HC Deb 08 November 1988 vol 140 cc157-8
2. Mr. Beith

To ask the Secretary of State for Education and Science if he will make a statement on his plans to bring forward changes in the system of student financial support with effect for the academic year 1989–90.

The Secretary of State for Education and Science (Mr. Kenneth Baker)

We announced last Friday that, subject to parliamentary approval, mandatory awards to students will be increased by 5 per cent. in the 1989–90 academic year.

Mr. Beith

Even that award will not make up for the decline of more than 20 per cent. in student awards since the 1970s. How are we to evaluate that against the background of the recommendation of the Minister responsible for higher education, vouchsafed to journalists, that eight named universities should be able to charge an extra £500 in teaching fees? Is that another example of journalists getting it all wrong, or is that the real agenda?

Mr. Baker

My proposals for changes in student maintenance will be announced shortly. I deplore the fact that discussion documents were leaked. There is a great debate on the funding of higher education, both here and overseas. There is also a growing desire among institutions for greater independence. The Government have no proposals for students in receipt of mandatory awards to contribute part of their tuition fees, but higher education institutions have a legal right to charge tuition fees, and to prevent their doing so would require legislation.

Mr. Baldry

Will my right hon. Friend confirm that ours is the most generous system of student support in the Western world and that every other developed country has some form of student loans system? In those countries there is greater participation from all backgrounds in higher education than there is in this country. If we want increased participation in, and access to, higher education, would it not make sense to introduce some form of top-up loan scheme in addition to basic student grants?

Mr. Baker

My hon. Friend has anticipated somewhat a statement that I shall shortly be making concerning student maintenance support. My hon. Friend fired three target rounds: we do have the most generous system of student support in the world; we do spend a larger proportion of our gross national product on higher education than any other country in Europe; and yet we still have relatively low levels of access. The proposals that I shall shortly announce will try to address that problem.

Mr. Andrew F. Bennett

How will the Secretary of State address the central problem that far too few 16-year-olds stay in full-time education? Any proposals on student grants should address that problem. In my constituency, 24 per cent. of those who get good O-levels or GCSEs do not stay on in education, and all the Government's proposals to increase fees and for loans send one message to that group of youngsters—that education is expensive and that it is not for them. How will the Secretary of State address that problem, particularly when he continues to cut the grant each year?

Mr. Baker

We are uprating the grant next year by the forecast rate of inflation for the last quarter of next year. I encourage youngsters to stay on at 16 and 18, and this is probably the case across our political spectrum. I am glad to say—the hon. Gentleman should recognise this—that there are 200,000 extra students in higher education than there were when we came into office.