Higher Education: Student Loans

Lord Stevenson of Balmacara Excerpts

Wednesday 26th March 2014 Lords Chamber

[Lord Ahmad of Wimbledon]

As the noble Lord may well know, in terms of the student loan book, we previously had mortgage-style loans, and they were sold off for £160 million. It will, again, be ensured that any future sell-offs always provide value for money for the taxpayer.

[Lord Stevenson of Balmacara (Lab)]

HEFCE informed institutions last week that it was reducing its grants by almost 6% next year. Will the Minister confirm that, as a result of new Treasury guidance, BIS will have to provide some £50 million a year as a hedge against the currently inflated RAB charge going forward?

[Lord Ahmad of Wimbledon]

In terms of specific support for research, the noble Lord will recall from the latest Autumn Statement an additional ring-fencing until 2016. This is supported through an extra capital spend of £200 million. Taken together, over four years, we are looking at £1.6 billion in the science and research sector. Once again, I emphasise that the model that was questioned by several noble Lords on the Benches opposite would have been the same had we retained the £6,000 fee, and universities would have been in a far worse place than they are.