Students’ personal debt reflects UK government decisions to load costs of HE onto individuals rather than public finances

stewartb

The level of students’ personal debt reflects UK government decisions – acting as the government of England – to load the cost of higher education onto individuals rather than the public finances. The extent to which this has been done is a policy choice. The extent to which it has been done – and sustained – in England over more than a decade is a function of the choices made by voters in England. They have wanted this policy, they endorsed this policy at the ballot box and/or at least they have acquiesced to its continuation.

They have every right to do so of course but the scale of public spending in England on what are devolved matters impacts on the public finances of Scotland.

Not only have Westminster governments loaded education costs onto individual students in Higher Education, they have cut public spending on other aspects of education in England. On 30 June the House of Commons Library published a briefing paper on 16-19 education funding in England.

Source https://researchbriefings.files.parliament.uk/documents/CDP-2023-0147/CDP-2023-0147.pdf

Here are the key findings (with my emphasis):

1) ‘Between 2010–11 and 2019–20, spending per student aged 16–18 FELL BY 14% IN REAL TERMS IN COLLEGES AND BY 28% IN SCHOOL SIXTH FORMS. For colleges, this left spending per student at AROUND THE LEVEL IT WAS IN 2004–05, while spending per student in sixth forms was LOWER THAN AT ANY POINT SINCE AT LEAST 2002.’

2) ‘In the 2019 and 2021 spending reviews, the government announced extra funding for colleges and sixth forms. As a result, overall per-student spending in 16–18 education is set to rise by 9% in real terms between 2021–22 and 2024–25. Yet even with the additional funding, COLLEGE SPENDING PER PUPIL IN 2024–25 WILL STILL BE AROUND 5% BELOW 2010–11 LEVELS, WHILE SCHOOL SIXTH-FORM SPENDING PER SIXTH-FORM PUPIL WILL BE 22% BELOW 2010–11 LEVELS.’

3) ‘THERE WERE CONSISTENT REAL FALLS IN SPENDING PER STUDENT IN BOTH SIXTH FORM COLLEGES AND FURTHER EDUCATION COLLEGES FOR MOST OF THE 2010S. Levels in 2021-22 were 27% below their peak for school sixth forms (almost £2,000 per student in 2022-23 prices), and 14% in sixth form colleges (£1,100 per student).’

It would be instructive to take each devolved area of public service in turn and examine time series data on spend in England. This would chart the choices made by UK governments acting as the government of England. The impact on Scotland’s public finances of choices made FOR England – the impact on Scottish governments’ ability to address voters wants and needs FOR Scotland – would become clearer.

(We’ve commented previously on how the UK government for England has over time loaded more of the costs of local government services on Council Tax payers thus by-passing the Barnett formula. I suspect there are other, similar examples.)

5 thoughts on “Students’ personal debt reflects UK government decisions to load costs of HE onto individuals rather than public finances

  1. Of course, the reason for the fees and loans as opposed to grants, is to reduce access to Higher Education for students from less affluent families. These are students who attended local authority schools which are, in Scotland, all comprehensives.

    A long term statistical study by the University of Warwick, covering several decade, indicates that when degree awards are compared for students who attended comprehensives and those who attended private schools and attained the same grades at Higher or A Level, the former pupils of comprehensives are awarded significantly better degrees.

    As a consequence, pupils from less affluent backgrounds can out compete private schol students in terms of qualifications.

    But, of course, that is not the whole story. Private schools are not about higher quality teaching – the teachers in both are similarly qualified – but about the social contacts being made. The ‘old school tie’ still matters, especially in the higher echelons of the Law, medicine the media, etc.

    Nevertheless, the Tories and ‘new’ Labour (which was a great supporter of the lie of ‘meritocracy’) want to ensure that there is less competition from the oiks.

    Today, Starmer is ‘pledging’ to improve how now local authority school children speak to enable them to break through the ‘class ceiling’. He is right to recognise that there is a ‘class ceiling’ but there needs to be a lot more than improving speaking to break the class barrier. Removing higher education fees, restoring grants, providing more early years education, ensuring FE has real parity of esteem, etc are a few of the things that can be done. Will a Labour government rise to the challenge? Does it really want to??

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    1. I’ve always known the school system in Scotland as primary school, then high school. Comprehensive schools in England, before that when my older brother was at school, they were called ‘secondary’ schools. I guess just to make sure the plebs knew their place, secondary.

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  2. Half the loans will never be paid off. Justva burden on people. The ConDems cut Education £6Billion a year. The loan books are now £Billions and sold on. A ridiculous policy. Scottish education system is much better. More access and open. Lifelong learning. More accessible. By ability not the ability to pay.

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    1. I seem to remember a few years back the English government sold some student loans to debt companies, who don’t play nice when they want the debt/money paid back. Many years ago I read that a Tory MP part owned a debt company, when looking into it for my sister, who’d taken out credit cards much to her detriment. Rich Tories and no doubt Labour have their dirty greedy fingers in every pie.

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  3. Private has smaller classes. Labour and SNP want to end tax free charitable status. A more even playing field? Oxbridge funded 20 to 1 of all other universities. Students ruin the economy. Pay for private education then head for heavily subsidised elite universities. Go into politics and ruin the economy. The UK the most unequal place in the world. Labour expelling left wing members. A betrayal of the origins of the party. Fabian society. Universal Suffrage 1928. No longer house owning requirement to vote. 1945 massive victory. Expanding homes and schooling. Now trying to be Tories, Illegal wars, financial fraud and tax evasion. Cut tax evasion. Lower inflation. Less Gov borrowing. Brexit losing £Billions and ruining the economy.

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