Oral Answers to Questions

Debate between Luke Hall and Yasmin Qureshi

Monday 29th April 2024 Commons Chamber

[Luke Hall]

I thought we had an excellent meeting last week. We had really positive discussions about the exciting lecturer reservist pilot that will run in the west midlands, bringing together regional employers, colleges and providers. I look forward to working closely with my hon. Friend as the pilot progresses, and not just to meeting him again but to visiting the pilot when it is up and running.

[Yasmin Qureshi (Bolton South East) (Lab)]

14. What assessment she has made of the potential impact of the plan 5 student loan repayment plan on levels of applications for university undergraduate courses.

[The Minister for Skills, Apprenticeships and Higher Education (Luke Hall)]

Our reforms make the student loan system more sustainable and fairer for graduates and taxpayers. Tuition fees have been frozen until 2024-25, and it was this Government who acted to cap the interest rate on student loans, because we believe that everybody in our country should have access to world-class higher education.

[Yasmin Qureshi]

In January, the number of applications to study nursing fell by 7.4%. The Royal College of Nursing said that that could be a direct threat to patient safety. Surely the Government should be doing everything they can to boost recruitment in nursing, but instead last September they introduced a tuition fee system that means that future nursing graduates will pay an extra £48 per month. Why is the Secretary of State penalising people who choose to work in our vital public services?

[Luke Hall]

The system that we introduced is a progressive one, because lifetime earnings now correlate with the amount that somebody contributes. The highest earners make the largest individual contributions, and the lowest earners contribute the least. For example, someone who leaves university in 2026 earning £26,000 a year will now pay just £7 a month repaying that loan. Crucially, the new interest rate is reduced from the retail prices index plus 3% to RPI plus 0%, which makes it more affordable too. It is a progressive system that we think is fairer for students and taxpayers.