Tuition Fees

Debate between Rob Wilson and David Lammy

Tuesday 30th November 2010 Commons Chamber

[Mr Rob Wilson (Reading East) (Con)]

I welcome Lord Browne’s report and the six principles on which it was based, in particular those of increased student choice and of everyone having the potential to benefit from higher education, no matter what background they come from. It was an excellent piece of work, and was set up by the previous Labour Government, but it has apparently been rejected by Labour in favour of a graduate tax—although I have difficulty understanding what the Labour party’s policy is, because it seems to be using a blank sheet of paper, and I am not sure what is on it at any given time.

Lord Browne specifically rejected a graduate tax, and the case against a pure graduate tax is damning. The shadow Secretary of State complained that graduates will be repaying loans for up to 30 years, yet they would pay his graduate tax for the rest of their working lives, resulting in some graduates paying the cost of their courses many times over. In addition, most graduates would have to repay separately any debt incurred for living costs while studying.

There are serious questions about the ability of a graduate tax to produce the necessary revenue to fund higher education. Faced with the record budget deficit left by Labour, a graduate tax would mean the Government having to spend an additional £3 billion a year for at least the next five years. According to the Browne review estimates, a graduate tax would not produce enough revenue to fund higher education until 2041-42. Importantly, a graduate tax would not give universities any additional incentive to focus on the quality of the teaching or student experience that they offer. The Browne review concluded that

“the graduate tax significantly weakens universities’ independence”

and that their relationship with students would matter “much less”. That cannot be the modern, forward-looking, 21st-century higher education system that we want for this country.

The shadow Secretary of State complained recently, as he did tonight, that the Government’s reforms will

“create a market in which solely student choice, shapes the size of universities and courses on offer.”

I wonder what he fears from a model under which students are fully empowered and can make informed decisions about the type of higher education that is best for them. Labour has always disliked personal choice because it instinctively prefers command and control structures, operated from the centre. Is the Labour party really suggesting that successful and popular universities should continue to ration places, forcing ambitious students to settle for their second or third choice? Universities are at their best when they are not dependent on Government for too much of their funding. Without some sort of market, there is no pressure for universities to improve their teaching quality or their student support to attract more students.

[Mr Lammy]

Will the hon. Gentleman give way?

[Mr Wilson]

No, I will not because I have only one minute and 45 seconds left.

I say to my right hon. Friend the Secretary of State that the reforms must not be half-hearted. If we are continually to drive up quality throughout the sector, there must be no student numbers cap for individual institutions. We must not be in a position under the new system where the state steers students into university courses that they do not really want to do and forces them to settle for second best. In the past, that has been done for the best, if misguided, intentions, but it is wrong to keep underperforming universities in their current form at the expense of the quality of the higher education that the student receives.

Facing up to the reality of higher education finance involves very hard choices, which the Opposition do not seem to want to take. It also provides a great opportunity to reform our university system for the benefit of all students and society in general. Faced with higher contributions after graduation, students should demand more from their university. Prospective students will rightly think much more carefully about their choices and demand more information about their university, such as its teaching quality, student support and the employment destinations of other graduates. That will force universities to ensure that their courses really offer value for money and provide evidence of that fact. Once some universities start to account for their performance, if others fail to follow suit students and parents will ask what they have to hide. That will be an incentive for universities to become more innovative, for example by offering shorter degree courses.

Higher Education

Debate between Rob Wilson and David Lammy

Wednesday 3rd November 2010 Westminster Hall

[Mr David Lammy (Tottenham) (Lab)]

I am grateful for this opportunity to continue a hugely important debate. The decision taken by the Government today is of historic importance to this country, for two reasons. First, the decision to treble fees for this country’s young people could have a huge impact on participation in higher education. Secondly—this has been covered less, but is as important—the decision to withdraw state funding from a large part of the curriculum, namely arts and humanities subjects such as geography, history and politics, has huge implications for our democracy. We are a liberal democracy committed to the liberal arts, and today’s decision is to abandon that solely to private income. This is an important day, and I will be talking specifically about participation.

I am pleased to see the Minister in his seat. We have had many years of debates on education matters in this House. I know that he is committed, from his perspective, to participation. We understand the subject, but we do not always agree on the means, and I suspect that we will disagree today. However, I remind him that in 2004, he described tuition fees as

“flagrant, appalling and an abuse”. [Official Report, 26 February 2004; Vol. 418, c.503.]

