This article has multiple issues. Please help improve it or discuss these issues on the talk page . (Learn how and when to remove these template messages)
|
Long title | An Act to make provision about research in the arts and humanities and about complaints by students against institutions providing higher education; to make provision about fees payable by students in higher education; to provide for the appointment of a Director of Fair Access to Higher Education; to make provision about grants and loans to students in higher or further education; to limit the jurisdiction of visitors of institutions providing higher education; and for connected purposes. |
---|---|
Citation | 2004 c. 8 |
Territorial extent | England and Wales, except that sections 42(1) and (2) and (5) also extend to Northern Ireland, that Part 1 and sections 45 and 47 and 48 and 51 to 54 also extend to that country and to Scotland, and that any amendment or repeal made by this Act has the same extent within the United Kingdom as the enactment to which it relates. [2] |
Dates | |
Royal assent | 1 July 2004 |
Text of statute as originally enacted | |
Revised text of statute as amended |
The Higher Education Act 2004 (c. 8) is an Act of the Parliament of the United Kingdom that introduced several changes to the higher education system in the United Kingdom, the most important and controversial being a major change to the funding of universities, and the operation of tuition fees, which affects England and Wales. University funding is a devolved matter for Northern Ireland and Scotland. [3] After complex and controversial debates, the Higher Education Bill received royal assent on 1 July 2004.
Until 1998, all education in the United Kingdom was free up to and including university courses. However, shortly after coming to power, the Labour Party under Prime Minister Tony Blair abolished the student maintenance grant system and introduced an up-front fee fixed at just over £1,000 per year for all university students. Up to a quarter of this fee was waived for the poorest students, but many maintained that education should remain a free public service, and that the system would place students in unnecessary levels of debt. The government, however, insisted that fees were the best means of providing university funding. At the same time, they stated that their aim was to increase the proportion of students going on to Higher Education to 50% by 2010.
In the years that followed, it became clear that the original fixed fees of around £1,000 per year were still not providing enough funding, leading to proposals of what are often referred to as top-up fees. The idea was that universities would be able to "top up" the fees to a level that more accurately reflected the funding they needed. However, widespread protests led the Labour Party to make a manifesto pledge at the 2001 general election not to introduce such a system.
In 2003, a new set of proposals was drafted, which were denounced by some as breaking that promise. Although the government tried to create a compromise that would raise the necessary funds in a fair way, the issue remained highly contentious. Despite vocal opposition within his own party, Tony Blair claimed that this proposal was the only way to secure the necessary funds, and the issue was seen as a key test of his leadership. The initial vote in the House of Commons, on 27 January 2004, came a day before the result of the Hutton Inquiry, and it was predicted that a bad result from one or both would lead to Blair's resignation as Prime Minister. The Bill was passed at the first vote, known as second reading, by 316 votes to 311, with 71 Labour MPs voting against.
The Bill faced further opposition as it progressed through Parliament. There was some controversy regarding the appointment of mainly loyalist MPs to the Standing Committee assigned to review the Bill. Of the 16 Labour MPs on the committee, only one voted against the government at second reading, and one abstained, suggesting that little criticism was likely during this stage. It then returned to the floor of the Commons for the Report stage. The main opposition to the bill from Labour backbenchers concerned the "variable" or "top-up" fees, therefore an amendment tabled at Report stage to remove references to these variable fees appeared to have some chance of succeeding. In addition, some backbenchers were promised further concessions and changes to the Bill, and therefore voted in favour at the second reading. If these promises had been felt to have been broken, these members might well have vote against the Bill at third reading.
Additionally, if the Bill had been successfully passed at third reading, it would have moved to the House of Lords, where the Government did not have a majority, and where for this particular Bill, the Salisbury Convention – according to which legislation included in the manifesto of the ruling party should not be opposed – would not have applied. This is because the policy was not included in the Labour party manifesto in 2001 – and some would argue it went against the line reading "We will not introduce top-up fees and have legislated to prevent them". Therefore, it is quite possible that the Lords would have rejected the bill outright, which would have meant that the government would have had to table the Bill again in the next session of Parliament, and would possibly have had to use the Parliament Acts 1911 and 1949 in order to force it through Parliament and gain royal assent. Alternatively, the Lords could have passed a "wrecking amendment" which would have needed to be reversed by the House of Commons.
