HC Deb 29 November 1983 vol 49 cc453-4W
Mr. Rhodes James

asked the Secretary of State for Education and Science if he will make a statement about expenditure on mandatory awards over the next three years.

Sir Keith Joseph

There will be an increase in the previously planned level of spending on these awards in the next three years as a result of larger numbers of students. These are likely to take the age participation rate, which is already at a record level, beyond 14 per cent. The main rates of grant have been announced for 1984. The parental contribution scale will be adjusted upwards in line with earnings, but contributions from those in the middle and upper reaches of the scale will be increased from 1984, when the minimum award will also be halved. Details of the proposed contribution scale for 1984 are as follows.

The combined effect of these and other changes will be a small increase in expenditure on awards over the next three years compared with our previous plans. Taken as a whole, they should allow us to meet the likely demand for higher education from those qualified for it without hardship to them or to their parents.

Parental Contribution Scale 1984–85
Residual Income 1984–85 Contribution
£ £
7,100
7,200
7,400
7,600 20
7,800 48
8,000 77
8,200 105
8,400 134
8,600 162
8,800 191
9,000 220
9,200 248
9,400 277
9,600 305
*9,700 320
9,800 336
10,000 370
11,000 536
12,000 703
13,000 870
14,000 1,036
15,000 1,203
16,000 1,370
17,000 1,536
18,000 1,703
19,000 1,870
20,000 2,036
21,000 2,203
22,000 2,370
* Point at which the rate of contribution changes from £1 in £7 to £1 in £6.

Notes:

1. For 1984–85 the rate of contribution is assessed at £1 in £7 for residual incomes from £7,600 to £9,700; then £1 in £6 thereafter. In 1983–84 the rate of contribution was assessed at £1 in £7 for residual incomes from £7,100 to £9,000; then £1 in £8 to £14,300; then £1 in £13 thereafter.

2. The contribution payable may be less than the contribution assessed in accordance with this scale depending on the amount of grant against which it has to be set, the impact of the minimum award and whether any of the assessed contribution is offset by allowances such as those for other dependent children.