Higher Education: Student Loans

Lord Bishop of Chester Excerpts

Wednesday 26th March 2014 Lords Chamber

[Lord Ahmad of Wimbledon]

First, I assure the noble Lord that we are all happy here on the Front Bench. I disagree with the noble Lord and he is, in fact, incorrect. The reforms we have brought forward are not returning less, as he suggests, than had we not made them. He should check his facts there. They say that the proof is in the pudding; let me share some facts here. According to the Association of Graduate Recruiters, in February 2014, graduate jobs were up by 10%. BT, for example, announced 1,000 new apprenticeships, including graduate jobs. Employment rates for young people holding first degrees are now at their highest level since the second quarter of 2008. That is a success story.

[The Lord Bishop of Chester]

My Lords, I share the Government’s view that the higher education sector is in remarkably good health given the recession. However, does not setting fees at £9,000, which is far higher than fees in any other European country, imply a loans system that has its own element of generosity, including a repayment starting point of £21,000, rather than the original £16,000?

[Lord Ahmad of Wimbledon]

The right reverend Prelate raises an important point. I am sure he is aware that the Government have ensured that those universities that have chosen to raise their fees to the £9,000 limit have suitable access agreements so that those who come from disadvantaged backgrounds are given the opportunity to go to university. The Government’s policy remains that access to a university education should be based not on someone’s ability to pay but on their ability.