Student Finance

Part of the debate – in the House of Commons at 4:55 pm on 23 June 2003.

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Photo of Alan Johnson Alan Johnson Minister of State (Education and Skills) (Lifelong Learning, Further and Higher Education) 4:55, 23 June 2003

First, I appreciate that the prospectus needs to be ready 18 months in advance, but we are giving plenty of notice that the measure will not be introduced until after the next general election—until 2006. If we can avoid the problems to which the hon. Lady refers in any other way, as she raises pertinent points, we shall look to do so.

The proposed arrangements, including the graduate contribution scheme, are progressive rather than regressive. I have dealt with the arrangements for repayment. As Professor Nick Barr of the London School of Economics has pointed out, although we are talking about this as debt, it is in fact payroll deduction: it will be paid through the tax system. It is not like a credit card debt. It is important that we look at it in that way.

The regime is not pernicious or regressive. Part-time, overseas and postgraduate students—who make up around 50 per cent. of the student population—already pay such variable fees and always have done. As part of our proposals, we will give assistance to part-time students for the first time.

There is one issue, which has already been raised, which unites me with the hon. Member for Harrogate and Knaresborough. I do not doubt his commitment to bringing more talented youngsters from working-class backgrounds into higher education, and I hope that he will not doubt my passion to see access widened. He makes the assertion that these proposals would deter youngsters from poor families. The first point to make, which was raised by my hon. Friend the Member for Birmingham, Hall Green in an intervention, is that students from a middle-class background were three times more likely than those from manual and unskilled backgrounds to go to university 30 years ago when there were no fees and a generous, non-repayable grant, and they are still three times more likely to go to university now with a £1,100 upfront tuition fee and no maintenance grant. There has been no deterioration in the position since tuition fees were introduced.

The reasons for this social gap are varied and complex. We do not contend that they are related to university admissions policy. All the evidence indicates that the principal problems concern raising achievement and stimulating and supporting work to widen the range of applications.