Student Loans Agreement

Debate between Helen Jones and Lord Johnson of Marylebone

Monday 18th July 2016 Westminster Hall

[The Minister for Universities and Science (Joseph Johnson)]

Thank you for your excellent chairing of this debate, Mr Pritchard. It is a pleasure to serve under your leadership. I am glad to have been reappointed in time to take part in this important debate and discuss the matter with the shadow Secretary of State for Education, the hon. Member for Ashton-under-Lyne (Angela Rayner).

I recognise the sincerity and strength of feeling about this question among hon. Members and members of the taskforce that advised the previous Government, but I am sure they understand that my challenge as a Minister in the Department responsible for student and university finance is to ensure that our higher education system remains open to all and that our universities remain well funded. The hon. Member for Warrington North (Helen Jones), who made an excellent opening speech, and other hon. Members have asked several important questions, which I will attempt to answer. However, I will first provide some strategic context to the decisions that the Government took in 2015.

When we reformed student finance in 2011, we put in place a progressive student loans system. Higher education is therefore accessible to all who have the potential to benefit from it, irrespective of their ability to pay. The system is working well and this Government have done more than any other to put higher education financing on a secure and sustainable footing. England has some of the finest universities in the world, and it is vital for our future economic prospects that they remain well funded. Total funding for the sector increased from £22 billion in 2009-10 to £28 billion in 2014-15, and it is forecast to reach £31 billion by 2017-18. We must ensure that our universities have the resources they need and every student has a high-quality experience during their time in higher education.

As the hon. Member for Southport (John Pugh) acknowledged, the warnings in the last Parliament that there would be a deterrent effect on student applications proved wrong. Students from disadvantaged backgrounds are now going to university at a record rate—up from 13.6% in 2009 to around 18.5% in 2015. People from disadvantaged backgrounds are now 36% more likely to go to university than they were under the previous Labour Government.

[Helen Jones]

Can the Minister enlighten us about the position with the Russell Group universities?

[Joseph Johnson]

It is important that we make progress across our system. In the guidance that I sent to Les Ebdon, the director of fair access, in February this year—by the way, that was the first guidance that he had had in more than five years—I explicitly gave him strong political support to ensure that all institutions, including those that see themselves as the elite institutions in this country, do the heavy lifting on access and that people who have the capacity to benefit from education at Russell Group institutions get the chance to.

In Scotland, as the hon. Member for Glenrothes (Peter Grant) may be aware, controls on student numbers continue to stifle aspiration and opportunity in a way that is simply no longer the case in England because of the way that we have put our student finance system on a sustainable footing. He made several points in this respect. I steer him towards a recent statement by the Sutton Trust that

“Scottish 18 year olds from the most advantaged areas are still more than four times more likely to go straight to university than those from the least advantaged areas.”

By contrast, the figure in England is 2.4 times. I also point him to a statement by Audit Scotland, which says:

“It has become more difficult in recent years for Scottish students to gain a place at a Scottish university as applications have increased more than the number of offers made by universities.”

Council Tax Benefit Localisation

Debate between Helen Jones and Lord Johnson of Marylebone

Wednesday 27th June 2012 Westminster Hall

[Helen Jones]

Actually, they do not. If the hon. Gentleman looks at the Local Government Finance Bill, he will see that its impact falls on the poorest authorities in the country. I have no doubt that there are difficulties in some areas with pensioners, but let me give him figures on what some of the wealthier areas will lose: Hertfordshire will lose £293,000 and Melton £246,000. Like the rest of the Government’s financial initiatives, this is designed to hit the poorest areas most—and, of course, it transfers all the financial risk to local authorities.

If more pensioners claim, as is likely under this system, that will be a good thing, but the money will have to be found in a cash-limited system. If unemployment increases, especially if a big employer closes down, the money will have to be found either from the poorest people receiving benefits or from cuts in benefits elsewhere. When the Government say that they wish to include council tax in the local business rate system, they fail to say that safety nets will kick in only if a council’s income falls between 7.5% and 10% below the baseline.

[Joseph Johnson]

Will the hon. Lady give way?

[Helen Jones]

I am sorry, but I have to wind up; otherwise, I will exceed my time.

This ill-thought-out system will produce disincentives against working and hit the poor and vulnerable most. The Minister needs to think again.