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| Cable under pressure over tuition fees | |
| (about 1 hour later) | |
| | |
| Business Secretary Vince Cable has given his approval to a report which would allow an unlimited rise in tuition fees in England's universities. | |
| Mr Cable told the House of Commons he endorsed the recommendations of Lord Browne's proposals as "fair and affordable". | |
| A backbench rebellion by Lib Dem MPs has been threatened - but Mr Cable defended the plans as "progressive". | |
| Students have warned that raising fees would mean "crippling debts". | Students have warned that raising fees would mean "crippling debts". |
| Mr Cable told MPs that his previous pledge to scrap fees was "no longer feasible" - and that he saw Lord Browne's proposals to raise fees as "on the right lines". | |
| The business secretary said there would now be further scrunity of Lord Browne's proposals - with the aim of implementing changes to fees by 2012. | |
| The UCU lecturers' union said the proposals, which could see fees rising to as much as £12,000 per year, was "the final nail in the coffin for affordable higher education". | |
| Higher earners | Higher earners |
| Accepting the main proposal of Lord Browne, that the limit on fees should be lifted, presents deep political difficulties for the Liberal Democrats. | Accepting the main proposal of Lord Browne, that the limit on fees should be lifted, presents deep political difficulties for the Liberal Democrats. |
| The party's MPs, including Mr Cable, signed a pledge at the election to vote against any increase in fees. | The party's MPs, including Mr Cable, signed a pledge at the election to vote against any increase in fees. |
| Party leader, Nick Clegg, made a video for students in which he delivered a personal message saying that tuition fees were "wrong" and that he would oppose them. | Party leader, Nick Clegg, made a video for students in which he delivered a personal message saying that tuition fees were "wrong" and that he would oppose them. |
| The press office of Mr Cable's own party said it is still policy to scrap fees - despite the expectation of Mr Cable entirely contradicting this by endorsing an increase in fees. | The press office of Mr Cable's own party said it is still policy to scrap fees - despite the expectation of Mr Cable entirely contradicting this by endorsing an increase in fees. |
| Mr Cable will have to find a form of compromise that will allow his MPs to accept a deal on higher fees - despite warnings from students that they will challenge MPs who "betray" their election pledge. | Mr Cable will have to find a form of compromise that will allow his MPs to accept a deal on higher fees - despite warnings from students that they will challenge MPs who "betray" their election pledge. |
| The blueprint for universities in England set out by Lord Browne would see an emphasis on competition. | The blueprint for universities in England set out by Lord Browne would see an emphasis on competition. |
| £6,000 fees | £6,000 fees |
| It calls for the current £3,290 cap on fees to be scrapped and replaced by a free market, in which universities set their own charges for different courses. | It calls for the current £3,290 cap on fees to be scrapped and replaced by a free market, in which universities set their own charges for different courses. |
| But Lord Browne's review proposes that universities that charge more than £6,000 a year would lose a proportion of the fee to help cover the cost of student borrowing. | But Lord Browne's review proposes that universities that charge more than £6,000 a year would lose a proportion of the fee to help cover the cost of student borrowing. |
| Lord Browne said: "We have taken off the cap but we haven't taken off the restrictions." | Lord Browne said: "We have taken off the cap but we haven't taken off the restrictions." |
| He said all universities were different and needed different amounts of money, but he predicted that few would put fees very high. | He said all universities were different and needed different amounts of money, but he predicted that few would put fees very high. |
| He acknowledged graduates would be paying significantly more back in their tuition fee and maintenance loans but insisted they were not being left with "mortgage-style debts". | He acknowledged graduates would be paying significantly more back in their tuition fee and maintenance loans but insisted they were not being left with "mortgage-style debts". |
| "They would be paying the same interest rate as the government uses to borrow. They will only pay it back when their earnings go above £21,000," he said. | "They would be paying the same interest rate as the government uses to borrow. They will only pay it back when their earnings go above £21,000," he said. |
| The report comes ahead of next week's comprehensive spending review, in which major cuts to higher education funding are expected. | The report comes ahead of next week's comprehensive spending review, in which major cuts to higher education funding are expected. |
| Lord Browne sets out a system in which much of the cost of a degree would be transferred from the taxpayer to the student. | Lord Browne sets out a system in which much of the cost of a degree would be transferred from the taxpayer to the student. |
| Universities 'could close' | Universities 'could close' |
| Shadow university minister John Denham said the report reflected the belief that teaching budgets would be cut by around two-thirds. | Shadow university minister John Denham said the report reflected the belief that teaching budgets would be cut by around two-thirds. |
