Even more universities join the £9,000 club

Remember when ministers promised £9,000 fees would be "exceptional"?

However much they may now deny it, Tory and Lib Dem ministers said that universities would only charge tuition fees of £9,000 in "exceptional circumstances". Here's the relevant quote from Vince Cable, who has curiously escaped blame for the debacle, despite being the minister responsible.

For the funding of universities, Lord Browne recommended- in a report that the then Labour Government endorsed, I think, in their manifesto- that there should be no cap on university fees and a specific proposal for a clawback mechanism that gave universities an incentive to introduce fees of up to a level of £15,000 a year. That was the report given to the Government. We have rejected those recommendations and proposed instead that we proceed as the statutory instrument describes. That involves the introduction of a fee cap of £6,000, rising to £9,000 in exceptional circumstances.

Vince Cable, House of Commons, 9 December 2010

We learn today that three-quarters of English universities will charge £9,000 for at least some courses next year, with a third charging the maximum fee for all. The average annual tuition fee for students will rise to £8,615, up from £8,527 in 2012-13. Ministers, who naïvely claimed that the new regime would put institutions under "competitive pressure" to cut fees, promised an average charge of £7,500. But the tripling of  the cap (in breach of that famous Lib Dem election pledge) actually had the predictable effect of encouraging universities to charge more in order to appear "reassuringly expensive".

But it isn't just the politics of this that are bad for ministers, the finances aren't good either. Nick Clegg may have claimed that the rise in fees was a necessary part of the coalition's deficit reduction strategy, but the truth is that the reforms will cost the government more, not less. The new fees come into effect this year, which means repayments won't kick in until 2015 for a three-year course. In the intervening period, the government will be forced to pay out huge amounts in maintenance loans and tuition-fee loans.

Had universities only charged £9,000 in "exceptional circumstances", that wouldn't have been a problem. But since so many plan to charge full whack, the coalition's reforms face a £1bn black hole. Figures from the House of Commons Library showed that if the average fee is £8,600 (it is now £8,615), the state will need have to spend £960m more over the next four years. That could mean even bigger cuts to the teaching budget (already experiencing an 80 per cent cut) and/or fewer university places.

There's a strong chance that the funding gap will be even larger than I've suggested. The Treasury is already resigned to losing £1bn of the £3bn it pays out in student loans due to graduates moving abroad or earning wages under the new repayment threshold of £21,000 a year. But should graduate earnings increase by 3.75 per cent a year instead of 4.47 per cent  (and they're falling at the moment), the government's assumed savings will be wiped out completely. Tuition fees, as ministers will discover, are neither socially just nor fiscally responsible.

Three-quarters of universities plan to charge £9,000 for some courses. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Jeremy Corbyn. Photo: Getty
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Jeremy Corbyn: “wholesale” EU immigration has destroyed conditions for British workers

The Labour leader has told Andrew Marr that his party wants to leave the single market.

Mass immigration from the European Union has been used to "destroy" the conditions of British workers, Jeremy Corbyn said today. 

The Labour leader was pressed on his party's attitude to immigration on the Andrew Marr programme. He reiterated his belief that Britain should leave the Single Market, claiming that "the single market is dependent on membership of the EU . . . the two things are inextricably linked."

Corbyn said that Labour would argue for "tarriff-free trade access" instead. However, other countries which enjoy this kind of deal, such as Norway, do so by accepting the "four freedoms" of the single market, which include freedom of movement for people. Labour MP Chuka Umunna has led a parliamentary attempt to keep Britain in the single market, arguing that 66 per cent of Labour members want to stay. The SNP's Nicola Sturgeon said that "Labour's failure to stand up for common sense on single market will make them as culpable as Tories for Brexit disaster".

Laying out the case for leaving the single market, Corbyn used language we have rarely heard from him - blaming immigration for harming the lives of British workers.

The Labour leader said that after leaving the EU, there would still be European workers in Britain and vice versa. He added: "What there wouldn't be is the wholesale importation of underpaid workers from central Europe in order to destroy conditions, particularly in the construction industry." 

Corbyn said he would prevent agencies from advertising jobs in central Europe - asking them to "advertise in the locality first". This idea draws on the "Preston model" adopted by that local authority, of trying to prioritise local suppliers for public sector contracts. The rules of the EU prevent this approach, seeing it as discrimination. 

In the future, foreign workers would "come here on the basis of the jobs available and their skill sets to go with it. What we wouldn't allow is this practice by agencies, who are quite disgraceful they way they do it - recruit a workforce, low paid - and bring them here in order to dismiss an existing workforce in the construction industry, then pay them low wages. It's appalling. And the only people who benefit are the companies."

Corbyn also said that a government led by him "would guarantee the right of EU nationals to remain here, including a right of family reunion" and would hope for a reciprocal arrangement from the EU for British citizens abroad. 

Matt Holehouse, the UK/EU correspondent for MLex, said Corbyn's phrasing was "Ukippy". 

Asked by Andrew Marr if he had sympathy with Eurosceptics - having voted against previous EU treaties such as Maastricht - Corbyn clarified his stance on the EU. He was against a "deregulated free market across Europe", he said, but supported the "social" aspects of the EU, such as workers' rights. However, he did not like its opposition to state subsidy of industry.

On student fees, Corbyn was asked "What did you mean by 'I will deal with it'?". He said "recognised" that graduates faced a huge burden from paying off their fees but did not make a manifesto commitment to forgive the debt from previous years. However, Labour would abolish student debt from the time it was elected. Had it won the 2017 election, students in the 2017/18 intake would not pay fees (or these would be refunded). 

The interview also covered the BBC gender pay gap. Corbyn said that Labour would look at a gender pay audit in every company, and a pay ratio - no one could receive more than 20 times the salary of the lowest paid employee. "The BBC needs to look at itself . . . the pay gap is astronomical," he added. 

He added that he did not think it was "sustainable" for the government to give the DUP £1.5bn and was looking forward to another election.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.