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Students face tuition fees rising to £9,000 Students face tuition fees rising to £9,000
(40 minutes later)
By Sean Coughlan BBC News education correspondentBy Sean Coughlan BBC News education correspondent
Universities in England will be able to charge tuition fees of up to £9,000 per year, as the government transfers much of the cost of courses from the state to students.Universities in England will be able to charge tuition fees of up to £9,000 per year, as the government transfers much of the cost of courses from the state to students.
Fees will rise to £6,000 - with an upper tier of £9,000, if universities ensure access for poorer students.Fees will rise to £6,000 - with an upper tier of £9,000, if universities ensure access for poorer students.
Universities Minister David Willetts said this was a "progressive" reform.Universities Minister David Willetts said this was a "progressive" reform.
Labour's Gareth Thomas said the fee hike represented a "tragedy for a whole generation of young people".Labour's Gareth Thomas said the fee hike represented a "tragedy for a whole generation of young people".
The National Union of Students dubbed the plan, which will mean almost a threefold increase, "an outrage".The National Union of Students dubbed the plan, which will mean almost a threefold increase, "an outrage".
Much of the proposed fee rise, up from the current £3,290 per year, will replace funding cut from universities in last month's Spending Review.Much of the proposed fee rise, up from the current £3,290 per year, will replace funding cut from universities in last month's Spending Review.
'Big risk' This will mean that many courses, particularly in arts and humanities, will almost entirely depend on income from students' fees.
This will mean that many courses, particularly in arts and humanities, will almost entirely depend on income from students fees. 'Cash transfusion'
"Essentially, it allows universities to replace a large part of the lost state funding for teaching by way of graduate contributions," said Steve Smith, president of the higher education body, Universities UK."Essentially, it allows universities to replace a large part of the lost state funding for teaching by way of graduate contributions," said Steve Smith, president of the higher education body, Universities UK.
The Million+ group of new universities has warned the withdrawal of public funding will mean universities will be forced to charge students the maximum £9,000 - and that the proposals are "very unlikely" to provide a "long-term and sustainable basis" for university funding. There were divided responses from different types of university.
The proposals were welcomed by the Russell Group of leading universities as "a life-saving cash transfusion" which would be the "only way for the UK to remain a serious global player in higher education".
But the Million+ group of new universities warned the withdrawal of public funding will mean universities will be forced to charge students the maximum £9,000 - and that the proposals are "very unlikely" to provide a "long-term and sustainable basis" for university funding.
"Unless universities charge £9,000 there is a big risk that they will be worse and not better-off because of the swingeing cuts to teaching funding. The fear then must be that the outcome of such high fees will be to damage participation and social mobility," said Million+ chair, Professor Les Ebdon."Unless universities charge £9,000 there is a big risk that they will be worse and not better-off because of the swingeing cuts to teaching funding. The fear then must be that the outcome of such high fees will be to damage participation and social mobility," said Million+ chair, Professor Les Ebdon.
Coalition ministers have been trying to achieve a balancing act between a sustainable funding system for universities and a political deal which will head off a Liberal Democrat backbench rebellion.Coalition ministers have been trying to achieve a balancing act between a sustainable funding system for universities and a political deal which will head off a Liberal Democrat backbench rebellion.
'Ashamed''Ashamed'
NUS president, Aaron Porter, said Liberal Democrat MPs who were going to ditch their election pledge to vote against any rise in fees should be "ashamed of themselves".NUS president, Aaron Porter, said Liberal Democrat MPs who were going to ditch their election pledge to vote against any rise in fees should be "ashamed of themselves".
Opposition leader Ed Miliband accused the coalition of breaking promises over tuition fees - but Prime Minister David Cameron said that such challenges from Labour showed that "opportunism has overtaken principle".Opposition leader Ed Miliband accused the coalition of breaking promises over tuition fees - but Prime Minister David Cameron said that such challenges from Labour showed that "opportunism has overtaken principle".