That was his position as he voted against them. Can he really defend tripling fees to £9,000? I am pleased that so many colleagues from across the House have joined me today.

[Mr Rob Wilson (Reading East) (Con)]

I congratulate the right hon. Gentleman on securing this debate on an important subject. I know that he was in the Chamber this afternoon; does he agree that there is a third historic element to the settlement? Does he recognise the positive impact that proper funding for part-time students will have on the participation of disadvantaged groups in universities?

[Mr Lammy]

I am grateful to the hon. Gentleman for putting that decision on record. The last Government, of course, made progress on funding part-time students, but when we set up the Browne review, it was essential that part-time students were given the same arrangements as full-time students, and that has been achieved. That is the silver lining in the Government’s response today. However, it cannot be right that one group of students, of the sort that come from my constituency, should be encouraged to attend part-time courses at newer universities while another group of students, who can afford fees and are not put off by higher education, attend our more elite, select universities. I will go into the detail over the months.

I hope that we can all agree that it is morally right that university education be made available to all those who wish to take advantage of it. I know that that is true. University brought me, a young black man, from the shadows of Broadwater Farm estate in my constituency to the House of Commons. I want the same opportunities for all young people, regardless of their background.

The Labour Government inherited a higher education system that was the preserve of the rich and privileged. It was not a system in which university education was made available to all those who wished to take advantage of it, which is why we created the Office for Fair Access to monitor and analyse admission and participation and ensure that we increased the opportunities available to all students. It is also why, in 2004, we set up the Aimhigher programme, a national comprehensive programme working across constituencies as different as Cumbria, Liverpool and mine to encourage partnerships and access to higher education.

--- Later in debate ---

[Mr Lammy]

My hon. Friend makes a profound point, which I hope to come on to. Such schemes worked, but they required money. Many of us who initiated such schemes hoped that they would make further progress than was achieved. We saw progress, but it was not at the speed and depth we would have liked. My hon. Friend is exactly right: it cannot be considered significant progress. One London university— I am thinking of London Metropolitan—has more students of black descent than the entirety of the Russell group. There was progress, but there is much more to do. We are concerned that today’s announcement will mean things go backwards—in the wrong direction.

[Mr Rob Wilson]

I do not doubt the previous Government’s intentions, and I hope that the right hon. Gentleman would not doubt the good intentions of the current Government. Does he accept that the current system is unable to meet the challenge of the rising demand for higher education? In particular, does he accept Sir Martin Harris’s report, which mentions the participation rate among the least advantaged 40% of young people and the fact they are not getting into the top Russell group universities? That figure remained flat throughout the period of the Labour Government.

[Mr Lammy]

As I said, we were all concerned about the progress in relation to our most selective universities. That is why allowing our most selective universities to raise their fees to £9,000 a year must be counter to the progress that I would hope the hon. Gentleman desires. The Sutton Trust estimates that there are 3,000 missing state school students from Britain’s 12 most selective universities. A further statistic that comes to mind is that only one black Caribbean student was admitted to Oxford university in 2009—one student.

The Government’s claims are hugely important. They claim to be committed to higher education’s role in social mobility. Indeed, we are told that access is hard-wired into the coalition agreement. However, despite that hard-wiring, the Secretary of State has apparently long questioned whether the 50% participation rate is sensible or affordable. It is important that the Minister says something about what he considers will happen to the participation rate. Does he believe that the Government can widen access with an increased tuition fee of £9,000 a year? How will trebling fees encourage the sons and daughters of nurses and dinner ladies to achieve what their parents never had the prospect of doing? If we add to that figure the £8,000 a year maintenance that a student needs to live on, the Government’s plans mean that it will cost £17,000 a year to study for a degree. Will that encourage a nurse on an average of £23,000 a year to send her young son or daughter to university? With costs that are three quarters of their salary, will they not decide that university is what they always believed it to be: not for them?

Does the Minister honestly believe that students from the poorest backgrounds will not be put off by these staggering sums of money? A Sutton Trust opinion poll shows that only 45% of 11 to 16-year-olds who are currently interested in progressing to higher education at current fee levels would be interested if the fees were increased to £7,000. What does that then say about the current figure of £9,000? With institutions now capable of charging variable fees of between £6,000 and £9,000, it is inevitable that some of the most capable students from the poorest families will make choices based on cost or on the perception of cost, rather than because of academic talent.