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Scheme to limit impact of tuition fees rise on poor High-fee universities warned of sanctions
(about 1 hour later)
Details of the government's plan to encourage poorer students to go to university despite the rise in tuition fees have been revealed. Universities in England could be stripped of the power to charge tuition fees of more than £6,000 a year if they fail to admit sufficient numbers of students from poorer backgrounds.
The National Scholarship Programme will have £50m to spend in 2011 - half from government and half from universities wanting to charge the highest fees. And those setting higher fees could face large fines for missing targets.
Ministers say it will be used to offer bursaries, waive fees or cover living costs for students with a household income of less than £25,000. Under the government plan, they would also have to help fund a National Scholarship Programme, which would give at least £3,000 a year towards poorer students' fees or living costs.
Critics say it does not go far enough.Critics say it does not go far enough.
Annual targets
Having raised the maximum fee level to £9,000 per year, the government says it wants to ensure that higher fees will not exclude poorer students from university.Having raised the maximum fee level to £9,000 per year, the government says it wants to ensure that higher fees will not exclude poorer students from university.
Any institution wanting to charge more than £6,000 per year will have to negotiate an annual access agreement with the Office for Fair Access (Offa).
This will set a target for how many students from state schools or poorer backgrounds it must recruit in future years, and will be reviewed each year, rather than every five years at present.
Offa has the power to revoke the right to charge more and to impose a fine of up to £500,000 if the access agreement is broken.
But BBC education correspondent Gillian Hargreaves said Offa, which was set up in 2004, had never imposed any such sanctions thus far, which begged the question whether it would be sufficiently robust with universities in the future.
'Social crisis'
Universities wishing to charge more will also be obliged to participate in - and contribute funding to - the National Scholarship Programme.
In the first year it will provide £50m of support - rising to £150m after three years.
When it is fully running it will assist 48,000 students per year from households with an income of less than £25,000. They will receive funding worth at least £3,000 a year in the form of bursaries, fee waivers or discounts on accommodation.
Deputy Prime Minister Nick Clegg, who angered students by breaking his pledge to vote against raising tuition fees, said universities who wanted to charge more than £6,000 per year must improve access.Deputy Prime Minister Nick Clegg, who angered students by breaking his pledge to vote against raising tuition fees, said universities who wanted to charge more than £6,000 per year must improve access.
"There is a social crisis in this country - a crisis of opportunity. Universities, the gateway to the professions, are too often acting to inadvertently narrow opportunities, rather than widen them," said Mr Clegg."There is a social crisis in this country - a crisis of opportunity. Universities, the gateway to the professions, are too often acting to inadvertently narrow opportunities, rather than widen them," said Mr Clegg.
But National Union of Students' president Aaron Porter issued an angry response to Mr Clegg, accusing him of "living in a fantasy-land" if he thought he could become a "champion for students".But National Union of Students' president Aaron Porter issued an angry response to Mr Clegg, accusing him of "living in a fantasy-land" if he thought he could become a "champion for students".
Scholarships
Universities wanting to charge more than £6,000 will be expected to show that they are making progress in areas such as outreach work, attracting poorer students and increasing the proportion of state school pupils.
These are likely to be individual benchmarks, worked out between universities and the Office for Fair Access.
These access agreements will be reviewed each year, rather than every five years at present.
Universities will also be obliged to participate in - and contribute funding to - the National Scholarship Programme.
In the first year it will provide £50m of support - rising to £150m after three years.
When it is fully running it will assist 48,000 students per year - with funding worth at least £3,000 in the form of bursaries, fee waivers or discounts on accommodation.
Universities UK said that all universities shared a commitment to broadening access, but there had to be a flexible and autonomous approach for individual universities.Universities UK said that all universities shared a commitment to broadening access, but there had to be a flexible and autonomous approach for individual universities.
They will be watching to see how much power will be given to the access regulator and what sanctions could be applied if benchmarks are missed.
Social mobility
Universities will be looking carefully to see what sanctions could be applied if benchmarks are missed - and at what will happen if no agreement can be reached.
The 1994 Group, representing research-intensive universities, suggests that it should mean more than a simple headcount of numbers of poorer students being given places.The 1994 Group, representing research-intensive universities, suggests that it should mean more than a simple headcount of numbers of poorer students being given places.
"Laying down crude targets will do nothing to aid social mobility," said Paul Wellings, chairman of the 1994 Group and vice-chancellor of Lancaster University."Laying down crude targets will do nothing to aid social mobility," said Paul Wellings, chairman of the 1994 Group and vice-chancellor of Lancaster University.
Different types of university also face different challenges.Different types of university also face different challenges.
Among the prestigious Russell Group universities there might be too few state school pupils - and among the 1994 Group there might be too few students recruited from poorer areas.Among the prestigious Russell Group universities there might be too few state school pupils - and among the 1994 Group there might be too few students recruited from poorer areas.
While for new universities the challenge might be to improve retention rates among students.While for new universities the challenge might be to improve retention rates among students.
The toughening of such access regulations are part of a wider change in university funding.The toughening of such access regulations are part of a wider change in university funding.
While the access agreements will apply pressure to keep down fees - universities argue that they need to raise fees because the government has cut funding.While the access agreements will apply pressure to keep down fees - universities argue that they need to raise fees because the government has cut funding.
Oxford University says it needs to charge fees of at least £8,000 to replace university budget cuts.Oxford University says it needs to charge fees of at least £8,000 to replace university budget cuts.
Budget cutsBudget cuts
There have also been warnings from the Million+ group, representing new universities, that access agreements should not be used to restrict their chance of raising funds from higher fees.There have also been warnings from the Million+ group, representing new universities, that access agreements should not be used to restrict their chance of raising funds from higher fees.
As well as wanting to protect access for poorer students, the government will also be concerned about the cost of student finance if too many universities charge fees approaching the maximum level.As well as wanting to protect access for poorer students, the government will also be concerned about the cost of student finance if too many universities charge fees approaching the maximum level.
The UCU lecturers' union says that since almost every university will need to charge fees of more than £6,000 to cover budget cuts, access agreements could "deprive institutions of funds".The UCU lecturers' union says that since almost every university will need to charge fees of more than £6,000 to cover budget cuts, access agreements could "deprive institutions of funds".
There are also tuition fee changes ahead for other parts of the UK.There are also tuition fee changes ahead for other parts of the UK.
In Northern Ireland, a report commissioned by the Department of Employment and Learning (DEL) has recommended that fees should rise to a maximum of £5,750.In Northern Ireland, a report commissioned by the Department of Employment and Learning (DEL) has recommended that fees should rise to a maximum of £5,750.
In Wales, students are protected from increases in tuition fees, with the Welsh Assembly Government subsidising the cost of higher fees.In Wales, students are protected from increases in tuition fees, with the Welsh Assembly Government subsidising the cost of higher fees.
In Scotland, students do not pay tuition fees.In Scotland, students do not pay tuition fees.