MPs sound warning over student fees

Labour MPs today fired a warning shot over higher levels of student tuition fees and debt, as the government embarks on a review of university finances.

The concerns, set out in an Early Day Motion (EDM) in parliament, coincided with the launch by pressure group Universities UK of research seeking support for a controversial increase to at least £5,000 in the cap on student fees.

‘It is essential that the forthcoming review of university funding looks at all the evidence of the effect of fees and debt on students who attend our universities,’ said Paul Farrelly, the Labour MP for Newcastle-under-Lyme and sponsor of the EDM.

‘I oppose introducing a market system in higher education, like in the US, which many elitists want. We need to increase participation by students from poorer backgrounds, not price them out of going to university at all.’
 
The MP, along with other signatories to the motion, helped lead the Labour backbench rebellion against top-up fees in 2004, when the changes only passed by a margin of five votes.

The issue remains highly political, with a lobby of parliament this Wednesday [18th March], by the National Union of Students, too, against any further increases in the cap and levels of student debt.

Most English universities have charged full-time undergraduates the maximum fees, which have risen in line with inflation from the original £3,000 in 2006 to a current £3,145 a year.

As part of the compromises on the Bill, the government promised a review of the first three years of operation of the system in 2009 and a vote in parliament on any raising of the cap.

In research published today, Universities UK assumes that students will no be deterred if £5,000, but MPs – including Mr Farrelly – question the evidence for that, especially for people from poorer backgrounds.

Several vice chancellors, however, want to go further, suggesting a new cap more than doubled to £7,000 – or lifting it altogether, prompting fears among many MPs of a fully market system as in the United States.

The key change since the heated debate in 2004 has been political. Then the Conservatives opposed the Bill, but have since altered their stance.