Higher Education Tuition Fees

Oral Answers to Questions — Economy – in the Northern Ireland Assembly at 2:45 pm on 22 March 2022.

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Photo of Nicola Brogan Nicola Brogan Sinn Féin 2:45, 22 March 2022

3. Ms Brogan asked the Minister for the Economy for his assessment of the British Government's reforms to higher education tuition fees. (AQO 3235/17-22)

Photo of Gordon Lyons Gordon Lyons DUP

The most significant reform announced by the UK Government is in relation to the repayment terms associated with student loan borrowing for English domiciles. That is intended to significantly reduce the likelihood of English students not repaying their student loan. It is of significance, as funding for Northern Ireland loan products is provided by Treasury and is directly linked to the write-offs incurred in the English system. The English changes may, therefore, force the need for the repayment terms of student loans for Northern Ireland domiciles to be amended to bring the level of Northern Ireland loan write-offs down to the future forecast level in England from 2023-24. That is highly likely, unless a decision is taken to further subsidise Northern Ireland student loan products by supplementing them with grant support, something that the Executive would need to decide and that could not be achieved within my Department’s draft budget.

Indeed, the Finance Minister’s proposed budget settlement for my Department may leave me with little choice but to consider further options, including reducing teaching grant funding to our local universities, which could lead to a reduction in places available for Northern Ireland students wishing to study in Northern Ireland, alongside any changes that might have to be applied to Northern Ireland student loan products as a result of the changes announced in England that will apply there from 2023-24.

Photo of Nicola Brogan Nicola Brogan Sinn Féin

Gabhaim buíochas leis an Aire fosta. I thank the Minister for his answer.

The reforms tabled in England mean that students have to start repaying their student fees when they are on a lower wage and could be forced to make payments for up to 40 years, which could potentially be into their retirement. Can the Minister give a commitment that his Department will not follow those regressive changes and drive more graduates into poverty?

Photo of Gordon Lyons Gordon Lyons DUP

Unfortunately, I am not in a position to do that, because I do not know what the final Budget settlement will be.

I would like to do an awful lot more on skills and further and higher education, but I am limited by the Budget settlement that I receive. Unfortunately, under the Finance Minister's draft Budget — the Member is shaking her head — I would have to cut back on some of the things that I am already doing, never mind doing some of the other things that we believe need to be in place in order for us to have the type of education system that we want in Northern Ireland. To go even further than that and to compensate for those changes will require additional funding. Of course, it would change everything if that funding were made available.

Photo of Peter Weir Peter Weir DUP 3:00, 22 March 2022

Those of us who attended the excellent presentation today by representatives of the Open University will know the great significance of the higher education sector in Northern Ireland and, indeed, the wider United Kingdom. Will the Minister outline the implications for the higher education sector if the draft Budget that has been proposed by Minister Murphy were to go through unchanged?

Photo of Gordon Lyons Gordon Lyons DUP

It would be a very difficult situation for universities and students if the proposed draft Budget settlement for my Department were to become the final settlement. It would not be good for the universities in what they could provide, and it would not be good for students in the support that would be made available to them. The draft Budget settlement has consequences. I am well aware of those.

When the Finance Minister presented the draft Budget to the Executive, it was the first time since 2007 that we did not put the economy and skills at the forefront of what we are doing in Northern Ireland. I have a vision of Northern Ireland being among the elite small economies of the world. If we are to have that, we need to make sure that the funding is in place to address our skills. That is one of the single greatest challenges in Northern Ireland. If we do not invest in skills, we will not achieve everything that we set out in our 10X Economy vision. That is why we need the funding in place to support it.

Photo of Paula Bradshaw Paula Bradshaw Alliance

The Minister will be aware that there is huge pressure for places in our two universities. That will just get worse with the growing demography of young people in that age group. What is the Minister's Department doing on the maximum student number (MaSN) cap? Is a review under way? Are there any plans to raise the numbers for the university intake?

Photo of Gordon Lyons Gordon Lyons DUP

Of course, the maximum student number has risen in recent years, and it increased from 22,844 in 2018-19 to 25,255 last year. However, the number has not kept up with demographic changes, and I understand the difficulties that we will face if we do not see a change. In many cases, we will just export more of our young people. I do not want that to happen at all; I want those who want to stay here to be able to do so. We have to recognise that many are determined leavers, and they will go to Great Britain. However, I want to see more of our young people studying here. Indeed, I want more students to come here from outside Northern Ireland and from Great Britain in particular. The MaSN cap would not affect them.

I continue to have discussions with the universities about that, but, as I said in answer to other questions, a lot of it comes down to funding, whether we are prepared to look at how we fund those places and what role the Executive are prepared to play in that.