Student Loans: Review
Debate between Lord Londesborough and Baroness Smith of Malvern(2 weeks, 4 days ago)
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Baroness Smith of Malvern (Lab)
To be clear, once again, the level of debt does not determine the level of repayments that students make. To suggest that it does confuses and misleads those thinking about going to university. I take the point that has been made recently about the pressure of student loan repayments. As a Government, we have had to set priorities in the 18 months we have been in power. We have chosen to stabilise the finances of our universities, introduce maintenance grants, increase the maintenance support for students, take action to reduce the unacceptably high numbers of young people who are neither earning nor learning—let alone getting the chance to go to university—and reverse the decline in young people starting apprenticeships. That is a pretty fair set of priorities.
Lord Londesborough (CB)
My Lords, in England alone, outstanding student debt now stands at £270 billion and is forecast to reach £500 billion by the late 2040s. With respect to the nation’s balance sheet, how much of this total debt do we realistically expect to be repaid? What, therefore, are the net liability implications for keeping to our fiscal rules?
Youth Unemployment
Debate between Lord Londesborough and Baroness Smith of Malvern(1 month, 3 weeks ago)
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Baroness Smith of Malvern (Lab)
As the noble Lord knows, and as was the case under the previous Government and from the time that the Low Pay Commission was set up, we explicitly asked the commission to consider the implications on employment of recommendations around increases in the living wage. We will continue to do that so that we can both make progress on getting young people back into work and ensure that they are fairly rewarded when they are there.
Lord Londesborough (CB)
My Lords, I appreciate that the Government’s youth guarantee scheme is well intentioned, but would it not be more effective if it applied to those 18 to 21 year-olds who have been out of work and education for six months rather than 18 months—by which time many will have lost hope and confidence, and may have, in effect, checked out? I know from my experience as an employer that the earlier that you hire the young, both skilled and unskilled, the greater the chance of success. Does the Minister agree?
Baroness Smith of Malvern (Lab)
The noble Lord is talking about the Government’s job guarantee, which will come in after 18 months with a guaranteed job for all those on universal credit. However, it is not the case that there is no action under the youth guarantee before that. The new youth guarantee gateway will ensure that if, after 13 weeks, a young person is not earning or learning then they will have a meeting followed by four weeks of intensive support. During this period, they will receive tailored guidance and be offered up to six options, which could be work, work experience, sector-based work academy programmes, apprenticeships, training or learning. There will be 300,000 more opportunities funded by this Government to support young people long before they get to that 18-month point. However, that point is a guaranteed jobs backstop.