Student Allowances (Hansard, 18 December 1987)

§ Mr. Michael Forsyth

I propose to increase the main rates of allowances by 4 per cent. in the 1988–89 academic year. The new rates for Scottish students will be as follows (rates for 1987–88 are shown in brackets):

	£
Student in the parental home	1,500	(1,442)
Student living away from home
—outside London	1,990	(1,915)
—in London	2,365	(2,273)

Students in receipt of maintenance allowances will be eligible for reimbursement of travelling expenses in excess of £54 included in the main rates.

While the main rates of allowance have been increased by 4 per cent., in line with inflation, the threshold for parental contributions, and the points on the contribution scale at which the rate of contribution changes, will be raised at the higher rate of about 6.5 per cent. on average. Residual income is broadly the parents' gross income after deduction of those allowances permitted for income tax purposes. Parents earning a residual income of less than £9,900 will not be assessed for a contribution. The minimum contribution will be increased from £40 to £50 and the maximum, which in general applies only to parents with more than one child in receipt of grant, will rise from £4,600 to £4,900.

The full scale is as follows:

820W

Residual Income £	Contribution £
9,900	50
10,000	64
11,000	207
12,000	350
12,600	435
12,700	455
12,800	475
12,900	495
13,000	515
14,000	715
15,000	915
16,000	1,115
17,000	1,315
18,000	1,515
18,400	1,595
18,500	1,620
19,000	1,745
20,000	1,995
21,000	2,245
22,000	2,495
23,000	2,745
24,000	2,995
25,000	3,245
26,000	3,495
27,000	3,745
28,000	3,995
29,000	4,245
30,000	4,495
31,000	4,745
31,620	¹4,900
¹ Maximum.

Notes:

1. For 1988–89 the level of contribution will be assessed at £1 in £7 for residual incomes from £9,900 to £12,600; then £1 in £5 to £18,400; and £1 in £4 thereafter. (In 1987–88 it is assessed at £1 in £7 for residual incomes from £9,300 to £11,800; then £1 in £5 to £17,300; and £1 in £4 thereafter.)

2. The contribution payable may be less than the amounts shown on the scale, particularly at its top end and where the contribution is in respect of one award-holder only. This will depend on the amount of grant against which the contribution has to be set and whether any of the assessed contribution is offset by allowances for other dependent children.