Submission by Welsh Liberal Democrats to the National Assembly inquiry into student hardship in Wales

 

 

March 2001

 

 

Our Principles

 

·        The Liberal Democrats' Constitution states that the party exists "to build and safeguard a fair, free and open society…in which no-one shall be enslaved by poverty, ignorance or conformity." Central to this is our commitment to education

 

·        We regard education as a right, not a privilege, nor as a commodity to be purchased

 

·        We believe that lifelong learning is of benefit to our society as a whole, not just to individual learners themselves

 

·        We support the principle of access to education free of charge at the point of use

 

·        We recognise that those who can gain the greatest relative benefit from education are often those least able to pay for it

 

·       We oppose the imposition of extra costs such as tuition fees on students as a form of indirect taxation. We believe that increases in education funding should be paid for by means of transparent direct taxation

 

·       We recognise, however, that the general reintroduction of maintenance grants is not a currently feasible option, and that any extra support provided must be targeted at those with the greatest need

 Our Concerns

 

We are concerned that the ongoing erosion of student support is:

 

·        Discouraging applications

 

·        Increasing financial difficulties for students, and so encouraging drop-up

 

·        Discouraging participation by people from certain social groups

 

·        Causing unnecessary stress for students and adversely affecting academic performance - the DfEE's 1998-99 student survey found that 10% of students had considered dropping out for financial reasons, and that 3 out of 5 full timers and 2 out of 5 part-timers thought that financial problems had had a detrimental effect on the studies

 

 

We are concerned in particular that the introduction of tuition fees has:

 

·        Discouraged applications - figures published by UCAS on 19th January 2001 showed the number of students from Scotland, who are no longer liable for tuition fees, taking up higher education places increased by 9%, compared with a 1% increase in students from England and a 2.6% in the number from Wales

 

·        Particularly deterred potential students from low-income backgrounds - Scotland's Cubie inquiry concluded that "the perception of the up-front tuition fee represents and impediment to access" adding that "although the majority of students do not pay full tuition fees, their very existence was considered a deterrent."

 

·        Been treated as a precedent for further charges for participation in higher education - recent developments at Aston University (where top-up fees have been included in the university's five-year plan) and Warwick University (where there are proposals to compel students to buy lap-top computers) are fuelling fears that the UK may face a USA-style free market in tuition fees

 

 

We are concerned that current student support arrangements do not adequately address the needs of students:

 

·        Some students from low income backgrounds are not getting as far as applying for higher education courses, since they are having to leave school at 16

 

·        The current scope of Individual Learning Accounts is very limited, both in terms of how much money can be held in any account, and in terms of what it can be spent on

 

·        In spite of the recent emphasis placed on Access Funds, such funds often do not become available to students until they are experiencing financial difficulties, and cannot be relied upon by students in planning their finances and avoiding problems

 

 

We are concerned that current Council Tax discounts for students are inconsistent and unfair:

 

·        At present, if all the residents of a property are students, they are all exempt from Council Tax; if one or more students and one non-student live in a property there is only a 25% discount; if the property contains one or more students and two or more non-students, there is no discount

 

·        If there is any liability for Council Tax, all residents will be equally liable to pay it, regardless of whether or not they are students - this means that liability for Council Tax depends on whom someone happens to be sharing a house with, rather than on their income

 

 

We are concerned that current categories of prescription and dental charge exemptions may disadvantage mature students:

 

·        There are concerns that current proposals to extend prescription charge exemptions to 16-25 year olds, and provide annual free dental checks to those aged 18-25, do no take account of the needs of mature students (those aged over 25)

 

 

We are concerned that some students may be taking on excessive paid employment:

 

·        This may be either to avoid borrowing or keep it low, or because their income from other sources is simply not enough to sustain them and to meet the costs of participation

 

·        The possible consequences of this are lack of time to study; tiredness and stress affecting academic performance; and lack of time and energy to take part in clubs and societies and other valuable extra-curricular activities.

