Twice as many poor students at university since fees brought in

THE proportion of poorer pupils going to university has doubled since tuition fees were introduced two decades ago, a study shows.

The fees have allowed universities to accept more students – of all backgrounds.

But the biggest growth in numbers has been among those from the lowest income families, with the researchers finding the ‘participation gap between rich and poor students’ has narrowed.

The study casts doubt on Labour claims that the fees discourage poorer pupils from studying for a degree.

In 1997, when higher education was free, only 10 per cent of those from households in the bottom fifth of incomes studied for a degree, the researchers from the UCL Institute of Education found.

But by 2014 this had risen to 20 per cent.

Tuition fees were introduced in 1998 at £1,000, rising to £3,000 in 2004 and £9,000 in 2012.

A cap on student numbers was incrementally lifted from 2012, and now all universities can recruit as many as they like.

The move was enabled by tuition fees, as students now pay for their own courses via loans rather than the costs being subsidised by the Government, which has limited funds.

The researchers said the move to a high tuition fee system has led to ‘increased quality, enrolments and equity in higher education’. In their study, published by the Centre for Global Higher Education, they said higher tuition fees had not deterred poorer students because the money is not paid up-front.

They suggested the increase in attendance among those from disadvantaged backgrounds could also be because the increases in fees have been accompanied by corresponding increases in loans and grants.

They said: ‘In contrast to other countries with high tuition fees, England’s system of income-contingent loans allows students to safely borrow against their future incomes and means university is free at the point of entry.’

All undergraduates are entitled to full tuition fee loans, which they do not start paying back until they are earning more than £25,000. Graduates repay 9 per cent of all earnings over this threshold, but the debt is wiped after 30 years, meaning around 80 per cent never repay in full.

The poorest students in England can now access £8,500 per year in aid, compared to less than £5,000 a year before tuition

‘Gap between rich and poor narrowed’

fees were brought in. Study coauthor Dr Gill Wyness said: ‘The income-contingent loan system has really helped to moderate the impact of rising tuition.

‘It provides students with comparatively generous assistance for living expenses while protecting low earning graduates from the risk of high repayments.’

Labour has been heavily criticised over its plan to scrap tuition fees. Experts say the move would help the privileged most, since high earners repay the highest amounts of their loans, and could lead to a cap on numbers, potentially locking out disadvantaged youngsters.