Higher and Further Education

Steve Brine Excerpts

Tuesday 11th September 2012 Commons Chamber

[Shabana Mahmood]

I will make a little progress before giving way again.

The biggest impact has been on the number of applicants. Although applications for the coming term are still open, we already know that there are around 50,000 fewer applications to higher education for the coming year and that one in 20 18-year-olds who would have been expected to apply in previous years have not applied this time around, which represents a decline of around 15,000. I am told by the sector that total accepted applications are down by about 30,000 on last year. That is equivalent to shutting down two mid-sized universities—for example Imperial college and the university of Lincoln.

[Steve Brine (Winchester) (Con)]

Will the hon. Lady give way?

[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.

--- Later in debate ---

[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—

[Steve Brine]

rose—

[Shabana Mahmood]

I am not going to take any more interventions at the moment; I will do so later.

The Government try to explain away the impact of their choices by saying that the drops in applications are due to the decline in the population of 18-year-olds. However, that does not get them off the hook because, as the Independent Commission on Fees pointed out in its recent report, in the rest of the UK, where the fees regime has remained the same, there has not been the same drop in applications.

--- Later in debate ---

[Nadhim Zahawi]

rose—

[Steve Brine]

rose—

[Shabana Mahmood]

I have taken an intervention from the hon. Member for Stratford-on-Avon (Nadhim Zahawi), so I give way to the hon. Member for Winchester (Steve Brine).

--- Later in debate ---

[Steve Brine]

They say that persistence always pays off. I thank the hon. Lady for giving way; she is being very generous with her time. She keeps saying that applications are down. At the university of Winchester, fees have increased from just over £3,000 a year to just on £8,000, and applications are up on last year. The main reason is that the graduate employment outcomes of students at the university of Winchester, with teacher training being one of the biggest parts of its business, are 97%. Does she accept that the key point is that it is up to higher education institutions to make the case for students to come and spend their money with them so that they will get the benefit from it?

[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.

--- Later in debate ---

[Mr Willetts]

My right hon. Friend is absolutely right, and that leads me to my next point.

Another feature of our reforms is that we have done everything to encourage students from the widest possible range of backgrounds to continue to apply for university. I remind the House of the figures, which the Opposition spokesman carefully ignored in her lengthy speech. The percentage of applications to university by young people has indeed fallen—I accept that—to 31.6% from 32.6% last year. Last year’s rate was the highest on record, and this year’s is the second-highest on record. It is a higher rate of university applications than in any year when the Labour party was in government. I believe that that is because we have successfully communicated to young people that they will not have to pay up front to go to university. Of course, we are also increasing maintenance support for students at university this year. The maintenance grant and support for bursaries are going up. That is why we still have record rates of application to university, and we should celebrate and remember that fact.

[Steve Brine]

Given that the Minister inherited a commitment to cutting £600 million from the budget, what would the outcome have been if he had not taken the decision to base university financing on a system of student fees and loans? Presumably it would have been a dramatic drop in numbers and my having to say to thousands of my constituents, “Sorry, university’s not for you.”

[Mr Willetts]

We inherited from the previous Government a simple line in the 2009 autumn statement announcing £600 million of cuts in higher education, science and research. Absolutely no work had been done about where the cuts should be and how they should be delivered, but they would have meant either falling student numbers or less support for science and research. We have been able to offer cash protection in a ring-fenced science budget, and as I showed the House earlier this evening, there has been an increase in the total funding available for teaching in our universities. To achieve that when we are facing the severe financial problems that we inherited from the previous Government is evidence of our commitment to opportunities for young people and to universities and research.

That is exactly what the outside experts say. For example, I remind the Opposition spokesman of the assessment by the Institute for Fiscal Studies. It stated in June:

“The HE funding regime to be introduced in England in September 2012 will be substantially more progressive than the current system. Roughly the poorest 30% of graduates, in terms of lifetime earnings, will be better off…than under the current system…Universities will also be better off, on average, and the taxpayer will save around £2,500 per graduate.”

Only yesterday I met the head of the education division of the OECD, who was here to launch “Education at a Glance”, its annual publication. He described our system of repaying loans as

“the most advanced system in the OECD”,

and added that

“probably no system does it better.”

That was what the impartial head of the OECD’s education division said yesterday.