Contribution
I am sure that my department’s data on that is correct, but I stick with the point made yesterday, which is also correct: if we take the free school meals measure in the most recent year, in contrast to what happened previously, we have seen the gap widen. My broader point was that, frankly, it does not matter which measure you take, we have not seen a sufficient closing of that gap. It is still wrong that students from disadvantaged backgrounds who could benefit from higher education are not getting that benefit. That is why we will take action, alongside the sector and others, to make sure that we can improve both access to higher education and the measures of continuation and progression out of higher education. In those figures, we have seen a differential between those who are disadvantaged who come into higher education and those who are advantaged. Not only is it more difficult to get in but it is more difficult to continue in their courses and to succeed. That is where we need to take action to improve the situation.
On efficiency, we are absolutely clear that providing additional funding for higher education brings with it a responsibility for the sector to spend that money as efficiently as possible—to provide the quality of experience that students have the right to expect, and in a transparent way—and we can use appropriate metrics to measure that. We will want to do that work alongside the sector itself, but we are clear that we need to see improvements in efficiency in exchange for the increase in investment, and that that is non-negotiable.
On the maintenance loan, the important point is that the maximum loan for any student will be going up by 3.1%.
On the other areas of reform, access is very important, but we have also made it clear that universities need to play a crucial role in the Government’s growth mission. We need to see them working alongside Skills England. We need to work with them to see what more they can do to contribute to growth in the economy. They already play a crucial civic role; we want to see that strengthened so that all those who argue for universities in their areas—quite rightly, because they understand the social, cultural and economic benefit—will see that maximised. We recognise the quality of what is provided in English higher education, but we want to ensure that where there are pockets of bad quality that is tackled, and that everywhere there is an emphasis on improving the quality of teaching provided for our students.
On the alternative financing mechanism, we will make progress on that, building on the work of the previous Government and the noble Baroness in particular—she knows that we are reconstituting the working group on that because she will be invited to be a member of it, so she will share in the responsibility for the progress that I hope that we are going to make.
The noble Lord, Lord Storey, asked whether other methods of funding universities had been considered. We have given considerable thought to the options for how we can help to bring some stability to the financial position in HE and to support students. Given the current financial situation and the constraints on spending, this was the most appropriate way to provide some additional income and certainty for HE. As a matter of principle, it is right that students who benefit from higher education—it is still the case that a degree or a qualification through a university will give you on average higher lifetime earnings—make a contribution to that through repaying their loans, alongside the contribution made by the taxpayer and the Government more broadly, particularly for those students who do not end up paying off all their loans, and the strategic priorities grant and other forms of support for higher education.
I agree with the noble Lord and hope that he has seen a very different tone towards international students from this Government than was the case previously—universities tell me that they have seen that. We will continue to welcome international students, not only because of the finance that they bring but because of the benefits to students and our role in the world that come from that. I think I have already covered the point about value for money, which we are absolutely committed to ensuring.