Student Grants (Hansard, 12 April 1989)

§ Viscount Davidson
My Lords, the rates of student grant for the academic year 1989–90 have already been announced. For students studying in London the grant will rise by 9.3 per cent. and for others the increase will be 5 per cent. The increase in the student grant for 1990–91 has not yet been decided.

§ Earl Russell
My Lords, I thank the Minister for that reply, but does he accept the figures in the Government's White Paper on student loans, which show that to increase the grant to the level of 1982 would require an increase of 21 per cent.? Does he accept the figures in that White Paper which show that undergraduate spending on accommodation has risen by 20 per cent. and spending on food has fallen by 24 per cent.? Does he further accept that, even if the White Paper is to be regarded as Queen's Speech material, it does not provide for anything to live on before 1990 and there is no assistance to current students?

§ Viscount Davidson
My Lords, first, I should say that the figures in the White Paper on both the grants and the loans are illustrative and not definite. I think that that is quite a good answer. It is true that the value of the grant has declined in recent years, although that decline has not been so steep as has sometimes been suggested. However, I must emphasise that it has not prevented a steady increase in the number of those entering higher education.

§ Lord Boyd-Carpenter
My Lords, is my noble friend aware that at whatever level he sets the amount of student grants, many people who are great admirers of his right honourable friend the Secretary of State for Education still have the gravest doubts about the proposals for student loans?

§ Viscount Davidson
My Lords, I am aware of that. I shall certainly pass my noble friend's comments on to my right honourable friend.

§ Baroness David
My Lords, does the noble Viscount consider that the period of consultation is now over? Are we to expect legislation about loans?

§ Viscount Davidson
It is not yet over, my Lords.

§ Lord Glenamara
My Lords, is the noble Viscount aware that a combination of the Government's proposals on student loans (if they are implemented) and the doubling of tuition fees as announced by Mr. Jackson this week will mean that vast numbers of young people from poorer homes will not be able to aspire to higher education?

§ Viscount Davidson
No, my Lords, I do not believe that that is true. I can tell the House that the number of students in higher education has risen by 190,000 since this Government took office. The Government are fully committed to increasing access but we believe that it is time for the students themselves to bear some of the costs of their own support rather than increasing the burden on parents and taxpayers.

§ Lord Cledwyn of Penrhos
My Lords, the noble Viscount says that the figures in the White Paper are illustrative. Does that mean that they are accurate?

§ Viscount Davidson
They may well turn out to be so, my Lords.

§ Lord Addington
My Lords, if the level of financing is not to be increased dramatically, will the Government give us some assurance that there will be consideration of the regional elements which will mean that people in some parts of the country, usually the less prosperous parts, will be considerably better off than those in others? Will regional help be available for those in areas other than London?

§ Viscount Davidson
My Lords, that is one of the points that will be taken into account by the Universities Funding Council.

§ Lord Lloyd of Kilgerran
My Lords, I preface my question by declaring an interest, in that I am an honorary Fellow of a college in the university of the most reverend Primate, who is present in the Chamber today. Can the noble Viscount say whether the Government intend to increase the loans for students who are studying theology at all the colleges of this country?

§ Viscount Davidson
My Lords, I do not have the answer to that question. I shall write to the noble Lord.

§ Baroness David
My Lords, further to one answer given by the noble Viscount, does he accept that students already contribute a great deal and pay for themselves in many ways, resulting in their getting into debt, which a large number of them are doing at the moment?

§ Viscount Davidson
My Lords, I believe that the average debt of a student at the moment is about £360, on which the current rate of interest must be paid. When top-up loans are introduced there will be no interest payable.

§ Earl Russell
My Lords, is the noble Viscount aware that at present there is very grave hardship which is not relieved by a proposal which will come into effect in 1990? When his right honourable friend 243 returns from his interrogation in another place, will the noble Viscount draw to his attention the question of whether there is a connection between teacher recruitment and student indebtedness?

§ Viscount Davidson
My Lords, that is a little complicated but I shall certainly draw the matter to the attention of my right honourable friend.