Post-16 Education and Skills Strategy

Baroness Bennett of Manor Castle Excerpts

Wednesday 22nd October 2025 Lords Chamber

[Baroness Smith of Malvern (Lab)]

As my noble friend knows, there is a sector skills plan that goes alongside the creative industries’ inclusion in the industrial strategy. Of course, it is already the case that among the sector skills packages—for example, the digital package, with £187 million behind it—we will be developing important skills for the creative industry. As well as the sector skills plan, jobs plans will be developed in each of the areas, and I am sure my noble friend will maintain her pressure to make sure that this makes the difference to skills in the creative industries that I know she wants to see.

[Baroness Bennett of Manor Castle (GP)]

My Lords, on the reality of student debt, for the cohort that started to be liable for paying off debt in April 2025, the average debt was £53,000. In the government stats for students starting in 2024-25, it is expected that about 56% of full-time undergraduates will repay in full, which of course means that 44% of those students will spend 40 years paying off a loan they will never finish paying off. Can the Minister tell me, either now or in writing, what these increases in fees will do to those two figures?

[Baroness Smith of Malvern (Lab)]

The noble Baroness has identified the very different nature of student loan provision from an ordinary form of borrowing. What a student repays is dependent neither on the size of the debt nor on the interest rate; it is dependent on the student’s level of income once they are working. The noble Baroness can shake her head, but that is the reality of the way the system is designed. Therefore, there is both a student contribution and, in many ways, a taxpayer contribution to ensuring that there is no upfront cost to students going to university. The noble Lord makes an important point that we need to clarify the nature of the student loan system, in order that we do not discourage young people from going to university.