Education

Baroness Keeley Excerpts

Tuesday 21st December 2010 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

The abolition of the education maintenance allowance is one of the issues that have caused greatest concern in my constituency. One of my constituents from Thornton wrote to me to say that he has signed the petition in the name of my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger). He wrote:

“I am writing to you in my capacity as an employee of a large FE establishment in North Liverpool”—

and as one of my constituents. He continued:

“I have recently become increasingly alarmed at the ConDem’s plans to scrap Educational Maintenance Allowance for FE students. Given recent developments in the HE sector and last week’s student protests in London, it would seem that scrapping of the EMA is simply another plan to further undermine the education sector as a whole and, in many cases, to deprive learners of their right to an education. Although the abandonment of the EMA may have a lesser impact in more affluent areas, its effects will be felt much more in areas such as your constituency where an above-average number of learners are indeed in receipt of EMA. The ConDem’s plans to ‘bolt on’ a much lesser amount to the Discretionary Learner Support Fund will of course minimise the number of learners in receipt of financial assistance, and learners may be faced with finding other means of supporting themselves, and I have no doubt that some of these means may be less than legal.”

[Barbara Keeley (Worsley and Eccles South) (Lab)]

My hon. Friends are making a good case for the education maintenance allowance, but does my hon. Friend share my concern about young carers? College principals might not even know that some of their students are young carers, who need the incentive that EMA can give them to keep attending and to struggle on with their caring work load as well as their education.

[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%.

--- Later in debate ---

[Mr Gibb]

The hon. Lady might be right about that disadvantaged group, but we are talking about 45% of all young people of that age. It is an expensive programme to target nearly half of that age group in schools and colleges.

[Barbara Keeley]

I made a point earlier about young carers. I fail to see how a discretionary fund can help when young carers are so hidden. College principals and head teachers often do not know when their students are also carers, so how will they know how to target the funding? They will not.

[Mr Gibb]

The hon. Lady raises a wider issue about young carers. The coalition Government are concerned about young carers generally, not just in sixth forms and in colleges but in schools, and we are identifying those young people to ensure that they have the support and help that they need. When they attend college and seek help, however, the funds should be targeted at those who are in genuine need, including young carers.

In reaching the decision to reform the system, we were concerned that the 10% of recipients who according to the evidence would be put off from staying in education but for the money from the EMA might then drop out of education. We felt that a payment designed as an incentive to participate was no longer the right way to ensure that those facing real financial barriers to participation got the support they needed. So we decided to use a proportion of the £560 million to increase the value of the discretionary learner support fund. Final decisions about the quantum of that fund have still to be taken, but we have spoken of up to three times the current value of the fund, which now stands at £25.4 million.

A fund of that size would, for example, enable 100,000 young people to receive £760 each year, and 100,000 students is about 15% of the number of young people currently receiving EMA, which is more than the 10% about whom we are particularly concerned might not stay on in education. The £760 is more than the average annual EMA of £730 paid in 2009-10, and only slightly less than the £813 paid to 16-year-olds receiving the full £30 per week. We have not yet decided, because we are still consulting on it, how the money will be paid, to whom and for what purposes.