§ 1. Mr. WrayTo ask the Secretary of State for Scotland if he will make a statement on the effects of the poll tax and the top-up loans scheme on Scottish students, especially nurse students, of low-income families on university courses.
§ The Minister of State, Scottish Office (Mr. Ian Lang)Most Scottish students in higher education will benefit from the additional resources to be provided by student loans. Loans will also reduce dependence on parents—a particular benefit for low-income families. Full-time higher education students, including those seeking academic qualifications in nursing, are required to pay only 20 per cent. of the personal community charge.
§ Mr. WrayDoes the Minister agree that there has been a drastic fall in the number of entrants to higher education, especially in the fifth and sixth year? Does he also agree that student nurses and pupil nurses have not only been subjected to the full poll tax but cannot get a job when their training is finished? Will the Minister approach the new supremo—the Minister of State, Department of Employment, the hon. Member for Enfield, North (Mr. Eggar)—and ask him to abolish all poll tax for students?
§ Mr. LangNo, I would not agree with the hon. Gentleman. There has been a massive increase in entry to higher education, which is up by about a fifth since the last Labour Government were in power. Student nurses are now paid about £6,660 compared with £2,660 when the last Government were in power and are therefore much better off. Student nurses, like other nurses and members of the public, are assessed for community charge on the basis of their income.
Mr. John D. TaylorWhy has there been an increase in the number of Scottish students applying to come to the two universities in Northern Ireland this year? Is it because of the higher level of education in Northern Ireland, or is it because there will be no poll tax for Scottish students in Northern Ireland?
§ Mr. LangIt certainly would not be the latter since about 25 per cent. of students in Scottish universities have come from outside Scotland. The massive expansion of higher education in Scotland is such that many students are probably beginning to look elsewhere as well.
§ Mr. PawseyCan my hon. Friend confirm that student support next year will increase by a massive 25 per cent., probably the largest ever single increase? Can he confirm that that includes an element of £420 interest-free student loan? Will he also confirm that such loans are not repayable until the student is earning 85 per cent of the national average wage? Will he further confirm—[Interruption.]
§ Mr. SpeakerOrder. I think that the hon. Gentleman has asked three questions and that is enough.
§ Mr. LangWe have budgeted for substantial expansion in higher education next year. Student loans are a valuable top-up to student income and will be of great advantage to those on low incomes and, indeed, on other levels of income.
§ Mr. DewarWill the Minister accept that many students find it difficult to manage financially and could be left facing debts and the threat of warrant sales as a result of the poll tax and the falling value of student grants? Does he accept that since the introduction of the poll tax not one warrant sale for poll tax arrears has been authorised by a Labour council? The Labour-controlled Strathclyde council has not held a domestic warrant sale in 12 years, while in the 18 months during which the SNP was part of the administration in Grampian its finance convenor authorised 41 warrant sales. Would not it be sensible to consider whether we really need a method of debt collection that is expensive to operate and deeply resented?
§ Mr. LangStudents are liable for only 20 per cent. of the community charge, which takes a proper account of the local services from which they benefit. Under the old rating system, students were not entitled to any kind of special relief. The hon. Gentleman should tell us whether students would be liable to pay 20 per cent. or the full amount of the Labour party's roof tax.