HC Deb 04 March 1971 vol 812 cc1875-6
7. Mr. David Clark

asked the Secretary of State for Education and Science if she will make a statement on student grants.

Mrs. Thatcher

Student grants are at present under review to determine the rates payable from 1st September, 1971. I do not expect to be ready to make a statement before April.

Mr. Clark

Does the right hon. Lady realise that this problem is urgent and that many young people are suffering severely from inflation, which is increasing all the time? Will she issue a statement as soon as possible and stop prevaricating on this issue?

Mrs. Thatcher

As the hon. Gentleman will be aware, three stages have to be gone through, as those who have written to hon. Members on this subject have pointed out. At the moment we are at stage two in deciding the total sum to be available, in consultation with local education authorities, and we are ready to listen to anybody who may make repre- sentations. There is then a third stage, after which I shall be able to make a statement.

Mr. Maude

Will my right hon. Friend bear in mind when recasting the grant system that, apart from the need to bring student grants up to the purchasing power which they have now lost, the system of means-testing for parental contributions is very much out of date and that all the figures involved in it have now been rendered nonsensical by inflation?

Mrs. Thatcher

We also have that point very much in mind and will be taking it into account with the students and other bodies in stage three. The way in which the students have conducted their case has been a model for all other groups.

Mr. Molloy

Could not the right hon. Lady consider making an immediate award to try to restore some of the purchasing power of the grant, rather than let this matter await all the steps which she says have to be gone through, because students are finding the situation extremely difficult? Secondly, would she consider increasing the student lodging allowance since the situation in that respect is becoming very serious?

Mrs. Thatcher

A proper procedure is laid down, which the students and everybody else are following. I believe that we must take it through to a conclusion.

Sir J. Langford-Holt

In considering further education, will my right hon. Friend look at the discretionary grants system with a view to producing some degree of uniformity in the standards of study which would justify a grant and in the situation as between local authorities?

Mrs. Thatcher

That matter does not come within these negotiations, but we have received representations on this point and are looking at it.