Education (Student Support) (Amendment) Regulations 2015

Debate between Gordon Marsden and Steve Barclay

Thursday 14th January 2016 General Committees

[Mr Gordon Marsden (Blackpool South) (Lab)]

I beg to move,

That the Committee has considered the Education (Student Support) (Amendment) Regulations 2015 (S.I., 2015, No. 1951).

May I add my appreciation to that of my hon. Friend the Member for Sheffield Central at being able to serve under your chairmanship for the first time, Mr Percy?

The bundle of measures before the Committee are a miscellany, to put it politely, but at their heart is the proposal to scrap maintenance grant support for disadvantaged students and replace it with a loan system. I will address the specifics of the regulations shortly, but for now I observe that the policy change is not an isolated one; it is part of a pattern that is also happening across other areas of Government. It is mirrored by the changes that were debated in the House on Monday, which removed NHS bursaries for nurses and other staff, and it has been foreshadowed by changes that the Government have made to education support and protection over the past three to four years. That included, of course, the scrapping of 24-plus loans in further education, which is particularly relevant to the case before us today.

As the Minister will be aware, the Government released figures in October 2015 showing clear evidence of the deterrent impact on learners that I and others warned about when loans were introduced as replacements for grants in January 2013. The figures showed that in 2014-15, only £149 million of the £397 million allocated for the process had been taken up, or 62% less. Not surprisingly, people in the further education community lamented the lost opportunity of £250 million that could have helped some of our most disadvantaged learners. With that in mind, my first question to the Minister is whether he took any of those figures into account, particularly their impact on older learners, when formulating the proposals in these regulations.

The truth of the matter is that the Government have ducked and dived to avoid further debate on their direction of travel, and particularly on freezing the threshold, which is not specifically part of these regulations, although it is referred to in the assessment that comes with them. We have seen how they have dealt with the regulations before us. My hon. Friend the Member for Sheffield Central has referred eloquently to the failure to bring the debate to the Floor of the House, but I also draw to the Committee’s attention the equality impact assessment that the Government have produced, which is on the table at the back of the room. It runs to some 60 pages, so I am not sure how many Members will have the opportunity to consider it in detail today if they have not read it already. The equality impact assessment was slipped out without ceremony at the end of November, and it came out only after a campaign and legal moves.

[Stephen Barclay (North East Cambridgeshire) (Con)]

That was several weeks ago.

[Mr Marsden]

Well, there might have been weeks to read it if the Government had actually made it available, but they did not.

This is the document that almost dare not speak its name, not least because the detailed evidence of impact tucked away in its pages, to which I will refer later, is belied by the bland conclusions appended to it that it will be all right on the night. What is driving panic measures such as the threshold freeze is the Government’s dawning recognition that their whole set of financial assumptions about repayment in other areas that underpinned their swingeing fees increases is producing a black hole for them and for future taxpayers.

Mr Percy, I am sure that you and those of us who have been here under all sorts of Governments will have observed the rule of thumb in this place that there are two ways for Ministers and their advisers to present and package things that they feel might be unpalatable. One is to bundle in the controversial bits with more technical or anodyne measures that might lull the reader into a false sense of security. Here is an example of such wording in the impact assessment:

“The following maximum grants and loans for living and other costs will be maintained at 2015/16 levels in 2016/17”.

Another way is to entitle the document innocuously, to increase the camouflage. Both methods have been employed on this occasion.

This is not a bit of incidental tinkering with existing financial regulations. It represents a major departure and reversal of policy, only four years after the Government hailed maintenance grants for students from disadvantaged backgrounds as an essential element in their strategy for fairness and in the acceptance of tripled tuition fees. I am afraid the measures are typical of the ideology-driven but evidence-light approach that this Government too often employ. They will affect probably 500,000 of England’s most disadvantaged students and define their futures for good or ill. Has the Minister made, or had given to him, any breakdown, geographical or otherwise, of that total figure and its impact on higher education institutions? If not, why not?

The statistics about those institutions helpfully provided to me by the House of Commons Library amount to a Domesday Book listing the numbers of students who will lose their grant under the new rules. Institutions in all parts of the country will be affected, both old universities and new ones. Further education colleges will be affected, of course, because they make an increasingly valuable contribution, 10% and more, to higher education for the group of people affected. Of course—this is not irrelevant in today’s circumstances—Scottish students who are taking courses at English universities will be affected.

There are a number of disadvantaged students studying at higher education colleges, and the Association of Colleges tells me that many of the colleges that deliver higher education are in northern towns—Blackpool and Blackburn are cited. Cornwall and the south-west also help to provide the large number of places at HE colleges. The association has said in specific response to these regulations, “We have real concerns about the proposed change as many of the students may never earn enough to pay back the money and the policy does appear to penalise poorer students. The new system therefore needs careful monitoring to ensure it is as fair as possible.”

