Student Grants (Hansard, 19 February 1998)

§ Dr. Howells

The reform of student support arrangements will require some changes to the existing arrangements for assessment and administration carried out by local education authorities in respect of new entrants to higher education.

For the academic year 1998–99, new entrants will be liable to contribute to tuition fees. Local education authorities will assess the support from public funds for fees and how much maintenance grant is payable, taking account of the students' own income and that of their parents or spouse. The Mandatory Award Regulations to be laid in due course will set out the relevant conditions. Local education authorities will pay the fee support direct to the higher education institution and will pay any maintenance grant direct to the student in the same way as now. Where the applicant is an EU national seeking assistance with fees only, the Department will assist his authority in making the assessment in 1998–99 and from 1999–2000 will be directly responsible for providing assistance in accordance with regulations to be laid in due course.

For the academic year 1999–2000, new students and those who started in 1998–99 will receive support for living costs solely through loans which will be partly income-assessed. These arrangements will be administered by a scheme involving local education authorities, the Student Loans company and a central unit within the Department. Local education authorities will have an important role in determining the eligibility of `home' applicants for fees, loans and grants and for carrying out the means test. I am planning to review the current means testing arrangements to allow the system to be simplified wherever possible.

A detailed review will look at the best way of administering higher education student support in the long term. This review is due to be completed in 2000 once the new system of HE student support has bedded down.