§ Mr. MansTo ask the Secretary of State for Education and Science if he will publish the rates of student grants and parental contributions for 1989–90.
Mr. JacksonSubject to Parliament's approval of the necessary regulations, the main rates of grant will be increased in the 1989–90 academic year by 5 per cent. for students studying outside London and students who study from the parental home. For those studying in London, the main rate of grant will be increased by 9.3 per cent. in recognition of their higher living costs. In England and Wales the new rates will be as follows (rates for 1988–89 are shown in brackets):
undergraduate (£) postgraduate (£) Halls or lodgings (i) London 2,650 (2,425) 3,970 (3,630) (ii) Elsewhere 2,155 (2,050) 3,125 (2,975) Parental home 1,710 (1,630) 2,270 (2,160) The threshold for parental contributions, and the points on the contribution scale at which the rate of contribution changes, will be uprated to reflect the movement of earnings. Parents whose residual income is below 10,600 will not be assessed for a contribution.
The full parental contribution scales for 1989–90 are as follows:
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Residual income Contribution Scale 1 Scale 2 £ £ £ 10,000 0 0 10,600 60 45 11,000 117 88 12,000 260 195 13,000 402 302 13,500 474 356 14,000 574 431 15,000 774 581 16,000 974 731 17,000 1,174 881 18,000 1,374 1,031 19,000 1,574 1,181 19,800 1,734 1,301 20,000 1,784 1,338 21,000 2,034 1,526 22,000 2,284 1,713 23,000 2,534 1,901 24,000 2,784 2,088 25,000 3,034 2,276
Residual income Contribution Scale 1 Scale 2 £ £ £ 26,000 3,284 2,463 27,000 3,534 2,651 28,000 3,784 2,838 29,000 4,034 3,026 30,000 4,284 3,213 31,000 4,534 3,401 32,000 4,784 3,588 33,000 5,034 3,776 34,000 5,284 3,963 34,064 5,300 3,975 35,000 5,300 4,151 36,000 5,300 4,338 37,000 5,300 4,526 38,000 5,300 4,713 39,000 5,300 4,901 40,000 5,300 5,088 41,000 5,300 5,276 41,130 5,300 5,300 Notes:
- (1) The second scale of parental contribution was introduced following the announcement on 15 March 1988 that tax relief on new non-charitable covenants would cease. Contributions assessed on scale 2 are 25 per cent. less than those assessed on scale 1.
- (2) For 1989–90 the level of contribution will be assessed as follows:
Residual income Scale 1 Scale 2 From £10,600 to £13,500 £1 in £7 £1 in £9.3 From £13,501 to £19,800 £1 in £5 £1 in £6.6 From £19,801 £1 in £4 £1 in £5.3 (3) The maximum contribution, which applies to parents with more than one child holding an award, will rise from £4,900 to £5,300. The minimum contribution will be increased from £50 to £60 for parents whose student children began their courses before the 1988–89 academic year (and whose grant is assessed on scale 1) and from £37 to £45 where students first entered higher education in 1988–89 or later (and whose grant is assessed accordingly to scale 2).
(4) The contribution payable may be less than the amounts shown on the scale, particularly at its top end and where the contribution is in respect of one award-holder only. This will depend on the amount of grant against which the contribution has to be set and whether any of the assessed contribution is offset by allowances for other dependent children.