Higher Education and Student Finance

Sarah Wollaston Excerpts

Tuesday 12th October 2010 Commons Chamber

[Vince Cable]

I think the hon. Lady’s central point is that it is possible that some universities will be in financial difficulty. They already are under the existing system, and we are having to consider how universities in that position will be dealt with. The analogy is with the banking system. If banks collapse, the depositors are protected—in other words, the students are protected so that they can complete their education—but the management of failed institutions has to change. We are currently working through a failure regime to deal with institutions that find themselves in difficulties. The number that the hon. Lady mentions is almost certainly implausibly high, but there will be some.

[Dr Sarah Wollaston (Totnes) (Con)]

Will the Secretary of State consider carefully how we can prevent students from being deterred from undertaking longer courses such as medicine and pharmacy—very able students in particular may be put off those courses—perhaps by introducing a three-year cap on fees?

[Vince Cable]

The answer to that question is similar to the one that I gave on the other STEM subjects. Medicine is a costly course, which is why continuing support is needed through the teaching grant from Government to keep graduate contributions at a moderate and reasonable level, and that is what we shall aim to do.