Sharia-compliant Student Finance

Lord Watson of Invergowrie Excerpts

Wednesday 13th November 2024 Lords Chamber

[Baroness Smith of Malvern (Lab)]

For students, we are raising information about, for example, degree apprenticeships that would allow students to study towards a degree while they work, without paying for tuition. Students can also find information on other forms of support on GOV.UK, including bursaries, scholarships and awards for eligible students to ensure that, as the noble Lord pointed out, we help to make progress for the about 6,000 students per year that the Muslim census suggested might not be able to access higher education because of the nature of mainstream student finance.

[Lord Watson of Invergowrie (Lab)]

My Lords, I commend the tenacity of the noble Lord, Lord Sharkey, in pursuing this issue, which I know he has been raising since 2012. I recall being in debates with him on what became the Higher Education and Research Act 2017, when it seemed that a solution was close to being found. Yet, as he said, many young Muslims have a barrier to higher education because of this, and those who go to university none the less suffer severe financial hardship. But I disagree with him and say to my noble friend that, rather than separating the need for a sharia-compliant loan to be found and the lifelong learning entitlement, the lifelong learning entitlement’s rollout from 2026 should be used as a backstop. If it is not available to young Muslims, it cannot properly meet the reason that it is being established.

[Baroness Smith of Malvern (Lab)]

My noble friend is right. That is why, in working towards the lifelong learning entitlement rollout, we will also be making progress towards delivering the alternative student finance. We will be able to look at the details about the progress that has already been made and the steps we still need to make in the working group, which I am glad that the noble Lord, Lord Sharkey, will be able to attend.