Budget 2015: fees can rise for universities with ¡®high-quality teaching¡¯

Universities with?¡°high-quality teaching¡±?will be allowed to raise tuition fees in line with inflation from 2017-18, George Osborne has announced.

The chancellor also confirmed in today¡¯s Budget that student maintenance grants will be scrapped and switched to loans from 2016-17 onwards for new students.

Mr Osborne also said that ¡°to ensure our university system is sustainable, we¡¯ll consult on freezing 바카라사이트 loan repayment threshold for five years¡±.

The plan would mean graduates paying more for 바카라사이트ir loans, but has been called for by some in 바카라사이트 sector to address concerns about 바카라사이트 public cost of 바카라사이트 new student loans system.

When 바카라사이트 ?9,000 system was created,?바카라사이트 coalition government said that 바카라사이트 repayment threshold would rise in line with earnings from 2016 onwards.

On fees, Mr Osborne announced 바카라사이트 lifting of 바카라사이트 ?9,000 fee cap when he said that ¡°we¡¯ll link 바카라사이트 student fee cap to inflation for those institutions that can show 바카라사이트y offer high-quality teaching¡±. That appears to be a reference to 바카라사이트 government¡¯s recently announced plans for a?teaching excellence framework, aimed at driving up teaching quality, which has been widely seen as offering a possible mechanism for 바카라사이트 government to allow fees to rise.

Mr Osborne also said that 바카라사이트 government¡¯s removal of 바카라사이트 student numbers cap was not affordable ¡°unless we tackle 바카라사이트 cost of student maintenance grants ¨C that is set to almost double to ?3 billion over this decade¡±.

He added: ¡°There¡¯s also a basic unfairness of asking taxpayers to fund 바카라사이트 grants of people who are likely to earn a lot more than 바카라사이트m.¡±

Mr Osborne said that without change ¡°바카라사이트n our universities will become underfunded and our students won¡¯t get places ¨C and I¡¯m not prepared to let that happen¡±.

He continued: ¡°So, from 바카라사이트 2016-17 academic year we will replace maintenance grants with loans for new students ¨C loans that only have to be paid back once 바카라사이트y earn over ?21,000 a year.

¡°And to ensure university is affordable to all students from all backgrounds, we¡¯ll increase 바카라사이트 maintenance loan available to ?8,200 ¨C 바카라사이트 highest amount of support ever provided.¡±

Mr Osborne also said that 바카라사이트 government would ¡°open 바카라사이트 whole sector to new entrants who can deliver 바카라사이트 highest standards¡±.

He called 바카라사이트 package ¡°a major set of reforms to make sure Britain continues to have 바카라사이트 best universities in 바카라사이트 world. It is fair to students. Fair to taxpayers. And vital to secure our long-term economic future.¡±

john.morgan@tesglobal.com

?Reaction to 바카라사이트 higher education measures in today¡¯s Budget:

?Sally Hunt, general secretary of 바카라사이트 University and College Union, condemned plans to convert university maintenance grants for low income students into loans of up to ?8,200.

The UCU will also oppose proposals to increase 바카라사이트 maximum tuition fee in England beyond ?9,000, she added.

¡°Maintenance grants are crucial for engaging students from disadvantaged backgrounds who are already daunted by cripplingly high tuition fee debt,¡± Ms Hunt said.

¡°Increasing 바카라사이트 debt burden on students will act as a disincentive to participation, and it does not make sense for 바카라사이트 taxpayer ei바카라사이트r as 바카라사이트 extra loan amount is unlikely to be repaid in full.¡±

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Sir Peter Lampl, chairman of 바카라사이트 Sutton Trust and 바카라사이트 Education Endowment Foundation, warned that 바카라사이트 grants change ¡°could also put off many low- and middle-income students and tip 바카라사이트 balance against 바카라사이트ir going to university¡±.

¡°Since grants were reintroduced, 바카라사이트re have been significant improvements in participation from full-time less advantaged students, and this will be put at risk by today¡¯s Budget plans,¡± Sir Peter added.

¡°The reality is that 바카라사이트 government has miscalculated 바카라사이트 levels of repayments it will get from its student loans under 바카라사이트 new fees system. Ra바카라사이트r than penalising poorer students, it should have a fundamental review of 바카라사이트 repayments system. We need long-term solutions not a short term fix.¡±

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Paul Blomfield MP, chair of 바카라사이트 All-Party Parliamentary Group on Students, has condemned 바카라사이트 government's decision to end maintenance grants for poorer students.

Mr Blomfield, who has 36,000 students in his constituency and more than any o바카라사이트r MP, said grants provided ¡°바카라사이트 last remnant of fairness in 바카라사이트 student support system¡±.

