Asked by: Baroness Thomas of Winchester (Liberal Democrat - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what progress they are making towards Sharia-compliant student loans.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The government is committed to delivering an Alternative Student Finance (ASF) product compatible with Islamic finance principles as quickly as operationally possible. To support the delivery of an ASF product, the government took new powers in the Higher Education and Research Act 2017 to enable my right hon. Friend, the Secretary of State for Education, to provide alternative payments for students to pay for tuition fees, in addition to grants and loans. The department has also carried out work with specialist advisers, the Islamic Finance Council UK (UKIFC), on the design of an ASF model.
The government is introducing the Lifelong Learning Entitlement (LLE), which will significantly change the ways students can access learning and financial support. In response to the LLE consultation, published on 7 March 2023, the department set out aims to ensure that students will be able to access ASF as soon as possible after the introduction of the LLE.
Work is underway to assess how ASF can be delivered as a product. The Islamic Finance Council UK (UKIFC) has been reappointed to support work on ASF. Furthermore, the department is also working with the Student Loans Company (SLC) to better understand timescales for delivering an ASF product.
Further information about how to develop the ASF product can be found in a blog post on ASF, and a further update on ASF will be provided later this month. The blog is available at: https://educationhub.blog.gov.uk/2023/07/21/alternative-student-finance-how-were-making-student-finance-accessible-to-everyone/.
Asked by: Sam Tarry (Labour - Ilford South)
Question to the Department for Education:
To ask the Secretary of State for Education, with reference to the Answer of 25 July 2022 to Question 37600 on Students: Finance, what progress her Department has made on delivering an Alternative Student Finance product compatible with Islamic finance principles.
Answered by Robert Halfon
The government is committed to delivering an Alternative Student Finance (ASF) product compatible with Islamic finance principles as soon as possible. To support the delivery of an ASF product to date, the government has taken new powers in the Higher Education and Research Act 2017 to enable the Secretary of State to provide alternative payments, in addition to grants and loans. We have further carried out work with specialist advisers, the Islamic Finance Council UK, on the design of an ASF model.
As set out in the answer of 25 July 2022 to Question 37600, the government is introducing the Lifelong Loan Entitlement (LLE), which will significantly change the ways students can access learning and financial support.
Work is underway to assess how we can ultimately deliver an ASF product alongside the LLE. We are procuring advice from experts in Islamic finance and will be working with the Student Loans Company to better understand timescales for delivery of an ASF product.
In our response to the LLE consultation, published on 7 March 2023, we set out our aim that students will be able to access an ASF as part of the LLE as soon as possible after 2025.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the Department for Education:
To ask the Secretary of State for Education, with reference to the Government consultation on the Lifelong Loan Entitlement launched on 24 February 2022, when she will (a) publish her response to that consultation and (b) implement an Alternative Finance Product.
Answered by Robert Halfon
On 6 May 2022, the department concluded the consultation on the Lifelong Loan Entitlement (LLE) as part of our planned pathway to delivery from 2025. This consultation, and other ongoing sector engagement, is a critical part of delivering a transformation of student finance. The department is carefully considering the contributions and will publish the response in due course.
The department remains committed to delivering an Alternative Student Finance (ASF) product compatible with Islamic finance principles, and work has started to assess how we can ultimately deliver an ASF product alongside the LLE. The department will provide a further update on ASF as part of our response to the LLE consultation.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if she will make it her policy to provide no public funds to the (a) Islamic Human Rights Commission Trust and (b) Islamic Centre of England.
Answered by Stuart Andrew - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
DCMS has provided no funding to the (a) Islamic Human Rights Commission Trust and (b) Islamic Centre of England in each of the last five years.
DCMS does not hold records of wider public funding to charities. Certain charities are required to submit a trustees annual report and annual accounts which are published by the Charity Commission. These may include information on government funding received by a charity. This information is publicly available in their entry on the register.
