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Higher Education White Paper

My Lords, I thank my noble friend for repeating the Statement, which has been extremely useful. It clears up a degree of uncertainty that there has been around universities for a very long time. As the noble Lord said, it has taken a long time for the White Paper to come to us, rather than a short time. I also welcome a number of other aspects of it. The opening up of the university system and the creation of a far greater diversity of routes for higher education are thoroughly good things for this country. As many noble Lords around the House will know, I have for a long time advocated the facilitation of the part-time route so that those who want to earn and learn can do so and have access to support equivalent of that for full-time undergraduates. That is extremely important. The Minister will know that one or two minor issues arise here and I will raise them with him in due course. However, on the whole I think that this is a thoroughly worthwhile development. I also welcome the reintroduction of sandwich courses. Can the Minister provide clarification about the AAB issue, which the noble Lord, Lord Stevenson, raised? At the moment, as I recall, we provide somewhere in the region of 350,000 undergraduate places every year. As I understand it, 65,000 of those places are going to be put into a pot to be bid for by any university, according to what students want to do, and a university will then be allowed to exceed its quota if an AAB student wants to attend. The other 20,000 places are for institutions that charge less than £7,500 per year. This is not creating new places; they are existing places. In effect, as I said, 65,000 places are being taken out of the pot at one end and 20,000 at the other end. I worry about that slightly. The noble Lord is quite right that the problem is that our secondary schools perhaps do not produce enough AAB students. However, there is a real problem here. There was an experiment by King’s College in which medical students worked with local secondary schools in south-east London, bringing forward pupils who were not achieving at that level. However, by the time those pupils had been through the degree course, they achieved just as highly as the others, which shows what potential there is. Universities need to have flexibility in that sense. There is a danger that we shall expand the universities taking the top-achieving students, thus depriving some of the lower-achieving students. I confess that that worries me. Finally, the noble Lord, Lord Stevenson, referred to the cost. As the White Paper says, the Government reckon that by 2014-15 the scheme is going to cost more. As the Minister will know, the cost of loans is going to be very considerable, and it looks as though the Government may well end up spending more on the loan scheme than they are putting in at the moment in direct grants.