Government plans to make the fees of University to £9000 which caused violence

The Higher Education Policy Institute (Hepi) says with almost all universities set to charge the top rate, a larger than expected burden will fall on the Treasury.

Hepi examined government plans to reform England's higher education system, which involve removing the teaching grant and replacing it with higher fees for students. These would be paid through government-funded loans which students start to pay back once they earn £21,000.Universities are to be allowed to charge up to £9,000 a year for courses; the government expects most to charge about £6,000 - with some going above that in exceptional circumstances.

 

'Low-quality' label

 But Hepi argues that almost all will charge the top rate in due course, which means the government will have to fund much larger student loans.

Its report says: "Those that have struggled to recruit students will initially be more cautious, but within a few years, we believe that almost all universities will charge the maximum £9,000 fee."

It continues: "The public expenditure costs will be much higher than expected because fees (and therefore the government's loan obligations) will be much higher than anticipated."

The government assumes it will lose between 25% and 30% of the money it lends out, as it does now.

But Hepi argues it is more likely to lose about 50% of what it lends because the sums being borrowed are much larger and the government's estimate of what graduates will earn is too high.

The government also assumes the average graduate earning will be almost £100,000 a year - a calculation based on graduate wages having trebled over the past 30 years.

 

But students Protest

There were students, articulate and animated, ready to tell anyone who would listen that they were enraged by the raising of fees. And they returned again and again to their anger at how the Liberal Democrats appeared to be about to break their promise to students to vote against a fee increase.But this only flared into violence when a small group left the main protest, carrying what appeared to be an effigy, and gathered in the area in front of the 30 Millbank office building.Most of the students on the rally had been peaceful and good-natured. A crowd followed them, flooding into this enclosed area, cheering as the effigy was burned.As more people crowded around the building, including some masked and hooded demonstrators, the mood changed. It became clear that there was going to be an attempt by some demonstrators to force their way inside.Missiles began to fly towards the large plate glass windows across the front of the building, which was only protected by a thin line of police, standing with metal truncheons raised. They were guarding the entrance against what had swiftly become a siege, their backs against a glass wall. Outnumbered and overwhelmed, this line of policemen was slowly but relentlessly hemmed against the front of the building, missiles raining down on them.