The Act incorporates several key changes to the financial arrangements of higher education students, including many additional terms that were added to convince those who opposed earlier drafts. The changes took effect in 2006, and apply to England and Wales.
The principal argument in favour of a new funding system is that British universities are currently critically underfunded, and an increased level of fees will result in a cash injection and prevent them collapsing. Additionally, much is made of the need for British institutions to be internationally "competitive" in terms of quality and resources, and that this is impossible to achieve without a reform of their funding.
A key player on this side of the argument is the Russell Group of Universities, who have argued that they should be able to charge much increased fees in order to differentiate themselves from smaller universities. This attitude has proved unpopular, as a two-tier system of this kind is widely viewed as unnecessary and damaging. The levels called for by this group far exceed the maximum rate currently proposed.
Further to this argument, it is argued that since studies show that most graduates earn more during their career than non-graduates, it is logical that they should be the ones to pay for this opportunity, not the public at large. Critics, however, have suggested that if this is the case, they will pay more income tax anyway, and that this would be a fairer source of the money. Some[ who? ] have also pointed out that the country as a whole benefits from an increased level of expertise, and therefore it is in everyone's interests to pay for higher education.
The most common criticism of the proposals is that increasing tuition fees will increase the level of debt graduates will have when they leave. Organisations such as the National Union of Students have argued that students are already under too much financial pressure, and that this will make things worse, not better. Many students have had to take up part-time work in order to pay living costs while studying, and this has been shown to have an adverse effect on their results.
Although the Bill removes the need to pay fees up front – meaning that students may have more spending money while studying – it will still leave them with a greater debt at the start of their careers. While it was predicted that people from poorer backgrounds may be put off from enrolling for a degree because of the measure, the number of young people engaged in higher education has actually risen, most markedly in those coming from poorer backgrounds.
A second line of criticism is that the introduction of variable fees represents a step towards the privatisation of education, and makes degrees into products quite unnecessarily. Although not the intention of the legislation, there is likely to be a perceived trade-off between price and quality when choosing a degree. The strict limits imposed on fee levels limit this in practice, but the concept of competition remains. This is not, however, so relevant today as the vast majority of universities opt to charge the maximum £3,290 (2010 Entry).
The Higher Education Bill also includes several less well-known provisions:
The following orders have been made under this section:
Universities in the United Kingdom have generally been instituted by royal charter, papal bull, Act of Parliament, or an instrument of government under the Further and Higher Education Act 1992 or the Higher Education and Research Act 2017. Degree awarding powers and the 'university' title are protected by law, although the precise arrangements for gaining these vary between the constituent countries of the United Kingdom.
Tuition payments, usually known as tuition in American English and as tuition fees in Commonwealth English, are fees charged by education institutions for instruction or other services. Besides public spending, private spending via tuition payments are the largest revenue sources for education institutions in some countries. In most developed countries, especially countries in Scandinavia and Continental Europe, there are no or only nominal tuition fees for all forms of education, including university and other higher education.
Education in England is overseen by the Department for Education. Local government authorities are responsible for implementing policy for public education and state-funded schools at a local level. State-funded schools may be selective grammar schools or non-selective comprehensive schools. All state schools are subject to assessment and inspection by the government department Ofsted. England also has private schools and home education; legally, parents may choose to educate their children by any suitable means.
Tuition fees were first introduced across the entire United Kingdom in September 1998 under the Labour government of Tony Blair to fund tuition for undergraduate and postgraduate certificate students at universities; students were required to pay up to £1,000 a year for tuition. However, only those who reach a certain salary threshold (£21,000) pay this fee through general taxation. In practice, higher education (HE) remains free at the point of entry in England for a high minority of students.
