The reality of the Government proposals
David Willetts addresses some of the issues raised by student protestors.
It is shocking that peaceful and legitimate student demonstrations have been marred by violence. Violence is never a persuasive means of making an argument. It serves only to tarnish the reputation of the overwhelming majority of students around the country.
The Government is committed to the principle that going to university should depend on ability – not the ability to pay. Our proposal is for a system of graduate contributions that is fair for all.
During the first student demonstrations in London, I was concerned to hear one of the young people interviewed say that higher contributions would make it impossible for her to fulfil her ambition to become a teacher. She explained that she could no longer afford to pursue that worthwhile career. This is not the case, and I do not want anyone to be put off from going to university because they have misunderstood our proposals.
Let's use the example of this young woman. First, she will not have to pay any tuition charges until after she graduates and is earning an income.
Second, as a newly-qualified teacher, she will repay less per month than recent graduates currently do. The starting salary for a newly-qualified teacher today is around £21,500 (outside London). Someone on this wage would make monthly repayments at the rate of 9p in the pound, but only on income over £21,000 (the current threshold is £15,000). This would mean repayments of less than £4 per month.
Graduates who earn more will repay more each month, so the system is fair and affordable; and those who enter a more lucrative profession will pay a higher rate of interest, and ultimately contribute more to the cost of their university education.
Monthly repayments depend on income alone, so if graduates leave the labour market, their repayments will stop until they're earning again.
And third, the Government is introducing a range of support for students from less affluent families for which she may well be eligible. These include more generous living grants and a new £150 million national scholarships programme, which could offer a free first year for students from the most disadvantaged backgrounds.
As a result, we estimate that around one quarter of graduates on the lowest incomes will actually pay back less than under the current system. We also expect around one million students will be eligible for more help with their living costs than at present.
We are not, therefore, placing a heavier financial burden on people least able to afford it. On average, a university graduate earns £100,000 more during his or her lifetime – net of tax – than someone who leaves school at 18.
And besides our desire to make the finances of universities more sustainable than they are now, we are just as committed to improving students' experience of university.
Under the new arrangements, more university funding will be in the hands of students. Their choices will actually shape higher education as institutions have to work harder to attract them, offering the knowledge and skills that students need to get ahead.
Universities that offer the best teaching arrangements and facilities – and can demonstrate that their graduates are successful – will themselves be more successful at recruiting applicants.
Furthermore, any university charging graduate contributions above the basic level must show how part of that extra money will be used to attract and support applicants from disadvantaged backgrounds.
The course of action that the Coalition is taking will not please everybody. It is, however, necessary, fairer than the current system and it will improve the experience of going to university.
- David Willetts, Minister of State for Universities and Science
