Higher Education Courses (Fees) (Hansard, 21 December 1966)

§ Mr. Crosland

Tuition fees for university courses at present average about £70 a year, and for higher education courses in Further Education establishments somewhat less. These are, of course, considerably less than the actual cost of the courses provided, and in the great majority of cases, apart from overseas students, they are paid by local education authorities or Government Departments as part of the system of student support.

It is customary for the level of university fees to be reviewed at the beginning of each quinquennium, and such a review would fall due for the quinquennium beginning next academic year. In present circumstances the Government does not consider any general increase of fees would be desirable. Any increase in fee income would be balanced by a reduction in the quinquennial grant and the main result would therefore be to increase the strain on local authorities' resources without any corresponding advantage to the universities.

3. Faced with the rising cost of higher and further education the Government has, however, considered further the position of students from outside the United Kingdom receiving higher education courses in this country, who benefit from the present nominal fees. The number of full-time and sandwich course students from outside the United Kingdom in British universities and further education is now over 30,000 of whom 7,000 comes from countries with fully developed systems of higher education. Last year the total amount by which the fees paid by these students fell short of costs was over £18 million. The Government concludes that a higher level of fees for 377W Students from outside the United Kingdom is justified, provided there are proper safeguards for existing students and students financed by Her Majesty's Government through scholarships and other schemes.

4. The Government has therefore decided chat the next quinquennial settlement of recurrent grant to universities should take account of a fee income of £250 a year from students from outside the United Kingdom beginning courses next academic year and the University Grants Committee has been informed accordingly. To avoid hardship the increase in the fee assumed for those who haw already embarked on courses which extend into next academic year will be limited to £50 a year to the end of their present course.

5. I am advising local education authorities to charge from the same time similar fees to students from outside the United Kingdom for full-time and sandwich higher education courses in establishments of further education; and fees of £150 a year for further education courses at other levels-again with a limit of £50 per annum increase for students already embarked on courses. Exchequer grant to local authorities will be adjusted in due course by reducing any additional sum otherwise payable because of increased costs through a Rate Support Grant Increase Order. Similar arangements will be made in Scotland by my right hon. Friend the Secretary of State for Scotland.

6. It is estimated that the net saving from these arrangements will be £2 million in 1967–68 and over £5 million in a full year when they are fully effective.

7. The Government has taken this step with some reluctance and regrets that it it has not been possible to give institutions, local education authorities and students concerned more time to make the necessary arrangements. But even with these increased fees the courses provided will contain a substantial subsidy to the overseas students, the total amount of which will be greater than it was five years ago.

8. Parliament will be asked to vote funds to meet the cost of the increase in the case of students from abroad financed by the Ministry of Overseas Development, the British Council and other 378W Government agencies, so that there will be no diminution in this form of Aid and announced programmes will be fulfilled.

9. A fund will be provided to reimburse the Governments of developing countries with the additional fees of £50 which are payable for students whom they are financing and who have already embarked on courses of study. This fund will be administered by the British Council on behalf of the Ministry of Overseas Development.