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Changing grants to loans will hit the poorest students

The sums don't work - and the losers are students, argues James Elliot.

Can you imagine a system where the poorer your parents are, the more debt you have to pay off after university? That’s exactly what George Osborne announced in last week’s budget, with the proposal to abolish maintenance grants for students from the poorest families and to replace them with loans.

The logic of the grants and loans system is that the more your parents earn, the more they will contribute to your living costs while you study. That isn’t true for students with parents can contribute but don’t, and it is unbearably difficult for students who have strained relationships with their family, particularly LGBT youth, because their parents make support conditional on accepting their values. But until yesterday, that was the system. Deeply flawed - but nonetheless keeping the pretence of being ‘progressive’.

Now students whose families earn less than £25,000 will have their £3,387 a year maintenance grant converted into a loan, and this is tapered off up to those who earn under £40,000 a year, who will have their £547 grant converted into a loan, from 2016-17. The perversity of this system is that the richer your family, the less you need in loans, but the poorer you are, the more money you have to take out as a loan, plus interest. That interest, accrued over time, is effectively a charge on the student for being from a low-income family.

Coupled to this announcement on grants is the news that fees will be allowed to rise in some institutions, in return for ‘teaching excellence’. Osborne’s budget document set out that measures to improve teaching will include, “allowing institutions offering high teaching quality to increase their tuition fees in line with inflation from 2017-18, with a consultation on the mechanisms to do this.”

This is Osborne’s confirmation of what higher education analysts and students have been worried about. That Jo Johnson’s new “Teaching Excellence Framework” is going to be used a justification to introduce higher fees. Johnson deleted lines from his original speech at UUK about ‘financial incentives’, but Osborne has made it clear in the budget this means fees. John Morgan of the Times Higher Education has made an educated guess that a fee rise will be delayed until after ‘English Votes for English Laws’, which would make sneaking a fee rise through for English universities much easier.

Johnson will outline his ‘TEF’ in a Green Paper in the autumn, usually a precursor to primary legislation that will be necessary in the event of a fee hike. The TEF, based on the ‘Research Excellence Framework’, will use a set of what Johnson calls ‘outcome-focused metrics’, as yet undefined, to rank universities on the basis of teaching quality.

Johnson has already said that he plans to, “assess the employment and earnings returns to education by matching Department for Business, Innovation and Skills and Department for Education education data with HMRC employment and income data and Department for Work and Pensions benefits data.” This means that the ‘outcome-focused’ metrics will probably be graduate earnings.

The driving forces behind these policies, along with those of the cuts to Disabled Students Allowance (DSA) from 2016/17, are partly financial and partly ideological. Namely, they are a market-worshipping response to a financial problem for a government unwilling to stump up the cash to pay for Higher Education. The Department for Business, Innovation and Skills (BIS), which Universities sits under, has been asked to find another £450m of cuts, while student numbers are increasing and vice-chancellors pay packets evade any belt-tightening.

Underlying all this is the failure of BIS to get its numbers right on student loans. The ‘RAB Charge’, which measures the percentage of student loans that are not repayed, hit 45 per cent a year ago, meaning the £9,000 fee system cost just as much to the Treasury as the old £3,000 system, and could end up costing more.

Rather than following in the footsteps of Germany by abolishing fees and properly funding education through general taxation, the Tories are continuing on the road to the recommendations of the 2010 Browne Report, which was to remove the cap on tuition fees altogether, shift all funding onto the student in the form of fees and loans, and let the market rule in a privatised university sector.

This budget takes us closer to that, telling students they will pay more in fees, and that the poorer their family are, the more debt they will have to pay off for maintenance. Meanwhile teachers are told that unless those same students get high-paying jobs afterwards, then their teaching will be considered of low quality. This isn’t Willetts’s “students at the heart of the system”, nor is it Johnson’s “teaching at the heart of the system” - this is profit at the heart of the system, and we will pay the costs.

 

James Elliott is on the NUS National Executive Council and an organiser for the National Campaign Against Fees and Cuts.

James Elliott is Deputy Editor at Left Futures. He tweets @JFGElliott.

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Why Boris Johnson is Theresa May's biggest Brexit liability

The Foreign secretary is loved by Eurosceptics and detested by EU negotiators. 

Boris Johnson is a joke in Brussels but not the funny kind. He is seen as the liar who tricked Britain into leaving the European Union.

Since his election as a MEP in 1999, Nigel Farage has sucked EU money into his campaign to get the UK out of the EU. But the contempt reserved for Boris is of a different order - because he should have known better.