DCMS has robust processes in place for the use of public money to ensure value for money to the taxpayer. Effective due diligence identifies risks that inform the department’s funding decisions.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, whether any public funding has been allocated to the (a) Islamic Human Rights Commission Trust and (b) Islamic Centre of England in each of the last five years.
Answered by Stuart Andrew - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
DCMS has provided no funding to the (a) Islamic Human Rights Commission Trust and (b) Islamic Centre of England in each of the last five years.
DCMS does not hold records of wider public funding to charities. Certain charities are required to submit a trustees annual report and annual accounts which are published by the Charity Commission. These may include information on government funding received by a charity. This information is publicly available in their entry on the register.
DCMS has robust processes in place for the use of public money to ensure value for money to the taxpayer. Effective due diligence identifies risks that inform the department’s funding decisions.
Asked by: Sam Tarry (Labour - Ilford South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will conduct a review of the availability of mortgages which comply with Islamic law.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
There are a broad range of mortgage products available on the market, including products that comply with Islamic law. Those wishing to take out a Sharia-compliant mortgage may wish to shop around and speak to a specialist mortgage broker in order to find the best possible product for them.
It is also worth noting that the UK is the leading western hub for Islamic finance, with more institutions offering Islamic financial services in the UK than anywhere in Europe or North America, including four fully licenced Sharia-compliant banks.
Asked by: Afzal Khan (Labour - Manchester, Gorton)
Question to the Department for Education:
To ask the Secretary of State for Education, with reference to Answer of 20 October 2021 to Question 57279, what further consideration her Department has given to establishing a Takaful-based funding structure for financial support for students in higher and further education.
Answered by Andrea Jenkyns
The department remains committed to delivering an Alternative Student Finance (ASF) product compatible with Islamic finance principles. We want all learners with the potential to benefit from a higher education to be able to do so.
We are introducing a Lifelong Loan Entitlement (LLE), which will significantly change the ways students can access learning and financial support. We are currently considering if and how ASF can be delivered as part of the LLE.
We believe it is sensible to align future delivery of an ASF product with these major reforms to ensure fair treatment for all students.
Asked by: Kirsten Oswald (Scottish National Party - East Renfrewshire)
Question to the Department for Education:
To ask the Secretary of State for Education, pursuant to the Answer of18 October 2021 to Question 53884 on Students: Finance, what discussions he has had with the devolved Administrations on the introduction of alternative student finance.
Answered by Michelle Donelan - Secretary of State for Science, Innovation and Technology
Discussions with officials in the devolved administrations about the provision of a student finance product compatible with Islamic finance principles have taken place, most recently with officials from the Scottish Government. As education is a devolved matter, it is up to each devolved administration to decide whether they wish to introduce a Sharia-compliant student finance solution.
Asked by: Clive Lewis (Labour - Norwich South)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, what assessment UK Export Finance has made of the potential risks posed by (a) Islamic insurgency (b) demand for gas to (i) the Mozambique LNG Project and (ii) human rights in that region; and whether the Government will continue with that project.
Answered by Graham Stuart
The Mozambique LNG Project is still under consideration, and we cannot comment on potential transactions for reasons of commercial confidentiality.
The Government has already published a Category A notice which includes a link to an Environmental, Social and Health Impact Assessment (ESHR) of the Mozambique LNG project and related information.
Asked by: Clive Lewis (Labour - Norwich South)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, what steps she is taking to ensure that UK Export Finance support for the Mozambique LNG Project does not further exacerbate the Islamic insurgency in the Cabo Delgado region of Mozambique.
Answered by Graham Stuart
The Mozambique LNG Project is still under consideration, and we cannot comment on potential transactions for reasons of commercial confidentiality.
UK Export Finance (UKEF) carries out due diligence on all relevant aspects of a project before coming to a decision on whether to provide support.
The Government has already published a Category A notice which includes a link to an Environmental, Social and Health Impact Assessment of the Mozambique LNG project and related information. The Category A notice is available here:
UKEF has a specialist Environmental, Social and Human Rights (ESHR) team that reviews relevant projects prior to UKEF taking a decision on support.