HC Deb 01 April 1971 vol 814 cc1648-51
3. Mr. Lane

asked the Secretary of State for Education and Science whether she will now make a further statement on the review of student grants.

9. Mr. Ashley

asked the Secretary of State for Education and Science what representations she has received from the National Union of Students about students' grants; and what reply she has sent.

29. Mr. Barnes

asked the Secretary of State for Education and Science if she will now make a statement on the review which she has carried out to determine the level of student grants for the period beginning 1st September, 1971.

Mrs. Thatcher

The National Union of Students has submitted a claim for higher rates of grant and other changes in the student support system. As we are still dealing with Stage II of the procedure, I am not yet ready to make a statement but will do so when the review is complete.

Mr. Lane

I appreciate that, but can my right hon. Friend confirm that, whatever change may be made by the Government in the level of grants, she will do everything she can to remove or at least lessen the inequities in the system as between one system and another and one group of students and another?

Mrs. Thatcher

Stage II is concerned with determining the total sum and stage III is concerned with discussions to agree on the distribution of that total sum. If my hon. Friend is concerned with the position as between mandatory and discretionary grants, any change in that respect would require legislation.

Mr. Ashley

Does the Secretary of State recall that she indicated to the House that she would make a statement this month? Would she do that without delay and perhaps take into account the fact that students are not among the surtax payers who were helped in the Budget?

Mrs. Thatcher

I said that I would not be ready to make a statement before April, and the procedure is taking a little longer than we thought it would. I shall bear in mind what the hon. Gentleman said. But some students' parents benefited in the Budget.

Mr. Barnes

Will the Secretary of State pay particular attention to the way in which the parental means test is straining family relationships in cases in which parents cannot afford what their sons and daughters need? Will she give an assurance that she will raise the base of the parental means test and make consequent adjustments to the rest of the scale?

Mrs. Thatcher

The parental contribution is one of the things that will be considered in conjunction with the vice-chancellors, local authorities and student bodies under Stage III of the negotiations.

Mr. Alan Williams

The House will welcome the comment which the right hon. Lady has just made, but to help in the discussion of alternative methods, will she ask her right hon. Friend the Chancellor of the Exchequer to give the House an estimate of the administrative cost of replacing the present means testing system by a system of uniform grants coupled with a tax claw-back of parental contributions?

Mrs. Thatcher

This is a difficult calculation to make. The National Union of Students gave us to understand that on its calculation the cost would be about £2 million. I have been doing some investigations and can find no basis for that figure from our statistics.

Mr. Freeson

Will the right hon. Lady assure us that she has not closed her mind to the possibility of legislating a change of structure of student grants, apart from the immediate issue of reviewing the level?

Mrs. Thatcher

I have not closed my mind, but even if the policy were agreed —and that is a matter for debate—there would be the question of finding legislative time. There is no decision on the policy matter, and I should not like to give the impression that there is.

Sir G. Nabarro

Whereas all parents are grateful for the increase of £40 per annum in the income tax allowance for all children of all ages, does not my right hon. Friend recognise that there is a powerful case for a special increased allowance for income tax purposes for boys and girls at universities or on similar courses, and that that would be the proper way of tackling this question instead of tinkering about with the present system, which is hopeless anyway?

Mrs. Thatcher

I am not responsible for the tax allowances, but my recollection is—and perhaps my hon. Friend will check this with the Chancellor of the Exchequer—that child allowances are available so long as the child is in receipt of full-time education, and that applies to both college and university students.

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