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Funding UK Higher Education: From Elitism to Mass Market

What's the latest on HE funding?

The political storm that has been brewing ever since the Government announced its intention to reform HE funding has not quite yet died down. At the time of writing, the bill to introduce these reforms has passed its second reading and now moves to the committee stage. There it will be analysed and possibly amended, prior to a third reading of the bill before it can become law.

The jobs some students have to take to manage their finances. © Photolibrary Group

The Government's big problem is still how to persuade its own backbenchers that their fears of a less inclusive higher education system are unfounded. Opponents to top-up fees warned of the potential damage that would be caused to the drive for increased HE participation:

• Students from less affluent families would be deterred
• Students whose families have no history of HE participation would be discouraged from applying
• Consequently, HE take-up would continue to be biased in favour of the middle classes

The most recent plan is to replace upfront fees with zero-rated loans. Tuition fees will be capped at £3000 until 2010. Loans will be increased in size. Graduates will have to earn at least £15000 before triggering repayment of their loans. Any loans that remain unpaid twenty-five years after graduation will be written off.

In addition, students from the least well-off backgrounds (estimated to be about one-third of the total) will receive:

• A new maintenance grant of £1500
• Remission on the first £1200 of tuition fees
• £300 bursary from universities

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