Tuition Fees (Hansard, 5 July 1976)

§ Mr. Mulley

The Government have reviewed the level of tuition fees in universities and in further education, with particular reference to the position of overseas students. It has had the benefit of advice from many quarters, most recently in the final report of the Joint Working Party on Tuition Fees set up by the Committee of Vice-Chancellors and Principals and the University Grants392W Committee. I have now conveyed the Government's proposals, which are related to the academic year 1977–78, to the University Grants Committee and the local authority associations, inviting their comments, so that I may issue formal recommendations as soon as possible. I am also sending copies to other interested bodies in this field so that they may comment also. Similar action is being taken by my right hon. Friend the Secretary of State for Scotland.

The proposals I have put forward involve the abolition of the present differential between home and overseas students fees at advanced level. I propose a fee of £650 for all advanced full-time courses other than postgraduate, for which I propose a new rate of £750, as compared with the fees already recommended for 1976–77 of £150/£180 for home and £416 for overseas students for both undergraduate and postgraduate courses.

I further propose that all students with mandatory awards will not be required to pay any tuition fees, irrespective of the level of parental income; this will supersede the present minimum award of £50. This means that the parental contribution scale will apply only to grants for maintenance. I hope that local education authorities would similarly increase the value of their discretionary awards. Since the cost of mandatory awards is supported by 90 per cent. grant from the Exchequer, the net effect of these changes will be to reduce the overall burden on the rates.

In the case of non-advanced full-time further education the abolition of the differential between home and overseas students is not practicable. I therefore propose an increase of about 25 per cent. on the 1976–77 fee levels, to produce new standard levels of £325 for overseas students and £125 for home students, as compared with about £260 and £100 recommended for 1976–77.

I am also proposing similar increases of approximately 25 per cent. on other fees for part-time and evening courses, both vocational and non-vocational.

The Ministry of Overseas Development will meet the increases in respect of overseas students assisted under the aid programme.

The Government have also concluded, in present circumstances, that we cannot 393W accept the continued rapid growth in the numbers of overseas students coming to our institutions. The numbers doubled between 1967–68 and 1974–75 from 31,000 to 62,000 and in the current year have increased still further. I am therefore proposing to ask universities and local education authorities to aim at overseas students intakes in 1977–78 and subsequent years which will stabilise total numbers at recent levels. Details of these arrangements will be worked out in consultation with the UGC and local authority associations.

I recognise that my proposals will cause concern to some students already on courses, and that some particular cases of hardship may arise. In present circumstances it is not possible to mitigate the effect of the increases generally, but I shall be prepared to consider with the UGC and local authority associations what steps might be taken to deal with the special hardship cases. Apart from this, however, I would expect universities and other institutions to apply the new rates in full, and the savings achieved from them and from the associated reductions in numbers will be reflected in the grants to the universities and in the rate support grant at the appropriate times.

I shall make a further statement when I have concluded consultations with the interests concerned.