Student Loans: Muslim Students

Lord Pearson of Rannoch Excerpts

Thursday 3rd March 2016 Lords Chamber

[Baroness Evans of Bowes Park]

As I said, we will be looking for a suitable vehicle with which to attempt to introduce the system. There is strong interest in it: of the consultation responses, 94% believed that there would be demand for such a system and 81% thought that the proposed scheme being developed was acceptable. We of course want to ensure access for all students to higher education, which is why we would be the first Government to introduce such a scheme, but we need primary legislation to do so.

[Lord Pearson of Rannoch (UKIP)]

My Lords, talking of the growing influence of sharia law in this country, is there any truth to the press reports that the Government have mortgaged Richmond House and other buildings with sharia bonds, which ban alcohol on those premises? If true, how would that affect the habits of Members of the House of Commons if they move into those premises during refurbishment of this Palace?

[Baroness Evans of Bowes Park]

This proposed scheme has nothing to do with sharia law. It is about ensuring that all young people have access to university. We are very keen to try to ensure that we can provide a product that will help them to do so.

--- Later in debate ---

[Baroness Evans of Bowes Park]

As I have said to noble Lords, the Government hope to introduce the system and will be looking at the appropriate legislative way to do so. As my noble friend says, the up-and-coming Session will be detailed in the Queen’s Speech in due course.

[Lord Pearson of Rannoch]

My Lords, can the Minister explain the difference between takaful and paying interest?

[Baroness Evans of Bowes Park]

As I said, this model operates as a mutual fund so the contributions that a student pays go into that fund to be refunded. The idea of borrowing and paying back interest is absent from this model.