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Tessa gives her view on tuition fees

November 29, 2010 1:42 PM

StudentsTessa Said:

I believe tuition fees and top up fees are a barrier which will prohibit some students from entering into Higher Education. The current system is unsatisfactory - it both encourages and promotes state-sponsored indebtedness, which in turn has influenced some in society in their attitude to, and perception of, debt. The Labour Government introduced fees having made promises it would not do so; once the system was in place, it was inevitable that some University Vice Chancellors would then lobby that Government to raise the 'cap' on fees.

At the moment, no-one knows exactly what proposals are going to be put before Parliament for debate, although we have some idea from discussions arising from the recent publication of Lord Browne's Report, commissioned by the last Government with revisions requested by the Coalition. I know that I couldn't vote for the Browne recommendations; what remains to be seen is the detail of what is actually proposed by the Government and to listen to the debate. I intend to write to you again when the legislation is introduced to Parliament.

As for the future, I believe our Universities should become self-funding over the next decade, preferably on an endowment basis. I don't believe there can be an assumption that the taxpayer will continue to subsidise all degree courses ad infinitum; nor do I believe it is good for the Higher Education sector to have to negotiate every funding award with the Treasury as this leads to uncertainty. Up-front fees are not the right answer, so some creative thinking is needed to provide a way forward.

My preference has always been for a form of graduate contributions endowment scheme - where students pay a contribution from their salaries after graduating to the University where they qualified. It is generally accepted that those with University degrees will earn over £100,000 more during their working life than those without. I have spoken to Vince Cable and Nick Clegg to discuss an idea, and will be meeting Vince again next week. The main benefits of a graduate contribution endowment scheme are that it would:

i. be the fairest and most effective way of removing barriers to entering University - no fees

ii. be less expensive for graduates than the current system - and the solution envisaged by Lord Browne

iii. not penalise those who work in low paid or third sector jobs or those who need to take time away from the workplace to care for children or elderly relatives

iv. drive Universities continually to improve and increase the quality of their education, to deliver value to students, to ensure students are well-matched to their courses, to focus on working closely with business, industry, government services, research and development organisations and the charitable, philanthropic and benevolent sectors with a eye to meeting employers' needs

v. remove the need for Universities to negotiate regularly for each settlement with the Treasury, ensuring funding stability

vi. lead those who get the benefit of a degree-level education and qualifications to contribute towards the costs

Clearly there is still some detail to be discussed, but I hope that this letter provides you with some reassurance as to the principles which guide my thoughts on this issue.

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