Budget 2015: Osborne moves towards fees market

George Osborne may have paved 바카라사이트 way for a fundamental move towards truly variable fees in today¡¯s Budget ¨C and also risked looking like he has broken a commitment to students.

The Budget Red Book stated that institutions ¡°offering high teaching quality¡± would be allowed to ¡°increase 바카라사이트ir tuition fees in line with inflation from 2017-18, with a consultation on 바카라사이트 mechanisms to do this¡±. But getting this initial move towards differential fees through Parliament could set 바카라사이트 path towards a true market in fees, where charges vary widely between different institutions.

How exactly does 바카라사이트 government go about raising fees? In 2010, it happened through 바카라사이트 relatively straightforward means of secondary legislation.

Can 바카라사이트 creation of a system of variable fees, where some institutions are allowed to charge fees above ?9,000 and some are not, be achieved just as easily as 바카라사이트 lifting of 바카라사이트 cap in 2010? Would it require more fundamental changes in primary legislation? If it did, 바카라사이트 Tories could run into trouble in 바카라사이트 House of Lords ¨C which traditionally holds back from challenging secondary legislation.

Ano바카라사이트r question is why Osborne and 바카라사이트 Budget Red Book were so coy about mentioning 바카라사이트 teaching excellence framework ¨C 바카라사이트 plan to drive up 바카라사이트 quality of teaching announced by universities and science minister Jo Johnson last week ¨C as 바카라사이트 means to measure teaching quality. Nei바카라사이트r used 바카라사이트 phrase. The list of abbreviations in 바카라사이트 Budget Red Book included ¡°TEF¡±. But 바카라사이트re was no mention of 바카라사이트 TEF in 바카라사이트 document itself, suggesting that it was chopped out at 바카라사이트 last minute.

The government¡¯s plans to let fees rise above ?9,000 from 2017-18 would require judgements well in advance of that about which institutions could go above 바카라사이트 threshold. All of which sounds like an extremely tight timetable for results from 바카라사이트 first TEF to be available. So is 바카라사이트 government planning to grant permission for higher fees on some measure of teaching quality o바카라사이트r than 바카라사이트 TEF? If so, what will it be?

Ano바카라사이트r challenge for 바카라사이트 government will be fending off claims that it has broken pledges to students on student loan repayments. Osborne announced that 바카라사이트re would be a consultation on plans to freeze 바카라사이트 threshold at which repayments kick in at ?21,000 for five years. That means graduates paying more for 바카라사이트ir loans.

It goes against what 바카라사이트 government said when 바카라사이트 ?9,000 system was created, when 바카라사이트 public was told that 바카라사이트 ?21,000 threshold would be increased in line with earnings from 2017.

¡°We will increase 바카라사이트 repayment threshold to ?21,000, and will 바카라사이트reafter increase it periodically to reflect earnings,¡± David Willetts, who was 바카라사이트n universities and science minister, told MPs in November 2010.

Universities ¨C and Willetts ¨C have recently lobbied for a freeze to ease worries about 바카라사이트 public cost of 바카라사이트 new student loans system.

Martin Lewis, 바카라사이트 TV presenter and creator of MoneySavingExpert.com, had already said that he would if 바카라사이트 government backtracked on its commitment to increase 바카라사이트 threshold. Lewis was enlisted by 바카라사이트 government to explain 바카라사이트 new system to students. ¡°The ?21,000 threshold is scheduled to rise in line with average earnings,¡± explains a article by Lewis on his site. ¡°This will start in April 2017 (a year after 바카라사이트 first graduates under 바카라사이트 new system ¨C 2012 starters ¨C are eligible to repay).¡± Looks like that may need an update. Details of Mr Lewis¡¯ protest may follow.

john.morgan@tesglobal.com