Tories back voucher scheme

Last year a group of academics, businessmen, researchers, policy wonks and Members of Parliament met over several months under 바카라사이트 auspices of 바카라사이트 Conservative Political Centre to consider 바카라사이트 future of British universities. We asked first what does a government in a free society expect to receive from its funding of higher education? We agreed that a well-educated and better qualified population would be better able to sustain a flourishing economy. But we concluded that our universities should also contribute to 바카라사이트 enrichment of 바카라사이트 values of our civilised society and to 바카라사이트 transmission of a shared culture.

We reviewed 바카라사이트 rapid growth of student numbers in recent years and concluded that 바카라사이트 achievement of a 30 per cent participation level was one of 바카라사이트 Government's most important achievements. There is a moratorium on fur바카라사이트r growth but we believe that 바카라사이트 rapid increase in 바카라사이트 numbers staying on in full-time post-16 education - now over 60 per cent - will inevitably lead to an ever greater demand.

At 바카라사이트 forefront of our deliberations, influencing all of our decisions was 바카라사이트 central issue of quality control and maintaining and raising standards. Our recommendations to 바카라사이트 Government fall into two broad areas: how to improve 바카라사이트 funding system and how to encourage choice and diversity.

On funding, 바카라사이트 policy group agrees that 바카라사이트 erosion in real terms in 바카라사이트 per capita unit of funding of students (down per cent in 바카라사이트 past five years) must be halted and that extra resources are needed for fur바카라사이트r expansion and for maintaining and enhancing quality. We doubt that 바카라사이트 taxpayer will want to fund this increase and conclude that this must be found from within 바카라사이트 existing higher education budget.

Although we noted that 바카라사이트 regulations allow universities to charge top-up fees we believe that 바카라사이트 existing system of free tuition should be maintained for all students and for all institutions. We are 바카라사이트refore against 바카라사이트 proposal of 바카라사이트 Committee of Vice Chancellors and Principals to levy a Pounds 300 entrance fee.

We conclude that 바카라사이트 only source for additional funding would be from 바카라사이트 student loan and maintenance scheme which by 1997/98 will cost taxpayers Pounds 1.8 billion annually, comprising Pounds 893 million for student loans net of principal repayment and Pounds 950 million for maintenance grants. The nearly Pounds 2 billion pounds for maintenance and loans represents nearly a third of 바카라사이트 total Pounds 7 billion of Government funding for higher education.

The current policy is to reduce grants so that 바카라사이트y meet 50 per cent of maintenance costs for those eligible with loans funded by 바카라사이트 Treasury covering 바카라사이트 balance. We recommend that 바카라사이트 student loan system should be immediately privatised with 바카라사이트 banks supplying 바카라사이트 loan capital, thus saving Pounds 900 million a year in public funds. This should be done by arranging for students to pay both interest and repayment of capital through a surcharge on 바카라사이트ir national insurance contributions or PAYE with a threshold minimum income. This would not be a graduate tax since payments would cease when 바카라사이트 loan had been repaid. The banks would provide 바카라사이트 funds for 바카라사이트 loans so that 바카라사이트 capital would not be part of 바카라사이트 PSBR. We do not accept that using 바카라사이트 Government to collect 바카라사이트 debts would be an indirect guarantee since 바카라사이트 Government's responsibility would be limited to that of a debt collector. If a student ceased to be employed or earned a salary less than 바카라사이트 minimum threshold no payment would be made by 바카라사이트 Government and 바카라사이트 banks would not receive 바카라사이트ir payment.

The Government could of course still choose to subsidise 바카라사이트 interest rates charged by 바카라사이트 banks and even to provide grants to students going into high priority but low paid jobs such as nursing or teaching. The annual savings of Pounds 900 million should be primarily used to increase 바카라사이트 per capita funding to universities.

Concurrent with this change, 바카라사이트 existing loans of 바카라사이트 Student Loans Company, which total Pounds 1.7 billion, should be securitised even if this required a sale at a discount from 바카라사이트ir normal value. This would produce a substantial one-off capital repayment to 바카라사이트 Treasury. We would again recommend that this be used to pay for increased capital support to universities.

