HL Deb 12 December 1972 vol 337 cc470-1
LORD SEGAL

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether they would consider making loans available, with favourable terms of repayment, to university students who have to undergo genuine financial hardship during the course of their studies.

LORD BELSTEAD

My Lords, the standard grant is designed to enable students to complete their course without hardship; and award-making bodies have discretion to make additional payments in certain circumstances, where they judge that students would otherwise suffer undue hardship. My right honourable friend does not consider it necessary to introduce a system of Government loans to supplement the present grant system.

LORD SEGAL

My Lords, while thanking the Minister for that reply, may I ask him whether he is aware that we are far behind other countries in making loans available to supplement existing student grants, and that however generous these grants may be there will always exist cases of genuine hardship which can severely damage a student's career? Cannot the Government be a little more helpful in this matter?

LORD BELSTEAD

My Lords, I am aware of other systems of student support which can be found in, for example, some countries of Europe. The British system of guaranteed support in the form of grant for all those accepted for degree and comparable courses is however unique, and it is fair to point out to the noble Lord that it is well designed for the normal three-year degree course which we have in this country. As regards the question of hardship, I would draw the noble Lord's attention to provisions in the awards regulations which specifically allow for assistance in respect of hardship for dependants and difficulties during vacations.

LORD BALERNO

My Lords, is the noble Lord aware that no other country in the world gives such generous grants to students as we in this country give?

LORD BELSTEAD

I believe this is so, my Lords, but of course it is partly so for the reason I have submitted—namely, that many other countries have systems of loans which they feel are better tailored to their degree courses.

LORD SEGAL

My Lords, is the noble Lord aware that genuine cases of hardship still exist and that there is an enormous amount of dissatisfaction among students who are genuinely undergoing financial hardship? Cannot some form of loan be made available, at least for that small percentage of students whose parents, for perfectly justifiable reasons, have had to default in their contributions?

LORD BELSTEAD

My Lords, I have submitted to the House that it is possible to deal with cases of hardship. The noble Lord has put his finger on the one difficult case: that of the parent who does not pay the parental contribution. If this were to be wiped away and a system of loans put in its place, the cost would be in the region of £35 million to £40 million. In addition, it would mean that the people who would benefit most would be parents who are better off.

BARONESS LLEWELYN-DAVIES OF HASTOE

My Lords, is the noble Lord aware that while appreciating his acceptance of the hardship point that my noble friend Lord Segal raises, we on this side of the House greatly welcome the reaffirmation of the Government's policy of dealing with basic needs by grants and not by loans?

LORD BELSTEAD

I am grateful to the noble Baroness.

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