HC Deb 09 September 2004 vol 424 cc853-5
9. Mrs. Anne Campbell (Cambridge) (Lab)

What assessment he has made of the effects on the current cohort of university students of the Higher Education Act 2004. [187702]

The Secretary of State for Education and Skills (Mr. Charles Clarke)

The current cohort of students will not pay the new variable fees, but will benefit from the abolition of up-front fees in 2006, from an improved system for student complaints and from better arrangements for research in arts and humanities. The current cohort of students will also benefit from the introduction of the higher education grant of up to £1,000 this year and from the increase in the repayment threshold to £15,000 in 2005.

Mrs. Campbell

I thank my right hon. Friend for that reply. I add that the current cohort of students will continue to benefit from the high standards offered by the university system in the UK. I hope that he will take the opportunity to congratulate Cambridge university on coming third in the world league of universities, as well as coming first in the world league of teaching excellence. Will the Secretary of State ensure that he publicises the changes and effects of the Higher Education Act 2004 for the present cohort of students, most of whom are completely oblivious to the advantages that it will bring?

Mr. Clarke

First, I am happy to congratulate Cambridge university on its achievement. I took the opportunity of having a conversation with the vice-chancellor yesterday in which we discussed what had led to the university's great success. I am indeed happy to place on record my congratulations on its achievement. I also agree with my hon. Friend's point that publicity about the precise meaning of the changes as they affect each individual is very important, and it will continue to be important as people consider applying for university education in the future. We have a substantial programme of public information to get that across. It has already started to be rolled out, but will be rolled out more fully in order to meet the point that my hon. Friend has raised.

Hugh Bayley (City of York) (Lab)

When the Higher Education Funding Council considers bids from universities to expand their student numbers, will it have regard to whether a particular institution meets the Government's access requirements? Will it give favoured consideration to high-performing universities, such as the university of York, that meet the Government's requirements on access to people from all walks of life?

Mr. Clarke

I cannot commit myself on the university of York's bid, although before the recess my hon. Friend arranged for me to visit the university to discuss with senior people there the meaning of their bid. However, I can tell him that, when it makes such decisions, HEFC must take into full account the contribution made by particular universities to the policies on improving access to higher education that both it and the Government espouse.

Paul Farrelly (Newcastle-under-Lyme) (Lab)

My right hon. Friend will recall that, during the debate on the Higher Education Act 2004, we were on opposite sides of the argument about variable fees. However, we were on exactly the same side when it came to the importance of improving financial support for poorer students. Will he therefore remind the House why, in his reforms, he quite rightly ruled out charging a commercial rate of interest on student loans? Was it because that policy would have been regressive and unfair in its effects on poorer students and lower-earning graduates?

Mr. Clarke

My hon. Friend is entirely right. In 2002, for the benefit of the Select Committee on Education and Skills, we set out our detailed analysis of the impact of real rates of interest. Unlike the Opposition, we rejected the possibility of charging a commercial rate of interest on student loans. First, that was because we did not want people to be penalised if they decided on a career—for example, with a charity or a Church—that was low paid. We thought that ability to pay was important. Secondly, we did not want to penalise women who decided not to work for a period of time after university so that they could bring up a family, as they could find that they would be hit by a real rate of interest of 8 per cent. Thirdly, we did not want people to have to pay back up to £60,000 on a loan of £10,000, which is what a real interest rate of 8 per cent. would add up to.

Those issues arose during our stewardship of education, and those were the decisions that we took. We need to see how others would seek to conduct their stewardship.