And this time we mean it...Lib Dems risk backlash with possible election pledge to cut tuition fees

 

The Liberal Democrats are considering whether to promise to reduce the £9,000 cap on university tuition fees in their manifesto at the next general election.

Senior Liberal Democrats sources told The Independent that the idea is among options being looked at by a working party on higher education policy.

The Government's decision to almost treble the maximum fee to £9,000 a year was the most traumatic one for the Liberal Democrats since the Coalition was formed. At the 2010 election, they pledged to abolish fees, for which Nick Clegg issued a dramatic public apology last September.

Some Liberal Democrats are worried higher fees may be deterring young people from going to university and want their next manifesto to include a plan to set a £6,000 cap, with the government making up an estimated £2bn shortfall in universities' income.

Insiders say the party's decision could be influenced by figures due at the end of this month on the number of student applications. Latest figures from the Universities and Colleges Admissions Service (Ucas) show a drop of 5.6 per cent on the previous year.

But Vince Cable, the Liberal Democrat Cabinet minister responsible for higher education, is thought unlikely to support a lower cap. The Business Secretary believes the Ucas figures suggest that students from disadvantaged backgrounds have not been put off applying to university, partly because the loans covering fees do not have to be repaid until a graduate earns £21,000 a year.

The Liberal Democrats must make a decision on fees because, despite the Coalition's controversial decision, the party's official policy remains to phase them out. Its manifesto will be decided by the party's policy-making machinery rather than imposed by the leadership.

Cutting the ceiling to £6,000 would be difficult for Mr Clegg. It might look like yet another U-turn on an issue that has dogged his party, and finding an extra £2bn for universities might look unrealistic when public spending is being squeezed.

Labour has already proposed reducing the maximum fee to £6,000, with the money raised by reversing the Government's cut in corporation tax for financial services and increasing the interest rate on loans to the highest-earning graduates.

Nicholas Barr, Professor of Public Economics at the London School of Economics, said today that a lower cap would make sense to ensure enough people have a high-quality university education. He believes the Government went too far by ending the taxpayers' subsidy to universities, and says the axed teaching grant should be partially restored.

"What happened was destabilising for the [higher education] sector and, politically, we need to get back to something like a consensus," he said. He had "no doubt" the £9,000 cap was deterring some people from applying.

However, a 2011 study by CentreForum, a think tank with close links to the Liberal Democrats, found a £6,000 cap would be "clearly regressive", providing most help to graduates in their fifties earning £72,500 a year.

David Willetts, the Conservative Universities Minister, told the Commons last September that Labour's proposed £6,000 cap would do nothing for students, nothing for recent graduates because monthly repayments would not be reduced, and provide no help for the poorest graduates, who would be better off under the Government's scheme because they will not have to repay loans in full.

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Area Sales Manager - Midlands

£20000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: PHP Developer - 3-4 Month Fixed Contract - £30-£35k pro rata

£30000 - £35000 per annum: Recruitment Genius: This is a 3-4 month pro rata fi...

Recruitment Genius: Telesales Executive - OTE £26,000+

£16000 - £26000 per annum: Recruitment Genius: A Telesales Executive is requir...

Recruitment Genius: Area Sales Manager

£25000 per annum: Recruitment Genius: This is an exciting opportunity to join ...

Day In a Page

Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

Making of a killer

What motivated a shy student to kill 38 holidaymakers in Tunisia?
UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

Just when you thought your commute couldn't get any worse...

Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

The Real Stories of Migrant Britain

Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
Cheaper energy on the way, but it's not all sunshine and rainbows

Cheaper energy on the way, but it's not all sunshine and rainbows

Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most
Katy Perry prevented from buying California convent for $14.5m after nuns sell to local businesswoman instead

No grace of God for Katy Perry as sisters act to stop her buying convent

Archdiocese sues nuns who turned down star’s $14.5m because they don’t approve of her
Ajmer: The ancient Indian metropolis chosen to be a 'smart city' where residents would just be happy to have power and running water

Residents just want water and power in a city chosen to be a ‘smart’ metropolis

The Indian Government has launched an ambitious plan to transform 100 of its crumbling cities
Michael Fassbender in 'Macbeth': The Scottish play on film, from Welles to Cheggers

Something wicked?

Films of Macbeth don’t always end well - just ask Orson Welles... and Keith Chegwin
10 best sun creams for body

10 best sun creams for body

Make sure you’re protected from head to toe in the heatwave
Wimbledon 2015: Nick Bollettieri - Milos Raonic has ability to get to the top but he must learn to handle pressure in big games

Nick Bollettieri's Wimbledon files

Milos Raonic has ability to get to the top but he must learn to handle pressure in big games
Women's World Cup 2015: How England's semi-final success could do wonders for both sexes

There is more than a shiny trophy to be won by England’s World Cup women

The success of the decidedly non-famous females wearing the Three Lions could do wonders for a ‘man’s game’ riddled with cynicism and greed
How to stop an asteroid hitting Earth: Would people co-operate to face down a global peril?

How to stop an asteroid hitting Earth

Would people cooperate to face a global peril?
Just one day to find €1.6bn: Greece edges nearer euro exit

One day to find €1.6bn

Greece is edging inexorably towards an exit from the euro
New 'Iron Man' augmented reality technology could help surgeons and firefighters, say scientists

'Iron Man' augmented reality technology could become reality

Holographic projections would provide extra information on objects in a person's visual field in real time
Sugary drinks 'are killing 184,000 adults around the world every year'

Sugary drinks are killing 184,000 adults around the world every year

The drinks that should be eliminated from people's diets
Pride of Place: Historians map out untold LGBT histories of locations throughout UK

Historians map out untold LGBT histories

Public are being asked to help improve the map