members talk about the loss of teaching grant, but they do not talk about the other side of the proposal—the extra money that can come to universities through the choices of students. We trust students. Taxpayers will provide students with the money to pay the fees. That will ensure that universities can continue to enjoy the levels of income that they enjoy at the moment. That money will not be handed out from Whitehall; it will come from the choices of students.
We believe that those students will continue to choose arts and humanities. There is no bias against arts and humanities—[Interruption.] Our proposals are equitable, and we believe that they will ensure that students can choose the courses that they wish.
Mr Willetts
Because our proposals—[Hon. Members: “Give way!”] I am not going to give way because I have three minutes remaining in which to report to the House that in the past few days 53 university leaders from across England have made it clear that they support the coalition shift towards a more progressive graduate contribution scheme as the way to provide a more sustainable higher education system.
Of course the Government care about participation in universities. That is why I can assure Members on both sides of the House that unlike the system we inherited from the previous Government, we expect universities to review access and report on how they are doing on broadening it under our proposals not every five years, but every year.
There will be no loss of income for universities. We believe that students will continue to apply. They will not have to pay up-front, and they will be enabled by funds from the taxpayer to choose the university courses that they wish.
We believe that the proposals are the right way forward for our universities. All the Opposition can offer is delay. They did not even dare propose their graduate tax today, because we know that although the leader of the Labour party wants it, his own shadow Chancellor does not agree. They have not even proposed a graduate tax.
Labour left a mess in the public finances, and the Government must tackle it. If we do not tackle it in the way we propose, and if we go for the delay that the Opposition advocate, it will simply mean less funding for universities or more Government borrowing. Who pays the Government debt? It is the younger generation whom the Opposition claim to care about.
That is why the Government commend the motions to the House. We believe that we have tackled the challenge—in a time of austerity—of proposing a policy that is fair and progressive, and one that puts power in the hands of students and universities on a solid financial footing for the future.
Question put.