Cable attempts to rescue the coalition’s fees plan
Business Secretary threatens universities charging £9,000 with fewer student places.
By George Eaton Published 06 April 2011 10:14
It isn't just the coalition's NHS reforms that are in chaos. As I noted last week, the unexpectedly high number of universities planning to charge the maximum £9,000 a year (a possibility foreseen by almost everyone except ministers) means that the government's higher education reforms face a £1bn black hole. Ministers had budgeted for an average fee of just £7,500 but will now have to pay out far more in tuition fee loans. Of the 32 institutions we've heard from, 23 intend to charge full whack, including Oxford (1) and Liverpool John Moores (109), and the average fee currently stands at £8,855.
In part, this is to compensate for the planned 80 per cent cut to the teaching budget. The vice-chancellor of John Moores, for instance, claims that his university would lose £26m if it charged a flat rate of £6,000. But it's also because no institution wants to look like a cheap option. Instead, like Stella Artois, they want to be reassuringly expensive. In response, ministers can make even greater cuts to the teaching budget, or cut roughly 38,000 student places, or reduce the cap on fees.
We'll get some idea of what they're planning when Vince Cable, the man with ministerial responsibility for the plans, addresses a higher education funding conference in Birmingham. Previews of his speech suggest that Cable will warn that universities could find themselves in trouble if students can't see value for money. He will add, with a hint of menace, that unfilled places will be withdrawn and that institutions "should not assume they will easily get them back".
In other words, the government's best hope is that students will be deterred by excessive fees. Should this prove not to be the case, the likelihood is that ministers will withdraw the places themselves.
In the meantime, we're still waiting for the coalition's white paper on higher education, which was postponed after ministers realised they'd got their sums wrong. As in the case of Andrew Lansley's crumbling "masterplan", the perils of hasty reform lie exposed.
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8 comments
Less Govt interference??? Not on your life! The Coalition rushed in where Labour's wiser counsel feared to tread. Can someone please give Dave a Primer on 'Running a Govt' before the country goes down the plughole?
Unfilled places will be withdrawn and Unis may not get them back so easily is not exactly menacing is it. In fact, it plays in to the Govt's hands and will force the less desireable, sought after Unis to go to the wall, reducing permanently the number of students going to University, in the long run saving the Govt more on funding and will make Unis more elitist which is exactly what the Tories want.
If Cable wants to be particularly menacing, how about legislation that limits the amount Universities can charge, then no-one can argue with it. Quite simple really, if they were serious about it then they would make serious moves to prevent it not wheel out some doddery old fool who is about as menacing as the Nana's knitting shreddies.
Turn Universities into 'Enterprise Zones' and make them fund themselves. This should make do away with student fees!
Anyone who wants to study a degree at university, should be allowed to for free!!! Top Tories ideas
More expensive fees and fewer places. This is part of the Willetts plan to increase social mobility, is it?
Another case of 'say the opposite of what we mean', like 'the NHS is safe in our hands'.
Oly one conclusion from all this is possible: That all of the ministers involved are hoplessley incompetent,and/or complete liars.
Lou
If Cable wants to be particularly menacing, how about legislation that limits the amount Universities can charge.
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they have, but it is too high at £9,000. Two-faced millionaires of govt complaining that Labour has left next generation with high debt, only for them to up tuition fees to £27,000, and artificially keep house prices high.
The surest way to keep the next generation in decades of deep debt.
How is this a threat to universities...its a threat to students.
He is threatening that because he got his sums wrong they will punish students with fewer places.
Universities wont care.
Sorry elrob, I meant a fixed figure not a between this and that figure. The Govt must have known by setting a scale that the Universities with their funding crisis were going to set the higher rate. I don't agree with the hike in fees but if it must be, then it should be a fixed single figure at the lower end of the scale.