Education

Debate between Bill Esterson and Lyn Brown

Tuesday 21st December 2010 Commons Chamber

[Bill Esterson]

Young carers are one of a number of vulnerable groups for whom EMA is especially important, and its loss would hit them and those who depend on them particularly hard. I hope that the Minister will consider that point among others.

My constituent told me that some of the means by which students will support themselves might be less than legal. He said that that was

“an opinion that I have heard in person on more than one occasion from students themselves”.

I have also heard similar comments about the potential of drug dealing as a source of income for students who lose EMA. I thought his was a balanced and responsible view of the impact of EMA from a member of staff with much experience.

The principal of Hugh Baird college in south Sefton, Jette Burford, also wrote to me saying that 84% of young people at the college currently receive EMA; that there is a clear indication that it has become a key part of the family income for those families; and that its discontinuation is very likely to impact on the participation rate locally. Ms Burford mentioned both the impact of losing the EMA on participation and attainment, and the fact that many students depend on it for help with their transport. When she wrote to me she did not know that Sefton students were likely to lose their free travel passes because Merseytravel has had its budget cut by two thirds.

EMA is essential for many students from low and middle-income families when it comes to travel, books, equipment and food, and its loss will make it very difficult for students to continue to study. EMA is a means-tested allowance of between £10 and £30 per week. Some 635,000 learners received at least one EMA payment in 2009-10, and about 80% of those received the full £30. That means that the people receiving the £30 come from low-income families on less than £20,800 per year. The loss of EMA for students from such low-income households will create a big hole in family incomes, which college principals have commented on.

EMA was introduced by the previous Labour Government to help with the cost of books, travel and equipment, and payments are made on the condition that students attend classes regularly. The evidence from colleges is that the incentive to turn up on time has worked well, and the evidence in Merseyside is that those on EMA outperform by 7% those who are not in receipt of it. Research by the Institute for Fiscal Studies gives a similar result.

The Department for Education is stopping new EMA at the end of this month, before it has alternative arrangements in place. The Department plans to stop paying the EMA in July 2011 to existing 16 to 18-year-old students who will be halfway through their courses. That means that EMA will be completely gone by July 2011—an unseemly rush. EMA has been widely credited with helping to create a big increase in the number of young people going on to college in the last seven years. The IFS revealed that EMA increased the proportion of 16-year-olds in full-time education by 4% and the proportion of 17-year-olds in full-time education by 7%.

[Lyn Brown (West Ham) (Lab)]

I am sure that my hon. Friend is aware that Newham sixth-form college in my constituency has the largest percentage of students receiving EMA. When I spoke to those at the college last week, they informed me that, in order to stay on at school, many students just handed the £30 a week to their families.

[Bill Esterson]

My hon. Friend makes an extremely important point about the impact on family incomes, not just on the incomes of individual students.

The Association of Colleges continues to make it clear to Ministers and MPs that it thinks that the decision to abolish EMA will have a detrimental effect on recruitment, retention and achievement among 16 to 18-year-olds. A number of trade unions are also worried that axing EMA will mean that colleges are hit by further funding cuts—cuts that will put even more college jobs at risk. The coalition argues that 90% of the cost of EMA is “dead-weight”, but as my hon. Friend the Member for Liverpool, Wavertree said, that is an offensive statement to many students. It implies that students would have gone on to study without EMA. That claim does not stand up to scrutiny. Research by 157 large colleges and other, smaller colleges shows that students who receive the EMA have better attendance records and are more likely to complete courses than wealthier students who are not eligible for support. That research was published in The Times Educational Supplement on 3 December. Despite coming from the poorest families and, in some cases, having low qualifications, EMA students miss fewer classes and are more likely to stay in education than wealthier students. The IFS has confirmed that the costs of EMA are completely offset by the benefits, even taking into account the so-called “dead-weight” effect.

EMA has been a big success for students and the economy. It has improved the life chances of many, from low or middle-income families. EMA has improved this country’s skills base, because of the improved results among students receiving it, and has increased access to university for many, many students. The case for abolition is flawed, as it will see a cut in attendance that will not be addressed by the enhanced learner fund. As one college principal said to me, there is no way of knowing which students would stop attending and which would carry on if EMA was withdrawn. A review of EMA would be one thing; its abolition quite another. The coalition needs to withdraw its plans and it should continue with the widespread support for our young people that EMA promotes.