Student Grants (Hansard, 19 April 1978)

§ Mrs. Shirley Williams

My right hon. Friend the Secretary of State for Scotland and I have now completed a review of student grants. We have this year been able to go beyond a simple cost of living adjustment, both in the levels of grant and in the parental contribution scales.

For undergraduates, the main rates of grant for the academic year 1978–79 will be increased as follows: for students living away from home in London from £1,145 to £1,315; for students living away from home other than in London from £1,010 to £1,100; and for students living at home from £785 to £870. As a result the value of the grant in 1978–79 will be broadly comparable to what it was for the academic year 1974–75 following the last full review. Supplementary grants will also be increased.

The scales of parental contribution have been revised to take account both of changes in average earnings and of the need to compensate students' parents for the further reduction in their child tax allowances consequent on the second stage of the introduction of the child benefit scheme. As a result of these basic adjustments contributions will be reduced throughout the scale. In addition to these changes we have 206W reduced the parental contribution in real terms by an amount which represents an average of about £27 for each student whose grant is subject to a contribution. Taking account of all these changes, the starting point for parental contributions rises from a residual income of £3,200 to £3,800. The minimum grant will be increased from £80 to £200.

Beyond these increases, which should benefit students and their parents alike, we have decided it is not possible to introduce any other major improvements in the arrangements this year. There will, however, be minor improvements.

I hope to make an announcement about grants for postgraduates before very long.

Copies of a statement giving full details are available in the Library of the House.