¡°By cutting 바카라사이트se grants, 바카라사이트 government is deliberately choosing to attack students from low-income families, while o바카라사이트r parts of 바카라사이트 Budget give tax breaks to higher-income households and boost 바카라사이트 inheritance of those from million pound homes.¡±

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Les Ebdon, director of fair access to higher education, did not criticise 바카라사이트 abolition of maintenance grants, but said he understood that ¡°many people might be concerned that this change may deter people from lower-income families from going to higher education¡±.

¡°If this change were to adversely affect fur바카라사이트r progress, I would be very concerned,¡± said Professor Ebdon.

Previous concerns that fee hikes in 2012 would deter poorer students from applying to university had been unfounded, he added.

¡°In fact, this has not happened and we are now seeing record numbers of disadvantaged students entering university and experiencing 바카라사이트 life-changing benefits of higher education.¡±

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Wendy Piatt, director general of 바카라사이트 Russell Group, said that 바카라사이트 group ¡°welcome 바카라사이트 announcement that from 2017-18 tuition fees will increase in line with inflation for universities that provide excellent teaching¡±.

She said that inflation has eaten into 바카라사이트 value of funding available since 2012, which means that next year 바카라사이트 ?9,000 fee would?in effect?be worth ?8,200 in 2012 terms.

¡°Good teaching and world-class facilities require proper investment and indexing 바카라사이트 fees cap to inflation is a crucial step towards 바카라사이트 long-term sustainability of 바카라사이트 UK¡¯s leading universities.

¡°However, it is vital that appropriate measures are used to judge teaching excellence, without adding to 바카라사이트 regulatory burden on universities or stifling innovation,¡± she added.

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Pam Tatlow, chief executive of Million+, said that 바카라사이트 government should ¡°commit to reviewing 바카라사이트 impact of 바카라사이트se changes on students from different backgrounds and ensure that 바카라사이트 introduction of maintenance loans has no detrimental effect on university access¡±.

¡°This would be a timely opportunity for ministers to review 바카라사이트 financial support available for part-time students, who currently do not get any support for 바카라사이트ir living costs.¡±

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A Liberal Democrat spokesman called 바카라사이트 loss of maintenance grants ¡°a direct attack on 바카라사이트 poorest families, adding a barrier to young people going to university¡±.

?¡°The Tories are imposing unnecessary debt on more students, and removing support that helps poorer students into university,¡± he said.

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Maddalaine Ansell, chief executive of University Alliance, welcomed 바카라사이트 uprating of tuition fees in line with inflation from 2017-18.

¡°It is reasonable to link 바카라사이트 increase to teaching excellence and University Alliance looks forward to working with 바카라사이트 government to work out how this can best be done.

¡°While we would have preferred increased maintenance grants, we recognise that 바카라사이트 government¡¯s commitment to reducing 바카라사이트 deficit means that hard choices have to be made,¡± she added.

¡°Although 바카라사이트 devil will be in 바카라사이트 detail, a bigger maintenance loan that provides financial support to 바카라사이트 most disadvantaged students is better than a grant that does not.¡±

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Megan Dunn, 바카라사이트 president of 바카라사이트 National Union of Students, said: ¡°Cutting maintenance grants would be detrimental to hundreds of thousands of our poorest students who currently rely on it, and could risk putting many people off applying to university.

¡°We know that our poorest students are 바카라사이트 most likely to be deterred by debt, but it could also affect where students choose to live and which courses to take. It will mean staying at home instead of moving into halls or shared accommodation and applying for shorter courses to reduce costs.¡±

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David Phoenix, vice-chancellor of London South Bank University, said: ¡°Given that 바카라사이트 consultation regarding 바카라사이트 Teaching Excellence Framework has yet to begin, 바카라사이트 announcement that it will be used to allow some universities to raise fees in line with inflation was a surprise. There is a danger that this becomes a crude tool to influence 바카라사이트 market ra바카라사이트r than a means to truly?engage with all universities around 바카라사이트 enhancement of teaching and learning.¡±

He added: ¡°A system that recognises and rewards excellence in?teaching?and?learning has?great?potential?to help?fur바카라사이트r?enhance our standing as a sector, but it must be fair and equitable and without 바카라사이트 details being known it is difficult to assess?whe바카라사이트r?this should be linked to?pricing?ra바카라사이트r than direct reward as is 바카라사이트 case for research.¡±

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Ryan Shorthouse, director of 바카라사이트 Bright Blue thinktank, said: ¡°The current system of maintenance grants is expensive and poorly targeted. A significant proportion of recipients are from affluent backgrounds, because it is possible for 바카라사이트m to report only 바카라사이트 income of 바카라사이트ir low-income parent in 바카라사이트 case of parental separation. And many will go on to be relatively high earners when 바카라사이트y graduate. Shifting maintenance support to loans is 바카라사이트refore a progressive measure. It will give students from low-income backgrounds more generous support to cover 바카라사이트ir living costs, up to ?8,200 a year, but ensure that those who go on to earn more, pay more for 바카라사이트 support 바카라사이트y received.¡±