Mr Willetts, presenting the plans to the House of Commons, confirmed that universities charging the highest fees will have to show support for widening access to students from economically poorer backgrounds.Mr Willetts, presenting the plans to the House of Commons, confirmed that universities charging the highest fees will have to show support for widening access to students from economically poorer backgrounds.
This would mean the type of outreach programmes that many universities already carry out, such as summer schools and targeted scholarships.This would mean the type of outreach programmes that many universities already carry out, such as summer schools and targeted scholarships.
No quotas
This would not mean quotas of students from poor homes, but Mr Willetts promised a "tougher regime" of sanctions if universities made insufficient efforts to attract poorer students.This would not mean quotas of students from poor homes, but Mr Willetts promised a "tougher regime" of sanctions if universities made insufficient efforts to attract poorer students.
Interest rates for repayments on student loans will also be designed to make it more expensive for higher-paid graduates. Interest rates on student loans will make repayments more expensive for higher-paid graduates, in what the government describes as a system with a "progressive taper".
Mr Willetts outlined plans in which graduates earning less than £21,000 per year would not pay any real interest on loans, rising to inflation plus 3% on a scale for graduates earning between £21,000 and £41,000 per year. Mr Willetts said graduates earning less than £21,000 per year would not pay any real interest on loans, but rates would rise to inflation plus 3% at £41,000 per year and above.
But there will be further consultations on possible penalties for early repayment. 'Dark days'
Speaking ahead of the announcement, the Liberal Democrats' youth group rejected the proposals.Speaking ahead of the announcement, the Liberal Democrats' youth group rejected the proposals.
"The current burden of debt is already weighing heavily on many students, and putting many others off going to university altogether," said Liberal Youth chairman Martin Shapland."The current burden of debt is already weighing heavily on many students, and putting many others off going to university altogether," said Liberal Youth chairman Martin Shapland.
Labour's university spokesman, Gareth Thomas, warned that "students will be forced to choose the cheapest courses, not the one that suits them best".Labour's university spokesman, Gareth Thomas, warned that "students will be forced to choose the cheapest courses, not the one that suits them best".
'Dark days' The University of Leicester has carried out research into how fees will change demand for places - and its initial response to the current plans is that high fees will particularly hit demand for places at less prestigious universities.
The University of Leicester has carried out research into how fees will change demand for places - and its initial response to the current plans are that high fees will particularly hit demand for places at less prestigious universities.
Vice-Chancellor Sir Bob Burgess said this would create a market with different levels of fees between institutions, but there was no evidence to suggest that higher fees would lead to a "collapse in participation".Vice-Chancellor Sir Bob Burgess said this would create a market with different levels of fees between institutions, but there was no evidence to suggest that higher fees would lead to a "collapse in participation".
There have been warnings about a two-tier system emerging from the split level of fees.There have been warnings about a two-tier system emerging from the split level of fees.
David Barclay, president of Oxford University Student Union, says: "A two-cap system will mean a two-tier system returning us to the dark days of some universities for the many and some universities for the few."David Barclay, president of Oxford University Student Union, says: "A two-cap system will mean a two-tier system returning us to the dark days of some universities for the many and some universities for the few."
Mr Barclay has been invited to meet Lib Dem leader Nick Clegg on Wednesday, as the coalition tries to sell the funding package.Mr Barclay has been invited to meet Lib Dem leader Nick Clegg on Wednesday, as the coalition tries to sell the funding package.
The changes in tuition fees will apply to universities in England. Scottish students studying in Scotland do not have to pay any fees. In Northern Ireland and Wales, fees are currently charged up to a maximum of £3,290.The changes in tuition fees will apply to universities in England. Scottish students studying in Scotland do not have to pay any fees. In Northern Ireland and Wales, fees are currently charged up to a maximum of £3,290.
Will you be affected by a rise in tuition fees? Send us your comments using the form below.Will you be affected by a rise in tuition fees? Send us your comments using the form below.