§ Mr. BurtTo ask the Secretary of State for Education and Science if he will publish the rates of undergraduate student grants and parental contributions for 1990–91.
§ Mr. MacGregorSubject to Parliament's approval of the necessary regulations, the main rates of mandatory grant for undergraduate students will be increased in ale 1990–91 academic year by 5 per cent. for those studying outside London and for those who study from their parents' home. For those studying in London the main rate will be increased by 7.4 per cent. in recognition of their higher living costs. The new rates, which apply to students from England and Wales, and will be supplemented by the top-up loan facility subject to the enactment of the legislation now before Parliament, will be as follows (1989–90 rates are shown in brackets):
£ £ Halls or Lodgings (i) London 2,845 (2,650) (ii) Elsewhere 2,265 2,155 Parental home 1,795 (1,710) For most students, the 1990–91 main grant and full-year loan together will amount to some 25 per cent. more than the 1989–90 grant alone.
Rates of grant for supplementary allowances, and for postgraduates, will be announced later.
Residual income will be retained for the time being as the basis for assessing parental contributions. Consultations revealed divided views on the proposal in the White Paper "Top-Up Loans for Students" (Cm. 520), to move to a gross income basis, and further work would be needed to resolve some practical difficulties. The matter will be kept under review. Meanwhile, the threshold for parental contributions, and the points on the contribution scale at which the rate of contribution changes, will be uprated in 1990–91 to reflect the movement of earnings. Parents whose residual income is below £11,500 will not be assessed for a contribution.
The full parental contribution scales for 1990–91 are as follows:
221W
Residual Income Assessed contributions £ Scale 1 £ Scale 2 £ 11,500 60 45 12,000 131 98 13,000 274 206
Residual Income Assessed contributions £ Scale 1 £ Scale 2 £ 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 max 5,800 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 max 5,800 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. Scale 1 applies to parents whose student children began their courses before the 1988–89 academic year, and Scale 2 where students first entered higher education in 1988–89 or later. In 1990–91 over 90 per cent. of assessments will be at the Scale 2 rates.
2. For 1990–91 the level of contribution will be assessed as follows:
Residual income Scale 1 Scale 2 From £11,500 to £14,700 £1 in £7 £1 in £9.33 From £14,701 to £21,600 £1 in £5 £1 in £6.66 From £21,601 £1 in £4 £1 in £5.33 3. The maximum contribution, which applies to parents with more than one child holding an award, will rise from £5,300 to £5,800. The minimum contribution will remain at £60 on Scale 1 and £45 on 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.