I told you so: England¡¯s 2010 tuition fee reforms were doomed to fail

Ten years ago, Coalition government heralded its reforms to English higher education funding in 바카라사이트 context of deep cuts to public spending following 바카라사이트 2008 financial crisis.

Although 바카라사이트 trebling of tuition fees to ?9,000 was acknowledged as controversial, leading figures in 바카라사이트 government proudly boasted that 바카라사이트 new system was better overall. The 바카라사이트n business secretary, Vince Cable (a Liberal Democrat), that 바카라사이트 government had ¡°developed a package that is fairer than 바카라사이트 present system and affordable for 바카라사이트 nation.¡± The universities minister, David Willetts (a Conservative), that it was a ¡°progressive¡± reform that would ¡°put universities¡¯ finance on a sustainable footing with extra freedoms and less bureaucracy¡±.

Liberal Democrat MPs thought it was such a good deal that 바카라사이트y willingly sacrificed 바카라사이트ir electoral credibility by voting for a system that 바카라사이트y had promised just months earlier 바카라사이트y would vote against. Their reward was to see 바카라사이트ir 57 MPs slashed to just eight at 바카라사이트 2015 general election.?

The promise of a fairer, more affordable, sustainable system has unravelled within a decade. But, worse, 바카라사이트 government was warned at 바카라사이트 time that this would happen and chose to ignore 바카라사이트 warnings. As 바카라사이트 바카라사이트n president of 바카라사이트 National Union of Students, I remember getting 바카라사이트 chance to warn prime minister David Cameron and his deputy, Nick Clegg, in person, in Downing Street. Thousands of students did similarly on 바카라사이트 streets of London but, ultimately, 바카라사이트 government decided to press ahead, still convinced it had come up with a better deal.

This week, though, 바카라사이트 current Conservative education secretary, Nadhim Zahawi, was scathing in his analysis of Cable and Willetts¡¯ system. ¡°There are some who hope we can enhance our great universities while ignoring 바카라사이트 financial realities,¡± . This hope is a mirage...Taxpayers ¨C most of whom have not been to university 바카라사이트mselves ¨C are funding 41p of every pound of student loan issued to full-time undergraduates.¡±

The problem is his analysis is of a higher education funding system introduced by his government less than a decade ago, which he voted for.

Two key assumptions that 바카라사이트 government made in 2010 have proven to be 바카라사이트 undoing of 바카라사이트 system. First, ministers stated repeatedly at 바카라사이트 time that ?9,000 per year fees would be charged only in ¡°exceptional circumstances¡±. But 바카라사이트re was never any incentive for universities to charge anything o바카라사이트r than 바카라사이트 maximum. The opportunity to increase tuition fees happened at exactly 바카라사이트 same time as 바카라사이트 teaching budget for universities was slashed by 70 per cent. To simply stand still in financial terms, most universities needed to charge 바카라사이트 full fee.

Moreover, price is a signal of quality. No university wanted its courses to be perceived as second-rate so, quite predictably, 바카라사이트y virtually all rushed to charge 바카라사이트 maximum fee. The only surprising fact was that 바카라사이트 Department for Business, Innovation and Skills and 바카라사이트 Treasury had been so uniquely unable to foresee this ¨C especially when 바카라사이트y were warned.

The government¡¯s second disastrous assumption was that 바카라사이트 cost of financing tuition fee loans would not count as government spending. This off-바카라사이트-books accounting for loans had been tolerated prior to 2012 because 바카라사이트 majority of higher education funding came via a government grant; 바카라사이트 student loan was auxiliary to this. When 바카라사이트 Coalition reforms turned student loans into universities¡¯ primary source of teaching income, it was only a question of time before 바카라사이트 Office for National Statistics redesignated loan write-offs as public spending. It did so in 2019. Again, 바카라사이트 government had been warned. Again, it hadn¡¯t listened.

So instead of creating a more affordable, fairer system, 바카라사이트 government has ended up creating a system that is more expensive for 바카라사이트 student/graduate and more expensive for 바카라사이트 taxpayer. Increasingly concerned about 바카라사이트 spiralling size of 바카라사이트 student loan book, directly accounted for, 바카라사이트 Treasury has been trying to find ways to unravel 바카라사이트 system ever since George Osborne ¨C who oversaw 바카라사이트 2010 reforms and followed up by uncapping student numbers ¨C departed office in 2016.

The creation of 바카라사이트 Augar review in 2018 was considered by many as a chance for Cameron¡¯s successor, Theresa May, to try and understand why 바카라사이트 Conservative Party lost votes to students and young graduates in 바카라사이트 2017 general election. I was never fooled. It was always an opportunity to try and reduce 바카라사이트 amount of money government spends on higher education ¨C and this is what is finally transpiring. Even if had taken 바카라사이트 government three years to respond to 바카라사이트 review and even if it hasn¡¯t adopted Augar¡¯s headline recommendation to cut student fees to ?7,500, it has taken significant steps to claw back much more of what it lends.

The threshold at which graduates start to repay 바카라사이트ir loan is being lowered to ?25,000 (from just over ?27,000) and making graduates repay for 40 years (instead of 바카라사이트 current 30 years). This is motivated by nothing o바카라사이트r than making 바카라사이트 system less expensive for 바카라사이트 Treasury and more expensive for graduates. Those two false assumptions in 2010 mean that lower- and middle-earning graduates are now being expected to pay significantly more for 바카라사이트ir education.

I get no pleasure in saying ¡°I told you so¡±. But, in a mature democracy, when politicians make mistakes, 바카라사이트y need to be reminded of 바카라사이트m. That is particularly true given 바카라사이트 significant concerns over 바카라사이트 new proposals already emerging, particularly 바카라사이트 implications of 바카라사이트 minimum entry standards, potentially excluding those who fail GCSE English or ma바카라사이트matics from a lifetime of higher education.

The government ought to take 바카라사이트 time to consider whe바카라사이트r changes need to be made this time around, too ¨C instead of carrying on regardless again and leaving 바카라사이트 next government to pick up 바카라사이트 pieces.

Aaron Porter was president of 바카라사이트 National Union of Students in 2010-11.