Interesting times for English universities
Over the past few days, the British Minister of State for Universities and Science has been making various statements designed to map out the future direction of English higher education. On November 3 he made a statement to the House of Commons in which he explained the government’s decision to allow an increase in tuition fees, without lifting the cap completely. The standard ceiling will now be £6,000, with fees ‘n ‘exceptional cases’ permitted up to £9,000. This will not take the form of a payment on entry, but rather a repayment on graduation after pay exceeds a threshold of £21,000. He explained the payment system as follows:
‘We are also proposing a more progressive repayment structure. At present graduates start repaying when their income reaches £15,000. We will increase the repayment threshold to £21,000, and will thereafter increase it periodically to reflect earnings. The repayment will be 9% of income above £21,000, and all outstanding repayments will be written off after 30 years. Raising the threshold reduces the monthly repayments for every single graduate.’
Then the minister also addressed a meeting of Universities UK in which he explained that the upper cap of £9,000 would only apply where universities made special access arrangements for disadvantaged students. Interestingly, the minister also laid emphasis on his desire to have private higher education providers enter the market, and for growth in higher education provision by further education colleges. He described the new world of higher education as follows:
‘First of all there is a serious requirement of widening access. Secondly, universities shouldn’t underestimate the competitive challenge they will face. I have a stream of new providers who believe that there is potential to offer an alternative. I believe that the challenge for universities is to look very carefully at their costs, not simply assume [they can] take today’s costs and put them into the new world.’
Clearly the British government intends to change English higher education quite fundamentally. It is still too early to see for sure how the changes will look, but clearly there will be a major emphasis on competition, both between institutions and between types of institutions. Whether the system can flourish on that basis rather remains to be seen.