HC Deb 03 June 1986 vol 98 cc718-20
Mr. Andrew F. Bennett

asked the Secretary of State for Social Services when he expects to conclude his consideration of the report of Social Services Advisory Committee on students' eligibility to benefits.

Mr. Newton

Shortly, I hope.

Mr. Bennett

Will the Minister confirm that the report is a damning indictment of the Government's policy and that it makes it absolutely clear that it would be a major breach of social security policy to ensure that a group of people, namely students, fall below the safety net which is set by social security measures? The Government have a simple solution to the problem, which is to restore the student grant to its 1979 level, which would mean that far fewer students would need to apply for social security to supplement their grant.

Mr. Newton

I do not accept the premise of the hon. Gentleman's question. As the report has not yet been published, I do not know on what basis he rests his remarks. The Government are determined that the social security system should treat students fairly and sensibly within the context of policy towards students as a whole.

Mr. McCrindle

Does my hon. Friend accept that, because the housing benefit system was never designed to support the accommodation costs of students, there is a strong case for moving away from the heavy reliance on that system which has developed? Does he agree that in a year when the student grant increase has been restricted to 2 per cent., however, that may not necessarily be the best time to embark upon such a path? Would it not be better to do it progressively over a period?

Mr. Newton

I think there would be general agreement with my hon. Friend that, in the long run, it must be sensible to move away from the position in which we now find ourselves. I accept that the difficulty is finding a method of moving in that way which is fair and sensible, as I said earlier.

Mr. Wilson

Does the Minister accept that students gain entitlement to such benefits only because they get the qualifications under the label of poverty? Does he not think that it would be heaping hardship upon hardship if he were to take away such benefits without giving anything in return through the student grant?

Mr. Newton

That is not strictly true. One of the difficulties is that the calculation of housing benefit for students is done in a way more favourable to them than to other claimants on similar incomes.

Mr. Nicholas Winterton

Does my hon. Friend accept that the financial situation facing some students is very serious and that their ability to obtain part-time employment during vacations may vary from one area to another? Students in the north-east, for example, might find it extremely difficulty to get jobs. Should not the benefit system be so devised as to ensure that all students have an adequate standard of living to enable those undertaking serious study to do all the work required in order to obtain the qualifications that will be to their benefit and to that of our country?

Mr. Newton

I note my hon. Friend's very general proposition. I am sure he is aware that in the proposals for consultation there is no question of withdrawing students' rights to supplementary benefit in appropriate circumstances during the long vacations. We have made a proposition concerning only the short vacations.

Mr. Meadowcroft

Is the Minister aware that given the Government's policy of reducing the student grant in real terms, and the social security provisions, some students cannot cope? Why did the Government set their face against student loans when they are now introducing them in the guise of overdrafts?

Mr. Newton

The hon. Gentleman will be aware that part of the Government's proposition was an increase in student grant alongside changes in social security provision. An important part of the package was an improvement in students' rights in relation to the disregards for housing benefit purposes.

Mr. Favell

Does my hon. Friend agree that the DHSS and the Department of Education and Science should ride in tandem on the question of student grants? Is it not time that they got together to hold a full review of the student grant system?

Mr. Newton

It is precisely because we are anxious to consider such questions, both within the DHSS and with Ministers in the Department of Education and Science, that we are taking the proper amount of time to consider them.