(14 years ago)
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I certainly agree. We should also remember that some of the young people being burdened with huge debts will be from families that have no other mechanism to support them in making further life choices, such as getting into the housing market, or in paying unexpected bills. Having large elements of their earned income tied up for the next 30 years will be more of an ask for those young people than it will be for young people from a more middle-class background, but that has not been taken into account. For people from some of the backgrounds that we are talking about who might want to strike out and go to university, such factors will have a big detrimental impact on the decision that they take.
Following on from the intervention from my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), will my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson) join me in asking the Minister to comment on the impact of today’s announcement on undergraduates who want to go on to postgraduate education? We heard nothing about that impact in today’s statement, and it would surely be useful to hear whether those from lower-income backgrounds who have heavy loans to pay back will be deterred from going on to postgraduate study.
That is an important part of the debate, but it has not been discussed yet, and I certainly hope that the Minister will refer to it in his closing remarks. Even during my time as an MP, I have seen a change among the people who have applied to work for me as a researcher, with those who apply now having chosen not to do postgraduate qualifications for the reason that my hon. Friend sets out. Degree-level qualifications will therefore probably be the maximum attainment for some children from working-class backgrounds.
I want now to touch on the education maintenance allowance. At the same time as the current changes are being made, the Government are planning to overhaul the EMA system, which has been instrumental in ensuring that talented young people from less well-off backgrounds get the necessary qualifications to apply to university in the first place. There was a debate on this subject in Westminster Hall yesterday, which was secured by my hon. Friend the Member for Glasgow North West (John Robertson). He is a great advocate of the EMA, and I see from Hansard that he put the case for its retention impeccably, so I will not repeat it.
My hon. Friend has plenty of evidence to back up his case. The evaluation of the roll-out of EMA showed that it reduced the level of those not in education, employment or training and encouraged those receiving it to work harder. Indeed, Institute for Fiscal Studies research showed that attainment among recipients has increased by 5% since the introduction of the EMA. If the Government remove something that encourages less well-off children to stay in further education and to aim higher, and they couple that with huge disincentives to apply for higher education, applications from that group will almost certainly drop significantly, particularly to the better universities.