English votes for English laws (EVEL) was a set of procedures of the House of Commons of the Parliament of the United Kingdom whereby legislation that affected only England required the support of a majority of MPs representing English constituencies. The procedures were in place between 2015 and 2021. They were developed following devolution in the United Kingdom as a result of the West Lothian question, a concern about the perceived inequity of MPs from Northern Ireland, Scotland and Wales, sitting in the House of Commons being able to vote on matters that affected only England, while MPs from England were unable to vote on matters that had been devolved to the Northern Ireland Assembly, the Scottish Parliament and the Senedd.
Voluntary student unionism (VSU), as it is known in Australia, or voluntary student membership (VSM), as it is known in New Zealand, is a policy under which membership of – and payment of membership fees to – university student organisations is voluntary.
Student loans and grants in the United Kingdom are primarily provided by the government through the Student Loans Company (SLC), an executive non-departmental public body. The SLC is responsible for Student Finance England and Student Finance Wales, and is a delivery partner of Student Finance NI and the Student Awards Agency for Scotland. Most undergraduate university students resident in the United Kingdom are eligible for student loans, and some students on teacher training courses may also apply for loans. Student loans also became available from the 2016/17 academic year to postgraduate students who study a taught Masters, research or Doctoral course.
The history of education in England is documented from Saxon settlement of England, and the setting up of the first cathedral schools in 597 and 604.
United Kingdom enterprise law concerns the ownership and regulation of organisations producing goods and services in the UK, European and international economy. Private enterprises are usually incorporated under the Companies Act 2006, regulated by company law, competition law, and insolvency law, while almost one third of the workforce and half of the UK economy is in enterprises subject to special regulation. Enterprise law mediates the rights and duties of investors, workers, consumers and the public to ensure efficient production, and deliver services that UK and international law sees as universal human rights. Labour, company, competition and insolvency law create general rights for stakeholders, and set a basic framework for enterprise governance, but rules of governance, competition and insolvency are altered in specific enterprises to uphold the public interest, as well as civil and social rights. Universities and schools have traditionally been publicly established, and socially regulated, to ensure universal education. The National Health Service was set up in 1946 to provide everyone with free health care, regardless of class or income, paid for by progressive taxation. The UK government controls monetary policy and regulates private banking through the publicly owned Bank of England, to complement its fiscal policy. Taxation and spending composes nearly half of total economic activity, but this has diminished since 1979.
The Browne Review or Independent Review of Higher Education Funding and Student Finance was a review to consider the future direction of higher education funding in England.
A graduate tax is a proposed method of financing higher education. It has been proposed in the United Kingdom and the Republic of Ireland.
The Education Act 2011 is an Act of the Parliament of the United Kingdom. It was the first major piece of education legislation to be introduced by the coalition government, and makes changes to many areas of educational policy, including the power of school staff to discipline students, the manner in which newly trained teachers are supervised, the regulation of qualifications, the administration of local authority maintained schools, academies, the provision of post-16 education, including vocational apprenticeships, and student finance for higher education.
Tertiary education in New Zealand is provided by universities, institutes of technology and polytechnics, private training establishments, industry training organisations, and wānanga. It ranges from informal non-assessed community courses in schools through to undergraduate degrees and research-based postgraduate degrees. All post-compulsory education is regulated within the New Zealand Qualifications Framework, a unified system of national qualifications for schools, vocational education and training, and 'higher' education. The New Zealand Qualifications Authority (NZQA) is responsible for quality assuring all courses and tertiary education organisations other than universities. Under the Education Act 1989, The Committee on University Academic Programmes (CUAP) and the Academic Quality Agency (AQA) have delegated authority for quality assurance of university education. The Tertiary Education Commission (TEC) is responsible for administering the funding of tertiary education, primarily through negotiated investment plans with each funded organisation.
Tuition fees in the United Kingdom were reintroduced for full-time resident students in 1998, as a means of funding tuition to undergraduate and postgraduate certificate students at universities. Since their introduction, the fees have been reformed multiple times by several bills, with the cap on fees notably rising to £9,000 a year for the 2012-13 academic year.
The Higher Education and Research Act 2017 was enacted into law in the United Kingdom by the Houses of Parliament on 27 April 2017. It is intended to create a new regulatory framework for higher education, increase competition and student choice, ensure students receive value for money, and strengthen the research sector.