| "This is a massive cut even when set against the coalition's aim to cut spending by 25%," he said. | "This is a massive cut even when set against the coalition's aim to cut spending by 25%," he said. |
| This more competitive market would also mean that for the first time universities could go out of business, says the report. | This more competitive market would also mean that for the first time universities could go out of business, says the report. |
| Universities must compete over students, fee levels and against new providers, the review panel recommends: "If they fail... they might ultimately close or be taken over." | Universities must compete over students, fee levels and against new providers, the review panel recommends: "If they fail... they might ultimately close or be taken over." |
| The report seeks to balance higher charges with support for applicants from poorer families. | The report seeks to balance higher charges with support for applicants from poorer families. |
| As now, students would not have to pay fees up-front, but would receive a loan. | As now, students would not have to pay fees up-front, but would receive a loan. |
| But they would not have to start repaying it until their earnings reached £21,000 per year, up from the current level of £15,000. | But they would not have to start repaying it until their earnings reached £21,000 per year, up from the current level of £15,000. |
| All students will be able to borrow £3,750 per year - and young people from families earning less than £25,000 will receive an additional grant of £3,250. | All students will be able to borrow £3,750 per year - and young people from families earning less than £25,000 will receive an additional grant of £3,250. |
| There have been warnings that middle-income families will face a particular financial squeeze from such a fee hike. | There have been warnings that middle-income families will face a particular financial squeeze from such a fee hike. |
| "There is a feeling that the rich can afford it - and the poor will quite rightly be protected - but people in the middle could find themselves really penalised," says Justine Roberts of the Mumsnet website. | "There is a feeling that the rich can afford it - and the poor will quite rightly be protected - but people in the middle could find themselves really penalised," says Justine Roberts of the Mumsnet website. |
| If accepted by the government, the reforms are expected to take effect in 2012 at the earliest. | If accepted by the government, the reforms are expected to take effect in 2012 at the earliest. |
| Paul Marshall, executive director of the 1994 Group of research-intensive universities, welcomed the review as "the first progressive step" towards increasing funding for universities. | Paul Marshall, executive director of the 1994 Group of research-intensive universities, welcomed the review as "the first progressive step" towards increasing funding for universities. |
| But the Million+ group of new universities said it would deter poorer students, and would "undoubtedly mean that some students who would have gone to university will decide not to go". | But the Million+ group of new universities said it would deter poorer students, and would "undoubtedly mean that some students who would have gone to university will decide not to go". |
| The Russell Group of leading universities said the higher charges would provide necessary extra income. | The Russell Group of leading universities said the higher charges would provide necessary extra income. |
| "That's because, bluntly, our leading institutions will not be able to compete with generously-funded universities in other countries if they are not able to secure extra funding." | "That's because, bluntly, our leading institutions will not be able to compete with generously-funded universities in other countries if they are not able to secure extra funding." |
| The National Union of Students said students would be left with "crippling levels of debt and many universities face utter devastation as a result of horrific cuts". | The National Union of Students said students would be left with "crippling levels of debt and many universities face utter devastation as a result of horrific cuts". |
| Elsewhere in the UK, Scottish students studying in Scotland do not have to pay any fees. In Northern Ireland and Wales, fees are charged up to a maximum of £3,290 a year. | Elsewhere in the UK, Scottish students studying in Scotland do not have to pay any fees. In Northern Ireland and Wales, fees are charged up to a maximum of £3,290 a year. |
| Are you a prospective student planning to go to university? Are you a parent concerned about fees? How would these proposals affect you? Send us your comments. | Are you a prospective student planning to go to university? Are you a parent concerned about fees? How would these proposals affect you? Send us your comments. |
| At no time should you endanger yourself or others, take any unnecessary risks or infringe any laws.In most cases a selection of your comments will be published, displaying your name as you provide it and location unless you state otherwise. But your contact details will never be published. | At no time should you endanger yourself or others, take any unnecessary risks or infringe any laws.In most cases a selection of your comments will be published, displaying your name as you provide it and location unless you state otherwise. But your contact details will never be published. |