Student Allowances (Hansard, 19 December 1989)

§ Mr. Lang

I propose to increase the main rates of allowances by 5 per cent. in the 1990–91 academic year. In addition, I propose to increase the differential in the rate paid to students studying in London. The new rates for Scottish students will be as follows (rates for 1989–90 are shown in brackets):

	£	(£)
Student in the parental home	1,660	(1,575)
Student living away from home
outside London	2,200	(2,090)
in London	2,780	(2,585)

Students in receipt of maintenance allowances will be eligible for reimbursement of travelling expenses in excess of the £60 included in the main rates.

The threshold for parental contributions, and the points on the contribution scales at which the rate of contribution changes, will be uprated to reflect the movement of earnings. Parents whose residual income is below £11,500 will not be assessed for a contribution.

The full contribution scales for session 1990–91 are set out in the table.

	Contribution Scale
Residual Income	Scale 1	Scale 2
£	£	£
11,500	60	45
12,000	131	98
13,000	274	206
14,000	417	313
14,700	517	388
15,000	577	433
16,000	777	583
17,000	977	733
18,000	1,177	883
19,000	1,377	1,033
20,000	1,577	1,183
21,000	1,777	1,333
21,600	1,897	1,423
22,000	1,997	1,498
23,000	2,247	1,686
24,000	2,497	1,873
25,000	2,747	2,060
26,000	2,997	2,248
27,000	3,247	2,435
28,000	3,497	2,623
29,000	3,747	2,810
30,000	3,997	2,998
31,000	4,247	3,185
32,000	4,497	3,373
33,000	4,747	3,560
34,000	4,997	3,748
35,000	5,247	3,935
36,000	5,497	4,123
37,000	5,747	4,310
37,210	¹5,800	4,350
38,000	—	4,498
39,000	—	4,685
40,000	—	4,873
41,000	—	5,060
42,000	—	5,248
43,000	—	5,435
44,000	—	5,623
44,946	—	¹5,800

148W

¹ Max

Notes:

1. The second parental contribution scale was introduced following the announcement on 15 March 1988 that tax relief on new non-charitable deeds of covenant would cease; it applies primarily to students who first entered higher education in session 1988–89 or later. The contributions assessed on scale 2 are 25 per cent. less than those on scale 1.

2. Contributions will rise with residual income, as follows:

Income	Scale 1	Scale 2
From £11,500 to £14,700	By £1 in £7	As in Scale 1, but reduced by 25 per cent.
From £14,701 to £21,600	By £1 in £5
From £21,601	By £1 in £4

3. The contribution payable may be less than the amounts shown in the relevant table, particularly at the top of the scale where the contribution is in respect of one award holder only. It will depend on the level of grant against which the contribution is to be set and whether or not any of the assessed contribution is itself offset by allowances for other dependent children.