HC Deb 15 July 1975 vol 895 cc1248-50
4. Mr. Dalyell

asked the Secretary of State for Education and Science when he hopes to complete his review of financial assistance to students at the Open University; and if he will make a statement.

18. Mr. Pattie

asked the Secretary of State for Education and Science when he will make a statement on the discussions his Department is having with the Open University concerning increased course fees.

Mr. Mulley

My Department's discussions with the Open University are concerned primarily with the proposal to increase the course tuition fee from the academic year 1976. I hope that these will be completed soon. Financial assistance to students at the Open University is given by local education authorities using their discretionary powers.

Mr. Dalyell

Does the Department have any evidence that those in the lower income groups are seriously disadvantaged in attempting to do these university courses?

Mr. Mulley

We have no firm evidence to that effect but quite clearly in considering the position of the Open University I would not wish the fees to push courses beyond the means of any students. We have not yet settled how best to meet that objective, but clearly we need to put up the fees. They represented only some 10 per cent. of the cost in 1973 when they were last increased, and now they represent only 8 per cent. of the cost. I fear that, in line with practically everything else, we have to consider some increases.

Mr. Marten

Will the Secretary of State ensure that there is no added burden on students of the Open University who are so disabled as to be unable to go to an ordinary university?

Mr. Mulley

It is because of these difficult cases that my noble Friend is having discussions with the Open University to see whether we can find a better way than imposing a pure flat-rate increase across the board.

Mrs. Ann Taylor

Does my right hon. Friend realise that an increase in students' fees might mean that more students will take one course instead of one and a half or two courses a year, and that that development might be used by the Open University as an excuse for not increasing the number of new student places, as is threatened for next year? In the discussions with the Open University will he press the importance of taking on 20,000 new students next year and not reducing the number to 16,000, as has been speculated?

Mr. Mulley

I shall certainly convey those views, and certainly we shall want to secure an arrangement which will bring in a little more money without producing the kind of circumstance to which my hon. Friend has drawn attention.

Mrs. Bain

Does the right hon. Gentleman accept that any increase in the fees for the Open University will mean that people on fixed incomes, such as working-class people and housewives, will have to terminate their studies, and that this will mean that the Open University is no longer an open university? When he says that local authorities have the right to award grants to students, will he bear in mind his Government's cut-back on local authority expenditure which means that many local authorities will not make this subject a priority in their spending?

Mr. Mulley

I do not understand what the hon. Member said about working people on fixed incomes. The rate of increase proposed would be, at the maximum, very much less than the average increase in earnings and other income. As for local authority assistance, in the pre- sent year the rate support grant given to local authorities for education and other purposes is higher than it has ever been.