Universities warned not to race to maximum fee levels

10 Feb 2011

The government has set out the demands it will place on universities as a condition of raising tuition fees above £6,000. It has also repeated its belief that universities should charge the full £9,000 "only in exceptional circumstances".

In a shot across the bows of universities, the government warns that if universities cluster around the maximum fee level, they will consider taking new powers though legislation to deal with this.

In a letter to the regulator, OFFA, the government says universities will have to work much harder to recruit disadvantaged students. They must also improve drop-out rates amongst students from these backgrounds.

To retain their right to charge fees above the £6,000 level, universities will have to show measurable improvement on their benchmarks for recruiting students from poorer homes. Their performance will be monitored annually instead of every 5 years as now.

In the guidance letter to OFFA, the government says progress to date on widening access has been "inadequate" and "much more determined action" is now required once the new fee arrangements come into place from 2012-13.

Universities wishing to charge more than £6,000 will have to enter into "Access Agreements", undertaking to improve their recruitment of currently "under-represented groups", including students from poorer homes, those with disabilities, from certain ethnic minority groups, and care leavers.

If OFFA is unhappy with progress made on Access Agreements, it will have the power to fine universities up to £500,000 or to rescind their ability to charge above the £6,000 fee level.

The guidance letter to OFFA is here: www.bis.gov.uk/assets/biscore/higher-education/docs/g/11-728-guidance-to-director-fair-access