Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the value to the public purse of the sale of the student loans book.

The decision to start the sale process for part of the student loan book (set out in Written Statement HCWS458) is based on a robust and comprehensive assessment of the market which showed that it has a good prospect of achieving value for money.

As part of assessing value for money, the Government compares the value of keeping the student loan book and receiving uncertain and fluctuating repayments over time, and selling the rights to the remaining future repayments made on the student loan book and receiving a fixed sum of money for them now.

The sale process itself is also designed to achieve the best possible price for the taxpayer.

A further assessment will be made before the sale is completed (and before any further sales).

As required by the Sale of Student Loans Act 2008, the Government will provide a report to Parliament on the sale arrangements within three months of sale completion. As required by the Act this report will make reference to value for money.