Tuition Fees Debate
Full Debate: Read Full DebateDepartment: Department for Business, Energy and Industrial Strategy
Gareth Snell
Main Page: Gareth Snell (Labour (Co-op) - Stoke-on-Trent Central)Department Debates - View all Gareth Snell's debates with the Department for Business, Energy and Industrial Strategy
(7 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Joseph Johnson
As I said in my opening remarks, we have had lots of votes on student finance issues, and we won them all. [Hon. Members: “What about the statutory instrument?”] The statutory instrument in question has been in force for six months. It went through all the parliamentary processes. Labour Members had plenty of opportunity to push for votes at the correct time; they are now six months too late.
When we reformed student finance in 2011, we put in place a system designed to make higher education accessible to all. Students are now supported by a system of Government-subsidised loans, which are repayable only when borrowers are earning more than £21,000 a year. Controlling the cost of higher education to the general taxpayer who has to fund public spending in this way allowed us, critically, to remove the cap on student numbers and ensure that higher education was available to all with the potential to benefit from it.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
The Minister rightly points out that funding higher education will involve a cost to the public purse. His own Government will be aware that 45% of all loans that are taken out are never repaid, and that after the 30-year rule period has elapsed, 70% of students have a debt outstanding. Has he worked out the figures to establish whether that money, which the Government must ultimately pay off, could be better used to reduce the cost of tuition fees up front so that more students could go to university?
Joseph Johnson
The hon. Gentleman is correct in saying that there is a Government contribution towards the loan book. It is a conscious, deliberate Government subsidy towards the skills base of the country, and towards giving more people from disadvantaged backgrounds a chance to go to university with finance being absolutely no barrier. We want people to pursue worthwhile, socially valuable careers that may not lead to high earnings—careers in social work, for instance—and we also want people to be able to take on childbearing and family-rearing responsibilities. Those are all reasons why the state will continue to make a contribution towards the cost of the loan book