A Labour government would cut fees by £3,000, Ed Miliband has announced. (Photo: Getty)
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Labour's tuition fee policy: not awful, but still pretty bad

Labour's tuition fee policy isn't as bad as I feared. It's still pretty dire.

Labour has finally revealed its manifesto position on higher education funding: the much trailed drop in the tuition fee ceiling from £9,000 per year to £6,000; and a lesser noticed increase in the maintenance grant for students from families with an income of up to £42,000 per year. I’ve written against the tuition fee change previously and, just to put this upfront, I was the most senior civil servant to work on the Browne Review of Higher Education which, in popular perception, ‘paved the way’ to the introduction of £9,000 fees – even though that isn’t what we recommended.

Today’s Labour announcements are, I have to admit, better than I expected for two reasons. But they still represent terrible policy.

Let me cover the positives before I do the rest. The first one is that reducing tuition fees on the face of it reduces the resources that universities have to put on courses. Labour has said definitively though that the drop in fee income will be made up through an increase in direct public funding. No funding gap; no imminent decline in quality. This is good news.

The second positive is that Labour’s changes, in a major departure from previous higher education reforms, will apply to all undergraduates not just new entrants. This means that students who are already in higher education or who may be entering this year – prior to the introduction of the new fee ceiling in 2016 – will incur higher fees until 2016 and then will incur the same lower rate as the new entrants. This is important because it diminishes the risk that lots of people thinking about going to university this year will put off their entry for a year, delaying their careers and emptying out classrooms. If Labour had introduced the lower fee only for new entrants, then there would have been a minimum £9,000 advantage to putting off study for a year (the £3,000 reduction in the fee multiplied by the three years of the typical degree); now the advantage of putting off study is only £3,000, because 2015 entrants will receive the benefit of the future fee decrease in subsequent years.

Okay, enough about the positives. The problems with the policy are legion. The first is that the change is simply unnecessary. University applications are rising, despite the higher fee levels, and the gap between the participation rate of young people from disadvantaged backgrounds and others has continued to reduce. Labour has said the policy will cost £2.7bn a year. It will fund that cost through changes to pension tax relief. But the money could have been used for something else. To put the sum in perspective, it is about twenty times what it costs to avoid dropping the benefits cap to £23,000 per year. Perhaps that example is slightly too remote from higher education, in which case let’s think about the ‘forgotten 50%’ that Labour used to talk about. These are the young people who don’t go to university. £2.7bn per year would be transformative for that group. Merely a sixth of that sum would pay for 200,000 higher level apprenticeships. However, Labour isn’t helping them, instead it’s helping those already fortunate enough to go to university.

In fact the bias of their policy is even more unfortunate than this. Despite Ed Miliband’s rhetoric today about a promise for young people, it isn’t young people that pay tuition fees. Fees are paid back through what looks a lot like a tax on graduates. Reducing the fee level reduces the level of taxation on graduates. And because the ‘tax system’ is progressive in its design, the poorest graduates don’t pay back anything like the full amount of the fees. Labour’s policy in effect is a tax cut for graduates on above-average incomes. Forget about the 50 per cent of young people who don’t go to university, this policy won’t even help the poorest 50 per cent of those who do.

One last dig. Labour has suggested concern over the past few years about postgraduate study. The numbers of UK students going on to postgraduate study looks pretty flat, despite the higher demand for postgraduate skills in an increasingly knowledge-intensive economy. This may in part be because there is far less student finance available for postgraduate study. In order to remedy this, the Chancellor announced an extension of student loans to postgraduate students at the Autumn Statement last year. But that new funding builds on a financing system that Labour has decided is unsustainable. Part of their argument today is that fees have to come down because so many graduates don’t pay them back anyway. It’s difficult to see how Labour could wind back from that position to accept postgraduate student loans, which would take the loan amounts – and hence the non-repayment rate – in the opposite direction to what the party has said it wants. Yet it will already be spending an extra £2.7bn a year in direct public funding on undergraduate higher education. So it’s unlikely that it would be able to find even more direct public funding for postgraduate study.

There is a real risk in other words that a Labour government will spend a lot of money fixing a problem that doesn’t exist in undergraduate education and have nothing left to fix a problem that seems real and pressing to many people in postgraduate education.

Emran Mian is director of the Social Market Foundation

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David Osland: “Corbyn is actually Labour’s only chance”

The veteran Labour activist on the release of his new pamphlet, How to Select or Reselect Your MP, which lays out the current Labour party rules for reselecting an MP.

Veteran left-wing Labour activist David Osland, a member of the national committee of the Labour Representation Committee and a former news editor of left magazine Tribune, has written a pamphlet intended for Labour members, explaining how the process of selecting Labour MPs works.

Published by Spokesman Books next week (advance copies are available at Nottingham’s Five Leaves bookshop), the short guide, entitled “How to Select or Reselect Your MP”, is entertaining and well-written, and its introduction, which goes into reasoning for selecting a new MP and some strategy, as well as its historical appendix, make it interesting reading even for those who are not members of the Labour party. Although I am a constituency Labour party secretary (writing here in an expressly personal capacity), I am still learning the Party’s complex rulebook; I passed this new guide to a local rules-boffin member, who is an avowed Owen Smith supporter, to evaluate whether its description of procedures is accurate. “It’s actually quite a useful pamphlet,” he said, although he had a few minor quibbles.

