HC Deb 11 July 1980 vol 988 c320W
Mr. Cook

asked the Secretary of State for Education and Science what is the net benefit to the Exchequer of the decision to raise student grants by an average of 14.7 per cent. instead of by the 19.7 per cent. estimated by the Government as being the amount needed to compensate for the rise in students' costs.

Dr. Boyson

About £14 million at 1980 survey prices in a full year in England and Wales.

Mr. Cook

asked the Secretary of State for Education and Science what is the net cost to the Exchequer of any decision to improve conditions for student grants over and above the rate of inflation in each of the following respects (a) an increase in parental contribution limits for each percentage point more than inflation and (b) an increase in supplementary grants for child dependants for each percentage point more than inflation.

Dr. Boyson

It is estimated that the additional cost to the Exchequer of adjusting parental contribution limits for one percentage point more that inflation would be some three-quarters of a million pounds for all dependent full value award holders in the academic year 1980–81 at the current grant levels. The cost of increasing supplementary grants for child dependants by one percentage point would be negligible, since relatively few students (under 2 per cent.) receive such awards. The grant most likely to apply to a student's child (for a child aged 10 years or less) was increased by 50 per cent. to £135 for 1980–81.