These changes will affect significant numbers of students, from the north to the south. On the basis of the figures for 2014-15, for example, 14,728 students at Manchester Met University will be affected; 8,167 at the University of Manchester; 1,527 at my own excellent further education college, Blackpool and The Fylde College; 10,924 at Nottingham Trent University; 4,897 at Bournemouth; and 3,738 at King’s College. The other institutions that I have not had the opportunity to mention are far from incidental. The list will be a roll-call of lost opportunities if this issue is not handled carefully.

However, despite this being such a major issue, as my hon. Friend the Member for Sheffield Central has observed the Government have refused to bring the changes to the Floor of the House and prefer to try to sneak them through the delegated legislation route, whereby it can be debated and voted on by only a handful of MPs. As he said, there is cross-party support on the issue.

Importantly, the shadow Business Secretary, my hon. Friend the Member for Wallasey (Ms Eagle), in her letter to the Secretary of State explaining why there needed to be a full debate on these measures, wrote that scrapping maintenance grants for lower income students and replacing them with loans would have a regressive impact and should therefore receive further scrutiny from Members of Parliament. That was why she went on to call for a debate on these measures in Government time. She also made the practical point, which I will come on to, that the change would not improve Government finances in the long term, and she also made the link with the adverse impact of freezing student loan repayment, which I have touched on briefly.

Can the Minister explain why the Secretary of State did not deal adequately with any of those points in his reply? As my hon. Friend the Member for Sheffield Central has asked, will the Minister also explain why his Department has ignored the words of the Leader of the House in December and is prepared to break the precedent of debates in the House under these circumstances?

Turning to the impact of the regulations, of course we can only speculate on the future cohorts of people who come in, but we have some reason to make those speculations on the basis of existing experience. The National Education Opportunities Network, which is the professional organisation for widening access to education in England, and the University and College Union are currently undertaking research with more than 2,000 final-year A-level and level 3 students to look at how costs influence the HE choices they make. The interim findings from that research show that more than half the students who are deciding not to go into HE are taking that decision because of the lack of direct financial maintenance grant support that they had envisaged for the year ahead. If research suggests that a large number of students are deciding not to go to university due to that lack of support, why are the Government risking even more students dropping out by introducing the regulations?

A study by economists at the Institute of Education in 2014 showed that a £1,000 increase in grants would create a 3.95% increase in participation, and that the removal of grants would see participation levels fall. In fact, the institute said that it should also be of grave concern that more than a third of students had told a recent survey that they would not have chosen to go to university if they had not had access to maintenance grants. Does the Minister not fear a severe drop in participation levels, given that statistics indicate that the accessibility of a maintenance grant is a deciding factor for many when choosing whether to go into higher education? His equality assessment, which has been circulated, as I have said, states:

“At an aggregate level there is currently no evidence that the 2012 reforms, which saw a significant increase in HE fees and associated student debt levels has had a significant impact in deterring the participation of young students from low income backgrounds.”

That is debatable, because the safety net of maintenance grants, introduced in 2012 with that tripling of fees, is now being removed.

My hon. Friend the shadow Secretary of State wrote in her letter praying against the regulations:

“Labour are concerned that this change won’t improve Government finances in the long-term.”

Hon. Members might say, “You would say that, wouldn’t you?” but perhaps more cogent is the view of the Institute for Fiscal Studies:

“The replacement of maintenance grants by loans from 2016–17 will raise debt for the poorest students, but do little to improve government finances in the long run.”

The IFS states that in the short term, Government borrowing will drop

“by around £2 billion per year. This is because current spending on grants counts towards current borrowing, while current spending on loans does not.

In the long run, savings will be much less than this. The amount of money lent to students will rise by about £2.3 billion for each cohort, but only around a quarter of these additional loans will be repaid. The net effect is to reduce government borrowing by around £270 million per cohort in the long run in 2016 money—a 3% decline in the government’s estimated contribution to higher education.

About two-thirds of those eligible for the full maintenance grant will repay no more as a result of this reform because they will end up with the additional debt being written off.”

There is the rub. Will the Minister tell us what conversations he has had with his colleagues in the Treasury about the accuracy of those predictions, and why his Department is embarking on a leap in the dark that will, as the IFS makes clear, diminish the contribution to higher education and do little to address the black hole?

The IFS states:

“Students from households with pre-tax incomes of up to £25,000 (those currently eligible for a full maintenance grant) will have a little more “cash in pocket” whilst at university. But they will also graduate with around £12,500 more debt, on average, from a three-year course. This means that students from the poorest backgrounds are now likely to leave university owing substantially more to the government than their better-off peers.”

