Student Grants (Hansard, 13 January 1981)

§ 8. Mr. Canavan
asked the Secretary of State for Education and Science how many representations he has received about the possible replacement of student grants by loans.

§ Dr. Boyson
My right hon. and learned Friend and I have, between June 1980 and 9 January 1981, received 78 such representations; 32 were in favour of student loans and 46 were against.

§ Mr. Canavan
Bearing in mind that this country, compared with other Western countries, has one of the lowest proportions of children in full-time education, is it not obvious that many more young people, especially those from working-class backgrounds, will be deterred from going on to higher education if they are faced with debts of several thousand pounds on completing their courses? Would not a fairer solution be to introduce a comprehensive system of educational maintenance allowances for all young people in full-time education so that education becomes a right, instead of something to be bought, sold or mortgaged?

§ Dr. Boyson
There is a flaw in the hon. Gentleman's argument. He talks of more people, including more from the working classes, going on to higher education. Many of the countries to which he referred have a loans system. In Sweden 33 per cent. of children of blue-collar workers go on to higher education, compared with 23 per cent. in this country. We are as concerned as the hon. Gentleman is that more young people, especially those from working-class families should enjoy these advantages. Under the existing system that is not happening.

§ Mr. van Straubenzee
Is it possible to establish at the start of this argument that a system of loans would increase Government expenditure, and that therefore on that ground the system should not be advocated?

§ Dr. Boyson
I take my hon. Friend's point. If one introduced a loans system with Government money, and if as much or more money were provided, that would increase expenditure. Such matters are being examined. I am grateful to my hon. Friend.

§ Mr. Whitehead
Should not the Minister publish the working paper submitted to him, with its various bizarre proposals, as the Select Committee suggested? Does he agree that the entry of working-class children has declined by about 4 per cent. in the last four years and that the deterrent effect of high loan repayments, particularly at a time of national unemployment, should clinch the argument against loans for first degrees?

§ Dr. Boyson
I received the report on 31 December. We are now studying it to see whether we should consider any one scheme in depth and width. When we decide that, we shall have wide consultations. Until that time we shall not publish the report. I recommend that the hon. Member reads the article by Maureen O'Connor in The Guardian today which states that the argument is finely balanced. Sweden introduced a loan system in 1964, and since then the numbers involved in higher education have tripled. I do not understand how one can argue that a loans scheme would cut the numbers involved.