LSE £8,500 fee buys breathing space for Willetts

If the LSE asks for £8,500, how can lesser universities justify charging the full £9,000?

The decision by the London School of Economics to charge less than £9,000 for normal undergraduate tuition fees will give a boost to the coalition's beleaguered higher education policy. Although the LSE will still charge £8,500, it ruptures the notion that top universities can only offer a quality education for £9,000. It also creates vital breathing space for the universities minister, David Willetts.

Whenever Willetts is rightly criticised for his failure to foresee that every half-decent university would rush to charge the maximum amount, Willetts can now point to a top-class university and say: "They can do it for less than £9,000, so why can't other elite universities?" He can also legitimately ask: "If the LSE is charging £8,500, why is somewhere like Bradford* charging £9,000?"

The LSE has the highest average starting salary for graduates and a reputation for being one of the best universities on the planet. Bradford, for all its merits, has neither – yet each of its students is forking out £500 more a year for his or her degrees.

It is true that the LSE has been able to charge less for two exceptional reasons. First, it does not produce expensive scientific research, concentrating instead on relatively cheap areas of study such as the humanities. Second, the university generates much of its income from overseas students, whom it charges eye-wateringly high fees.

A full-time Master's degree from the university will set you back close to £20,000 a year if you are an overseas student. At the same time, however, cuts to the university teaching budget have hit the LSE particularly hard. Reductions to the teaching grant for the humanities and the arts have left the LSE with practically no direct government funding.

Five hundred pounds a year is a very small saving. It reduces the cost of tuition fees for a three-year undergraduate from £27,000, to £25,500 – both very large figures. But while £500 is insignificant in financial terms, politically it is priceless for the coalition.

It may not be much, but it's all there is for the government to cling to as it tries to swim through the choppy waters of British university funding.

*NB: I don't mean to pick on Bradford alone. It is in a similar position to dozens of other universities in the UK which are planning to charge £9,000 a year, despite having less-than-stellar reputations.

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What will Labour's new awkward squad do next?

What does the future hold for the party's once-rising-stars?

For years, Jeremy Corbyn was John McDonnell’s only friend in Parliament. Now, Corbyn is the twice-elected Labour leader, and McDonnell his shadow chancellor. The crushing leadership election victory has confirmed Corbyn-supporting MPs as the new Labour elite. It has also created a new awkward squad.   

Some MPs – including some vocal critics of Corbyn – are queuing up to get back in the shadow cabinet (one, Sarah Champion, returned during the leadership contest). Chi Onwurah, who spoke out on Corbyn’s management style, never left. But others, most notably the challenger Owen Smith, are resigning themselves to life on the back benches. 

So what is a once-rising-star MP to do? The most obvious choice is to throw yourself into the issue the Corbyn leadership doesn’t want to talk about – Brexit. The most obvious platform to do so on is a select committee. Chuka Umunna has founded Vote Leave Watch, a campaign group, and is running to replace Keith Vaz on the Home Affairs elect committee. Emma Reynolds, a former shadow Europe minister, is running alongside Hilary Benn to sit on the newly-created Brexit committee. 

Then there is the written word - so long as what you write is controversial enough. Rachel Reeves caused a stir when she described control on freedom of movement as “a red line” in Brexit negotiations. Keir Starmer is still planning to publish his long-scheduled immigration report. Alison McGovern embarked on a similar tour of the country

Other MPs have thrown themselves into campaigns, most notably refugee rights. Stella Creasy is working with Alf Dubs on his amendment to protect child refugees. Yvette Cooper chairs Labour's refugee taskforce.

The debate about whether Labour MPs should split altogether is ongoing, but the warnings of history aside, some Corbyn critics believe this is exactly what the leadership would like them to do. Richard Angell, deputy director of Progress, a centrist group, said: “Parts of the Labour project get very frustrated that good people Labour activists are staying in the party.”

One reason to stay in Labour is the promise of a return of shadow cabinet elections, a decision currently languishing with the National Executive Committee. 

But anti-Corbyn MPs may still yet find their ability to influence policies blocked. Even if the decision goes ahead, the Corbyn leadership is understood to be planning a root and branch reform of party institutions, to be announced in the late autumn. If it is consistent with his previous rhetoric, it will hand more power to the pro-Corbyn grassroots members. The members of Labour's new awkward squad have seized on elections as a way to legitimise their voices. But with Corbyn in charge, they might get more democracy than they bargained for.