How do you solve a problem like admissions?

The dilemma of introducing a higher grade at A-level

University admissions will always be a tricky business to manage. Ensuring fairness amongst a large number of stakeholders, all aiming to get the best deal, is no easy feat. The main problem with admissions is that it is predominantly based on A-level results or equivalents which aim to reflect ability but also reflect consequences of fortune and privilege which the applicant cannot control. This is a problem inherent in the current system but the introduction of A* grades at A-level, part of government reforms to 14-19 education, is set to make the situation even worse.

The motivation behind its introduction is an acknowledgment that top Universities are finding it increasingly difficult to differentiate between applicants who all have 3 ‘A’ grades. The A* will enable Universities to identify the best candidates and therefore make it easier for them to make their offers.

However the situation is not that simple and it is important that the access implications of introducing the A* are fully realised. The Aldwych Group in particular, which represents students at the research-intensive Russell Group of Universities, has come out against the introduction of the A* because of its potential adverse affect on widening participation. The argument for our opposition is based on the reasonable assumption that the students who will benefit most from the A* introduction will more likely come from the independent sector and/or privileged backgrounds.

A student from a privileged background at an independent school, who has the advantage of small classroom sizes, the best teachers and private tutoring is already more equipped to achieve the top grades and is even more likely to be in that top percentile who will achieve the prized A*. Contrast that to the student from a local comprehensive who studies hard to achieve an A grade but hasn’t had the advantages just listed and may just miss out on the A*.

The answer to this initial problem is to suggest that the local comprehensive student be given a lower entry requirement than the independent school student. This levels their equality of opportunity and enables them both to attend a University that reflects their potential academic ability. However, that just creates an even bigger problem.

Suppose the independent school student achieves three A* grades and is not offered a University place due to heavy competition, while the local comprehensive student is accepted with three A’s. Is this system any more just? Has the first student again been penalised for factors for which they cannot be held responsible (e.g. their privileged background and financial status of their parents)?

The solutions for admissions to highly competitive institutions aren’t readily available but the introduction of the A* doesn’t seem to be the answer. The universities of the Russell Group will be forced to use it as a way of separating ‘extremely good’ candidates from ‘excellent candidates’ and inevitably it will be students from non-traditional and widening participation backgrounds who will be most disadvantaged. Of course, no single institution will opt out of using it for fear it might suffer in the competitive market of admissions. It is up to us to put pressure on the Russell Group to reject this bit of legislation across the board, for the sake of fairness and diversity.

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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.