It also states:

“The poorest 40% of students going to university in England will now graduate with debts of up to £53,000 from a three-year course, rather than up to £40,500. This will result from the replacement of maintenance grants”.

The removal of those grants threatens access to higher education and, importantly, follows on from the removal of the national scholarship programme, which was designed to help students from low-income households. The programme has been scrapped, just as the Government are doing to maintenance grants.

In 2012, when the Government tripled tuition fees, they tried to sweeten the pill by talking up the centrality of the maintenance grant to ensuring that the most disadvantaged could still access higher education.

“The increase in maintenance grant for students from household with the lowest incomes, the National Scholarship Programme, and additional fair access requirements on institutions wanting to charge over £6,000 in graduate contributions should ensure that the reforms do not affect individuals from lower socio-economic backgrounds disproportionately.”

That is what the Conservative-led Government said in 2011-12 through the Minister’s predecessor, but the regulations will disadvantage the same groups of students the Government promised to protect two years ago. In June 2011, the Minister’s predecessor, David Willetts, pledged in Parliament:

“We want students from a wide range of backgrounds to benefit from the reforms. We are increasing maintenance grants and loans for nearly all students”.—[Official Report, 28 June 2011; Vol. 530, c. 770.]

He had previously defended the measure as a quid pro quo for the trebling of tuition fees, saying:

“Our proposals are progressive, because they help to encourage people from poorer backgrounds to go to university, because of the higher education maintenance grant, and because of the higher repayment threshold. That crucial commitment to taking progressive measures is one of the reasons we commend these proposals to the House.”—[Official Report, 3 November 2010; Vol. 517, c. 940.]

Does the Minister accept that the Government have now broken both those promises? His colleague, who is now Lord Willetts, must be revolving in his ermine at the way his promises have been so lightly regarded by the Government.

Anti-Social Behaviour, Crime and Policing Bill

Debate between Gordon Marsden and Steve Barclay

Monday 10th June 2013 Commons Chamber

[Mr Gordon Marsden (Blackpool South) (Lab)]

It is a pleasure to follow the hon. Member for Cambridge (Dr Huppert). I should like to associate myself with his concluding remarks about guide dogs, and to commend the Guide Dogs for the Blind Association for the spirited campaign it has led on the subject.

It is a great pleasure to speak on a subject of obvious concern to everybody in the country. Like my right hon. Friend the Member for Leicester East (Keith Vaz), the Chair of the Select Committee on Home Affairs, who spoke earlier, I have been in the House since 1997, and I can genuinely say that antisocial behaviour has been at the centre of my casework, both in terms of concerns that people have raised, and of the relief and respite that has been brought about. This is a continuing process; no Government have a monopoly on virtue or effectiveness. However, I want to emphasise that the Labour Government made significant strides in combating antisocial behaviour, and in putting victims at the heart of the justice system; I recall the surprise at that in more conservative legal circles in the early days of that Administration. Mercifully, we have moved on since then.

The controls put in place for statutory partnerships under the Crime and Disorder Act 1998 have been enormously important to us in Blackpool, where partnerships between the police, local authorities and others to tackle crime and disorder have worked extremely successfully. I want to make a point that is specific to my constituents and to the town: like many seaside and coastal towns, and many inland towns with a high degree of transience, in Blackpool issues associated with houses in multiple occupation and the problems faced by a minority of rogue landlords and rogue tenants have been very much to the fore. As the House of Commons research paper makes clear, antisocial behaviour injunctions have been valued by social landlords; they have been used successfully against tenants in attempts to tackle vandalism, violence, noise, harassment, and threatening and un-neighbourly behaviour.

As my right hon. Friend the shadow Home Secretary made clear, none of this can be done without resources. That is why it was very important that more than 12,000 extra police, and more than 16,000 police community support officers, were introduced under the Labour Government, including in Lancashire, which has particularly benefited from the beefed-up powers that were provided.

What are the issues that any antisocial behaviour Bill should at least touch on and try to address for my constituents in Blackpool? First, there is the question of disorder, particularly in the centre of the town. As many people know, we have millions of visitors every year. Most of them are a delight, but a small proportion are not. The same is true of residents. Problems such as alcohol, petty crime, drugs and general threatening behaviour have always loomed large. Secondly, the issue of houses in multiple occupation is really important. I praise the work done over a long period by the public protection department of Blackpool council, ably headed by Tim Coglan, all who have worked with him, and the cabinet member with responsibility for housing, Councillor Gillian Campbell.

I should like to quote from a couple of letters that I received recently that underline some of our problems. A hotelier—it should be borne in mind that there are some 600 hotels and guesthouses in my constituency—said:

“I run a hotel with my partner situated…in South Shore. We unfortunately have a HMO adjoining us…and one opposite…Both properties have drug and alcohol problems and are situated with ourselves in the ‘Holiday Zone’.

