Financial Support (Students)

Debate between Julian Sturdy and Baroness Clark of Kilwinning

Wednesday 15th December 2010 Westminster Hall

[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.

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[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.