Oral Answers to Questions

Sheila Gilmore Excerpts

Thursday 13th January 2011 Commons Chamber

[Mr Hayes]

One of the things about coalition is that it brings together people from different starting points. [Interruption.] I have to say that this coalition has convinced me that the Business Secretary’s commitment to jobs, apprenticeships, manufacturing and British business is unrivalled in his post, and is certainly considerably greater than that of his predecessors.

[Sheila Gilmore (Edinburgh East) (Lab)]

4. How many universities he expects to charge £9,000 in tuition fees in 2012-13.

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

Universities have not yet set their level of graduate contribution for 2012-13. Any institution in England wishing to charge above £6,000 must have an access agreement approved by the director of fair access. The Office for Fair Access will shortly begin discussions with individual institutions that intend to submit an access agreement under our demanding new requirements. We have always made it clear that £9,000 should be charged only in exceptional circumstances.

[Sheila Gilmore]

The Minister will be aware of the discussion within the university sector; many universities, especially Russell group universities, have already said that they are likely to charge at the higher level. Even some other universities are saying that to break even, they would need to charge more than £7,000. What modelling did the Department for Business, Innovation and Skills do when presenting its financial calculations to the Treasury, if it does not know the answers to questions that the universities appear to know?

[Mr Willetts]

We are waiting for universities to approach OFFA; they will have to submit a request to OFFA if they wish to go above £6,000. In our financial modelling, which we shared with the House, we made it clear that on average, replicating the income that universities are getting at the moment would involve fees of around £7,000. Of course, we are expecting universities, just like every other organisation in Britain, to make significant efficiency savings and hold down their costs.