Student Maintenance Grants

Roberta Blackman-Woods Excerpts

Tuesday 19th January 2016 Commons Chamber

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

I begin by thanking my hon. Friends the Members for Wallasey (Ms Eagle) and for Blackpool South (Mr Marsden) for the fact that this debate is taking place. The Government would have been more than happy for these sweeping changes to higher education to pass through Parliament unnoticed, hidden away in delegated legislation—worst of all, a negative SI—with no public scrutiny. I am therefore pleased that at least we are able to call the Minister to account. However, it is extremely disappointing that he showed no contrition whatever for introducing policies that are likely to limit the aspirations of many young people in this country, or at the very least make it more difficult for them to achieve them.

[Simon Hoare]

rose—

[Dr Blackman-Woods]

I will not give way to the hon. Gentleman because we are very short of time.

We know that these changes will affect many students. The House of Commons Library states that in 2014-15, 395,000 students received a full grant, with 135,000 getting a partial grant. That amounts to over half a million students. Currently, students who go into higher education from families with an annual income of £25,000 or less are eligible for the full grant of £3,387, and students from households with an annual income of between £25,000 and £42,620 are eligible for a partial grant. However, in the summer Budget of July, plans were announced to remove the student maintenance grant, arguing that the grants had become “unaffordable”. This, in itself, is an assertion that needs to be deconstructed. Politics is about priorities, and this Government have chosen not to prioritise the needs of students from low-income families and, astoundingly, to make them a target for cuts.

The Government have talked endlessly about the importance of hard work and rewarding those who want to achieve, yet now they are undoubtedly making it more difficult for a number of our young people to have the opportunity to access higher education. The move to £9,000 fees in 2012 has meant that students and graduates now contribute 75% towards the overall costs of their higher education. The replacement of grants with loans will further increase the contribution of individuals compared with that of Government. Yet no conversation has taken place with students, their parents or across the country as to what the balance should be.

These changes will lead to a substantial increase in debt for poor students. Assuming that students take out the maximum loans to which they are entitled, the IFS estimates that average debt from a three-year course will rise from about £40,500 under the old system to £53,000 under the new system. This is not just a fear of debt—it is an actual increase in debt. We also know from the impact statement that these changes will particularly affect women, older students and students from ethnic minorities—reason enough to stop these policies in their tracks.

I stand here as someone who is passionate about supporting students from all backgrounds who can to get to university in accessing higher education. These changes are likely to make that more difficult for them. As a country, we need to ensure that our young people have the skills to enable them to compete in a global labour market, and I am concerned that these changes will prevent them from doing so.

--- Later in debate ---

[Huw Merriman (Bexhill and Battle) (Con)]

I speak as a member of the Delegated Legislation Committee that discussed this issue last week. I draw Members’ attention to the remarks I made at the time and I welcome the fact that this debate is being held in this Chamber.

I want to refer to my own situation. I feel strongly that it is right for Conservative Members to dispel the myth coming from the Opposition that students from a background similar to mine will not be able to go to university as a result of the changes. I say that as someone who took out loans to get through my professional training.

To further illustrate my argument, I went to a secondary modern school and failed my 12-plus. I was advised by my teachers not to waste my time doing A-levels, but I am glad that I ignored that advice. I went to a sixth-form college and was then fortunate enough to study at university. Although my parents’ background was by no means one where money was readily available to us, I just missed out on a maintenance grant, so I understood straightaway how important it was to work during my time at university in order to fund myself and, therefore, to study hard. As a result, I worked through Christmas, Easter and the summer, and during term time at Durham.

When studying for the Bar in London, I had to take out loans and work outside my course to cover not just my maintenance but my fees. I therefore took out tens of thousands of pounds in debt, with no earnings threshold for repayment. That was incredibly daunting, but it made me determined to succeed in order to be able to pay those loans back.

Working around my studies was hard, but it gave me invaluable experience of the world of work. Most students do that as a matter of course now, so it is incredible to be told that working outside a degree makes it impossible to do a degree. That certainly was not the case for me.

Twenty years on, I regard the loans I took out to have been the best investment I have ever made in myself. I visit schools in my constituency and tell students to chase their dreams and not be put off going to university because they may not be able to afford it. It is the most incredible investment an individual can make for themselves, including in the form of a loan, which can, of course, be paid back.

Although Labour Members’ comments are well meaning, I find it patronising in the extreme to be told that the loans system will put off students in a similar situation to mine and stop young people chasing their dreams, and that it is not possible to work and study at the same time. Those who have aspiration and self-belief will make it a target to repay loans, and then they will use their degree to enjoy the successful careers afforded to them by university.

In an ideal situation, this country could afford to fund university students for their maintenance, but successive Governments have moved towards a model whereby we allow everyone who wants to go to university to go to university. Record numbers of students are studying at university, including record numbers from disadvantaged backgrounds. Students from backgrounds similar to mine are now going to university.

[Dr Blackman-Woods]

rose—

[Huw Merriman]

I will not give way, because of the time. Most students understand that we are moving towards a loans system. They are comfortable with that concept and do not want bleeding hearts. What they want is a job at the end of their university degree. By balancing the books, we are making it more likely that they will have a job, security and success, and that they will be able to pay their loans back and to enjoy the fruits of their labour.

It is important that this House sends a message that university is available to all, no matter their background, and that is something that has carried me through so far.