Education Maintenance Allowance

David Ward Excerpts

Wednesday 19th January 2011 Commons Chamber

[Mr David Ward (Bradford East) (LD)]

I thank the Labour party for initiating the debate. It is certainly a subject that warrants a debate. Between the wild statements that have at times been made by Members on both sides of the House, some useful points have come out, and they needed to.

I thank my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) for the work he has been doing. I may be privileged to know some of that more than others, but a lot more work still needs to be done, and I hope that he will come to Bradford and talk to us about the implications of the withdrawal of the education maintenance allowance. There is a lot more work to do, but my right hon. Friend has done enough for me for now. However, my continued support for his work is dependent on the success with which he deals with concerns that I and many hon. Members have about the proposals. The Labour motion is tempting, but it fails to recognise that although EMA has played a valuable role in supporting young people from disadvantaged backgrounds, it is very costly.

[Karl Turner]

Will the hon. Gentleman give way?

[Mr Ward]

No, I will keep going. With or without a national economic crisis, the operation of EMA is far from perfect. Although they are not in the amendment to the motion, I welcome the comments that have been made on this side of the House about looking at whatever replaces EMA. The Labour motion mentions a rethink of the decision. Had it included a review of EMA, I probably would have supported it. We must look at the scheme and its weaknesses. I thank all those who have campaigned against the withdrawal of EMA, who have undoubtedly made a difference. I did not need convincing that a well thought through and adequately funded replacement was necessary.

[Jeremy Corbyn]

Will the hon. Gentleman give way?

[Mr Ward]

No, I will keep going. I hope that we all start from the same standpoint: that we have made a social contract with young people and their parents to provide free education for those who want it up to the age of 18. When young people must decide at 16 what to do with the next couple of years of their life, the continuing benefit from that social contract is not available equally to everyone. I think we can also agree that as far as possible we want that decision to be completely unfettered by financial limitations. In plain English, I am sure we all agree that the respective costs, whether for apprenticeships, school, college or for going into employment, should not be allowed to distort and unduly influence the decision-making process.

For those families that are sufficiently well off to be able to keep their child at school or college for a further couple of years, it is a straightforward options analysis: what is best for their son or daughter, what do they want to do with the rest of their lives and what are the local employment opportunities. For youngsters from low-income families, however, the options appraisal is often constrained because they cannot afford to stay in education without EMA.

We have been told that 88% of young people from low-income families would stay on in education without EMA and that it is a dead-weight calculation. On that principle, if the Secretary of State was willing to do his job for two thirds of the salary, would that be a dead-weight? If people are still going to provide some food for their children when they go to school, does that mean that free schools meals are a dead-weight cost? There are so many ways one can look at that concept. I think the proposal shows, more than anything else, a failure to understand that it is not about EMA being so important in getting young people into a situation in which they can do what they want, but the experience of the people who would say, “Yes, we would do it even if it was not available.”

Young people from low-income families might face a more serious decision. Affluent families will say, “We’ll put our kids through another two years of education, which might mean we go to Tenerife for 10 days rather than 14, or replace the car after four years instead of three.” However, for many families that decision is about food and clothing, or whether to send the eldest or youngest child to college because they cannot afford to send both.

Is that over-egging the pudding? In Bradford, 9,000 people receive EMA, 90% of whom receive the top rate, which means that they come from families that earn less than £21,000. We have already decided that anyone who earns less than that should not pay a penny off the student loan as a graduate, and that is not for households, but for individuals. So why are we not really looking at the consequences of the decision we are making on EMA? We need a thorough review. I welcome the work being done, but it must go much further if we are truly to support the new scheme, not only in terms of the content but with regard to the funds available.