Student Finance

Lord Storey Excerpts

Wednesday 11th October 2017 Lords Chamber

[Viscount Younger of Leckie]

I thank the noble Lord for his questions. First, as I said, the Prime Minister indicated that there would be a review. Actually, the tuition fee system is kept under constant review, so what she announced was that more detail and information would come out towards the end of the year on what is proposed. However, I cannot go into further detail at present.

The noble Lord also asked about maintenance grants. No, there is no plan to bring back maintenance grants, but he will have to wait until the end of the year to see what further announcements might come, as Jo Johnson said earlier in the Commons.

As the noble Lord will know, the resource and accounting figures come out regularly. I understand that the latest figures will be out soon. They will show that we are on track in effect to write off—as of before the announcement—around 30% of all the loans. This is all part of the complicated funding formula used for the tuition fee system. Of course it should be noted that, with the changes that we have announced, the write-off will go up slightly to between 30% and 40%.

[Lord Storey (LD)]

My Lords, I am grateful to the Minister for this Statement. I do not want to go into the issue of maintenance grants again because he has replied to that. The Office for Fair Access showed that, in 2014-15, 8.8% of full-time students from low-income backgrounds did not continue at university beyond their first year.

I am taken with the phrase “an education system that works for all”. Yet we know that 60% of young people do not go to university. Those who pursue a vocational route must enjoy parity of esteem with those following an academic option. People should be able to access further or higher education at any age. Will the Government consider the issue of student finance more broadly, so that people can choose for themselves when to access government funding for education and training, rather than feel pressured into attending university at 18 or 19 when it may not be suitable for them?

[Viscount Younger of Leckie]

First, I recognise—as the House will recognise—that there is concern about student debt. We know that some students have accumulated a considerable amount of debt. This is part of the reason for the announcement today and the Written Statement on Monday, thereby raising the threshold from £21,000 to £25,000 and freezing the increase. These changes are designed to be helpful to students.

The noble Lord is absolutely right about creating parity of esteem between vocational and academic entry. This is part of the range of educational reforms that this Government have been making and which we wish to continue. I know that the noble Lord has been at the forefront in trumpeting these issues.

Linking to that, whatever may be decided in terms of student funding will—or may—come out towards the end of the year as part of the regular reviews going on.