Higher and Further Education

Debate between Nadhim Zahawi and Shabana Mahmood

Tuesday 11th September 2012 Commons Chamber

[Shabana Mahmood]

Not at the moment.

That is set against a backdrop of a worsening economic outlook as a result of the Government’s failed economic policies. The economy is in a double-dip recession made in Downing street. We know that there is a strong link between periods of recession and interest in higher education, as people seek to enhance their employability and competitiveness in difficult economic circumstances, but this year that is not the case. There is a massive drop that, combined with cuts in the number of places, will result in tens of thousands fewer students entering higher education in 2012. It indicates straight away the impact of the Government’s trebling of tuition fees. Students are being put off and are basing decisions not on whether a university education is right for them, but on whether they can afford it. That is a tragedy for both the person making the decision and the country as a whole, because if they miss out on higher education, we miss out by failing to capture their full potential.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

On affordability, will the hon. Lady at least admit that a graduate earning £21,000 will pay £45 less than they would have done under the system we inherited from her Government?

[Shabana Mahmood]

If the hon. Gentleman’s party took on board our £6k proposal, there would be an even more progressive system for future generations of students.

Cost is the real problem. The Centre for Economic Performance recently surveyed 12,000 teenagers and found that all the indications are that the hike in fees in late 2010 increased the perception that going to university is simply too expensive. That perception was significantly higher in comprehensive schools, compared with independent and selective state schools, and among children eligible for free school meals. If these perceptions influence effort at school or behaviour post-16, they will increase future socio-economic inequality.

Mature students are one of the worst affected groups, as many more are choosing not to go to university this year. The Government failed to take into account the effects of their policies on that group, and we have seen an 11.3% drop in such applications, making them the biggest group affected. There are around 30,000 fewer older applicants this year than last year.

[Shabana Mahmood]

My hon. Friend makes an extremely powerful point. I agree with her comment and endorse it entirely.

Too often we in this House consider higher education issues through the prism of the 18-year-old undergraduate going to university for the first time. Although the experience of such undergraduates is of course incredibly important, we know from the figures that in 2009-10 more than a third of undergraduates entering university for the first time were 21 or older. The impact of the trebling of tuition fees on that group is particularly interesting, as their perspective and actual experience of debt and finance are very different. These are people who often have significant financial and family commitments, with mortgages to pay and child care costs. If they are making a decision to walk away from enhancing their skills by obtaining a degree, they are doing so on the basis of cost.

There is a much higher rate of withdrawals from the application process this year than last year—16% higher. At this stage, 13,138 students who are holding offers from universities have decided to withdraw from the process. That is an extremely worrying sign that students who had already made the decision to go to university are now being put off. Having attended open days, filled out applications and gone to interviews, they are now saying “No thanks.” Where will they end up? What are their prospects for the future given the record levels of youth unemployment and the ongoing recession?

[Nadhim Zahawi]

rose—

[Steve Brine]

Will the hon. Lady give way?

[Shabana Mahmood]

Not at the moment.

Reading the Government’s amendment, one would think that there were no problems with their policy whatsoever and that it has had hardly any impact—further proof, if any were needed, that they are complacent and out of touch.

[Nadhim Zahawi]

rose—

--- Later in debate ---

[Shabana Mahmood]

The hon. Lady makes a very powerful point, and she is entirely right in her conclusions.

The Independent Commission on Fees found that in Scotland, Wales and Northern Ireland the number of applicants aged 20 or over increased between 2010 and 2012 while, by contrast, in England they fell by 12%. The number of younger applicants—those aged up to 19—fell by 7%, but by only 1% to 2% in the other home countries. Although population size could be a factor, the report found that the relative decline in English applications was much higher. That raises concerns about the impact of fees, because there are falls in the number of applicants both in absolute terms and relative to the rest of the UK.

[Nadhim Zahawi]

rose—

--- Later in debate ---

[Shabana Mahmood]

I am glad that I gave another hon. Gentleman an opportunity to make a mini-speech. If only the experience of the whole of the higher education sector was the same as that in Winchester.

[Nadhim Zahawi]

Will the hon. Lady give way?

[Shabana Mahmood]

I am afraid not; I have no desire to respond to a Whips’ question.

The trebling of fees is not the only thing that this Government have done to destabilise and put at risk the quality of our higher education sector.