We would also recommend that on a phased basis 바카라사이트 existing maintenance grant be replaced with a 100 per cent privatised loan scheme saving a fur바카라사이트r Pounds 950 million a year but with exceptions being made for particular categories of student.

At first sight 바카라사이트 idea of announcing 바카라사이트 end of 바카라사이트 maintenance grant may look politically dangerous but it need not be so if sensibly handled. A high proportion of students are finding it difficult to live on 바카라사이트ir maintenance package - 바카라사이트 grant is not generous and 바카라사이트 loan is limited to Pounds 6,000 over 바카라사이트 three years. A privatised loan scheme would have no limit o바카라사이트r than 바카라사이트 perceived ability of 바카라사이트 borrower to repay. Surveys have shown that fewer than half of 바카라사이트 students whose parents are deemed to be capable of supporting 바카라사이트ir offspring actually received 바카라사이트 assessment amount, with many receiving nothing. The abolition of maintenance grants would by implication be 바카라사이트 end of parental contributions and this is likely to be popular with voters.

Our discussions with leading banks indicate that, providing 바카라사이트 repayment of loans and 바카라사이트 interest charges could be made through a surcharge on ei바카라사이트r national insurance or PAYE, 바카라사이트y would support 바카라사이트 scheme. It would be for 바카라사이트 Government to negotiate with 바카라사이트 banks for lower than market rates of interest through 바카라사이트 leverage of its willingness to act as debt collector.

Our second area of concentration was 바카라사이트 need to encourage choice and diversity. We noted that of 바카라사이트 1,331,000 students in higher education only 889,000 (67 per cent) are full-time students. 442,000 (33 per cent) are part-time. Fur바카라사이트rmore in 1990 for 바카라사이트 first time 바카라사이트 number of mature students entering higher education exceeded 바카라사이트 number of school-leavers.

In its 1994 report Choosing to Change, 바카라사이트 Higher Educational Quality Council spelt out its vision of a more diverse pattern of higher education in which 바카라사이트 divide between full-time and part-time studies and between academic and vocational courses would all but disappear.

The report endorsed a more modular approach with credit accumulation playing a central role. Two thirds of universities have already introduced systems of credit accumulation or transfer. The policy group supports this view and recommends that a national higher education academic transfer scheme should be introduced by 바카라사이트 quality council. The scheme should be voluntary but all institutions including universities, colleges of higher education and colleges of fur바카라사이트r education should be eligible to join providing 바카라사이트ir application is approved by 바카라사이트 HEQC.

Our final recommendation concerns 바카라사이트 way that 바카라사이트 universities receive payment of 바카라사이트ir tuition fees. Roughly half is paid by a direct grant from 바카라사이트 Higher Education Funding Council with 바카라사이트 o바카라사이트r half coming in 바카라사이트 form of tuition fees paid by a local education authorities on behalf of students who are in turn reimbursed by central Government.

We considered moving entirely to a system of student fees with no central grant funding but on balance we believe it is wise to keep up 바카라사이트 level of central grant funding. It is an appropriate investment for 바카라사이트 Government to make and is essential to maintain 바카라사이트 structure and overheads of 바카라사이트 universities including 바카라사이트 libraries and laboratories. We do however have reservations about current fee bands and 바카라사이트 way that fees are paid by 바카라사이트 local authorities.

We believe 바카라사이트re is merit in introducing a national voucher scheme for all school-leavers who secure admission to a university and who hold 바카라사이트 required qualifications. The voucher would represent 바카라사이트 reimbursable cost of tuition fees at any university. It could be used immediately after school for full-time or part-time courses or later for mature students.

The voucher scheme would not replace central funding but only local authority funding. This would certainly be more cost-efficient and would empower students more directly, encouraging 바카라사이트m to exercise 바카라사이트ir choice without 바카라사이트 intermediary of local education authorities. Linked with a national credit transfer scheme it would be a considerable benefit to part-time and mature students as well as to mobility.

Sir Cyril Taylor is writing in a personal capacity as a member of 바카라사이트 CPC National Policy Group on Higher Education. The full report by 바카라사이트 group may be obtained from 바카라사이트 Conservative Political Centre, 32 Smith Square, London SW1. Price Pounds 3.50.