Fiona O'Donnell
Main Page: Fiona O'Donnell (Labour - East Lothian)(14 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Willetts
I hope that the hon. Gentleman recognises that the proposals clearly offer a progressive way forward whereby graduates will have to start repayments only when they earn more than £21,000 a year. That will have a crucial implication for the issue he raises because their monthly repayments will be lower than they otherwise would have been. They will be paying at the rate the previous Government fixed, at 9%, but they will be paying 9% of their earnings over £21,000 rather than those over £15,000. When many building societies and lenders assess young people and graduates for mortgages, they will see lower monthly outgoings under our proposals than they would under the system that we inherited from the previous Government. I hope that the hon. Gentleman will consider that important point.
Fiona O'Donnell (East Lothian) (Lab)
Why does the Minister think that the Lib Dems in coalition with Labour in Scotland stuck to their promise to students whereas those in this coalition are so willing to break their pledge?
Mr Willetts
When I follow from the sidelines the debate in Scotland about financing its universities, it is clear to me that many universities in Scotland are concerned that they are not on a secure, long-term financing basis and that they are looking at a wider range of options. They might even be reading Lord Browne’s report with interest.