Quick links

UNISON

Site search

Join UNISON

Site navigation

Features

USEFUL WEB LINKS

Link to an external websiteThe Association of University teachers

Link to an external websiteNUS Online has a good backgrounder on the issues and details of the NUS campaign.

Link to an external websiteClick here for the government’s position and details of the White Paper

STUDENTS AND MONEY – A BRIEF HISTORY

Years 1963-1979: Robbins Committee on higher education recommends ‘courses of higher education should be made available to all those who are qualified by ability and attainment to pursue them, and who wish to do so.’ Creation of set of new redbrick unis and polytechnics built to meet released demand.

£ situation: Though there was always a high proportion of middle and upper-middle class students, a large number of working-class students entered higher education in big numbers for the first time as their fees and maintenance were fully paid for at source by the taxpayer.

Years 1985-1990: After years of chipping away the Tories finally abolish the maintenance grant and loans are introduced.

£ situation: With this move and 1986’s halt to students claiming benefits like supplementary and unemployment benefit during vacations, which had often been a useful addition to their incomes. Student loans were introduced in 1990.

Years 1997-today:
Labour ended all grants and moved to a full student loan system in 1997. This was met with a gradual move to oblige students to start paying more and more for that further education itself. Now all students are financially liable for support and a growing proportion of tuition, many claim they are being driven further and further into debt.

Higher education costs us £7.5bn spent by government, with only £400m of that coming from tuition fees contributed by students out of their own pockets.

The government says that as graduates on average will earn so much more than non-graduates in their working lives, as much as 64% or £400,000, they should be contributing more.

There’s also a wide discrepancy in the sorts of jobs students actually end up doing, which can vary wildly from the average graduate salary of £17,722.

The NUS’s position is that as students enter professional employment they’ll also pay so much more in tax, thus repaying the benefits of education to society anyway.

There’s also the fact that working-class kids even with degrees still end up earing less in the workplace than their posher classmates (7% less, according to the National Audit Office).

Reform of higher education has been high on the government's agenda, with promises to open it up to more working class students. The controversy over student fees is set to be reignited as details of the so-called 'access regulator' are announced. Gary Flood reports

Freedom to learn?


The next couple of weeks will see more details from the government on its plans to reform higher education, in the form of specific proposals on the so-called access regulator, its proposed means of making sure more working class students get into top universities.

Critics say they could save themselves the bother if they just reduced the biggest barrier to working-class entry into tertiary education: its growing cost.

The issue of top-up fees and other ways to finance education is a growing problem for the government.

Its January White Paper caused a storm of protest. (A White Paper is a document produced by the government setting out details of future policy on a particular subject, and will often be the basis for a later Bill - so the government is trying to get feedback on the proposals before formally presenting them as legislation in a future Queen’s Speech.)

Despite outlining a 6% increase in university funding per year over the next three years, Education Secretary Charles Clarke was pilloried for saying it was time students paid more towards the cost of their higher education.

The proposals: Labour wants to bring back the grant for poorer students (but in a limited way), abolish upfront fees (but it’ll allow colleges to charge fees of up to £3,000 per student, up from today’s £1,100 maximum from 2006).

That new grant will be £1,000 a year to help with maintenance, at a cost of £300m. From September 2004 students whose family income is less than £10,000 will get this £1,000 grant, with a declining proportion of that up to those from £20,000 a year homes.

From 2006 fees will be paid for after graduation through the tax system, with no interest charged on deferred fees, with the ceiling for when the loan must start being paid back out of salary being raised from £10,000 to £15,000.

The White Paper was greeted with highly vocal opposition. The government stands by its proposals, arguing they represent the best way forward for the whole of the sector.

Critics – led by the NUS, but supported by bodies like the AUT (Association of University Teachers) – say no, and are determined to fight the proposals.

UNISON agrees. "UNISON is completely opposed to the government's proposals to allow universities to charge differential fees," says Chris Fabby, UNISON national young members officer.

"We believe this move would lead to the creation of a two tier elitist higher education system where talent will be secondary to bank balance. Our policy is clear we want the government to abolish all forms of tuition fees and reintroduce a "living grant" for all students."

But does the NUS want a return to the ‘good old days’ of 100% free education and full grants? It says not: "[We] have long accepted that well-off graduates, those who have financially benefited from a university education, should make a contribution towards their maintenance costs."

But it feels that the proposed solution isn’t really a solution for most students struggling to make ends meet, and will end up being so costly as to make further education once again an option just for the wealthy.

