Free School Meals (Colleges)

Debate between Sharon Hodgson and Nick Gibb

Wednesday 13th June 2012 Westminster Hall

[Mr Gibb]

I will finish this point and, if there is time, I will give way.

As I was saying, the pupil premium is specifically designed to boost the attainment of pupils aged under 16 from low-income families, and free school meals is the only per-pupil indicator of poverty that we can have. That amounts to some £625 million—

[Mrs Hodgson]

That is for schools.

[Mr Gibb]

I understand that it is for schools; I will come on to the other point. That amounts to some £625 million in 2011-12, £1.25 billion in the following year, and it will rise to £2.5 billion by 2014-15. The right hon. Member for Sheffield, Brightside and Hillsborough and the hon. Member for Penistone and Stocksbridge are right that no pupil premium applies to pupils aged between 16 and 19, but for students between 16 and 19 the disadvantage uplift—as it is called—and the additional learning support funding are the equivalent of the pupil premium.

The disadvantage uplift is intended to recognise that young people from disadvantaged backgrounds may need extra support to close the attainment gap. The measure is based on the index of multiple deprivation for those living in the 27% most deprived areas, with students from more deprived areas attracting higher rates. In addition, we increased funding for disadvantaged young people and for additional learning support by £150 million in 2011-12, and that total funding is now £750 million a year. But again I must say that to help to tackle the budget deficit, we have had to make some very difficult decisions.

In the remaining time, I just want to point out to the hon. Member for Penistone and Stocksbridge that annual bursaries of some £1,200, which have replaced education maintenance allowance, are being provided to the most vulnerable young people. Taking the example of John, the student at one of her local FE colleges whom she mentioned, if John is 17 and on income support, he qualifies for a bursary of £1,200 a year, which is actually more than he would have received under EMA. The most vulnerable young people, including people in care—

Financial Support (Students)

Debate between Sharon Hodgson and Nick Gibb

Wednesday 15th December 2010 Westminster Hall

[Mr Gibb]

I shall come to that point in a moment.

The fact is that 90% of recipients of EMA would have stayed on in education regardless. Given that evidence, the fact that we have a major budget deficit crisis and the fact that the programme costs so much each year, it was clearly going to be a candidate for major reform.

[Mrs Hodgson]

Will the Minister give way?

[Mr Gibb]

I am sorry, but I cannot give way as I have only four minutes left.

In reaching the decision to end EMA, we were of course concerned that the 10% of recipients whom the evidence said would have been put off from staying in education but for the money might then drop out of education. We believe that a payment designed as an incentive to participate—a point hinted at by my hon. Friend—is no longer the way to ensure that those facing real financial barriers to participation get the support that they need. That point was made well by my hon. Friends the Members for Brighton, Kemptown (Simon Kirby) and for York Outer (Julian Sturdy).

We therefore decided to use a proportion of that £560 million to increase the value of the discretionary learner support fund. Final decisions about the quantum of that extra funding still have to be taken, but we have already spoken of increasing the value of that fund by up to three times its current value, which stands at £25.4 million. A fund of that size would enable 100,000 young people to receive £760 each year. Those 100,000 students represent about 15% of those young people who receive EMA, which is more than the 10% about whom we are particularly concerned who might not stay on in education. The figure of £760 is more than the average annual EMA paid in 2009-10 of £730, and only slightly less than the £813 paid to 16-year-olds who received the full £30 a week, or the £796 paid to 17-year-olds receiving the full £30 per week.

We are erring on the side of doing all that we can to assist the poorest, as sought by my hon. Friend the Member for Stourbridge (Margot James). However, the Government will not set expectations on how much young people should receive from the enhanced discretionary fund. It will be up to schools and colleges to determine which young people should receive support under the new arrangements, and what form that support should take. In answer to a question, I can tell the House that colleges can use 5% of the fund for administration.

To help schools and colleges administer the fund, and to ensure that those young people who really need support to enable them to continue their education or training have access to the new fund, we are working with schools and colleges, and other key organisations such as the Association of Colleges, Centrepoint and the Sutton Trust, to develop a model approach that schools and colleges can choose to adopt or adapt.

In the remaining minute, I shall try to answer some of the questions raised during the debate. Many hon. Members asked about transport. Under current arrangements, discretionary support funding cannot be routinely used for transport to and from college. It is local authorities that have the statutory responsibility for making the necessary transport arrangements. However, we will consider that restriction as we develop the arrangements for enhanced discretionary learner support funding. The House can be assured on that point.

I have dealt with the question about administration. The hon. Member for Erith and Thamesmead asked about the sum of £174 million. That is the estimate of what will be spent on EMA in the 2011-12 financial year, the payments being made during the 2010-11 academic year. However, it will not be available in the next academic year.