Osland, who calls himself a “strong, but not uncritical” Corbyn supporter, carefully admonishes readers not to embark on a campaign of mass deselections, but to get involved and active in their local branches, and to think carefully about Labour’s election fortunes; safe seats might be better candidates for a reselection campaign than Labour marginals. After a weak performance by Owen Smith in last night’s Glasgow debate and a call for Jeremy Corbyn to toughen up against opponents by ex Norwich MP Ian Gibson, an old ally, this pamphlet – named after a 1981 work by ex-Tribune editor Chris Mullin, who would later go on to be a junior minister under Blai – seems incredibly timely.

I spoke to Osland on the telephone yesterday.

Why did you decide to put this pamphlet together now?

I think it’s certainly an idea that’s circulating in the Labour left, after the experience with Corbyn as leader, and the reaction of the right. It’s a debate that people have hinted at; people like Rhea Wolfson have said that we need to be having a conversation about it, and I’d like to kickstart that conversation here.

For me personally it’s been a lifelong fascination – I was politically formed in the early Eighties, when mandatory reselection was Bennite orthodoxy and I’ve never personally altered my belief in that. I accept that the situation has changed, so what the Labour left is calling for at the moment, so I see this as a sensible contribution to the debate.

I wonder why selection and reselection are such an important focus? One could ask, isn’t it better to meet with sitting MPs and see if one can persuade them?

I’m not calling for the “deselect this person, deselect that person” rhetoric that you sometimes see on Twitter; you shouldn’t deselect an MP purely because they disagree with Corbyn, in a fair-minded way, but it’s fair to ask what are guys who are found to be be beating their wives or crossing picket lines doing sitting as our MPs? Where Labour MPs publicly have threatened to leave the party, as some have been doing, perhaps they don’t value their Labour involvement.

So to you it’s very much not a broad tool, but a tool to be used a specific way, such as when an MP has engaged in misconduct?

I think you do have to take it case by case. It would be silly to deselect the lot, as some people argue.

In terms of bringing the party to the left, or reforming party democracy, what role do you think reselection plays?

It’s a basic matter of accountability, isn’t it? People are standing as Labour candidates – they should have the confidence and backing of their constituency parties.

Do you think what it means to be a Labour member has changed since Corbyn?

Of course the Labour party has changed in the past year, as anyone who was around in the Blair, Brown, Miliband era will tell you. It’s a completely transformed party.

Will there be a strong reaction to the release of this pamphlet from Corbyn’s opponents?

Because the main aim is to set out the rules as they stand, I don’t see how there can be – if you want to use the rules, this is how to go about it. I explicitly spelled out that it’s a level playing field – if your Corbyn supporting MP doesn’t meet the expectations of the constituency party, then she or he is just as subject to a challenge.

What do you think of the new spate of suspensions and exclusions of some people who have just joined the party, and of other people, including Ronnie Draper, the General Secretary of the Bakers’ Union, who have been around for many years?

It’s clear that the Labour party machinery is playing hardball in this election, right from the start, with the freeze date and in the way they set up the registered supporters scheme, with the £25 buy in – they’re doing everything they can to influence this election unfairly. Whether they will succeed is an open question – they will if they can get away with it.

I’ve been seeing comments on social media from people who seem quite disheartened on the Corbyn side, who feel that there’s a chance that Smith might win through a war of attrition.

Looks like a Corbyn win to me, but the gerrymandering is so extensive that a Smith win isn’t ruled out.

You’ve been in the party for quite a few years, do you think there are echoes of past events, like the push for Bennite candidates and the takeover from Foot by Kinnock?

I was around last time – it was dirty and nasty at times. Despite the narrative being put out by the Labour right that it was all about Militant bully boys and intimidation by the left, my experience as a young Bennite in Tower Hamlets Labour Party, a very old traditional right wing Labour party, the intimidation was going the other way. It was an ugly time – physical threats, people shaping up to each other at meetings. It was nasty. Its nasty in a different way now, in a social media way. Can you compare the two? Some foul things happened in that time – perhaps worse in terms of physical intimidation – but you didn’t have the social media.

There are people who say the Labour Party is poised for a split – here in Plymouth (where we don’t have a Labour MP), I’m seeing comments from both sides that emphasise that after this leadership election we need to unite to fight the Tories. What do you think will happen?

I really hope a split can be avoided, but we’re a long way down the road towards a split. The sheer extent of the bad blood – the fact that the right have been openly talking about it – a number of newspaper articles about them lining up backing from wealthy donors, operating separately as a parliamentary group, then they pretend that butter wouldn’t melt in their mouths, and that they’re not talking about a split. Of course they are. Can we stop the kamikazes from doing what they’re plotting to do? I don’t know, I hope so.

How would we stop them?

We can’t, can we? If they have the financial backing, if they lose this leadership contest, there’s no doubt that some will try. I’m old enough to remember the launch of the SDP, let’s not rule it out happening again.

We’ve talked mostly about the membership. But is Corbynism a strategy to win elections?

With the new electoral registration rules already introduced, the coming boundary changes, and the loss of Scotland thanks to decades of New Labour neglect, it will be uphill struggle for Labour to win in 2020 or whenever the next election is, under any leadership.

I still think Corbyn is Labour’s best chance. Any form of continuity leadership from the past would see the Midlands and north fall to Ukip in the same way Scotland fell to the SNP. Corbyn is actually Labour’s only chance.

Margaret Corvid is a writer, activist and professional dominatrix living in the south west.