Financial Support (Students)

Julian Sturdy Excerpts

Wednesday 15th December 2010 Westminster Hall

[Julian Sturdy (York Outer) (Con)]

It is a pleasure, Ms Clark, to serve under your chairmanship, and I thank you for calling me. I know that many hon. Members want to speak, so I will try to keep my comments brief. I congratulate the hon. Member for Erith and Thamesmead (Teresa Pearce) on securing this undoubtedly important debate today, and I note that members of the public are also present. The debate is especially important given last week’s prominent and controversial debate on higher education, so it is extremely timely to discuss financial support for students over the age of 16.

I want to make my position clear. I strongly believe that it is right for some form of financial assistance to be targeted at those aged 16 to 18 from the poorest backgrounds. That is really important. The key components of any post-16 education debate should focus on the education maintenance allowance. That has always been the case, and I want to focus my comments on that.

I am sure that some hon. Members here will have received a lot of correspondence about the matter. I have certainly seen a lot, and the principals of Askham Bryan and York colleges in my constituency have raised the issue. Among all concerned groups, there is a real fear that the loss of the weekly allowance will lead to the poorest abandoning their courses, and perhaps not starting them in the first place. That is an entirely understandable concern. However, I stress that the issue is not simplistic or clear cut. The impression portrayed in some corners suggests that the choice is between EMA and the end of all financial assistance to 16 to 18-year-olds. That is quite wrong. I suggest that the majority—I include myself—stand in the middle on this sensitive issue.

[Joan Ruddock]

What does the hon. Gentleman think will be the consequence of students not knowing whether they are eligible for EMA? There might be a grant, but they would not know. When it comes to choosing a further education college, such as Lewisham college in my constituency, eligible students can get the money and have some certainty. They can make a real choice about where they take their education. What is the future?

[Julian Sturdy]

I accept the right hon. Lady’s point. There is no doubt that we must ensure that the policy is clear. That has not always been the case, which is why I want to speak up. However, I broadly support the policy, and I will go into the reasons later. We must make sure that information is clear because it is important for young people to have it at their fingertips so that they can make the critical decisions that will affect their future lives. The right hon. Lady makes a valid point.

A matter that has already been touched on is that Government research shows that 90% of EMA spending is dead-weight, going to students who would have stayed in education regardless of the scheme. The hon. Member for Erith and Thamesmead touched on that, and I am interested to hear what the Minister has to say. I share the Government’s view that taxpayers’ money deserves far greater respect. If EMA is truly only needed by just 12% of those who receive it—

[Mr Chuka Umunna (Streatham) (Lab)]

My constituency is in the 19th most deprived local authority area in England. On the dead-weight issue—I do not accept the survey’s figures—does the hon. Gentleman share my frustration about the way the argument is made? If young people say that despite abolition of EMA they will remain in education, that is being used against them. I met a group of students this morning who said that they would do whatever it takes to stay in education because that is their future, even if abolition of EMA means that they cannot have lunch for a few days a week at least, or pay for transport and will have to walk to college instead. The issue is not just about people being put off and abolition of EMA deterring young people from going into further education. A member of Lambeth youth council, Stephen, is sitting behind me and can back me up on that. For those who choose to stay in education regardless, the abolition of EMA will subject them to extreme hardship.

[Katy Clark (in the Chair)]

Order. I remind hon. Members that interventions should be brief.

[Julian Sturdy]

There is no doubt that there must be support for the poorest and most deprived areas to help young people into education, and I will come to that. Government policy allows for that, but the question is whether the money is best used and targeted at people who fall outside and are at the top end of the threshold. Perhaps it is not.

[Simon Kirby (Brighton, Kemptown) (Con)]

Is the issue not about fairness? In my constituency, many children live in deprived areas with no state sixth-form provision. Support should be effectively targeted. Am I not right in thinking that that is what the Government intend to do?

--- Later in debate ---

[Julian Sturdy]

Absolutely, and that is what I want to go on to. For me, the fundamental point is ensuring that the money gets through to the people who really need it, and ensuring that they can make the decisions that could change their lives.

[Bill Esterson]

Will the hon. Gentleman give way?

[Julian Sturdy]

I am not getting far, but I will give way.

[Bill Esterson]

The issue of how to tell who really needs EMA to attend college has been raised with me by a number of college principals. Does the hon. Gentleman have any thoughts—I hope that the Minister will also address the point—on how college principals are supposed to identify who really needs support, and who to withdraw it from and who to leave it with under the new arrangements? What will be the basis for those decisions? There is an estimate that 10% of students will drop out. How will they be identified?

[Julian Sturdy]

If I am correct—I hope the Minister will highlight this point—we are saying that we will give college principals the power to allocate funding. It is about devolving local decisions to local people and I will speak further about that later in my remarks. I am looking at this issue from the point of view of those in my constituency, including the two principals who have contacted me. I believe that such people are best placed to take such decisions because they have local knowledge, which is important. I am not present just to speak in support of the Government—I do broadly support them, but I have some concerns that I shall outline in more detail.

The flaws in the central administration of EMA are well known. Last year alone, the running costs of the scheme totalled a staggering £35.8 million. That is of concern and I welcome news of the increased discretionary learner support funds that will replace the EMA. That support will be targeted more directly towards those from the lowest income households to ensure that accessibility to post-16 study remains viable and attractive for all students. That is the crucial part of the policy.

I welcome the decision to localise the distribution of the learner support funds by empowering local colleges and educational providers to carry out that administrative role. That process will hopefully save money that should be going to students in the first place. Some will argue that such a transfer of responsibility will increase the workload for colleges, but in my view it is right for local education providers to use their local knowledge to tailor the support offered to young people in their specific areas. That is a local and flexible solution to the problems of poor and costly administration.

I am generally supportive of the measures outlined by the coalition but I hold two reservations about the new system. First, I am concerned about ending the scheme for those students who will be only half-way through their courses by next summer. I support the new system, but I believe that it would be better for those already receiving EMA payments to see the initial agreements honoured. My second concern, which has been raised already, relates to transport. Many students who attend colleges across York and North Yorkshire rely on EMA to help meet their travel costs. Many have £10 automatically withdrawn from their allowance in return for a free bus pass. Given the likelihood of cuts to local authority transport subsidies, I would be interested to know whether the Government are considering the introduction of any transport-related financial assistance for full-time 16 to18-year-old students. In essence, however, I hope that all of us in the Chamber today share the same goal to protect and enhance the accessibility to education that our 16 to 18-year-olds currently enjoy and deserve. That is a noble and worthwhile ambition, and countless colleagues across the coalition genuinely share that vision.

The choice is not merely between EMA on one hand and no financial support whatsoever for 16 to 18-year-olds on the other. If that were the case, it would be quite wrong. Instead, an unwavering commitment to those who face genuine financial barriers to participation can be delivered through a more localised and efficient scheme, and that is why I broadly support what the coalition Government are doing.

[Katy Clark (in the Chair)]

Order. I remind hon. Members that they must stand if they wish to speak.