The Government is to review ‘the whole post-18 education sector’ – the Prime Minister has announced during a speech in Derby earlier today.
The review, which will focus on choice, value for money, access and skills provision in post-18 education, will also ‘examine the whole system of student funding’ and ‘how students and graduates contribute to the cost of their studies’.
In her speech, Theresa May said: “The competitive market between universities which the system of variable tuition fees envisaged has simply not emerged.
“All but a handful of universities charge the maximum possible fees for undergraduate courses. Three-year courses remain the norm. And the level of fees charged do not relate to the cost or quality of the course.
“We now have one of the most expensive systems of university tuition in the world,” she said.
The Prime Minister’s speech comes after the Treasury Committee published a series of recommendations last week, which called on the government to reconsider high-interest rates on student loans.
“The use of high interest rates on student loans is questionable. The Government has justified it on progressive grounds, but the Committee remains unconvinced as high-flying graduates may pay less than graduates on more modest earnings,” Committee Chair Nicky Morgan MP said in a statement.
She then goes on to add: “The Government has said that maintenance loans aren’t intended to fully cover a student’s living costs. If a student can’t access additional sources of income, they may be priced out of university. The Government should assess the case for re-introducing maintenance grants to help remove barriers to access for potential students.”
In response to the news, Universities Minister Sam Gyimah said: “A Higher Education Review is needed because issues with student finance are complex and filled with tough trade-offs… and we don’t want to impact the achievements of the system so far – access for disadvantaged students and well-funded universities.”
Universities UK have also commented on the review, with President Janet Beer saying in a statement: “Future success depends on universities having stable and sustainable funding – which the current system provides.
“This review is the opportunity to examine the evidence and to make improvements. Crucially, the current system could be better understood and feel fairer to students. Injecting new investment to help the poorest students with their living costs and tackling the decline in mature and part-time study must be priorities.”
Meanwhile, Shadow Education Secretary Angela Rayner MP responded to the Prime Minister’s speech by calling the review ‘long-winded’ and an ‘unnecessary waste of time’.
“Theresa May has finally admitted that her Government got it wrong. They trebled tuition fees, abolished maintenance grants and left students graduating with debts of up to £57,000.”
She then went on to add: “Labour will abolish tuition fees, bring back maintenance grants and provide free, lifelong education in Further Education colleges.”
A report from an independent panel about the post-18 education review will be published ‘at an interim stage’, with the review concluding early next year.