Oral Answers to Questions

Debate between Lord Willetts and Hugh Bayley

Thursday 6th March 2014 Commons Chamber

[Hugh Bayley (York Central) (Lab)]

14. What steps his Department is taking to encourage UK students to study for postgraduate qualifications at UK universities.

[The Minister for Universities and Science (Mr David Willetts)]

The Government understand the importance of postgraduate study, which is why we are creating a new postgraduate support fund, worth £75 million over the next two years. This investment will allow universities to pilot innovative programmes to support access and participation.

[Hugh Bayley]

As the Minister knows, the UK will not remain competitive if we do not reverse the frightening trend of falling numbers of British students starting postgraduate qualifications, and I fear that the situation could get worse as the first cohort of students to have paid much higher undergraduate fees starts to feed through the system. How many additional postgraduate students will £75 million pay for? What will the Government do further to boost the number of British students doing postgraduate courses?

[Mr Willetts]

After 2016, graduates will be paying back less per month than under the current arrangements, so that factor should not deter postgraduate study. Our extra funding is paying for 20 programmes, in 20 universities, to explore different ways of encouraging more postgraduate study.

Higher Education Policy

Debate between Lord Willetts and Hugh Bayley

Wednesday 27th April 2011 Commons Chamber

[Mr Willetts]

I will turn to that point as I develop my argument. I hope the hon. Lady will accept that the Government whom she supported left behind a fiscal crisis. We were borrowing £120 million a day and were heading for the largest budget deficit in the G20. In fact, the position was so bad that the previous Chancellor had set out proposals for bringing down the deficit by reducing public spending. It is an irony that the Opposition called this debate in the very month when the previous Government’s spending cuts would have started to take effect—£14 billion of cuts planned for this financial year by the previous Chancellor, £16 billion of cuts that we are implementing.

As the shadow Secretary of State knows because he was in the Government at the time, it is clear from the pre-Budget report of December 2009 that there was a commitment to £600 million of cuts from the higher education and science and research budget. It was never explained what those were to be. As we know from the work done by the Institute for Fiscal Studies when it tried to assess Labour’s plans when the previous Government left office, there were to be reductions in public expenditure that the IFS estimated as a 25% reduction in the budget of the Department where the Secretary of State and I serve. So we inherited a mess that we have to sort out.

[Hugh Bayley (York Central) (Lab)]

The question is not whether the deficit needs to be reduced, but whether the decision to impose cuts of 80% on universities is the right way to do it. How will students benefit when they pay three times as much in fees but get less spent on the quality of their education in our universities?

[Mr Willetts]

Let us turn to that. Given that we face a crisis in the public finances, and given that even the previous Government had planned £14 billion of saving, how does one best deliver those in a departmental budget which I do not think any of the three parties represented in the House said could be exempted from reductions? Fortunately, the previous Government set in train an exercise that helped tackle precisely that problem. In November 2009 they commissioned Lord Browne to review the financing of higher education, and they made perfectly clear the wide range of options that they wanted him to look at.

--- Later in debate ---

[Mr Willetts]

Let me just develop this point, because crucially the best way to save money is not to go for reductions in the teaching grant per student, as that simply means a lower-quality experience for students in our universities; instead, the aim is to provide universities, as the teaching grant is reduced, with an alternative source of income from fees and loans which does not involve students paying any money up front.

[Hugh Bayley]

rose—

[Mr Willetts]

I am just going to carry on explaining the basic finances of the measure, because they are so important and the Opposition clearly do not understand them. The point is about lending students money to pay fees. For example, if we lend them £1,000, we can reasonably expect, on the basis of outside forecasts, about £700 of that to be repaid, so we account for the £300 of the loan that is written off—that will not be repaid—but know that we will get approximately £700 back. That is the financing model in Lord Browne’s report, which the Labour party commissioned, and that is what enables this coalition to save money for the Exchequer, to continue with high levels of finances and to ensure that students do not have to pay any money up front. That is an excellent combination of policies at a time when money is tight.

Tuition Fees

Debate between Lord Willetts and Hugh Bayley

Tuesday 30th November 2010 Commons Chamber

[Mr Willetts]

I am grateful to the hon. Gentleman for allowing me to intrude on this Scottish argument. Do we not have here a very clear comparison of the two systems? Does he accept that we have fees and loans in England and a very different system in Scotland? Contrary to what we heard, will he confirm that it is therefore very significant that we have 4,900 English domiciled students going to Scottish universities but 11,500 Scottish students coming to English universities? What does that tell us about the two systems?

[Hugh Bayley]

That is under Labour’s system.