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Cable accepts unlimited tuition fees plan | |
(40 minutes later) | |
By Sean Coughlan BBC News education correspondent | By Sean Coughlan BBC News education correspondent |
Business Secretary Vince Cable has given the government's approval to a report allowing an unlimited rise in tuition fees in England's universities. | |
Mr Cable told the House of Commons he endorsed the "persuasive proposals" of Lord Browne's radical funding reforms. | |
A backbench rebellion by Lib Dem MPs has been threatened - but Mr Cable defended the plans as "fair and 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". | 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". |
Funding cuts | |
Accepting the "broad thrust" of the report, Mr Cable suggested that students might expect to pay fees of about £7,000 - more than double than at present - with the option of a higher level of fee. | |
But the business secretary said he would remain "open to suggestions" while preparing a detailed response to Lord Browne's report - with the aim of implementing changes to fees by 2012. | |
Labour's business spokesman, John Denham, claimed that fee increases assumed a forthcoming 80% cut in teaching grants. | |
"It would effectively end public funding of most courses and it would put the responsibility for paying for higher education on to students alone," said Mr Denham. | |
The UCU lecturers' union said Lord Browne's 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". | |
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. |
Fee pledge | |
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 remained official policy to scrap fees. | |
Mr Cable still faces the challenge of heading off a rebellion by backbench Lib Dem MPs. | Mr Cable still faces the challenge of heading off a rebellion by backbench Lib Dem MPs. |
The party's deputy leader Simon Hughes challenged Mr Cable to explain how disadvantaged youngsters would not be deterred by such charges. | The party's deputy leader Simon Hughes challenged Mr Cable to explain how disadvantaged youngsters would not be deterred by such charges. |
Students have warned they will challenge MPs who "betray" their election pledge. | Students have warned 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. |
Free market | Free market |
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' |
This more competitive market would also mean that for the first time universities could go out of business. | |
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 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. |