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University fee rise

20/07/2005

Scottish university tuition fee levels are to rise from 2006 with a separate higher rate for medical courses, it was announced today.

Lifelong Learning Minister Nicol Stephen set out specific Executive proposals to protect the interests of Scottish students in the light of the introduction of variable fees in England.

Mr Stephen said that eligible Scottish-domiciled students will continue to have their fees paid for them by the Student Awards Agency for Scotland (SAAS) and will therefore be unaffected by these changes.

Following the passing of the Further and Higher Education (Scotland) Bill in April, which gave Ministers the power to raise fee levels with the approval of Parliament, and an Executive consultation on what those fees should be, the Executive intends to:

  • raise the general tuition fee level in Scotland from £1,200 to £1,700;
  • set a higher rate for medicine of £2,700 - recognising the particular demand for places at Scottish medical schools and the acute difficulties of NHSScotland in retaining graduates in Scotland;
  • ensure that all self-funding students ordinarily resident in Scotland (ie those who do not have their fees paid for them by SAAS) will continue to pay fees at their current rates, rather than the increased levels; and
  • establish a means tested fee waiver scheme of up to £300 per student for UK and EU students not entitled to full or partial tuition fee support from SAAS.

Mr Stephen said:

"We have to strike the right balance between protecting the interests of Scottish domiciled students and ensuring Scotland continues to be an attractive destination for all students. Fees should be sufficiently high to affect demand but not too high to price Scottish universities out of the UK market. With this package of measures, I believe we've got it right.

"There is a real and pressing need to rebalance the relative costs of study between Scotland and elsewhere in the UK after the introduction of top-up fees of up to £3,000 in England next year. We have a duty to Scottish students to ensure they continue to enjoy fair access to study at Scottish institutions. For students from the rest of the UK, we want them to consider Scotland as the right option, not the cheap option.

"Under these proposals, which we will put before the Scottish Parliament, eligible Scottish students will continue to have their fees paid by SAAS. Self-funding students ordinarily resident in Scotland will not pay any more than they do currently. And any eligible Scottish student who goes to study in England will be entitled to a non-means tested loan to meet the cost of fees in English institutions."

Turning to medicine, Mr Stephen said:

"Demand for places at Scottish medical schools is already acute - the ratio of applications to acceptances is 10:1 in Scotland compared to a UK average of 3:1. We also know that Scottish graduates from schools here are twice as likely to be working for NHSScotland ten years after graduation compared to students from the rest of the UK.

"The new separate fee of £2,700 is at a level comparable with those being set in England, and is one part of a wider Executive response to the Calman Review of Basic Medical Education announced recently by Andy Kerr."

The Minister concluded:

"We have made our priorities clear. These measures will now be included in a draft order and laid before Parliament in the autumn, where I hope they will receive the full backing they deserve."

Self-funded students: there are around 7,300 Scottish and non-UK EU students (2002-03 figures) not entitled to tuition fee support from SAAS because they have already received support to study at the same level. This includes students studying for a second first degree, students who repeat one or more years, and students with an HND who enter higher education in first year and are therefore liable to pay tuition fees for one year.

Means-tested waiver scheme: a recommendation of the Implementation Advisory Group (IAG), set up by the Executive to offer advice on, and oversee the implementation of, new tuition fee arrangements. Waivers will range from £100 to £300 per annum, on a means tested basis. This will be funded from the savings which should accrue to the Executive's budget (estimated at around £2 million on full roll-out) following the new funding arrangements. The operational details of the fee waiver scheme will be announced in due course.

The then Lifelong Learning Minister, Jim Wallace, first outlined plans to protect the interests of Scottish students in June 2004. One of the recommendations in the third phase of the Executive's Higher Education Review had been to take action on cross-border student flows to anticipate changing patterns of demand after 2006. The Parliament's Enterprise & Culture Committee, as part of their Scottish Solutions report, also highlighted this issue.

The Further and Higher Education (Scotland) Bill was passed on 20 April 2005. The Executive consultation paper on fee levels was published on 5 April, and the consultation closed on 30 May. A summary of responses to the consultation and full transcripts of those responses that the Executive has been given permission to publish are available on the Scottish Executive website.

Page updated: Wednesday, July 20, 2005