§ Mr. Andrew F. Bennettasked the Secretary of State for Education and Science if he will make a statement on student grants.
§ Mr. WaldenI refer the hon. Member to the reply given today by my right hon. Friend to the hon. Member for Cambridge (Mr. Rhodes James).
§ Mr. Rhodes Jamesasked the Secretary of State for Education and Science if he will make a statement about levels of students' grants and parental contributions for 1987–88.
§ Mr. Kenneth BakerSubject to Parliament's approval of the necessary regulations the main rates of student grant will be increased by 3.75 per cent., in line with the forecast rise in the retail price index. The new rates for England and Wales will be as follows (rates for 1986–87 are shown in brackets):
Undergraduate Postgraduate £ £ Hall or lodgings (i) London 2,330 (2,246) 3,492 (3,366) (ii) Elsewhere 1,972 (1,901) 2,859 (2,756) Parental home 1,567(1,510) 2,075 (2,000) The threshold for parental contribution, and the transitional scale points, will be raised on average by about 6.75 per cent. Parents earning a residual income of less than £9,300 will no longer be assessed for a contribution. The minimum parental contribution will be raised from £20 to £40, and the maximum for parents with more than one child in receipt of grant, from £4,300 to £4,600. The full scale is as follows:
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Parental contribution scale 1987–88 Residual income Contribution £ £ 9,300 40 9,400 54 9,500 68 10,000 140 11,000 282 11,800 397 11,900 417 12,000 437 13,000 637 14,000 837 15,000 1,037 16,000 1,237 17,000 1,437 17,300 1,497 17,400 1,522 17,500 1,547 18,000 1,672
Residual income Contribution £ £ 19,000 1,922 20,000 2,172 21,000 2,422 22,000 2,672 23,000 2,922 24,000 3,172 25,000 3,422 26,000 3,672 27,000 3,922 28,000 4,172 29,000 4,422 29,712 14,600 1 Maximun. Notes:
- 1. For 1987–88 the rate of contribution is assessed at £1 in £7 for residual incomes from £9,300 to £11,800; then £1 in £5 to £17,300; then £1 in £4 in £4 thereafter. (In 1986–87 the rate of contribution was assessed at £1 in £7 from £8,700 to £11,100; then £1 in £5 to £16,200; then £1 in £4 thereafter.
- 2. The contribution payable may be less then the amounts shown on the scale, particularly at its top end. 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 allowance for other dependent children.