Education Maintenance Allowance
Debate between Nick Gibb and Simon Danczuk(14 years ago)
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Mr Gibb
I take the hon. Gentleman’s point. There is evidence that EMAs have helped a small number of young people to stay on in education. However, that same evidence suggests that the scheme has a significant deadweight cost. Indeed, pilot evidence throughout the scheme, and more recent research, to which the hon. Member for Glasgow North West referred, from the National Foundation for Educational Research, found that almost 90% of young people receiving the EMA believed that they would still have participated in the courses they were doing if they had not received it.
The fact is, the EMA is a hugely expensive programme, costing more than £560 million a year, with costs of administration amounting to £36 million, but impacting on the participation of only around 10% of the young people who receive support. In effect, the taxpayer has been paying £9,300 for every extra young person who has stayed in education due to EMA. Most of the young people who receive the EMA would have made the same choices and achieved the same qualifications without it.
Simon Danczuk (Rochdale) (Lab)
The research quoted by the Minister has been questioned by other research, some of which has shown that the EMA has increased participation. My point is that it is not just about either/or, and whether the children or youngsters go into education, but it is about supplementing poorer families’ incomes so that they are encouraged to stay in education. It is not whether they go into it, it is helping them a little—with some cash—so that they stay in education.
Mr Gibb
Again, I shall come to that point in just a moment.
The hon. Member for Glasgow North West talked about how successful the EMA has been. I have acknowledged some important positive impacts, but it is also important to look at where the EMA has been less successful. That will help us to develop something that is fairer, more responsive to individual need and more efficiently targeted. Many young people and their parents think that the EMA is unfair and have told me that many people who receive it do not need it, and that some who do need it—the point made by the hon. Gentleman—are not able to claim it.