§ Mr. WillisTo ask the Secretary of State for Education and Employment what estimate he has made of the annual saving to his Department from the abolition of mandatory student grants; and if these sums will be applied to higher education. [12688]
§ Dr. HowellsUnder the proposals announced by my right hon. Friend the Secretary of State on 23 July, mandatory student grants will be replaced with increased loans. In the short term, therefore, public expenditure on student support will not be reduced and there will be no savings on the basis of current accounting rules. Savings will be realised in the longer term as graduates begin to 679W make repayments and will be used to improve quality, standards and opportunities for all in further and higher education.