HC Deb 12 July 1976 vol 915 cc38-9W
Dr. Hampson

asked the Secretary of State for Education and Science what savings will be made in net terms by all the changes which he announced in his reply to the hon. Member for Newham, South (Mr. Spearing) on 5th July.

Mr. Gerry Fowler

About £28 million in 1977–78 financial year at 1975 public expenditure survey prices.

Dr. Hampson

asked the Secretary of State for Education and Science if he will confirm that further savings, amounting to £42 million, will be found from tuition fees in the financial year 1978–79.

Mr. Gerry Fowler

I would expect to find an additional £14 million savings—at 1975 survey prices—in the full financial year 1978–79, over and above those achieved in 1977–78, of which a substantial amount would flow from the proposals announced on 5th July.

Dr. Hampson

asked the Secretary of State for Education and Science if he will explain fully how his changes in the payment of fees for home students will reduce the overall burden on the rates.

Mr. Gerry Fowler

The details will depend upon the consultations with the local authority associations. But under the arrangements which we have proposed to them, fees for home and overseas students would represent a higher proportion of the total cost of education provision than at present; and, in so far as the awards are mandatory, 90 per cent. of their cost falls on the Exchequer. While there would be an increase of rate expenditure on account of the remaining 10 per cent. of the fees of university students receiving local education authority awards, this would be more than offset by the savings in rate expenditure at local authority institutions resulting from the higher fees and somewhat reduced student numbers, together with the 90 per cent. Exchequer grant in respect of mandatory award holders at these institutions. The overall effect of the changes should be to reduce rate expenditure in this area in 1977–78 somewhat below what would otherwise have been required in that year.

Dr. Hampson

asked the Secretary of State for Education and Science if he will produce guidelines on future fees policy to give assurances to overseas students and British firms which are supporting students on courses of more than a year's duration.

Mr. Gerry Fowler

My right hon. Friend will be making a further statement after consultations with the University Grants Committee and the local authority associations.