Student Loans: Interest Rates

Lord Adonis Excerpts

Monday 11th September 2017 Lords Chamber

[Viscount Younger of Leckie]

That is because it is not necessary to do so. The proportion of borrowers liable to repay when the £21,000 threshold took effect in April was significantly lower than could have been envisaged when the policy was introduced. The threshold would now be set at £19,000 if it were to reflect the same ratio of average earnings.

[Lord Adonis (Lab)]

My Lords, does the Minister think there are any circumstances—

[Baroness Manzoor (Con)]

My Lords—

--- Later in debate ---

[Viscount Younger of Leckie]

We believe that RPI is more appropriate than CPI for student loans. It takes account, among other things, of changes in mortgage interest payments and council tax, which, I may say, are typical expenses for graduates that are not included in the calculation of CPI.

[Lord Adonis]

My Lords, I am not sure about reforming universities but I certainly think we should reform the way in which we conduct Question Time in this House.

[Noble Lords]

Oh!

[Lord Adonis]

Does the Minister think it justifiable for any vice-chancellor to be paid more than £300,000 a year?

[Viscount Younger of Leckie]

I made the position clear on vice-chancellors’ pay the other day in the House. Although the Government do not wish to interfere, my colleague in the other place, Jo Johnson, has made it quite clear that universities must have restraint in the pay offered to vice-chancellors and, indeed, to other senior positions.