Sir Peter Lampl has made widening educational opportunities for young people from ‘non-privileged backgrounds’ his philanthropic goal. He talks to Julie Nightingale about why he thinks the coalition government’s university funding strategy will leave Britain out in the cold economically.

A question of equity

Sir Peter Lampl, millionaire philanthropist and chairman of charity the Sutton Trust, had high hopes of the coalition government tackling the problems around social immobility in the UK.

In September, he had “very fruitful talks” with David Willetts, minister for universities, about how to propel more young people from lower income families into higher education. He was also encouraged by deputy prime minister Nick Clegg’s insistence that improving social mobility was a key priority, as well as by plans for the pupil premium.

Energised and optimistic, Sir Peter felt there was scope to make great strides in an area to which he has devoted much time and energy – not to mention money – since establishing the trust in 1997.

Then came the government’s comprehensive spending review which scythed through university funding, cutting £449m from teaching budgets for the next academic year alone, followed by plans to raise the ceiling on student tuition fees to £9,000 a year.

He believes it could be a fatal blow to access to state higher education. And he is fuming. “That means there is virtually no public funding for what is, many people will argue, a national treasure. I think they will damage access to higher education for low and middle income students.”

One of the many things that makes him angry is the touting of the American Ivy League universities with their immense fundraising powers as a role-model for how UK universities could replenish their empty coffers.

“Harvard and the other Ivy League universities are not typical of the US system. They raise outrageous amounts of money from alumni and investments and their tuition fees are of the order of $50,000.

“Eighty per cent of American kids go to state universities which are heavily state-subsidised. The average level of debt of a US student after four years is less than $20,000 dollars, about £13,000. UK students will be coming out with debts of £30,000 plus. Student [share of] funding should be no more than around £5,000.”

Sir Peter is not opposing the cuts out of knee-jerk loyalty or idealism about social justice.

“You’re wasting a lot of talent. You’ve got clever people not doing the right jobs, not moving up in society in the way they should be. We funded some research by the Boston Consulting Group (business strategists), and they have quantified what the impact of lack of social mobility is over a 30-year period. It makes quite a difference to GDP. There’s obviously a question of equity but there’s also one of efficiency and it is inefficient not to be using your ‘raw material’, if you like.”

Summer schools

The Sutton Trust is dedicated to widening social mobility at all levels. There is, Sir Peter believes, a vast swathe of children – not just ‘the poor’ – who are deprived of the opportunity to maximise their potential.

“What we have in this country is about ten per cent from private schools, and maybe another three or four per cent who go to the top state schools, who end up with most of the goodies. And it’s the others who are disadvantaged. What we do is not about helping poor children. It’s about what I call less privileged or non-privileged children.”

The trust funds a range of projects including university summer schools and has part-funded scholarships to independent schools. It is currently developing a pilot scheme to offer private tuition in maths to GCSE pupils from non-privileged homes and finalising plans to sponsor a free school – one of the new models backed by the coalition – in partnership with a provider of education services in London.

The latter move represents a volte-face for Sir Peter. Previously, he had vigorously opposed sponsorship of city academies and been deeply sceptical of the argument that success in business fits people to run schools (“Why would you give £30m of public money to a car dealer to run a school for you?” he said in 2007).

“The other problem I had with them was just the amount of money that was being spent on each school – of the order of £25m or £30m,” he adds. “I don’t think good schools are about spanking new buildings designed by Norman Foster. They’re about teaching, ethos, discipline. But we’ve changed our mind a bit now. As long as you don’t spend too much money and you get the right sponsor I think it can make a difference.”

State school to Oxford

Sir Peter’s philosophy was shaped by his own education. A state school pupil who went to Oxford, he made his fortune in business in the US. Returning in the mid-90s he was shocked by how the doors of opportunity had closed for poorer children, finding his old grammar school had become fee-paying and the numbers of state-educated pupils at Oxford reduced.

It spurred him into setting up a summer school at the university for children from schools “Oxford had never heard from”. Of the 64 children who took part, 16 won places.

The start of the decline in social mobility goes back further than people think, he says. Research for the trust by the London School of Economics shows opportunities for bright children from less privileged backgrounds beginning to narrow as far back as the 1950s. Today, mobility at the top end of society is “the big problem”.

“We’ve done a lot of work on looking at the composition of Parliament, of barristers, judges, the top end of the legal profession. It’s dominated by people who have been privately educated and a lot needs to be done on social mobility at the top end.”

Which brings us back to higher education and access to it.

“If there’s one thing I want in schools – high quality teaching and learning aside – it’s first-class and genuinely impartial information, advice and guidance about education and career options. I think that’s incredibly important and the Connexions service really hasn’t worked that well.”

And the trust will be talking to ministers again in the coming weeks, hoping if not for a change of heart then some sort of concessions on funding to keep the doors to higher education open for more young people.

• For further information visit www.suttontrust.com

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