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.

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To preserve the environment we hold in common, everyone has to play their part

The challenge of building a clean future based on the common good of Londoners demands that politicians, business, communities and individuals each take a share of the responsibility and of the benefits.

The environmental challenge facing our capital city can seem overwhelming. Our air is poisonous. Our infrastructure built for the fossil fuel era. The need to build a clean, low carbon future can seem incompatible with competing challenges such as protecting energy security, housing and jobs.

The way we tackle this challenge will say a lot about the type of city we are. We inherit the world we live in from the generations that went before us, and only hold it until it is time to hand it over to future generations. The type of environment we leave behind for our children and grandchildren will be affected by the decisions we need to take in the short term. Our shared inheritance must be shaped by all of us in London.

Londoners currently face some crucial decisions about the way we power our city. The majority of us don't want London to be run on dirty fuel, and instead hope to see a transition to a clean energy supply. Many want to see that clean energy sourced from within London itself. This is an appealing vision: there are upsides in terms of costs, security and, crucially, the environment.

Yet the debate about how London could achieve such a future has remained limited in its scope. Air pollution has rightly dominated the environmental debate in this year’s mayoral election, but there is a small and growing call for more renewable deployment in the city.

When it comes to cities, by far the most accessible, useable renewable energy is solar, given you can install it on some part of almost every roof. Rooftop solar gives power to the householder, the business user, the public servant - anyone with a roof over their head.  And London has upwards of one million roofs. Yet it also has the lowest deployment of solar of any UK city. London can do better. 

The new mayor should take this seriously. Their leadership will be vital to achieving the transition to clean energy. The commitments of the mayoral frontrunners should spur other parts of society to act too. Zac Goldsmith has committed to a tenfold increase in the use of solar by 2025, and Sadiq Khan has pledged to implement a solar strategy that will make the most of the city’s roofs, public buildings and land owned by Transport for London.

While the next mayor will already have access to some of the tools necessary to enact these pledges (such as the London Plan, the Greater London Assembly and TfL), Londoner’s must also play their part. We must realise that to tackle this issue at the scale and speed required the only way forward is an approach where everyone is contributing.

A transition to solar energy is in the best interests of citizens, householders, businesses and employees, who can begin to take greater control of their energy.  By working together, Londoners could follow the example of Zurich, and commit to be a 2,000 watt society by 2050. This commitment both maximizes the potential of solar and manages introduces schemes to effectively manage energy demand, ensuring the city can collectively face an uncertain future with confidence.

Unfortunately, national policy is no longer sufficient to incentivise solar deployment at the scale that London requires. There is therefore an important role for the incoming Mayor in facilitating and coordinating activity. Whether it is through TfL, existing community energy schemes, or through individuals, there is much the mayor can do to drive solar which will benefit every other city-dweller and make London a cleaner and healthier place to live.

For example the new mayor should work with residents and landlords of private and social housing to encourage the deployment of solar for those who don’t own their property. He should fill the gap left by national building standards by ensuring that solar deployment is maximized on new build housing and commercial space. He can work with the operator of the electricity grid in the capital to maximize the potential of solar and find innovative ways of integrating it into the city’s power demand.

To bring this all together London should follow the example set by Nottingham and Bristol and create it’s own energy company. As a non-profit company this could supply gas and electricity to Londoners at competitive prices but also start to drive the deployment of clean energy by providing an attractive market for the power that is generated in the city. Community schemes, businesses and householders would be able to sell their power at a price that really stacks up and Londoners would receive clean energy at competitive prices.

The challenge of building a clean future based on the common good of Londoners demands that politicians, business, communities and individuals each take a share of the responsibility and of the benefits. Lets hope the incoming Mayor sees it as their role to convene citizens around this aim, and create incentives to virtue that encourage the take up and deployment of solar, so that we have a healthy, clean and secure city to pass on to the next generation.