The 2009 Review

Throughout the 1980s, government funding was withdrawn from British Universities and student grants (to cover the cost of living)  were cut.

In the 1990s the student grant was abolished and student fees were introduced.  The new fee system meant that all students attending university had to pay the same amount for their education before they undertook each year of their course.  Student loans were introduced to cover some of the costs of living, which meant that students started to accumulate debt to be paid off once they completed their courses.

In 2004, the Government introduced variable “top-up” fees, in spite of both public and MP condemnation.  The idea behind these fees was that universities could charge different amounts dependant on the institution or even the course, but that these fees would be “capped” at £3000.  In April 2004, the bill came before parliament and Tony Blair’s government faced its closest brush with defeat yet, winning by only 5 votes.  Some of the MPs who were planning to vote against were swayed by last minute concessions of more bursaries and a review of variable fees in 2009.

There were some improvements that came out of the Education Funding bill of 2004.  No longer did student fees have to be paid upfront; however, student debt would get larger as it absorbed the new, higher fees. 

Variable tuition fees were introduced in September 2006. 

In 2009, the government will start to review variable fees, and a report is expected in 2010-11. 

Some, including many vice-chancellors from the Russell Group of Universities, are looking for the cap to be completely removed and a full market in higher education, where those that can afford to attend the most expensive universities will be able to choose.  Others, like the Treasury and some other vice-chancellors, are looking for the cap to be raised on variable fees to £5000 - £10,000 pa.  There are other groups of unions and vice-chancellors and trade unions who would like to see the removal of fees in education or the keeping of the cap where it is currently placed.