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HIGHER EDUCATION
FUNDING AND ACCESS IN
INTERNATIONAL
PERSPECTIVE
Great Debates in Higher Education is a series of short,
accessible books addressing key challenges to and issues in Higher
Education, on a national and international level. These books are
research informed but debate driven. They are intended to be
relevant to a broad spectrum of researchers, students and
administrators in higher education, and are designed to help us
unpick and assess the state of higher education systems, policies
and social and economic impacts.
Published Titles:
Teaching Excellence in Higher Education: Challenges, Changes and
the Teaching Excellence Framework
Forthcoming Titles:
The Marketisation of English Higher Education: A Policy Analysis of a
Risk-based System
Colin McCaig
Edited By
SHEILA RIDDELL
Centre for Research in Education, Inclusion & Diversity,
University of Edinburgh, UK
SARAH MINTY
Centre for Research in Education, Inclusion & Diversity,
University of Edinburgh, UK
ELISABET WEEDON
Centre for Research in Education, Inclusion & Diversity,
University of Edinburgh, UK
SUSAN WHITTAKER
Glasgow Caledonian University, UK
Emerald Group Publishing Limited
Howard House, Wagon Lane, Bingley BD16 1WA, UK
No part of this book may be reproduced, stored in a retrieval system, transmitted in any
form or by any means electronic, mechanical, photocopying, recording or otherwise without
either the prior written permission of the publisher or a licence permitting restricted copying
issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright
Clearance Center. No responsibility is accepted for the accuracy of information contained in
the text, illustrations or advertisements. The opinions expressed in these chapters are not
necessarily those of the Author or the publisher.
INTRODUCTION: HIGHER
EDUCATION FUNDING AND
ACCESS IN INTERNATIONAL
PERSPECTIVE
INTRODUCTION
Across the developed world, the level of tuition fees charged by
universities is one of the most hotly debated public policy issues.
Student demonstrations against increases in tuition fees have
resulted in changes to government policy in Germany and Québec,
and a growing movement in the USA is promoting ‘free college’ for
young people. In the 2017 UK General Election, the Labour Party’s
pledge to abolish tuition fees in England was one of its most
successful policies in attracting the youth vote, radically improving its
electoral prospects.
It is often assumed that countries with low tuition fees are also
likely to do well in terms of access and equity. However, as argued
by contributors to this book, there is no simple link between fees,
equity and access. Their arguments are supported by OECD analysis,
which shows that some countries with high tuition fees, such as
Australia and New Zealand, have high participation rates – but so do
some countries with no tuition fees, such as Denmark and Slovenia.
Austria, a median country with respect to the level of tuition fees,
ranks at the bottom in terms of entry rates, close to Italy. England,
by way of contrast, has the highest tuition fees of any EU country
but is close to the median in terms of participation rates. This is
probably due to its state-underpinned, income-contingent loans
system, which means that higher education is free at the point of
delivery, and graduates repay 9% of their salary above a certain
threshold.
It is evident that, across the developed world, higher education
funding remains not only a contested but also a highly restless public
policy area. As backcloth to the five UK chapters, we provide in the
following section a brief overview of changes to higher education
funding across the four nations of the UK. Different approaches to
student funding are significant in themselves but also carry a wider
symbolic meaning in terms of broadly different approaches to public
policy.
1945– First national legislation empowering local authorities and ministers to support
1947 students in higher education. Greater provision of national and local state
scholarships ensured many students received grants and had full fees paid but no
absolute entitlement. Separate primary legislation for Scotland and Northern
Ireland, both showing some variation in the detailed approach, including more
emphasis in Scotland on studying locally.
1961– Following the Anderson Committee report, the introduction of full payment of
1962 fees (partially subject to means-testing until 1977) and means-tested grants, as
an automatic entitlement on the award of a university place for the first time in
any part of the UK. Separate primary legislation, regulations and administrative
arrangements for Scotland and for Northern Ireland but student entitlements
essentially the same as for England and Wales.
1990 Introduction of student loans to supplement living cost grants across the UK.
‘Mortgage-style’ repayment with only link to earnings the ability to seek 12
months’ suspension of repayments.
1998– Means-tested fee payment of up to £1,000 introduced across the UK. No liability
1999 below £23,000; full liability from £30,000. Grants reduced, loan entitlements
increased and extended at higher incomes. Loans become ‘income-contingent’,
payable at 9% of all earnings over a threshold, initially £10,000.
1999– Grants abolished completely across all of UK and replaced with higher loans.
2000
2000– Fee payments abolished for Scottish students studying in Scotland. A fee of
2001 £1,000 continues for all other students in the UK.
2001– Introduction in Scotland of post-graduation payment (the ‘graduate endowment’)
2002 of £2,000, supported by income-contingent loan. National means-tested grants
re-introduced for young Scottish students, up to £2,000. Institutionally
administered grants introduced for Scottish mature students.
2002– In Wales and Northern Ireland, means-tested grants re-introduced (for young
2003 and mature students) of up to £1,500.
2004– In England, means-tested grants re-introduced (for young and mature students)
2005 of up to £1,000.
2006– In England and Northern Ireland, variable fees of up to £3,000 introduced, with
2007 dedicated income-contingent fee loan. Grant maximum increased to £2,765. No
change to fee arrangements in Wales. Income-contingent fee loan made available
for Scottish and Welsh students studying in rest of the UK. Annual fee payable by
students from rest of the UK in Scotland increased to £1,700 (£2,700 for
medicine).
2007– Graduate endowment abolished in Scotland. In Wales, £3,000 fee introduced
2008 backed by income-contingent loan but with an additional non-means-tested grant
towards fees of £1,845 to all Welsh students studying in Wales, reducing de facto
fee liability. Grants increased to a maximum of £2,700.
2010– Fee grant abolished in Wales and means-tested maintenance grant increased to
2011 £5,000. National means-tested grant re-introduced in Scotland for mature
students, up to £1,000.
2012– In England, variable fees of up to £9,000 introduced, as before with dedicated
2013 income-contingent loan. Loan-repayment threshold increased to £21,000 and
loan interest rates also increased. Grants increased to £3,250. In Wales, variable
fees of £9,000 also introduced but with a dedicated fee grant covering all fee
costs over £3,465 for Welsh students studying in any part of the UK, effectively
capping fees at that level. Maximum grant raised to £5,161. New loan rules
adopted, as for England. In Scotland, variable fees with no legal maximum
introduced for students from rest of the UK; loan increased to £9,000 for Scottish
students in rest of the UK; free tuition retained for Scots in Scotland. In Northern
Ireland, fees capped at £3,465 for Northern Irish students in Northern Ireland,
maximum fee loan increased to £9,000 for NI students in rest of the UK. Variable
fees of up to £9,000 introduced for students from rest of the UK.
2013– Maximum grant for young students reduced from £2,640 to £1,750 in Scotland
2014 and mature student grant reduced to £750 and income threshold for grant
reduced; tapered system replaced with steps. Minimum loan increased from £940
to £4,500.
2016– Abolition of maintenance grants for English students, with increase in means-
2017 tested maintenance loan.
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