Commercial law firms have failed to be won over by Government proposals to hike university tuition fees, amid fears that mounting student debt will damage diversity efforts. Friederike Heine reports

Fewer than one in four partners are in favour of Government proposals to allow universities to charge students up to £9,000 in fees, with the clear majority of senior lawyers believing it will damage efforts to improve social diversity in commercial law.

Legal Week's latest Big Question survey has found that 61% of partners believe plans to allow universities to increase fees to almost three times the current annual level will damage diversity, with a further 25% thinking it may have a minor impact.

The survey results reveal that only a quarter of partners are either 'supportive' or 'very supportive' of the proposals, compared with nearly half (45%) saying they are either 'generally' or 'strongly' against the plans and a further 30% having 'mixed feelings'.

Although few were willing to criticise the proposals on the record, one magic circle partner told Legal Week: "Removing the cap on tuition fees could potentially undo the work done by the Government and other institutions to increase diversity in the profession. People from less privileged backgrounds will certainly think twice about entering higher education."

Commenting on the proposals, Ashurst corporate and recruitment partner Jonathan Earle said: "This will saddle people with a long-term, mortgage-style debt and, with the additional cost of the Legal Practice Course (LPC), this is bad news for law students."

More than half of those surveyed were against young lawyers being forced to begin their careers with high levels of debt as a result of the policy change, with a further 24% having mixed feelings about the increased debt burden.

Only 19% of the 120 respondents were supportive of students paying for their own education, with around two-thirds (67%) of partners arguing higher debt would make junior lawyers more focused on short-term earnings and finding careers in the most lucrative areas of law. In contrast, only 18% of partners thought young lawyers would be more focused on long-term aspects of a career in the law in order to make the debt burden worth it.

Earle added: "The policy will put a premium on large City law firms and the more remunerative parts of the profession and potentially result in the high street and smaller regional firms losing out on talent."

However, Hogan Lovells director of legal resourcing, Clare Harris, countered: "It is important to keep things in perspective and not to heighten the anxiety among young people surrounding high levels of debt – the proposed loans appear to have a very low interest rate.

"Additionally, I understand that many universities and law schools are in a position to assist financially where there is hardship and when they find talented individuals who need this assistance."

When asked how they felt about criticism that LPC providers are taking money from weak candidates with no chance of breaking into law, the majority (55%) agreed and stated that LPC providers should be more upfront about how hard it is to break into the profession, with a further 23% having 'mixed feelings' about the criticism.

Slaughter and May executive partner Graham White commented: "There are demonstrably too many candidates taking the LPC in relation to the number of training contracts available. However, it is not down solely to the training providers to control the number of students taking the course – the students, too, have a responsibility to manage their own expectations and make a realistic assessment of the likelihood of gaining a training contract before committing themselves to the cost of a course."

Harris added: "The profession will have to adapt to the political and cultural changes that are taking place and perhaps look more creatively at how to recruit and develop their people in years to come. The fact that approximately 40% of school leavers now go into higher education is unlikely to be sustainable in the long term."

For more, see College of Law backs proposals to open up tuition fees market

Partners on education funding

  • 85% believe raising university fees will have a negative impact on diversity in law
  • 66% believe higher fees and debt will make junior lawyers more focused on short-term earnings over partnership
  • 57% are explicitly against increasing debt burden on students
  • 54% feel LPC providers should be more upfront over how challenging it is to break into law