Johnson has impeccable European pedigree. His father Stanley was an MEP and influential European Commission official. Unsurprisingly, Stanley is a Remainer as is Johnson’s brother Jo.  

The fury reserved for Johnson and his betrayal is of a particularly bitter vintage. Johnson was educated in the European School of Brussels in the leafy and well-heeled suburb of Uccle, where, years later, Nick Clegg lived when he was a MEP.

The contempt stems from his time as the Daily Telegraph’s Brussels correspondent. Fake news is now big news. Many in the self-styled “capital of Europe” believe Boris pioneered it.

Johnson was an imaginative reporter. Many still discuss his exclusive about the planned dynamiting of the European Commission. The Berlaymont headquarters stands untouched to this day.

Rival British hacks would receive regular bollockings from irate editors furious to have been beaten to another Boris scoop. They weren’t interested in whether this meant embroidering the truth. 

Johnson invented a uniquely British genre of journalism – the Brussels-basher. It follows a clear template.

Something everyday and faintly ridiculous, like condoms or bananas, fall victim to meddling Brussels bureaucrats. 

The European Commission eventually set up a “Euromyth”website to explode the pervasive belief that Brussels wanted you to eat straight bananas.  Unsurprisingly, it made no difference. Commission staff now insist on being called "European civil servants" rather than bureaucrats.

Commission President Jean-Claude Juncker was so worried about negative headlines that he stalled energy efficiency legislation until after the referendum.

When he shelved sensible laws to restrict excessive energy consumption on toasters and hairdryers, he was rewarded with a Hero of the Week award by the German tabloid Bild, which had developed a taste for Boris-style hackery.  

Many in Brussels draw a direct line from Johnson’s stories to the growing Eurosceptism in the Conservatives, and from that to Ukip, and ultimately Brexit.

To make matters worse, Johnson was the star of the Brexit campaign. His performance confirmed the view of him as an opportunistic charlatan.

The infamous £350m a week bus caused outrage in Brussels, but not as much as what Boris did next.

He compared the EU to Adolf Hitler. Boris knows better than most how offensive that is to the many European politicians who believe that the EU has solidified peace on the continent. 

European Council President Donald Tusk was furious. “When I hear the EU being compared to the plans and projects of Adolf Hitler I cannot remain silent,” said Tusk, a Pole.

“Boris Johnson crossed the boundaries of a rational discourse, demonstrating political amnesia,” he declared, and added there was “no excuse for this dangerous blackout”. It was the first time a leading EU figure had intervened in the referendum campaign.

After the vote for Brexit and his failed tilt at the premiership, Johnson was appointed foreign secretary, to widespread disbelief.

When the news broke, I received a text message from my Italian editor. It read: “Your country has gone mad.” It was the first of many similar messages from the Brussels press pack. 

“You know he told a lot of lies to the British people and now it is him who has his back against the wall,” France’s foreign minister Jean-Marc Ayrault said. Germany’s foreign minister, Frank-Walter Steinmeier called Johnson “outrageous”.

Could Johnson jeopardise the Brexit negotiations?  He can damage them. In November, he was ridiculed by European ministers after telling Italy at a Brussels meeting that it would have to offer tariff-free trade to sell prosecco to the UK.

European Union chiefs moved earlier this week to quell fears they would punish Britain for Brexit. Prime Minister Theresa May had threatened to lure investment away from the EU by slashing corporation tax rates in her speech last week.

Juncker and Joseph Muscat, the prime minister of Malta, which will chair the first Brexit negotiations, both insisted they was no desire to impose a “punitive deal” on the UK. Donald Tusk compared May’s speech and its “warm words” to Churchill. 

An uneasy peace seemed to have been secured. Enter Boris. 

Asked about comments made by a French aide to President Francois Hollande, he said, "If Monsieur Hollande wants to administer punishment beatings to anybody who chooses to escape, rather in the manner of some World War Two movie, then I don't think that is the way forward.”

The European Parliament will have a vote, and effective veto, on the final Brexit settlement. Its chief negotiator Guy Verhofstadt lashed out at Johnson.

“Yet more abhorrent and deeply unhelpful comments from Boris Johnson which PM May should condemn,” he tweeted.

Downing Street wasn’t listening. A spokeswoman said, “There is not a government policy of not talking about the war.”

And just as quickly as it broke out, the new peace was left looking as shaky as ever. 

 

James Crisp is a Brussels-based journalist who is the news editor of EurActiv.com