BBC Radio 4 reported this morning a leak from the current Augar Review of Post-18 Education Funding. They claimed that a ‘source’ had supported a report in The Times last week that the review would propose that tuition fees should be capped at £6,500 and the “shortfall would be made up by capping student numbers”. For starters, the way this is worded makes no sense as capping numbers would only make funding shortfall worse, not better because of loss of economies of scale. I put this down to the BBC’s over-simplified description. More worryingly, this would be a disaster for any course costing more to run.
If you want to cut fees to win back the youth vote, you start with the courses that give the lowest financial returns, right? At first glance, this looks like a good idea to a new Secretary of State. So we can forgive Damian Hinds for flying the policy kite of differential fees for STEM and arts degrees amid the announcement of the HE and Post-18 Review. However, after even a moment’s thought, the idea collapses. It is a policy that is misisng a clearly defined intended consequence and yet would undam a flood of unintended ones. The problem is that all too often kite-flying