We persistently suffer ‘users’ calling up at the flats for drugs, the police are constantly parking outside our hotel to visit our neighbours. The flat adjoining our hotel on the first floor have dogs, who are rarely taken out of the flat.”

The good news in this story is that Blackpool council, together with other organisations, is working on this. I quote the letter I received from the council:

“Officers of the Housing Enforcement Team have been tackling issues...one of the problem tenants has already been evicted and the managing agents…are in the process of re-housing the tenants with the dogs.”

Another letter from another part of the town mentions the importance of alley gates, which have been a particularly effective way of dealing with antisocial behaviour in Blackpool.

[Stephen Barclay (North East Cambridgeshire) (Con)]

On HMOs and antisocial behaviour, including in alleyways, are there not already powers available to councils? The issue is whether councils are using the powers they already have, rather than whether new powers are required under the Bill.

[Mr Marsden]

I am grateful to the hon. Gentleman and I do not disagree with him on the powers, which are already there. What is important is enforcement by councils, and the resources that are available to them. Sadly, Blackpool council’s ability to do the stuff it would like to on alley gates has been severely hindered over the past couple of years by substantial cuts in funding from the Department for Communities and Local Government.

Police and community support officers are crucial, particularly now, when we have problems not just with houses in multiple occupation, but with houses that are bought at low prices when owner-occupiers move out, and landlords rent them out to problem families. I have many examples of that. I pay tribute to the activities undertaken in our town by the police and the community together. I am thinking of a group, ably chaired by Mr Dave Blacker, who are concerned about their PCSOs. Issues of funding and what might be available from Government have come to the fore.

Other really important issues are vandalism—Stanley park and other parts of the town have been badly affected by it recently—metal theft, the protection of war memorials and dumping. Those are all issues on which PCSOs can make an important contribution. That is why we need to look critically at what the Government are doing in the Bill. The crime prevention injunction—the proposed replacement for an antisocial behaviour order—is significantly weaker. A breach of the new injunction is not a criminal offence and will not result in a criminal record. Other proposed measures against antisocial behaviour also appear weak. The Government’s proposed community trigger has seemed weak in the areas in which it has been trialled, as my right hon. Friend the shadow Home Secretary made clear earlier. As her colleague, my hon. Friend the Member for Ashfield (Gloria De Piero) said, breach of ASBOs was a criminal offence; breach of injunctions to prevent nuisance and annoyance is not. Nor does the Bill guarantee a response from the police or the council. It guarantees a review. In my region, the north-west, police in Manchester recorded nearly 26,000 cases of antisocial behaviour in 2012-13, but the trigger was activated a mere four times.

When it comes to tackling antisocial behaviour, the elephant in the room is the way the Government have cut the police budget. Police community support officers, who are so often at the forefront in tackling day-to-day antisocial behaviour, have been hit particularly hard. That has led to Lancashire losing 9% of our front-line officers in the first two years of this Tory-led Government, and 500 police officers.

I shall touch briefly on knife crime, which has been a key issue in Blackpool. The Government have, to be fair, introduced a new crime of “threatening with article with blade” in public or on school premises, but the Prime Minister told MPs in recent months that the Justice Secretary was reviewing the powers available to the courts to deal with knife possession, and the Lord Chancellor has said he is revisiting the whole topic of knife crime. As my right hon. Friend the shadow Home Secretary rightly said, this is a Christmas tree Bill. It is unfortunate that the outcome of those reviews has not informed the detail of the Bill.

The topic of firearms has been touched on. I entirely associate myself with the comments that have been made about the dangers presented by people with a history of domestic violence. We know that only too well in Blackpool from the Justice for Jane campaign, which concerned the case of a young woman who was tragically murdered by her partner, who had a history of domestic threatening and violence. Such ticking time bombs need monitoring, and the Government should be monitoring some of them far more carefully and providing the legislation that would make that possible.

Lastly, I return to the subject of dangerous dogs. I have not been convinced by what the Home Secretary said. Many other organisations—not just the RSPCA, Battersea Dogs and Cats Home, Blue Cross and the Select Committee—feel that the proposals, rather like my 15-year-old Jack Russell-Chihuahua cross, are somewhat toothless. Dangerous dogs are a real problem and they need a special and specific remedy. I know that only too well from my former colleague in the House, Joan Humble, who almost lost the tip of her finger when canvassing in Blackpool in 2012. These Government measures, as has been said, are simply too weak. Instead of these piecemeal proposals, the introduction of dog control notices would be wide ranging and enforceable in the sorts of areas that have been discussed.