ONS Decisions: Student Loans

Justine Greening Excerpts

Tuesday 18th December 2018 Commons Chamber

[Elizabeth Truss]

I find it extraordinary that we are being lectured on debt by a party that wants to add half a trillion pounds to our national debt. As I said in my earlier answer, we would still meet our fiscal targets on both the debt and the deficit with the numbers that the ONS currently estimates, but it is very premature to have this discussion when the ONS has not given the detailed figures.

I am willing to respond to the hon. Gentleman’s question about whether we will give a guarantee that this will not affect students—absolutely we will. The Augar review is being conducted on the basis of what is best for students. The fact is that we have one of the best higher education systems in the world, of which we should be rightly proud. We have a record number of students attending university and a record number of students from low-income backgrounds attending university, thanks to our policy.

The hon. Gentleman has to answer this question: is it really right that people who do not go to university and generally earn lower sums of money should subsidise those who do go to university and go on to earn more in later life? We can see the result when that happens—it is what has happened in Scotland. Places end up getting rationed, and higher education ends up not getting enough income.

[Justine Greening (Putney) (Con)]

The House might be gridlocked on Brexit, but it does not need to be gridlocked on more ambitious reform of the higher education finance system. That is what young people want to see. I urge my right hon. Friend to look at the changes that young people want, which are the introduction of maintenance grants and reform of the student finance system away from student debt and towards a graduate contribution, making it better value for money and more progressive—not less progressive, as Labour suggests—so that young people who get the most financially out of going to university pay the most for the chance to go there.

[Elizabeth Truss]

My right hon. Friend clearly spent a lot of time working on that when she was Education Secretary, and I commend her on her contribution to that debate. I am pleased to welcome to the Front Bench the new Universities Minister, my hon. Friend the Member for Kingswood (Chris Skidmore), who is leading the work on the Augar review. As Chief Secretary to the Treasury, I am concerned to ensure that we get good value for money and that our universities are properly funded. I am closely involved in supporting the Augar review, as are my colleagues at the Department for Education.