As the NUS president, Mandy Telford, wrote in a Guardian column in January: "It is astonishing that the government opted to bring back a nominal grant and abolish up-front fees, yet actually triple the cost of studying at university."

The NUS is conducting a major campaign to fight the proposals, starting with a mass lobby of parliament, and a week of mass action across UK town and cities later this month.

Given the parlous state some of their members are in, can you blame them? The NUS claims that in the academic year 2001-02 a student’s average take-home after rent was £38.85 if they lived outside London, and £36.27 in the capital.

That compares – unfavourably – with the government’s own set level for what it thinks a single person needs to live on, as the Jobseekers’ Allowance stands at £42.70.

The student loan rates for this academic year are £4,815 for students living away from home in London, and £3,090 for those at home. (In comparison, in 1982 a full grant for a London-based undergraduate was £1,900.)

But the NUS claims the real cost of being a student is £8,400 a year in London and £7,317 outside - which could translate to a shortfall of nearly £5,000 each year.
Barclays says that average debt on graduation is now £12,000, up sharply from 2001.

Though other research (from UNITE/MORI) puts that figure lower, even that analysis has still come up with a hefty £7,652 as estimated debt to paid off.

But critics say that the tuition fees could make those scary numbers truly horrifying for some prospective undergraduates. If students are liable for fees of up to £3,000 per year, that brings the cost of the basic three year course to £9,000. Added to accommodation and living expenses, a graduate may well be leaving university with debts of £21,000 or more – maybe more (medical students could end up £40,000 in the red).

What’s undeniable, as with our first scenario, is that going to uni these days isn’t the dope-smoking revolutionary free for all it was for some of us. A 2000 Labour Research Study report found 60% of students questioned had to work as many as 20 hours a week in such jobs to make ends meet.

Yet the government wants more and more of us to go to university, no matter what our backgrounds. In 1990 20% of young people between 18 to 30 went on to further study after A-levels. In 2002 that was 43%, and Labour says it wants that to go up to 50% by 2010.

This is why the government is proposing what it calls the access regulator – a third party that will regulate universities to make sure they recruit from a wider social background.

The government says that its compromise is the fairest way of providing the resources our children need to create their futures. But it seems it faces an uphill task persuading all the parties concerned.

Maybe AUT general secretary Sally Hunt is on to something when she says, "People feel very strongly about this issue. Top-up fees are extremely unpopular - and could become this government’s poll tax."

Contact the article's author Gary Flood

CLARKE SPEAKS TO UNISON

Secretary of State for Education and Skills Charles Clarke, speaking exclusively to UNISON, gives his side of the story.

"We have fine universities in this country. Not just the established institutions but also newer ones with growing reputations. They provide a first-class education for their students and lead the world-class research which drives our crucial industries here and across the UK.

"But our universities face real challenges. While many more young people from all backgrounds now go to university, the social gap is still too wide.

"I know too that there are still fears that the abolition of maintenance grants and introduction of up-front fees could deter students.

"Universities warn lack of resources is preventing them from employing the best and brightest academics or funding the cutting-edge research our economy needs to prosper. College facilities need upgrading while lecture and tutorial sizes are increasing.

"There is no easy way to meet these challenges. The government is already tackling the decades of under-investment in higher education through a funding increase of over 6% a year in real terms for the next three
years. We are working hard to improve standards in our schools.

"But if we are to support excellence in our universities so they create jobs and prosperity in our economy and ensure they play their full part in extending opportunity by increasing access, we must do more.

"Some of our most prestigious universities may raise fees for their most popular or expensive courses. But for other courses and at other universities, fees will stay the same or even be cut.

"So the reforms will have different impacts on different students. Some who get the maintenance grant and whose course fees stay at £1,100 will find they are better off overall. Some will pay more - with the money going direct to their university to improve the education.

"But the absolute maximum extra any student could pay under these plans, for a normal three year degree, would be £5,700 - for which they can get an interest free loan which can be paid back over ten years or longer when they start working. It also means that students will continue paying just a fraction of the cost of their higher education with the rest still being met, rightly, by the tax-payer.

"I believe these reforms are fair and affordable and will ensure able people, whatever their background, benefit from higher education. They will improve teaching and research at our universities and put higher education across the country on a sound footing for decades to come."

LOTS MORE FEATURES

Including stress in the workplace, getting out of debt and the pensions crisis more...
UNISON, 1 Mabledon Place, London WC1H 9AJ. Telephone: 0845 355 0845.
© Copyright 2008
UNISON plus
for Shopping Discount Service
Investor in People