 

 

We have serious concerns about the way the Student Loans Company administers loans, and the terms and conditions it applies:

 

·        Student loans are paid in three equal instalments, in spite of the different length of the three terms in each academic year

 

·        Students aged 55 years or older are excluded from loan entitlement, thereby discriminating against those choosing to study later in life

 

·        Students borrowing under the Student Support Scheme are liable to start repaying their loans as soon as their gross income exceeds £10,000 per annum. We believe this threshold has been set too low and propose raising it to a more reasonable level, such as £20,000

 

·        Since 75% of the Student Loan is not means tested, that 75% is available to all eligible students regardless of income or need. There is considerable anecdotal evidence that some students are taking out loans they do not need and investing them in high-interest accounts

 

 

We are concerned at the plight of students who do receive the full assumed parental contribution:

 

·        The DfEE found that in 1998-99, of the 56% of students who were obliged to make some contribution to their tuition fees, 20% did not receive the full assessed amount from their parents

 

·        These students faced an average shortfall of £579 which they had to make up for themselves through borrowing, paid work, or dipping into their savings

 

 

We are concerned at current limitations on the scope of the Disabled Student's Allowance (DSA):

 

·        The DSA does not cover the costs of work experience and work placements, since it only covers study-related costs. Given the current practice of encouraging students on many courses to undertake such work, this deficiency in the DSA leaves disabled students at a major disadvantage

 

·        The DSA is not available to access course students; nursing students and some others on medical diploma courses (rather than degree courses); or to people on courses which are less then 50% of the equivalent full-time course

 

Our Proposals

 

We believe that the National Assembly should:

 

·        Investigate ways of targeting support towards students with the greatest need. This should include:

(i) Reviewing the use of Access Funds

(ii) In co-operation with the UK Government, looking at ways of developing Individual Learning Accounts as a means of promoting lifelong learning

(iii) Investigating the introduction in Wales of Education Maintenance Allowances, based on the model currently being piloted in Scotland and England, as a means of encouraging low-income pupils to remain at school after 16

 

·        Review students' access to free medical services such as dental checks and prescriptions, with a view to making use of the Assembly's powers to designate categories of people exempt from charges for such services

 

·        Review current categories of Council Tax discounts, and consider the viability and desirability of bringing more students into the discounted categories

 

·        In co-operation with students' unions, higher education institutions, employers, trade unions, consider developing guidelines on the employment of students

 

·        Examine the effectiveness of support in Wales for students with particular needs, such as students with children and students with disabilities

 

·        Co-operate with the UK Government in seeking ways of addressing the UK-wide problem of students who do not receive the full assumed parental contribution

 

 

We believe that the National Assembly should press the UK Government to:

 

·        Abolish up-front tuition fees in England and Wales, taking into account the lessons already learned in Scotland

 

·        Ensure that whether or nor tuition fees are abolished, they do not lead to the introduction of "top-up fees" and other additional charges

 

·        Restore access to benefits, including Housing Benefit and Income Support, for all students from the age of 16

 

·        Reform the administration of student loans to ensure greater fairness

 

·        Review the current practice as counting student loans as income for the purpose of assessing students' income

 

·        Review the scope of the Disabled Students Allowance (DSA)

The Facts of the Matter

 

The underfunded growth of higher education in the UK

 

·        The last 20 years have seen a significant growth in the number of students taking part in further and higher education in the UK, without a corresponding increase in funding

 

·        Expenditure per student in cash terms increased between 1992 and 1997 in the OECD as a whole by 9%, but fell in the UK by 21%, largely as a result of increased student numbers

 

·        Student:staff ratios in higher education have been consistently worsening in Wales from 9.4 in 1980-81 to 17.3 in 1998-99, and from 8.9 to 16.9 in the UK as a whole over the same period

 

 

The erosion of support for students

 

·        Since the early 1980s, there has been a deliberate and progressive erosion of support for students

 

·        Most of this occurred under successive Conservative governments from 1979 to 1997:

 

1981

The repeat grant was abolished

1984

The minimum grant was halved

1985

The minimum grant was abolished

1986

Students lost entitlement to supplementary benefit or unemployment benefit, and entitlement to housing benefit for university halls of residence

1989

The equipment allowance was abolished

1990

Vacation hardship was abolished

 

Student loans were introduced and entitlement to state benefits was withdrawn

The grant was frozen at £2,200

1994

The grant was cut by 10%

1995

The grant was cut by a further 10%

 

The mature student allowance was abolished

1996

The grant was cut by a further 10% and student loans increased by 10%

1997

The grant and loan were both increased, but only by 1.2%

 

·        The situation was further worsened following the election of the Labour government in 1997, by the introduction of students' liability for tuition fees, and the final abolition of the maintenance grant

 

 

The consequences of this erosion of support:

 

·        Students have become increasing dependent on borrowing, use of savings, and paid employment to sustain themselves whilst studying

 

·        Take up of Student Loans has risen from 28% in 1990-91 to 72% in 1998-99, with the average amount borrowed rising from £389 to  £1,891

 

·        The UK DfEE's survey of student finance found that in 1998-99 students had average net debts of £2,456, compared with £840 in 1995-96. The DfEE admitted that "more students owed considerably larger sums of money, to a broader range of creditors".