Graduates face paying for university courses

SCOTS students will have to make a significant contribution to funding their university courses, with more being paid by better-off graduates, the author of an influential report that led to the scrapping of tuition fees north of the Border warns today.

• Warning: Sir Andrew fears Scotland could lose out

Sir Andrew Cubie says that unless Scottish politicians respond to a move to scrap the cap on tuition fees expected to be recommended in a report to UK ministers tomorrow, there are "significant dangers" for Scotland's higher eduction institutions.

Writing in today's Scotsman, Sir Andrew, who led a review of higher education funding in Scotland a decade ago, says there is a need for a "graduate contribution but not a fee structure" to make higher education north of the Border "free at the point of consumption".

He adds that there will have to be "higher level of contribution from graduates on high incomes" to give universities an "immediate cash advantage".

The stark warning came as Business Secretary Vince Cable ruled out a graduate tax to fund higher education south of the Border - breaking a Liberal Democrat pre-election pledge - and sparking suggestions the Tory-Lib Dem coalition would back a scheme to make graduates pay more interest on student loans.

Mr Cable's U-turn came ahead of the publication an independent review of student finance for England and Wales by Lord Browne of Madingley due tomorrow is set to recommend removing the cap on university fees.

Sir Andrew, who will flesh out his ideas in a speech to the Hume Institute tonight, warns that the ability of English and Welsh universities to "charge significantly enhanced fees" could open up a funding "gap" that would disadvantage Scots institutions.

He goes on to call for action to "avoid significant damage" to Scotland's university sector and warned it could not "sustain the status quo" in funding.

He argues: "English universities seem likely to benefit from the Browne review and thereby have the ability to charge significantly enhanced fees, potentially both variably and without any annual cap. What percentage must be made available from such additional fee income for student support and widening participation remains uncertain, but will be significant.

"The prospect of both future enhanced current cash flow and greater borrowing ability for universities in England seems real.

"If, however, the trailed outcomes of Browne are, in due course, implemented and the gap between the probable immediate cuts and enhanced income flows after 2012 come forward, there are significant dangers for higher education in Scotland."

Sir Andrew says: "There needs to be a higher level of contribution from (Scots] graduates on high incomes. Clearly detailed calculations need to be made on contributions.There needs to be immediate cash advantage to the sector either from government support or through investment based on securitisation of future income flows from graduates.

"Whatever contribution for graduates is set it must not discourage participation."

Sir Andrew adds that while a system of graduate contributions is implemented, there would have to be support for universities from the Scottish Government.

Sir Andrew's comments came after Lord Sutherland, a former principal of Edinburgh University, warned in an earlier Scotsman article that those who could afford to pay for their education should do so, with a proportion of the cash being used to create bursaries for poorer students.

The peer said the Scottish Government should "make sure that those who can afford it do pay tuition fees".

Sir Andrew's comments were backed by Scottish Tory education spokeswoman Liz Smith, who supports a variable tuition fee scheme. She said: "If we're going to increase opportunities for students, we can't do it on the existing funding structure. Universities need an additional source of income."

Education secretary Michael Russell, whose move to find a Scottish solution to student funding Sir Andrew describes as "worthy, but too late" yesterday invited all political parties at Holyrood to take part in talks on university funding along with trade unions.

He said: "Twice, the Scottish Parliament has ruled out the reintroduction of tuition fees and with that consensus in mind, we need to find the right solution for Scotland.

"It is important we get the widest possible range of views and ideas so that we can find the uniquely Scottish solution we need. "

Meanwhile, Lib Dem leader Nick Clegg and Mr Cable are now facing a back-bench revolt amid expectations that tuition fees will more than double under a deal thrashed out by coalition ministers. Any increase in tuition fees at all will prove explosive for the Lib Dems, who campaigned against a rise at the election when Mr Clegg said a rise would be a "disaster".

Back-bench Lib Dem MP Greg Mulholland has already warned that he and others would vote against any rise in tuition fees.

Labour leader Ed Miliband said the removal of the tuition fees cap was "very worrying" and "just a prescription for higher and higher fees". Mr Miliband, who supports a graduate tax, said: "I'll work with anybody who wants a progressive system of student finance."