(5 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Order. We need a bit of order in this debate. The Minister has made it absolutely clear that she is not giving way to the hon. Members. Can we please get on with the debate? She has made that absolutely clear.
(14 years ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Thank you, Mr Betts. I am grateful for this opportunity to speak under your chairmanship on this important topic, and I congratulate my right hon. Friend the Member for Tottenham (Mr Lammy) on securing this important debate. If there were ever any doubt that he cared passionately about the future of higher education, and the future of children from estates such as his, mine and those of other hon. Friends here today, his speech will have proved his passion and commitment—long may it continue.
I wish to discuss what the Government’s plans will mean for many of my constituents. In a Liberal Democrat press release during the election campaign, Nick Clegg said:
“If fees rise to £7,000 a year”—
Order. The reference should be to the Deputy Prime Minister.
I apologise, Mr Betts. The Deputy Prime Minister stated:
“If fees rise to £7,000 a year, as many rumours suggest they would, within five years some students will be leaving university up to £44,000 in debt. That would be a disaster.”
I have to say this, Mr Betts: this is one of the few occasions on which I agree with Nick.
Even if most universities charge the minimum of £6,000, it will still be a disaster, and if most of the more prestigious ones charge £9,000, it will be an even bigger disaster. If I were a 16 or 17-year-old working-class girl from Gateshead—not too much of a stretch of the imagination, as I once was—looking at my options for the future, a potential debt of £44,000 would make me think seriously about whether I should go to university, especially if I were the first in my family to do so. It was not a journey that I was ever able to make personally because of cost constraints, and having to go out to work to help support my mam, who was on benefits, and two younger brothers.
If I were desperate to go to university, I would probably have to go to one of my local universities to avoid the extra living expenses, rather than the best university that would accept me based on my ability and grades. That seems to be what the Secretary of State for Business, Innovation and Skills intends people from my constituency to do. I would also most likely have to take a significant amount of paid part-time work, reducing the amount of time that I could dedicate to my studies, and consequently my attainment.
Even then, when I had struggled through three years and racked up a debt of £15,000 to £20,000 for the privilege—assuming that I had received some of the grants that the Minister of State outlined—my debt would continue to grow at a rate far above that at which my earnings would be likely to grow. An interest rate of 2.2% plus RPI, which would currently be 6.8%, does not compare favourably with a typical increase in median income of 3% to 4%. By that logic, somebody finishing university this year with £20,000 of debt would see that debt grow by more than £1,300 in a year and would need to find a job paying more than £30,000 just to keep up with paying that off. Today, though, we have heard that someone earning £30,000 could be liable to pay even more interest. That will mean millions of young people never paying off their loans and quite a number of those loans—not just the odd one—probably being written off after the end of the 30-year period. The thought of being 16 or 17 and realising that I would still be paying for my education in my 50s would definitely put me off higher education.