Sharia-compliant Student Finance

Lord Sharkey Excerpts

Thursday 25th July 2019 Lords Chamber

Asked by

[Lord Sharkey]

To ask Her Majesty’s Government what progress is being made towards the introduction of Sharia-compliant student finance.

[Viscount Younger of Leckie (Con)]

My Lords, the Government remain committed to introducing a system of alternative student finance, known as ASF, compatible with the principles of Islamic finance. We have received advice from the specialist consultants we appointed and will set out plans for implementation as we conclude the post-18 review at the spending review. This will ensure that students in receipt of an ASF package are not disadvantaged compared with other students in receipt of mainstream student support.

[Lord Sharkey (LD)]

That Answer is still vague and still qualified. Why can the Government not make a firm commitment? They have known about this problem since 2013 and have known about the solution since 2014. Every year since then, and again this September, Muslim students will have been disadvantaged. The noble Lord, Lord Young, told the House on 13 March 2017 that the Government were currently working towards a scheme being open to applications within this Parliament, which, then, was due to end in 2020. Can the Minister give the House a firm assurance that the new scheme will in fact be available for the 2021 academic year?

[Viscount Younger of Leckie]

I cannot give the noble Lord a firm assurance on that, but I can say that we continue to work through the complex range of policy, legal and system issues that will need to be resolved in order to develop and eventually launch an ASF product. We should not underestimate the scale of complexity here. We are trying to replicate a system of student finance that delivers the same results as now, whereby students do not receive any advantage nor suffer any disadvantage through applying for ASF.