I got an email from Nick Clegg about it this afternoon...
I am painfully aware of the pledge my colleagues and I made to you and to voters on tuition fees ahead of the General Election. Departing from that pledge will be one of the most difficult decisions of my political career. It means doing something that no one likes to do in politics ? acknowledging that the assumptions we made at election time simply don?t work out in practice. With the benefit of hindsight, I signed a pledge at a time when we could not have anticipated the full scale of the financial situation the country faces now and the absence of plausible alternatives for students to the arrangements we are now advocating.
Our constructive and open dialogue as a party on such a difficult issue for us has only reinforced my view that, whatever our differences of opinion, Liberal Democrats are motivated by a desire to see fairness hardwired into our society. I should stress that no detailed decisions have yet been taken by the Government on how to take forward Lord Browne?s recommendations. We have broadly endorsed them but this is an enormously complex issue and we will take the time needed to get it right. In this time I want to give members the opportunity to contact me, so I have set up a new email specifically for this discussion ? [email protected].
Most of you will agree that the existing system of the funding of higher education is unsustainable. This is exacerbated by the enormous deficit left to us by Labour necessitating unavoidable cuts in government support for higher education. It must also be remembered that Labour were planning to make massive cuts in the university teaching budget, having earmarked the BIS Department for 20% to 25% cuts. There is no pain free alternative. Unless the current system of Tuition Fees is changed, then either our universities would be bankrupt or far fewer of our young people would get the chance to experience tertiary education. People from my generation were lucky enough to enjoy a university education paid for by the state. In an ideal world, I would like our children and grandchildren to have the same. But we could not be further from an ideal world. We are in a disastrous financial situation that requires us to take tough decisions we would otherwise not have made.
The current system is also unfair in many ways ? not least the raw deal given to part-time students and the low level (near minimum wage) at which graduates currently have to start paying back their loans. The Government will respond fully to Browne?s recommendations in due course but some specific proposals deserve highlighting. Part-time students will have their fees paid up front and will be treated for the first time like their full-time counterparts. Poorer students will pay less, while wealthier students will pay more. And a much more progressive system than the current one both makes more generous maintenance arrangements for those on low incomes and raises the threshold at which repayments start to be made.
As Vince made clear, a pure graduate tax, while superficially attractive, simply won?t work. It is not fair, nor will it reduce our colossal deficit. That is why everyone who has looked closely at it has come to the same conclusion ? not least the last Labour Government in their booklet ?What?s Wrong with a Graduate Tax?. If Ed Miliband ignores his Shadow Chancellor?s advice and continues to support a graduate tax, then we should be extremely confident that it is us who are on the right side of the argument.
I understand there will be some MPs who feel that they cannot depart from their pledge but I have urged them to only come to that final conclusion after a thorough examination of all the facts available. As a starting point, I have drawn attention to yesterday?s response from the Institute for Fiscal Studies - ?the proposed reforms to repayments are highly progressive and ensure that poorest 30% of graduates are better off than under the current system, whilst ensuring that the richest 30% of graduates pay off their loans in full.?
The overriding principle for Liberal Democrats is that any system of higher education funding is fair. It should increase the number of students from disadvantaged backgrounds; it should increase social mobility; it should ensure fair access for all and not put anyone off attending university; it should increase the already world-class teaching and research at our universities; and it should ensure that those who earn more pay more.
This is one of the most difficult political decisions I have ever had to make and I have struggled endlessly with it. I could not forgive myself, however, if we did not take decisions now, regardless of how difficult they are politically, that would lead to a fair and sustainable system of higher education funding for future generations.
All best wishes,
Nick Clegg
Leader of the Liberal Democrats