Tuition fees to increase again?

Business Secretary Lord Mandelson has launched the higher education tuition fees review amidst evidence that universities are coming under increasing pressure from rising applications and a lack of funding. Some universities are calling for a cap on fees as high as £7,000, double the current cap of £3,225, arguing that the status quo is unsustainable.

The review will look at the level of tuition fees, how to ensure poorer students are not put off from applying and how to involve employers in paying for degrees. Speaking at its launch, Lord Mandelson said that "variable tuition fees provide institutions with a secure income stream worth £1.3bn, helping to sustain the long-term financial health and viability of the sector."

The final report will not be issued until after the general election, prompting critics to suggest that the government is dodging a controversial decision about fees until after the vote. A YouGov poll conducted recently for the National Union of Students (NUS) found that only 12% of people think fees should be raised.

The NUS President Wes Streeting warned that higher tuition fees would be a "disaster for UK higher education" which would see "poorer students priced out of more prestigious universities."

Meanwhile, speculation that higher education funding could be cut by 20-25% after the election took a new direction over the weekend after the Sunday Telegraph obtained a consultation response by Cambridge University sent to the Higher Education Funding Council for England (HEFCE). The response warned that the university could reduce student numbers if funding is cut to avoid spreading funding too thinly, saying that "the effect of a reduction in teaching funding, without reducing student numbers, is a reduction in the unit of resource."

"Some [universities] will be shown to have too many students for the new rate of funding... HEFCE, and the Government, may have to face up to the fact that despite pressure on places, too many students are being taught on inadequate funds."

CUSU Education Officer Sam Wakeford told The Cambridge Student (TCS) that CUSU is "very concerned about the implications of a reduction in teaching funding."

When TCS contacted Cambridge University for clarification, a spokesperson said that the university will "maintain the current number of student places [next year]." The spokesperson added that "there is no suggestion that the position will be subject to review or change."

Statistics released recently by UCAS have shown that applications for the upcoming academic year have already risen 12% on the previous year. This rise comes as universities face potentially multimillion pound fines for an increase of new undergraduates this year almost double to a government-imposed cap.

The cap aimed to plug a funding hole of £200m, but 25,406 more students have started degree courses this year compared to last year's increase of 13,000. 139,520 students were rejected this year, compared to 114,009 last year.

The shadow universities secretary David Willetts warned that "Ministers are sleepwalking into another universities entrance crisis. This year, far more potential students than usual have been left without a place and we can now see the problems are set to be even worse next year."

However, higher education minister David Lammy said that "This year there will be more students than ever before going to university. Our initiatives have seen the percentage of young entrants to first time degrees from state schools, lower social groups and low participation backgrounds all increase over the last decade."

Students are also facing increasing competition from raised entry requirements as universities attempt to combat the growing rate of applications and the increasing number of students achieving the highest grades. Cambridge has already increased its standard offer to A*AA from AAA, and other universities are also increasing their offers.

Tate Oulton, applying to study Natural Sciences from next year, told TCS that "an increase in tuition fees and more stringent entry requirements are going to alienate students in comprehensive education. I know that if tuition fees were raised to £5,000, I would struggle to come up with the money."

Cambridge's MP David Howarth told TCS that "Liberal Democrats continue to oppose all tuition fees for first degrees." However, Liberal Democrat leader Nick Clegg has said that his party no longer advocates their immediate abolition saying that "The issue is simply on the affordability."

The Cambridge City Conservative Association said that the Conservatives were committed to the review, but would advocate the creation of an extra 10,000 university places next year, funded by encouraging the early repayment of student debt with an early repayment bonus.

Cambridge's Labour parliamentary candidate Daniel Zeichner had not returned a request for comment at the time of going to press.

Kenichi Udagawa - News Reporter