Getting degrees right

The latest review on tuition fees isn’t as generous as it first seems. It suggests fees be cut in England to £7,500, but it also wants to extend student loan repayments from 30 to 40 years – and repayment would begin at an earnings threshold of £23,000 rather than the current £25,725. This is a canny way of appearing to cut the fees while actually trying to claw back more money. As present, many people are charged the full rate of £9,250 per year in tuition but, if they don’t get a relatively high-earning job, they won’t have to pay the money back at all – and the total student loan book is growing dangerously large.

The review’s advice is a step towards fixing the accountancy problem and, hopefully, will encourage universities, students and families to think harder about the kind of courses being taken. But there’s still no decisive disincentive against offering students useless degrees that leave them under-qualified for real-world work – why not, if the tuition fee cash rolls in and the student thinks that they’ll never have to pay off their debt? At the same time, Britain has a skills shortage. The migration advisory committee has recommended adding new professions to the official shortage occupation list, including psychologists, occupational therapists, vets, archaeologists and web designers.

New industries require new skills, and it’s absurd that while the university sector expands and expands it isn’t keeping up with business demand. This review helpfully suggests better funding for vocational training but, ultimately, the Government must come up with a formula that results in individuals doing degrees that will truly enhance their life and their earning power.