Department for Education: Use of Statistics

Lord Forsyth of Drumlean Excerpts

Thursday 11th October 2018 Lords Chamber

[Lord Agnew of Oulton]

I reassure the Chamber about one statement we made that has caused criticism. I shall read it and then give a little context. We said that the UK is the third highest spender on education in the world, according to the OECD, spending a higher proportion of our GDP on education than Australia, France, Germany, Italy, Japan, Portugal and Spain. This is correct, but I accept the noble Lord’s comment that the context needs to be made clearer; indeed, the Permanent Secretary acknowledged that in his letter this week to the UKSA.

[Lord Forsyth of Drumlean (Con)]

My Lords, on the subject of his department’s use of statistics, is my noble friend aware of the Economic Affairs Committee report which pointed out that the penal rates of interest being charged on student loans—currently 6.3%—are counted as income by the Government, even though they will be written off 30 years down the line? Therefore, the numbers give the impression that the deficit is being reduced by charging students those penal rates of interest when in fact it is not. Is it not time that students were treated fairly and the statistics put in order?

[Lord Agnew of Oulton]

My Lords, I certainly agree that student loans constitute an important and sensitive issue, which is continually under review. Recently, we agreed to the lifting of the threshold at which repayment begins, and I am sure that debate will continue in this important area.